Ares Management (ARES): A Guide to the Global Investor
Ares Management Corporation: A Titan of Alternative Investments Shaping Global Markets
Ares Management Corporation (NYSE: ARES) has solidified its position as a global behemoth in the alternative investment landscape. With a formidable presence across credit, private equity, real estate, and infrastructure, Ares has become a go-to partner for investors seeking attractive risk-adjusted returns and for businesses in need of flexible capital solutions. This in-depth exploration will delve into the multifaceted world of Ares Management Corporation, examining its history, global footprint, business strategies, investment vehicles, and the factors that contribute to its enduring success. For anyone looking to understand the forces shaping modern finance, a deep dive into Ares is not just informative—it’s essential.
Company History: A Legacy of Growth and Strategic Acquisitions
Ares Management was founded in 1997 by a team of experienced investment professionals, including Antony Ressler, Michael Arougheti, David Kaplan, John H. Kissick, and Bennett Rosenthal. The firm was established with the vision of creating a leading alternative investment platform that could provide innovative and flexible capital solutions across various market cycles.
From its inception, Ares has demonstrated a consistent ability to grow both organically and through strategic acquisitions. Some of the key milestones in its history include:
2004: Ares Capital Corporation (NASDAQ: ARCC), a business development company (BDC) focused on direct lending to middle-market companies, completes its initial public offering (IPO). This was a significant step in establishing Ares’ leadership in the private credit market.
2007: Ares expands its credit group’s investment strategies into Europe, marking a key step in its global expansion.
2010: Ares Capital Corporation acquires Allied Capital, creating one of the largest BDCs in the market and significantly expanding its direct lending capabilities.
2012: The firm launches its first publicly traded funds for its Credit and Real Estate groups: Ares Dynamic Credit Allocation Fund (NYSE: ARDC) and Ares Commercial Real Estate Corporation (NYSE: ACRE).
2013: Ares acquires AREA Property Partners, a well-respected real estate private equity firm, which significantly bolsters its real estate investment platform.
2014: Ares Management completes its own IPO, listing on the New York Stock Exchange under the ticker symbol “ARES.”
2015: The acquisition of Energy Investors Funds (EIF) adds a leading asset manager in the U.S. infrastructure and power sector to the Ares platform.
2017: Ares Capital Corporation completes the acquisition of American Capital, Ltd., further solidifying its leadership position in U.S. middle-market direct lending.
2019: In a pioneering move for the alternative asset management industry, Ares converts from a publicly traded partnership to a C-corporation. The firm also launches Aspida Financial to expand its insurance platform.
2020: Ares acquires SSG Capital Holdings, a leading credit-focused alternative investment manager in the Asia-Pacific region, significantly expanding its presence in this critical market.
2021: Ares executes two major strategic acquisitions: Landmark Partners, a pioneer in the secondaries market, and Black Creek Group, a leading real estate investment management firm. These acquisitions launched Ares’ Secondaries Group and significantly enhanced its real estate capabilities, particularly in the industrial sector. The firm also launched Ares Wealth Management Solutions (AWMS) to cater to the individual investor market.
2022: Ares closes a strategic acquisition of AMP’s Infrastructure Debt platform, adding complementary infrastructure debt investment capabilities to its platform.
This history of strategic acquisitions and organic growth has transformed Ares into one of the most diversified and fastest-growing alternative investment managers in the world.
Global Reach: A Worldwide Network of Expertise
Ares Management Corporation’s global presence is a cornerstone of its success. Headquartered in Los Angeles, the firm has a vast network of offices across North America, Europe, and the Asia-Pacific region. As of the end of 2023, Ares had approximately 2,850 employees operating from more than 20 offices in over 10 countries.
This global footprint provides Ares with several key advantages:
Local Market Intelligence: Having teams on the ground in key financial centers around the world allows Ares to source unique investment opportunities and gain deep insights into local market dynamics.
Global Investor Base: A worldwide presence enables Ares to serve a diverse and growing base of institutional and retail investors from different regions.
Cross-Platform Collaboration: The global network facilitates collaboration between Ares’ different investment groups, allowing them to leverage each other’s expertise and relationships to create innovative investment solutions.
Initial Public Offering (IPO): A Milestone in Corporate Evolution
Ares Management, L.P. completed its initial public offering on May 2, 2014, listing its common units on the New York Stock Exchange under the ticker symbol “ARES.” The IPO price was set at $19.00 per common unit.
Going public was a significant milestone for Ares, providing the firm with several benefits:
Access to Permanent Capital: The IPO provided Ares with permanent capital to invest in its business and support its growth initiatives.
Enhanced Brand Recognition: A public listing increased Ares’ visibility and brand recognition in the global financial markets.
Greater Transparency: As a publicly traded company, Ares is subject to rigorous financial reporting and disclosure requirements, which provides investors with greater transparency into its operations and performance.
The successful IPO was a testament to the strength of Ares’ business model and its track record of delivering attractive returns for its investors.
