Ares signals appetite for larger PE platform amid acquisition speculation
Ares Management is open to expanding its presence in private equity through acquisitions, with chief executive Michael Arougheti indicating the alternative asset manager would benefit from a larger buyout business if the right opportunity emerges, according to a report by Reuters.
Ares Management is considering expanding its private equity operations, according to chief executive Michael Arougheti. In an earnings call, Arougheti stated that the alternative asset manager would likely benefit from a larger buyout business if the right opportunity arises, provided the transaction offers strategic, cultural, and financial advantages.
This comes after rumors that Ares, managing about $671 billion in assets under management, had talks with middle-market buyout firm Leonard Green & Partners, which oversees roughly $85 billion. Arougheti emphasized that any acquisition must enhance the firm's overall business, generate attractive economics, and align culturally with Ares' existing platform.
While Ares sees the strategic rationale for expanding its private equity capabilities as compelling, the chief executive stressed that valuation discipline remains crucial. This declaration underscores Ares' ultimate goal of broadening its platform beyond its primary private credit business. With a diverse portfolio encompassing credit, real estate, infrastructure, and private equity, Ares is one of the world's leading alternative investment managers.
The company has identified retirement savings vehicles, an area with growing allocations to private markets, as a significant long-term growth opportunity.
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