Business
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%.
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.”
Business
Home Depot tops earnings estimates for the first time in a year as demand for projects remains muted
Home Depot on Tuesday posted a roughly 4% quarterly sales decline, as a sluggish real estate market and selective spending by homeowners continued to weigh on home improvement demand.
The company also stuck by the current fiscal year forecast that it shared in December at an investor day. It said it expects full-year total sales growth to range between about 2.5% and 4.5% and adjusted earnings per share to be between roughly flat and up 4% from $14.69 in the prior fiscal year. It expects full-year comparable sales growth, which takes out one-time factors like store openings and closures, to range from flat to up 2%.
Despite the fourth-quarter sales decline, Home Depot topped Wall Street’s revenue and earnings expectations for that period.
In an interview with CNBC, Chief Financial Officer Richard McPhail said U.S. consumers and the company have “been in a frozen housing environment for three years” – and there hasn’t been a meaningful thaw.
“What we’ve seen as an added pressure during the last year has been this increase in consumer uncertainty, a gradual decline in consumer confidence,” he said. “And so those are signs we’re watching.”
He said customers have told the company that they are concerned about housing affordability and job losses, dynamics that colored Home Depot’s outlook for the year.
Here’s what Home Depot reported for the fiscal fourth quarter of 2025 compared with Wall Street’s estimates, according to a survey of analysts by LSEG:
- Earnings per share: $2.72 adjusted vs. $2.54 expected
- Revenue: $38.20 billion vs. $38.12 billion expected
Shares rose about 2% in premarket trading on Tuesday, as Home Depot beat earnings expectations after missing estimates three quarters in a row.
Higher interest rates, lower housing turnover and economic uncertainty have challenged the company, as homeowners delay the pricier projects typically spurred by buying or selling a home.
As the Atlanta-based retailer waits for business to pick up, it laid off 800 employees and announced a five-day a week return-to-office policy in late January.
Yet some investors anticipate an inflection point could be coming for Home Depot, as mortgage rates moderate slightly. The average rate on a 30-year fixed mortgage fell to 5.99% on Monday, matching its lowest level since 2022, according to Mortgage News Daily.
Home Depot’s biggest selling season, springtime, is also ahead.
McPhail said Home Depot’s business was relatively stable throughout the year, including in the fourth quarter, when adjusting for storms. He said the company is gaining market share, even as the sector lags.
In the three-month period that ended Feb. 1, Home Depot’s net income fell to $2.57 billion, or $2.58 per share, from $3.0 billion, or $3.02 per share, in the year-ago period.
Revenue dropped from $39.70 billion in the year-ago period. The company said some decline was due to the most recent fiscal year 2025 having one fewer week. The additional week in the 2024 fiscal year contributed $2.5 billion in sales.
Comparable sales, an industry metric also called same-store sales, increased 0.4% in the fiscal fourth quarter across the business and 0.3% in the U.S.
Store transactions in the quarter across Home Depot’s website and stores dropped by 1.6% year over year, but average ticket rose 2.4% year over year. Big-ticket purchases, which the company defines as those over $1,000, were 1.3% higher than the year-ago period.
Some of those larger orders may reflect higher prices. McPhail said Home Depot has had “modest” price increases, though he declined to say which items and categories now cost customers more.
Higher tariffs have been one of the forces driving price hikes at retailers, including Home Depot. Companies now face a new landscape for import duties after the Supreme Court on Friday ruled that some of the Trump administration’s tariffs were illegal. Soon after the ruling, President Donald Trump said at a press conference that he would pursue alternative tariffs and proposed an across the board global tariff that he has since set at 15%.
He said Home Depot is “still in the middle of our analysis” after the Supreme Court ruling and latest proposed tariffs.
“Not all the information is out right now. Not all the language is final around what was announced,” he said. He added that Home Depot is “as well positioned as anyone to understand any impacts and manage through them.”
More than half of what Home Depot sells comes from the U.S., according to the company. It’s diversifying its imports, so that no single country outside of the U.S. represents more than 10% of the company’s purchases, McPhail said.
Though do-it-yourself buyers have cut back, the company still has a more stable business segment.
A growing business from home professionals, such as contractors and roofers, has boosted Home Depot’s overall business. It acquired SRS Distribution, a company that sells supplies to roofing, landscaping and pool professionals, for $18.25 billion last year in 2024 and bought GMS, a specialty building products distributor, for about $4.3 billion last year.
