Profile: Ares Management Corp (ARES.N)
19 Jul 2019
Ares Management Corporation, formerly Ares Management, L.P., incorporated on September 3, 1997, is an alternative asset manager. The Company offers its investors a range of investment strategies. The Company operates through three segments: Credit Group, Private Equity Group and Real Estate Group. The Credit Group segment manages credit strategies across the non-investment grade credit universe in the United States and Europe. The Private Equity Group segment categorizes its investment strategies as corporate private equity, the United States power and energy infrastructure and special situations. The Real Estate Group segment manages public and private equity and debt strategies.
The Credit Group offers a range of credit strategies across the liquid and illiquid spectrum, including syndicated loans, high yield bonds, credit opportunities, structured credit investments and the United States and European direct lending. The Credit Group provides solutions for traditional fixed income investors seeking to access the syndicated loans and high yield bond markets and capitalizes on opportunities across traded corporate credit. It additionally provides investors access to directly originated fixed- and floating-rate credit assets and the ability to capitalize on illiquidity premiums across the credit spectrum. The Credit Group's syndicated loans strategy focuses on liquid, traded non-investment grade secured loans to corporate borrowers. The high yield bond strategy seeks to deliver a portfolio of liquid, traded non-investment grade corporate bonds, including secured, unsecured and subordinated debt instruments. The structured credit strategy invests across the capital structures of syndicated collateralized loan obligation vehicles (CLOs) and in directly-originated asset-backed instruments consisting of portfolios of consumer and commercial assets.
The Company is a self-originating direct lender to the United States and European middle markets, providing one-stop financing solutions for small-to-medium sized companies. The Credit Group conducts its the United States corporate lending activities primarily through Ares Capital Corporation (ARCC), the business development company. In addition, the Credit Group manages a commercial finance business that provides asset-based and cash flow loans to small and middle-market companies, as well as asset-based facilities to specialty finance companies. The Credit Group's European direct lending platform is a participant in the European middle-market, focusing on self-originated investments in illiquid middle-market credits.
Private Equity Group
The Private Equity Group managed five corporate private equity commingled funds focused on North America and Europe and two focused on greater China, five commingled funds and six related co-investment vehicles focused on the United States power and energy infrastructure and five special situations funds as of December 31, 2016. In its North American and European flexible capital strategy, the Company targets opportunistic majority or shared-control investments in businesses with franchises and growth opportunities in North America and Europe. The United States power and energy infrastructure strategy targets the United States energy infrastructure-related assets across the power generation, transmission and midstream sectors, seeking risk-adjusted equity returns with current cash flow and capital appreciation. The special situations strategy seeks to invest opportunistically across a spectrum of distressed or mispriced investments, including corporate debt, rescue capital, private asset-backed investments, post-reorganization securities and non-performing portfolios.
Real Estate Group
Real Estate equity strategies focus on applying hands-on value creation initiatives to mismanaged and capital-starved assets, as well as new development, ultimately selling stabilized assets back into the market. The Real Estate Group manages both a value-add strategy and an opportunistic strategy. The value-add strategy seeks to create value by buying assets at attractive valuations and through active asset management of income-producing properties across the United States and Western Europe. The opportunistic strategy focuses on manufacturing core assets through development, redevelopment and fixing distressed capital structures across various property types in the United States and Europe. The Company's debt strategies leverage the Real Estate Group's sources of capital to directly originate and manage commercial mortgage investments on properties that range from stabilized to requiring hands-on value creation. In addition to managing private debt funds, the Real Estate Group makes debt investments through a publicly traded commercial mortgage real estate investment trust (REIT), Ares Commercial Real Estate Corporation (ACRE).
Ares Management Corp
2000 Avenue of the Stars Fl 12
LOS ANGELES CA 90067-4733