The firm targets mission-critical software firms in regulated industries while acknowledging AI will create industry winners and losers.
Ares Management is maintaining investments in software ETFs (IGV) and (XSW) despite concerns over AI-driven disruption. The firm anticipates a bifurcated market, with clear winners and losers emerging as technology reshapes the sector.
Ares focuses on mission-critical software companies, particularly those in regulated industries, as part of its strategy. The firm also highlights opportunities in global data center development, driven by hyperscaler capital spending and rising demand for AI-supporting infrastructure.
Market volatility has benefited Ares through wider credit spreads, tighter documentation, and lower loan-to-values, making credit investments more attractive.