Ares Management Reports Robust Direct Lending Origination in Third Quarter 2025

U.S. Direct Lending Activity Highlights Steady Growth for Ares Management

Ares Management Corporation (NYSE:ARES) announced substantial U.S. direct lending commitments during the third quarter of 2025, underscoring continued vigor in the private credit market. The firm reported approximately $15.2 billion in new direct lending commitments across 88 transactions in the quarter ending September 30, 2025. This quarterly performance contributes to a significant $49.3 billion in direct lending commitments across 329 transactions over the trailing 12-month period. These figures highlight Ares Management's active role as a prominent lender in the burgeoning direct lending landscape.

Detailed Origination Across Diverse Sectors

The third quarter saw Ares Management facilitate numerous senior secured credit facilities, supporting both acquisitions and growth initiatives for a range of companies. Notable deals included financing for AeriTek Global, Dun & Bradstreet (DNB), Invited (f/k/a ClubCorp), Leaf Home, Liquid Environmental Solutions, Merit Financial Advisors, Stout, and The Triumph Group. For instance, Ares acted as administrative agent and joint lead arranger for a senior secured credit facility to support Clearlake's acquisition of Dun & Bradstreet. Similarly, the firm provided financing for Goldman Sachs Alternatives' acquisition of Liquid Environmental Solutions and Warburg Pincus and Berkshire Partners' acquisition of The Triumph Group. These transactions reflect a broad engagement across various industries and support for strategic corporate activities, including significant M&A deals. Merit Financial Advisors, an advisory platform with over $20 billion in assets under management (AUM), also received financing for its continued growth plans.

Direct Lending's Expanding Role in Private Credit

The consistent origination activity by Ares Management aligns with the broader expansion of the private credit market. By 2025, the global private credit market reached approximately $3.0 trillion, with direct lending dominating, representing about 50% of private credit AUM, or roughly $1.5 trillion. U.S.-based direct lending funds are estimated to have deployed approximately $500 billion in new loans in 2025, marking an estimated 11% year-over-year increase. This robust growth indicates a sustained shift in corporate financing, with institutional investors allocating, on average, 30% of their private credit portfolios to direct lending in 2025. The sector's appeal is further bolstered by competitive returns, with the average yield for direct lending portfolios climbing to 9.0%, outperforming traditional fixed-income benchmarks by approximately 220 basis points. Ares Management's substantial commitments are a testament to this expanding market, where its global platform manages over $595 billion in assets as of September 30, 2025.

Implications for Corporate Finance and Investor Portfolios

The sustained high level of direct lending activity, as exemplified by Ares Management's Q3 2025 figures, suggests several key implications. For corporations, direct lending offers a flexible and often quicker alternative to traditional bank financing, particularly for M&A-driven growth. The significant M&A deals observed in 2025, such as ExxonMobil's acquisition of Pioneer Natural Resources and the subsequent ExxonMobil-Chevron merger, although larger in scale, contribute to an environment where strategic acquisitions and growth initiatives drive demand for capital, much of which is met by private credit providers. For investors, the attractive yields and diversification benefits continue to draw capital into direct lending funds. The sector's ability to support complex transactions and growth strategies reinforces its foundational role in the evolving financial ecosystem.

Outlook: Continued Momentum in Private Credit

Looking ahead, the momentum in direct lending is expected to continue. Factors such as ongoing M&A activity, the demand for flexible financing solutions from middle-market companies, and the attractive risk-adjusted returns for institutional investors are likely to sustain growth in this segment. Ares Management, with its substantial AUM and consistent origination, is well-positioned to capitalize on these trends. Market participants will monitor further quarterly reports for indications of sustained deal flow and any shifts in capital deployment strategies within the increasingly important private credit sector.