Ares CEO Arougheti on Private Credit, Sports Investing

Summary

Ares Management CEO Michael Arougheti discusses private credit stress, asserting it is exaggerated and tied to a small segment of the market. He also comments on private equity transition, AI data center capital cycles, and the growing opportunity in sports investing. The conversation covers redemption psychology, leverage in AI infrastructure, and professional ownership of sports assets.

• Arougheti says private credit stress is limited to illiquid funds making up 10-15% of the market.
• He argues private equity is not broken but undergoing a transition from a low-rate environment.
• AI data center capex is equity-driven by hyperscalers, not overlevered, and faces capital constraints.
• Arougheti sees a huge opportunity in sports investing through professional ownership and modernization.
• He emphasizes that private credit performance is delivering expected outcomes despite redemption headlines.
• The CEO highlights Ares' own growth of 25-30% year-over-year as a sign of institutional demand.