CNBC Television · Oct 29, 2026
With Michael Arougheti, Co-founder and CEO, Ares Management
Michael Arougheti, co-founder and CEO of Ares Management, told CNBC that Ares raised $31 billion in the third quarter — a record pace — even as its credit deployment fell 33% year over year. The gap, he said, comes down to selectivity in a muted M&A market, not weakening demand. Asked about growing anxiety over private credit, Michael pushed back directly on the idea that trouble is building underneath the asset class.
"You can't really find anybody... saying there are credit issues in the system." — Michael Arougheti
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Here are the 2 takeaways that matter.
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Key Takeaways
Ares raised $31B in Q3, a record pace, while credit deployment fell 33% year over year
Michael attributed the drop to muted M&A activity and the firm's own selectivity, with Q4 conversion already improving
Michael rejects the idea that credit quality is deteriorating
Nonaccruals around 2%, loan-to-value in the mid-40s, interest coverage of 2 to 2.5 times
1. Record Fundraising
Michael said Ares raised $31 billion in the third quarter, a record pace for the firm, even as credit deployment fell 33% year over year.
Global deal pipelines are at record highs, and Q4 conversion is already improving
"Global pipelines... are sitting at record highs." — Michael Arougheti
He attributed the deployment gap to muted M&A activity and the firm's own selectivity about which deals to fund, rather than to any weakening in demand for Ares' capital.