Ares' Diversified Business Segments: Powering Investments Across the Spectrum
Ares’ investment activities are organized into five distinct but complementary business segments: Credit, Private Equity, Real Assets, Secondaries, and Ares Wealth Management Solutions. This diversified platform allows Ares to offer a wide range of investment solutions to its clients and to capitalize on opportunities across different market environments.
Credit Group
The Ares Credit Group is one of the world’s largest and most diversified credit managers, with a long and successful track record. The group manages a broad range of credit strategies across the liquid and illiquid credit spectrum, including:
Direct Lending: Ares is a pioneer and leader in direct lending, providing one-stop financing solutions to middle-market companies in the U.S., Europe, and Asia. Its flagship direct lending vehicle is Ares Capital Corporation (ARCC).
Liquid Credit: The liquid credit platform invests in a variety of publicly traded debt instruments, including syndicated loans and high-yield bonds.
Alternative Credit: This strategy focuses on less traditional credit investments, such as structured credit, and opportunistic credit.
APAC Credit: Through the acquisition of SSG Capital, Ares has a strong platform for credit investments in the Asia-Pacific region.
The Credit Group’s scale, expertise, and direct origination capabilities provide it with a significant competitive advantage in the private credit market.
Private Equity Group
The Ares Private Equity Group focuses on making control or significant influence investments in middle-market companies across North America, Europe, and Asia. The group’s investment strategies include:
Corporate Private Equity: This strategy focuses on buyouts and growth equity investments in companies in a variety of industries.
Special Opportunities: This strategy pursues investments in companies that are facing complex situations or are in need of operational or financial restructuring.
APAC Private Equity: The group has a dedicated team focused on private equity investments in the Asia-Pacific region.
The Private Equity Group leverages Ares’ deep industry expertise and value creation capabilities to help its portfolio companies grow and succeed.
Real Assets Group
The Ares Real Assets Group manages a comprehensive range of equity and debt strategies across real estate and infrastructure.
Real Estate: The real estate platform invests in a wide range of property types, including industrial, residential, office, and retail. It offers a variety of investment vehicles, including private funds, non-traded REITs, and a publicly traded mortgage REIT, Ares Commercial Real Estate Corporation (ACRE). The acquisition of Black Creek Group significantly enhanced Ares’ real estate capabilities, particularly in the industrial logistics sector.
Infrastructure: The infrastructure platform invests in a diverse portfolio of infrastructure assets, including transportation, energy, and digital infrastructure. It offers both equity and debt investment strategies. The acquisition of AMP’s Infrastructure Debt platform has further strengthened this business.
Secondaries Group
The Ares Secondaries Group was launched in 2021 with the acquisition of Landmark Partners. This group is a pioneer and innovator in the secondary market, with a long history of providing liquidity solutions to investors in private funds. The Secondaries Group invests across a range of alternative asset classes, including private equity, real estate, and infrastructure.
Ares Wealth Management Solutions (AWMS)
Ares Wealth Management Solutions (AWMS) was launched in 2021 to provide individual investors and their financial advisors with access to Ares’ institutional-quality alternative investment strategies. AWMS offers a suite of products designed to meet the needs of individual investors, including non-traded REITs and other private funds. Key products include the Ares Private Markets Fund (APMF).
Investment Vehicles: A Comprehensive Suite of Solutions
Ares offers a wide range of investment vehicles to meet the diverse needs of its investors. These vehicles can be broadly categorized as listed and non-listed.
Listed Vehicles
Ares manages several publicly traded vehicles that provide investors with liquidity and transparency:
Ares Management Corporation (NYSE: ARES): This is the publicly traded stock of the parent company.
Ares Capital Corporation (NASDAQ: ARCC): ARCC is the largest publicly traded business development company (BDC) in the U.S. It primarily invests in the debt and equity of private middle-market companies.
Ares Commercial Real Estate Corporation (NYSE: ACRE): ACRE is a publicly traded real estate investment trust (REIT) that originates and invests in a diversified portfolio of commercial real estate debt and equity investments.
Ares Dynamic Credit Allocation Fund (NYSE: ARDC): ARDC is a closed-end fund that invests in a dynamically managed portfolio of credit instruments.
Non-Listed Vehicles
Ares also offers a variety of non-listed vehicles, which are not traded on a public exchange. These vehicles are typically designed for institutional investors and high-net-worth individuals. Examples of non-listed vehicles offered by Ares include:
Non-Traded REITs: Ares offers non-traded REITs that invest in a diversified portfolio of commercial real estate properties.
Private Credit Funds: Ares manages a number of private credit funds that provide direct lending and other credit solutions to businesses.
Private Equity Funds: The Private Equity Group manages a series of private equity funds that invest in middle-market companies.
Infrastructure Funds: Ares has dedicated funds for both infrastructure equity and debt investments.
CION Ares Diversified Credit Fund (CADC): An interval fund that invests in a diversified portfolio of credit instruments.
A Closer Look at Ares' Funds: Driving Returns for Investors
Ares manages a wide array of funds across its various business segments. Here is a closer look at some of its key fund strategies:
Ares Capital Corporation (ARCC): As a BDC, ARCC’s primary investment objective is to generate both current income and capital appreciation through debt and equity investments. It has a diversified portfolio across various industries, including software & services, healthcare, and professional services.
