Private Credit Giants Plummet Amid AI Fears, Market Cap Shrinks by Over 3 Trillion Won in a Day

On Feb. 3, Ares Management Corporation (NYSE: ARES) shares plunged 10.12% on the New York Stock Exchange, closing at $131.60. Trading volume jumped to about 5.04 million shares, and its market capitalization fell to roughly $28.5 billion (about KRW 38 trillion), erasing approximately $2.6 billion (KRW 3.5 trillion) from the previous day.

The sell-off reflected investor concerns over slowing earnings at software and data service companies and AI-related risks, which dragged down private and alternative investment managers holding stakes in those firms. Alongside Ares, peers such as Apollo, Blue Owl, and Blackstone also saw steep declines. Ares is scheduled to release its fourth-quarter and full-year 2025 results before the market opens on Feb. 5, and CEO Michael Aroughetti will present at the Bank of America Financial Services Conference on Feb. 10.

With more than $500 billion in assets under management (AUM), Ares Management is a global leader in alternative investments. The firm has rapidly expanded its AUM by focusing on long-term capital strategies spanning private credit, real estate, infrastructure, and private equity. Recently, it has taken an aggressive stance on so-called “new economy” assets—such as North American logistics centers and a data center in Virginia—and is pursuing sizable private equity acquisition opportunities. Alongside Blackstone and Apollo, Ares is considered a driving force in the U.S. private credit and alternative investment markets.