Strategic Acquisition Cements Ares as a Leading
Global Real Estate Alternative Asset Manager, With Approximately
$96 Billion in Real Estate Assets Under Management
Adds Complementary Investment, Development and
Operating Capabilities in Key New Economy Sectors and Regions in
Industrial Real Estate and Digital Infrastructure
Transaction Structured for Leadership
Continuity and Alignment with Fund Clients and Ares Stockholders;
Substantial Majority of Total Consideration to GCP International
Management and Employees to be Paid in Ares Stock and Subject to
Long-Term Retention Mechanisms
Ares Management Corporation (NYSE: ARES) (“Ares”) announced
today that it has entered into a definitive agreement to acquire
the international business of GLP Capital Partners Limited and
certain of its affiliates, excluding its operations in Greater
China (“GCP International”), and existing capital commitments to
certain managed funds, in a transaction valued at $3.7 billion. The
consideration includes approximately $1.8 billion in cash and
approximately $1.9 billion in Ares Class A Common Shares, subject
to customary adjustments. The transaction is structured to include
long-term performance incentives designed to align GCP
International leadership with the interests of fund clients and
Ares stockholders. The acquisition will firmly establish Ares Real
Estate as one of the largest global vertically integrated platforms
and nearly doubles its assets under management (“AUM”) to
approximately $96 billion across North America, Europe, Asia and
Latin America. The transaction is expected to be modestly accretive
to Ares’ after-tax realized income per share of Class A and
non-voting common stock in the first full calendar year following
the acquisition with meaningfully higher accretion expected in
future years.
GCP International is a global alternative asset management firm
with $44 billion of AUM, as of June 30, 2024, and a long history of
building scaled platforms oriented to new economy sectors that
benefit from attractive, long-term secular trends, such as
industrial, digital infrastructure and self-storage. GCP
International has differentiated itself over time through its
vertically integrated platforms with significant local presence in
major geographies, including Japan, Europe and the U.S. It has
established itself as one of the leading industrial platforms in
emerging economies, such as Brazil and Vietnam. GCP International
is also gaining a reputation as a leading player in global data
center investing and operations with several large hyperscale
development projects in process, representing over 1GW of IT
capacity in key markets across London, Tokyo, Osaka and São Paulo,
and has a substantial pipeline for future growth. GCP International
manages 23 funds supported by an established blue-chip
institutional investor base and experienced investment, management
and property development professionals managing over 320 million
square feet of industrial properties, as of June 30, 2024.
Ares and GCP International believe that the approximately $2
trillion industrial real estate sector continues to exhibit strong
and resilient fundamentals across market cycles, accelerated by
long-term demand tailwinds, including the growth of e-commerce, and
that it is well positioned to continue to benefit from both
institutional and retail investor demand. Similarly, data center
demand from both hyperscale and enterprise customers continues to
accelerate with capital expenditure expected to materially exceed
$1 trillion over the next three years, buoyed by global secular
trends driven by the increase in data and compute needs, cloud
migration, data security and most recently artificial
intelligence.
The transaction demonstrates Ares’ continued ability to
thoughtfully grow its capabilities and offerings to its clients,
focusing on expanding its presence in key geographies and in
sectors that are well positioned to benefit from attractive
long-term structural trends. GCP International adds scale and
capabilities in attractive Asia markets, through one of the largest
industrial platforms in Japan with nearly $20 billion of AUM, as of
June 30, 2024, including one of the largest publicly listed Japan
Real Estate Investment Trusts (JREIT) and a second scaled
institutional perpetual vehicle managed by GCP International.
Similarly, GCP International’s industrial businesses in Europe and
the U.S. have long track records of success, and the combination,
once completed, is estimated to create a top three owner and
operator of industrial assets globally.
