* Ares on track for record year of fundraising, CEO

Arougheti says

* Private credit behemoth logs record $30 billion

fundraise in Q1

* Ares sitting on record investment pipeline

* Uninvested capital swells to $158 billion

(Adds analyst comment in paragraph 8, deal background in

paragraph 13)

By Arasu Kannagi Basil and Pritam Biswas

May 1 (Reuters) - Ares Management ( ARES ), one of the

biggest names in private credit, reported record first-quarter

fundraising of about $30 billion on Friday, a sign that investor

appetite for the asset class continues to remain strong.

The multi-trillion-dollar private credit sector has found

itself in the middle of a barrage of negative headlines in

recent months, drawing intense scrutiny to the industry.

While fundraising in the private wealth channel has slowed

across the industry, analysts expect overall fundraising to be

strong for Ares given its institutional strength.

"We are on track for another record year of fundraising as

we continue to see broad-based investor demand across our

platform. We also continue to see strong fundamental performance

across our investment portfolios despite the volatile market

environment," CEO Michael Arougheti said in a statement.

Over the years, Ares has broadened its investor base, with

the number of direct institutional clients surging about 50%

from 2022 to 2025.

Institutional investors such as pension funds typically

commit money for longer periods. They also tend to be more

patient and predictable compared to retail investors during

periods of volatility.

"Ares results highlight the strength of its franchise which

should drive a positive reaction in the shares given resilient

results despite continued negative sentiment around private

credit," RBC analyst Bart Dziarski said.

Shares of the company rose 2% in light premarket trading.

The stock has slipped 27.4% so far this year.

While Ares invests across asset classes such as real estate,

private equity, and infrastructure, the alternative asset

manager is best known for its strong presence in the credit

landscape.

Its credit segment generated $20.4 billion in capital in the

quarter, while the real assets division drew $6.2 billion.

Assets under management jumped 18% to $644.3 billion from a

year earlier. Ares had set a target of surpassing $750 billion

by 2028.

Ares completed the acquisition of London-based systematic

fixed income manager BlueCove in February, boosting its assets

under management by $5.5 billion.

RECORD INVESTMENT PIPELINE

Ares has a record investment pipeline, finance chief Jarrod

Phillips said, adding that it was well-positioned to invest

capital opportunistically and meet its financial targets for

2026.

The firm ended the quarter with $158.1 billion in uninvested

capital, up 11% from a year ago.

Ares deployed $32.3 billion of capital in the quarter, most

of it dedicated to U.S. and European direct lending, real estate

and alternative credit strategies.

As it invests available capital, Ares starts earning fees on

the AUM, further boosting profit.

A huge chunk of Ares' earnings comes from the fees its earns

on assets it manages, providing a more stable and predictable

stream of income even when markets are turbulent.

Fee-related earnings jumped 26% to $464.4 million in the

quarter from a year ago.

After-tax realized income was $452.4 million, or $1.24 per

share, in the three months ended March 31, compared with $381.4

million, or $1.09 per share, a year earlier.