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: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...