Ares Management Corporation is a global alternative investment manager operating three integrated businesses across credit, private equity and real estate. In 1997, Ares was founded by a veteran team of investment professionals to pursue investment opportunities and deliver flexible capital across all levels of a company's structure and in different market environments. Ares is headquartered in Los Angeles, with additional offices across North America, Europe, and Asia. Ares reported over $149Bn in assets under management at the end of March 2020. Around 76% of assets are in the credit business, 12% are in private equity, and 9% is in real estate as of last quarter.
History
The firm was established in 1997. The firm's co-founders include Antony Ressler, Michael Arougheti, David Kaplan, John H. Kissick, and Bennett Rosenthal. In 2017, former Louisiana governor Bobby Jindal was hired as an operating adviser. It has several subsidiaries: Ares Capital Management LLC, an SEC-registered investment adviser, is the investment adviser to Ares Capital Corporation, a publicly traded closed-end, non-diversified specialty finance company that is regulated as a business development company, or a BDC, under the Investment Company Act of 1940. Ares Capital Corporation established in 2004, provides financing for middle market acquisitions, recapitalizations, and leveraged buyouts, mainly in the United States. Ares Management Limited, established in 2006 as an expansion of the Ares business platform into Europe, focused on Ares European capital markets operations. Ares Management Limited is authorized under the Financial Conduct Authority in the United Kingdom to provide certain investment advisory services. In May 2007, a minority interest in the firm was acquired by an international institutional investor, Abu Dhabi Investment Authority. The investor is experienced in alternative asset classes and did not acquire any voting or governance rights via its investment. In May 2014, Ares Management completed its initial public offering and is currently listed on the New York Stock Exchange. In April 2016, Ares Management closed its fifth global private equity fund, raising $7.85bn. In May 2016, Ares Management announced to buy asset management companyAmerican Capital; the US$3.4 billion deal closed in January 2017.
Operations
Business platforms
Ares’ investment activities are conducted through three business platforms:
Ares Credit Group manages liquid and illiquid credit strategies across the non-investment grade credit universe, with approximately $60.0 billion in assets under management as of May 10, 2016. Credit strategies include corporate loans, high yield bonds, institutional credit, credit opportunities, special situations, asset-backed, direct lending in the U.S. and Europe. Ares’ U.S. corporate lending activities are primarily conducted through Ares Capital Corporation and a separate commercial finance business that provides asset-based and cash flow loans to small and middle market companies. Ares’ European direct lending platform focuses on self-originated investments in illiquid middle market credits across commingled funds, separately managed accounts, and joint venture lending programs.
Ares Private Equity Group makes opportunistic majority or shared-control investments, principally in under-capitalized middle market companies and manages investments in U.S. power and infrastructure assets in the power generation, transmission, and midstream sectors. It manages approximately $23.3 billion in assets under management through four corporate private equity commingled funds focused on North America and, to a lesser extent, Europe, one China growth fund and four commingled funds and six related co-investment vehicles focused on U.S. power and infrastructure assets as of May 10, 2016.
Ares Real Estate Group manages public and private equity and debt investments in real estate assets in North America and Europe. With approximately $10.2 billion in assets under management, the Group manages several investment vehicles including its publicly traded REIT, Ares Commercial Real Estate Corporation, U.S. and European real estate private equity commingled funds and real estate equity and debt separately managed accounts as of May 10, 2016.