Pro sales were stronger than do-it-yourself sales during the fourth quarter, McPhail said, though he declined to share specific figures.
Home Depot opened 12 stores in fiscal 2025 and plans to open 15 additional stores this fiscal year.
The company also announced on Tuesday that its board of directors increased its quarterly dividend by 1.3%, or 3 cents, to $2.33 per share. It will be payable next month.
As of Monday’s close, Home Depot shares are down about 2% over the past year, but up about 10% year to date. That compares to the S&P 500’s nearly 14% gains over the past year and its roughly flat performance year to date.
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AI is reshaping work in India, with LinkedIn’s Skills on the Rise 2026 report highlighting demand for AI, Data, Cybersecurity, and leadership skills.
38% Indians Feel Unready for AI Shift: LinkedIn Reveals Top Emerging Skills
Artificial Intelligence is no longer a future trend — it is the present reality of work. From content creation to coding, hiring to sales forecasting, AI tools are now part of daily workflows across industries. As companies rapidly adopt automation and data-driven systems, professionals are feeling the pressure to keep up.
According to LinkedIn’s Skills on the Rise 2026 report, 38% of Indian job seekers say they feel unprepared for how fast technology is changing job requirements. At the same time, 74% of recruiters in India say it is harder than ever to find qualified talent. The gap is clear — and AI is at the centre of it.
The report highlights five major skill stacks that are shaping hiring trends: AI & Automation, Data & Analytics, IT & Cybersecurity, Business & Growth, and People & Leadership. What stands out is that companies are no longer looking for just technical specialists. They want “skill stackers” — professionals who combine AI fluency with data understanding, operational efficiency and strong collaboration skills.
AI & Automation roles are seeing strong demand, especially in Prompt Engineering, Workflow Automation, LLMOps and AutoML. But AI skills are not limited to tech jobs anymore. Marketing, HR, consulting and sales teams are also expected to use AI tools effectively.
Data roles are also expanding. Skills like querying, data analysis and data storytelling are becoming essential across engineering, IT and even non-tech functions like business development and education.
Cybersecurity and cloud infrastructure jobs are growing as companies scale digital systems. Threat detection, real-time monitoring and IT automation are emerging as critical capabilities.
At the same time, people skills are becoming a major differentiator. Collaboration, stakeholder management and project leadership are now as valuable as technical expertise.
Top emerging jobs linked to these trends include AI Specialist, Data Analyst, Cybersecurity Analyst, Cloud Consultant, Growth Strategist and AI-enabled Project Manager.
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February 24, 2026, 17:55 IST
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Prabhkiran Singh, Co-Founder and CEO of Bewakoof, steps down after 14 years, leaving a Mumbai slum startup turned national youth brand.
Prabhkiran Singh announces his decision to step down as CEO of Bewakoof after 14 years.
Prabhkiran Singh, Co-Founder and CEO of Bewakoof, has announced that he will be stepping away from the company he built over the past 14 years, marking the end of a long entrepreneurial chapter that began in 2011.
Bewakoof is a D2C fashion brand, which is popular among GenZ.
From Mumbai Slum Startup To National Youth Brand
In a LinkedIn post shared on Tuesday, Singh reflected on starting Bewakoof at the age of 21 with a fellow engineering graduate. The company was launched from a small room in a Mumbai slum at a time when direct-to-consumer (D2C) fashion brands were still a nascent concept in India and equity funding was limited.
He recalled personally handling early operations, including making T-shirt deliveries via local trains and responding to customer queries. Over time, the brand scaled significantly, growing from campus T-shirt sales to shipping over 20,000 products daily.
Bewakoof went on to become one of India’s prominent youth-focused fashion brands and, according to Singh, was the first D2C fashion startup in the country to cross ₹100 crore in revenue. The company also built a social media community of more than 6 million followers.
Backed By TMRW And Aditya Birla Group
Singh stated that the company is now “structurally ready” for its next phase, supported by a strong leadership team and the backing of TMRW and the Aditya Birla Group.
He added that after 14 years of building the business, he intends to prioritize his health, family, and personal goals. Singh will continue to lead Bewakoof until the end of March.
Calling the startup his “firstborn,” Singh said he will continue to support the brand from the sidelines as it works toward building a long-term legacy.
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February 24, 2026, 15:54 IST
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Home Depot tops earnings estimates for the first time in a year as demand for projects remains muted
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