Private-Equity Manager Ares Files For IPO

Apr 1 2014 | 1:45pm ET

Private-equity firm Ares Management is set to become the next alternative investments manager to go public.

The Los Angeles-based firm filed for an initial public offering with the Securities and Exchange Commission yesterday. Ares will list on the New York Stock Exchange.

When it goes public, Ares will become the first alternatives manager to do so since the Carlyle Group raised $671 million two years ago.

It is unclear how much Ares plans to seek in its IPO, or when exactly it will occur. The firm, which manages about $74 billion, said it would raise up to $100 million, but such initial figures are usually revised upward nearer to the offering date.

Ares said it would use the proceeds of the IPO to buy shares from its current owners, to pay down debt and to fund expansion. Among Ares’ owners are the Abu Dhabi Investment Authority and insurer Alleghany Corp., which bought a 20% stake and 6.25% stake, respectively, in 2007 and last year.

In its filing, Ares said that its economic net income dropped 18.5% to $329 million last year, while distributable earnings rose 1% to $306 million.


In Depth

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

CAIS: How Technology is Disrupting the Alternative Investment Industry

Nov 7 2017 | 5:35pm ET

If there’s one thing that alternative investment professionals can agree on, it...