Ares Management weighs minority deal with Copenhagen Infrastructure Partners

Ares Management Corp., a major private credit manager, is considering purchasing a minority stake in Copenhagen Infrastructure Partners (CIP), according to Bloomberg. This potential deal, if finalized, would mark Ares's expansion into the rapidly growing infrastructure sector, complementing its existing assets under management totaling $671 billion.

Ares has been evaluating this transaction for several months, but no agreement has been reached yet, and discussions remain confidential. The deal would bolster Ares's European presence, a strategic move as the region confronts a rising energy demand, driven by infrastructure development and industrialization. This move aligns with a broader trend seen among alternative asset managers, who are increasingly targeting real assets to diversify their portfolios, especially amid institutional investors consolidating capital with fewer managers.

By acquiring a stake in CIP, Ares would be able to tap into the demand for alternative credit and real asset strategies that are backed by hard collateral, providing investors with a hedge against inflation and market volatility. Copenhagen Infrastructure Partners, established in 2012 by Jakob Baruel Poulsen and three others following their split from Orsted A/S's offshore wind division, manages approximately €43 billion ($49.4 billion) across 15 funds.

Its portfolio includes significant greenfield energy projects such as the first commercial-scale offshore wind farm in the United States, utility-scale wind developments in Spain, and offshore wind pipelines in Ireland, Taiwan, and California. Infrastructure assets, like offshore wind farms, fiber-optic networks, and toll roads, typically generate steady returns through long-term, inflation-linked leases and operating contracts, making them an attractive option for money managers operating in an increasingly uncertain global capital market.