“We have long admired the global real estate experience of GCP
and its capabilities in facilitating the economy of the future,
which includes investing in and managing industrial, data center
and self-storage assets,” said Michael Arougheti, Chief Executive
Officer and President of Ares. “As a combined business, we believe
that Ares’ and GCP International’s experienced management teams,
highly collaborative cultures and investment track records will
create a powerhouse in global real assets investing.”
“We have great respect for the business that the GCP
International leadership team has built, and we believe that there
are attractive strategic synergies between our firms,” said Bill
Benjamin and Julie Solomon, Co-Heads of Ares Real Estate.
“Combining our platforms will further enhance our strong position
in the industry and bolster Ares as a global market leader in real
estate with vertically integrated capabilities. We are excited for
the opportunities that we can pursue together with our expanded
product suite, like-minded cultures and our ability to invest in
assets that facilitate the new economy.”
“We have strong conviction that combining GCP International’s
and Ares’ investment and operating capabilities, expansive networks
and collaborative cultures will create one of the world’s leading
real assets investment management businesses,” said Ming Mei,
Co-Founder and CEO of GCP and GLP. “We are excited for the new
opportunities the transaction will create for our current clients,
and we look forward to continuing to partner with teams across GCP
International and Ares to drive success for the combined
business.”
“We are thrilled to join Ares, a pioneer and market leader in
alternative investing,” said Michael Steele, President of GCP
International. “Our commitment to long-term business building and
our ability to identify and focus on new economy sectors with large
addressable markets and strong secular tailwinds have enabled us to
distinguish ourselves in the market and grow rapidly. In Ares, we
have found a partner that shares our philosophy and entrepreneurial
culture. We look forward to integrating with the Ares team, and
continuing to build upon our successful, long-term track records
and scale our combined platform for the benefit of all
stakeholders.”
The transaction will follow a separation of GCP International
from GLP Capital Partners’ remaining business, which will remain
independent and headquartered in Singapore with a focus on
investing in Greater China. Mr. Mei will serve as CEO of GLP and
GCP’s remaining business, along with its leadership team in China
and a select number of other global executives. He will also
continue to support GCP International’s and Ares’ growth and
success as an Ares Partner and Senior Advisor. Mr. Steele and GCP
International’s leadership teams responsible for managing and
operating the funds in Japan, Europe, the U.S., Brazil and Vietnam
will join Ares as part of the transaction.
Mr. Mei added, “We are excited by the growth that our Greater
China business can achieve at a time when opportunities in the
region are in abundance.”
The transaction is expected to close in the first half of 2025
subject to customary regulatory approvals and other closing
conditions. Ares has secured fully committed bridge financing from
Morgan Stanley Senior Funding, Inc. and Citigroup Global Markets
Inc. in relation to the transaction.
Advisors
Eastdil Secured, L.L.C., Barclays, Goldman Sachs & Co. LLC
and Wells Fargo Securities, LLC served as financial advisors to
Ares, with Latham & Watkins acting as legal counsel. Citigroup,
Morgan Stanley & Co. LLC, Greenhill, a Mizuho affiliate, UOB
Group and Deutsche Bank served as financial advisors to GCP
International and Kirkland & Ellis LLP served as legal
counsel.
Conference Call and Webcast Information
Ares will host a conference call on Tuesday, October 8, 2024 at
8:30 a.m. (Eastern Time) to discuss the transaction. A supplemental
presentation that illustrates the transaction is available on the
Investor Resources section of Ares’ website at
www.aresmgmt.com.
All interested parties are invited to participate via telephone
or the live webcast, which will be hosted on a webcast link located
on the Home page of the Investor Resources section of our website
at www.aresmgmt.com. Domestic callers can access the conference
call by dialing +1 (800) 225-9448. International callers can access
the conference call by dialing +1 (203) 518-9708. All callers are
asked to dial in 10-15 minutes prior to the call so that name and
company information can be collected and to reference the
conference ID ARES2024. For interested parties, an archived replay
of the call will be available through November 8, 2024 to domestic
callers by dialing +1 (800) 839-5635 and to international callers
by dialing +1 (402) 220-2561. An archived replay will also be
available through November 8, 2024 on a webcast link located on the
Home page of the Investor Resources section of our website.
