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

Fund Manager's Disease: Common Symptoms and Proposed Remedies

May 3 2016 | 6:11pm ET

The cadre of 25 research analysts at Murano Systems speaks with more than 150 investors...

Lifestyle

Point72's Cohen Donates $275M To Veterans Mental Health Network

Apr 6 2016 | 8:31pm ET

Billionaire hedge fund manager Steve Cohen has formed a non-profit aimed at treating...

Guest Contributor

Agecroft: Why NYCERS Should Reconsider Exiting All Hedge Funds

Apr 18 2016 | 5:51pm ET

The recent decision by the New York City Employment Retirement System to exit its...