Ares Commercial Real Estate Corporation (ACRE): ACRE’s strategy is to originate and manage a diversified portfolio of commercial real estate loans and other investments. It focuses on providing financing solutions for acquisitions, recapitalizations, and development projects.
Ares Private Markets Fund (APMF): This fund is designed for individual investors and provides access to a diversified portfolio of private equity investments, primarily through secondary market transactions.
Ares Strategic Income Fund (ASIF): This is another product for individual investors that seeks to generate income and capital appreciation by investing in a diversified portfolio of credit instruments.
Assets Under Management (AUM): A Testament to Investor Confidence
Ares’ assets under management (AUM) have grown at an impressive rate, reflecting the strong demand for its investment strategies and the confidence of its investors. As of early 2025, Ares had approximately $546 billion in AUM.
The firm’s AUM is well-diversified across its five business segments, which provides a stable and predictable stream of management fees. The breakdown of AUM by segment highlights this diversification, with the Credit Group being the largest contributor, followed by Real Assets, Private Equity, Secondaries and other strategic initiatives. This continued growth in AUM is a key driver of Ares’ financial performance and a strong indicator of its market leadership.
Strategic Partnerships: A Key to Success
Ares places a strong emphasis on building long-term, strategic partnerships with its investors, portfolio companies, and other market participants. The firm’s collaborative approach and its ability to provide a wide range of capital solutions have made it a preferred partner for many businesses and private equity sponsors. The leadership team’s extensive network and experience also play a crucial role in forging and maintaining these valuable partnerships.
Awards and Recognition: Acknowledging Excellence
Ares’ leadership and performance in the alternative investment industry have been consistently recognized by numerous industry publications and organizations. Some of its recent accolades include:
Private Debt Investor: Global Fund Manager of the Year, Lender of the Year, BDC of the Year.
Private Equity International: Lender of the Year in North America.
Infrastructure Investor: North American Fund Manager of the Year, Renewables Investor of the Year.
Great Place to Work: Certified in the US, UK, and India.
Forbes: Named as one of America’s Best Companies.
These awards are a testament to the quality of Ares’ investment platform, the expertise of its team, and its commitment to delivering outstanding results for its investors.
The People: The Driving Force Behind Ares' Success
Ares’ success is ultimately driven by its people. The firm has a team of approximately 2,850 dedicated and talented professionals with deep industry expertise and a commitment to excellence. Ares fosters a collaborative and entrepreneurial culture that encourages innovation and teamwork. The firm’s leadership team is comprised of its co-founders and a group of seasoned investment professionals with decades of experience in the alternative investment industry.
The Future of Ares Management Corporation
Ares Management Corporation has established itself as a true titan in the alternative investment industry. With its diversified platform, global reach, and a long track record of success, Ares is well-positioned for continued growth in the years to come. The firm’s focus on providing innovative and flexible capital solutions, its commitment to its investors, and its strong and experienced team are the key pillars of its enduring success. As the demand for alternative investments continues to grow, Ares Management Corporation is poised to remain at the forefront of the industry, shaping the future of global markets and delivering value for all of its stakeholders.
Ares Management Leadership & Teams
Michael Arougheti – Director, Co-Founder, Chief Executive Officer
David Kaplan – Co-Founder, Director and Partner
Jarrod Phillips – Partner, Chief Financial Officer
Bennett Rosenthal – Co-Founder
Naseem Sagati Aghili – General Counsel and Corporate Secretary
Raj Krishnan – Partner, Chief Investment Officer
Hillary Mow – Partner & Chief Operating Officer Global Client Solutions
Paul Brown – Managing Director
Bill Bumber – Managing Director
Andrew Kenzie – Managing Director
Nick McDearis – Managing Director
Ian Maccubbin – Managing Director
Joe Urciuoli – Managing Director
Andrew Chen – Managing Director
Dan Reilly – Managing Director
Steve Young – Managing Director
Tyler McConnell – Managing Director
Ryan Aluce – Managing Director
Dan Berger – Managing Director
Daniel Rosen – Managing Director
Ryan Schierberl – Managing Director
Mike Schoeller – Managing Director
Kristina Tunick – Managing Director
Doug Weeks – Managing Director
Sam Averbach – Managing Director
Sam Kupersmith – Managing Director
Tom Kazarian – Managing Director
David Galuski – Managing Director
Joseph Hill – Managing Director
Jonathan Cowan – Managing Director
Thaddeus Wilson – Managing Director
Nathan Brenneman – Managing Director
Scott Seager – Managing Director
Sara Lashatski – Managing Director
Faisal Tarazi – Managing Director
Cal NeSmith – Managing Director
Ron Wallach – Managing Director
Eric Wolff – Managing Director
Sandesh Hegde – Partner, Chief Information Officer
Headquarters: 1800 Avenue of the Stars, Suite 1400
Los Angeles, California 90067, USA
Phone: 310-201‑4100
Number of employees: Approx. 3,000
Website: www.aresmgmt.com