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

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.