Abstract In view of the recent increased interest in light-induced manipulation of magnetism in nanometric length scales this work presents metal clusters as promising elementary units for generating all-optical ultrafast magnetization. We perform a theoretical study of the opto-magnetic properties of metal clusters through ab-initio real-time (RT) simulations in real-space using time-dependent density functional theory (TDDFT). Through ab-initio calculations of plasmon excitation with circularly polarized laser pulse in atomically precise clusters of simple and noble metals, we discuss the generation of orbital magnetic moments due to the transfer of angular momentum from light field through optical absorption at resonance energies. Notably, in the near-field analysis we observe self-sustained circular motion of the induced electron density corroborating the presence of nanometric current loops which give rise to orbital magnetic moments due to the inverse Faraday effect (IFE) in the clusters. The results provide valuable insights into the quantum many-body effects that influence the IFE-mediated light-induced orbital magnetism in metal clusters depending on its geometry and chemical composition. At the same time, they explicitly demonstrate the possibility for harnessing magnetization in metal clusters, offering potential applications in the field of all-optical manipulation of magnetism.