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How Ares is capitalizing on the ‘retail revolution’ in alternative assets

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How Ares is capitalizing on the ‘retail revolution’ in alternative assets


A version of this article appeared in CNBC’s Inside Alts newsletter, a guide to the fast-growing world of alternative investments, from private equity and private credit to hedge funds and venture capital. Sign up to receive future editions, straight to your inbox.

At Ares Management’s analyst day last month, the alternative asset manager quietly bumped up its three-year fundraising targets by 25%.

CEO Michael Arougheti told CNBC the change was due to better-than-expected momentum among individual, wealthy investors.

A recent survey by State Street found that the “retail revolution” will drive more than half of the private market flows in the next few years, a seismic shift from traditional sources of fundraising, which historically comprised institutional investors. Ares has been one of the key beneficiaries of the trend, having offered different types of vehicles for retail for more than two decades.

“What’s changed now is the quality of the product, the scale of the product – the investment that we’ve made in servicing the products,” Arougheti said in an interview.

Ares has 185 people in 10 offices globally who are working on product development and client education, he said. The firm already has more than $50 billion in assets under management from semiliquid vehicles targeted at retail. Arougheti said Ares’ market share of the retail segment is approaching 10%. 

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As the momentum for retail allocation in alternatives builds, some have cautioned that managers will funnel weaker deals toward individual investors, while reserving better assets for institutional investors. A recent paper by Harvard University found that there’s a performance disadvantage among funds sold more broadly, which the author said, “raises the possibility that products with poor performance are being channeled to investors who are less wealthy and less financially sophisticated.” 

“This narrative of weaker products being reserved for retail is just not true,” Arougheti said, adding that only the largest managers with the “highest quality” deals have enough scale to build their wealth platforms.

“We actually allocate our investments based on available capital, and so a lot of the investments that are finding their way into our institutional client portfolios are also finding their way into our wealth product,” Arougheti said. “And so they’re growing together.”

Ares had about $572 billion in assets under management as of the end of June, with two-thirds in credit. The firm has investments in more than 3,000 middle-market companies.

As for the value proposition – why individual investors would be so interested in alternatives right now, especially when public equities have returned so much in recent years – Arougheti said he thinks it’s a response to the increasing concentration in the liquid securities. 

“It’s actually pretty difficult to navigate a diversified portfolio in the public markets,” Arougheti said. “They’re looking for diversified and noncorrelated equity exposure, so private equity, real estate, etc.” 

The retail revolution that Ares is so bullish on doesn’t even account for the potential opening up of 401(k) retirement accounts for greater allocation toward alternatives, which could bolster the firm’s AUM targets even more. But Arougheti was somewhat skeptical about how quickly this market would move the needle for the industry. 

“I actually don’t think we’ll see change in behavior until there’s a change in regulation,” he said. 

“And the challenge with that – that sector – which is almost to the disadvantage of the end client, is it’s very, very fee-sensitive, and the narrow definition of fiduciary duty is cost, not what my unit of return delivered for that cost,” Arougheti said. “So, almost by definition, structurally, the market is not geared to alts, where fees are higher, but you pay for a much higher net return. So until you give the plan sponsors that comfort that they’re free of litigation risk for having not pursued their fiduciary duty, I think it’s going to be hard.” 

Still, as the industry evolves toward the masses, Arougheti encouraged a rethinking of the term “alternative.” 

“There’s nothing ‘alternative’ about what we do anymore, right?” he said. “The biggest misconception is that somehow or another, the private markets are creating investment exposures that otherwise wouldn’t exist, that we’re creating demand for capital that otherwise wouldn’t exist, as opposed to just understanding this is the natural evolution and innovation in the capital markets that we’ve seen for generations.” 



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Housebuilders in focus as firms set to reveal figures amid sluggish market

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Housebuilders in focus as firms set to reveal figures amid sluggish market



Housebuilding giants will be centre stage next week as Persimmon, Vistry and Taylor Wimpey publish trading updates that are expected to offer a fresh snapshot of the UK housing market.

The updates will be closely watched by Government ministers, who have pledged to accelerate housebuilding, and by investors looking for signs of recovery and the Budget’s impact on the housing market as the UK heads into 2026.

Persimmon is due to publish a full-year trading statement on Tuesday, while Vistry will announce its fourth quarter trading statement on Wednesday and Taylor Wimpey a trading statement on Thursday.

UK housebuilding activity has remained in its deepest slump since the start of the pandemic, while the wider construction sector has been in contraction for a year, according to the latest S&P Global UK construction purchasing managers’ index (PMI) published on Wednesday.

The index rose slightly to 40.1 in December from 39.4 in November, remaining well below the 50-point level that signals growth, marking the 12th consecutive month of declining activity.

Survey respondents cited fragile confidence, weak demand and clients delaying decisions ahead of the autumn budget.

Richard Hunter, head of markets at interactive investor, said Persimmon “has been hamstrung by the wider factors over which it has little influence, including but not limited to a faltering domestic economy”.

