Ares Sells Stake For $375M

Jun 1 2007 | 11:27am ET

Ares Management is following in the footsteps of private equity brethren such as the Blackstone Group and the Carlyle Group in taking some cash off the table. The firm this week said it sold a minority interest to a “longstanding client” for up to $375 million.

But Ares’s management isn’t taking their newfound booty to the bank just yet. In fact, none of the proceeds from the sale will be paid to existing owners, according to the firm, which said that the new capital, along with available credit facilities, will be used to continue its global expansion. The firm counts such major institutional investors as the Canada Pension Plan Investment Board and California Public Employees' Retirement System among its clients.

"In this increasingly competitive investment environment, we believe that this additional capital better positions us for further growth and diversification, and serves the interests of investors in all of our complementary investment pools of capital" said Tony Ressler, a senior partner. "This is an exciting time in the development of Ares, as we are seeing significant benefits from our deal flow, due diligence and operational synergies from our three complementary lines of business."

Ressler and John Kissick, both former partners at Apollo Advisors, and Bennett Rosenthal, formerly from the global leveraged finance group at Merrill Lynch, founded Ares Management in 1997. Assets under management at Ares have grown from approximately $3 billion of committed capital five years ago to an expected $20 billion by the end of 2007.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note