About Ares Management Corporation
Ares Management Corporation (NYSE:ARES) is a leading global
alternative investment manager offering clients complementary
primary and secondary investment solutions across the credit, real
estate, private equity and infrastructure asset classes. We seek to
provide flexible capital to support businesses and create value for
our stakeholders and within our communities. By collaborating
across our investment groups, we aim to generate consistent and
attractive investment returns throughout market cycles. As of June
30, 2024, Ares Management Corporation's global platform had over
$447 billion of assets under management, with more than 2,950
employees operating across North America, Europe, Asia Pacific and
the Middle East. For more information, please visit
www.aresmgmt.com.
About GLP Capital Partners
GLP Capital Partners (“GCP”) is a leading global alternative
asset manager that focuses on thematic investing across real assets
and private equity. GCP has a strong history of leadership in
high-growth Asian markets and a track record of success at scale in
the US, Europe and Brazil. GCP is the exclusive investment and
asset manager of GLP Pte Ltd. To learn more about GCP, please visit
www.gcp.com.
Forward-Looking Statements
Statements included herein contain forward-looking statements
within the meaning of the federal securities laws. You can identify
these forward-looking statements by the use of forward-looking
words such as “outlook,” “believes,” “expects,” “potential,”
“continues,” “may,” “will,” “should,” “seeks,” “approximately,”
“predicts,” “intends,” “plans,” “estimates,” “anticipates,”
“foresees” or negative versions of those words, other comparable
words or other statements that do not relate to historical or
factual matters. The forward-looking statements are based on Ares’
beliefs, assumptions and expectations of Ares’ future performance,
taking into account all information currently available to Ares.
Such forward-looking statements are subject to various risks and
uncertainties, including Ares’ ability to consummate the GCP
Acquisition and to effectively integrate GCP International into
Ares’ operations and to achieve the expected benefits therefrom,
and assumptions including those relating to the GCP Acquisition,
Ares’ operations, financial results, financial condition, business
prospects, growth strategy and liquidity. Some of these factors are
described in the Annual Report on Form 10-K for the year ended
December 31, 2023, including under the headings “Item 1A. Risk
Factors” and “Item 7. Management’s Discussion and Analysis of
Financial Condition and Results of Operations” and in the Quarterly
Report on Form 10-Q filed with the SEC on August 7, 2024, including
under the heading “Item 2. Management’s Discussion and Analysis of
Financial Condition and Results of Operations.” These factors
should not be construed as exhaustive and should be read in
conjunction with the risk factors and other cautionary statements
that are included in this report and in Ares’ other periodic
filings. If one or more of these or other risks or uncertainties
materialize, or if Ares’ underlying assumptions prove to be
incorrect, Ares’ actual results may vary materially from those
indicated in these forward-looking statements. New risks and
uncertainties arise over time, and it is not possible for the
Company to predict those events or how they may affect Ares.
Therefore, you should not place undue reliance on these
forward-looking statements. Any forward-looking statement speaks
only as of the date on which it is made. Ares does not undertake
any obligation to update or review any forward-looking statement,
whether as a result of new information, future developments or
otherwise, except as required by law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241008417808/en/
Ares Management Media: Brittany Cash,
+1-212-301-0347 Priscila Roney, +1-212-808-1185
media@aresmgmt.com
Investors: Greg Mason, Carl Drake, +1-888-818-5298
irares@aresmgmt.com
GLP Capital Partners Jonathan Gasthalter, Mark Semer,
+1-212-257-4170 gcp@gasthalter.com
Grafico Azioni Ares Management (NYSE:ARES)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Ares Management (NYSE:ARES)
Storico
Da Gen 2024 a Gen 2025