However, Aarin Chiekrie, an equity analyst at Hargreaves Lansdown, highlighted that Persimmon’s homes are typically valued around 15% below the new-build national average, which “offers some resilience to ride current market challenges” and should provide some relief on building cost pressures.

Meanwhile Vistry, formerly Bovis Homes, has benefited from supportive government policy towards affordable housing, with average weekly sales rates rising by 11% between July and early November compared to the previous year, according to Hargreaves Lansdown.

On Friday, figures release by HMRC revealed UK house sales were 8% higher in November than a year earlier, with around 100,350 homes changing hands, an indication of some optimism in the market.

Jason Tebb, president of OnTheMarket, said: “With the budget done and dusted, uncertainty at least has been removed and those who put their moves on pause are returning to the market, encouraged by lower mortgage rates from some of the big lenders, with others expected to follow.

“As January progresses, well-priced homes continue to attract interest.”



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US job creation in 2025 slows to weakest since Covid

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US job creation in 2025 slows to weakest since Covid


The number of jobs created in the US grew only modestly in December, as a weak year for the employment market in the world’s largest economy drew to a close.

Employers added 50,000 jobs in the final month of 2025, according to Labor Department data, which was fewer than expected. But the unemployment rate dipped to 4.4%.

Job gains last year were the smallest since 2020, when the Covid pandemic led to widespread cuts.

Businesses have been operating in an environment marked by US President Donald Trump’s dramatic policy changes, including tariffs, an immigration crackdown and cuts to government spending.

The US economy has held up in the face of these shifts, growing at an annual rate of 4.3% over the three months to September.

But the expansion – driven by steady consumer spending and a growth in exports – has not been accompanied by significant job creation.

On average, the US added just 49,000 roles per month in 2025, down from an estimated gain of two million a month the year before.

The Labor Department said the US also added 76,000 fewer new positions in October and November than previously estimated.

Retailers and manufacturers were among the sectors reporting losses last month, which were offset by hiring at health care employers, bars and restaurants.

The data underscores the mixed dynamics facing job-seekers in the US, where hiring has cooled markedly over the last year but fears of mass layoffs have not materialised.

The US Federal Reserve central bank has responded to the slowdown by cutting its key lending rate in hopes of giving the economy a boost, despite concerns that inflation is still bubbling.

But the central bank is divided about how much lower borrowing costs should go.

Analysts said the latest figures – which showed the jobless rate recovering to the 4.4% level where it stood in September – would do little to resolve those debates.

“Today’s report confirms what we think has been evident for some time—the labor market is no longer working in favour of job seekers,” said Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management.

But she added: “Until the data provide a clearer direction, a divided Fed is likely to stay that way. Lower rates are likely coming this year, but the markets may have to be patient.”



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Tara Sutaria’s Car Collection: Her Garage Worth Crores Will Leave You Shocked – Have A Look

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Tara Sutaria’s Car Collection: Her Garage Worth Crores Will Leave You Shocked – Have A Look


Tara Sutaria, the Bollywood star known for films like Student of the Year 2 and Marjaavaan, has built a strong career since her 2019 debut. She has steadily increased her earnings through films, brand endorsements, and other projects. As of 2025, her net worth is reportedly around Rs 25 crore (about $ 3 million USD).

She became well-known after her debut in Student of the Year 2 (2019) and later appeared in films such as Marjaavaan, Heropanti 2, and Ek Villain Returns. In addition to movies, Tara also earns from brand deals, public appearances, and her presence on social media.

Income Sources

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Most of Tara’s wealth comes from her film salaries and endorsement deals. She reportedly earns around Rs 1–3 crore per film role, depending on the project. Endorsements also add significantly to her earnings, with deals for beauty, fashion, and lifestyle brands.

Her annual income is estimated to be several crores of rupees, which has earned her popularity in the Bollywood industry.

Luxury Home in Mumbai

Alongside her earnings, Tara owns a luxury apartment in the upscale Pali Hill area of Mumbai. The neighborhood is known for its premium homes and celebrity residents.

(Also Read: Tara Sutaria-Veer Pahariya Break-Up Buzz: What We know So Far)

Car Collection

Tara’s car collection is one of the most discussed topics about her. During public appearances and airport visits, these luxurious cars have been captured on camera:


  • Mercedes-Benz GLS – a luxury SUV worth over Rs 1 crore.
  • Audi Q3 – a compact luxury SUV valued at around Rs 35 lakh.
  • She also reportedly owns a BMW X3 and Honda CR-V in her garage.

Lifestyle and Public Image

Tara Sutaria maintains a lifestyle that combines work and leisure. She often shares glimpses of her travels, fashion moments, and personal experiences on social media.

Recent Concert Controversy

She recently grabbed headlines after a moment at AP Dhillon’s Mumbai concert turned into a big drama. She joined the singer on stage for a performance, sharing hugs and smiles that went viral. Social media clips showed the unhappy face of her boyfriend Veer Pahariya who watched from the crowd. Fans wondered about that concert moment and shared thousands of reactions about her relationship.

Tara quickly cleared the air. She called out fake PR tricks trying to ruin her image and confirmed that there is nothing like the buzz spread on social media platforms. (Image Credits: Instagram/tarasutaria)



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