Latest news with #Ares'
Yahoo
9 hours ago
- Business
- Yahoo
Meet the ‘masters of the universe' heading up the private credit explosion
Venture capitalists love the spotlight. They're on X, they're in the White House, and they're constantly chasing press coverage of Series A deals into B2B SaaS companies that might become the next Salesforce, but could just as likely fold in a few years. Today's VCs hold an inordinate amount of cultural capital, and for good reason: They fund many of the companies that undergird not only our economy, but our social fabric, and they are often instrumental in shaping tomorrow's trends. But still, they represent a small fraction of the broader investment landscape, which is why I'm always astounded by the sheer scale of the private equity industry. I spent the past few months reporting on Ares Management, an alternative asset manager that spun out of Apollo in the late 1990s. Originally, I was interested in the firm because of its role in the booming field of private credit, which has become such a buzzword that it seems like high finance's equivalent of AI (and they're related, with much of new private credit capital going to fund data centers). Ares' bread and butter business is lending to other alternative assets firms like KKR and Apollo, raising money to help fund their buyouts of middle market companies that most venture firms would never be interested in (though that's changing), and occasionally taking small equity stakes themselves. The strategy has paid off, especially with the rise of private equity more broadly after the 2008 financial crisis, with Ares now aiming to grow its assets under management to $750 billion by 2028. Compare that to Insight Partners, one of the larger venture players dabbling in private equity, which has $90 billion. As with tokenization, private credit is taking on an increasingly greater role in our economy as companies take longer to go public or decide never to go public at all. Rather than turning to public markets for funding, they must look to other means, with firms like Ares waiting in the wings. For everyday investors, that limits the type of companies where they can put their money—though some firms like Apollo are starting to offer vehicles like ETFs, as well as tokenized funds, that provide access to private companies. Critics argue that the lack of transparency, however, creates a whole host of potential problems. A firm like Ares may have less name recognition than a Sequoia or Andreessen Horowitz, though it has arguably a greater role in shaping how money moves in our economy (and they're taking on a higher profile through sports, with three Ares executives among the new Baltimore Orioles leadership group). These are the 'masters of the universe' that Tom Wolfe famously wrote about in his 1987 Wall Street classic The Bonfire of the Vanities, but they're often more hidden from view. You can read my feature on Ares' rise, including its unique structure of a CEO and two co-presidents leading its next era of growth. Leo SchwartzX: @leomschwartzEmail: Submit a deal for the Term Sheet newsletter here. Joey Abrams curated the deals section of today's newsletter. Subscribe here. This story was originally featured on
Yahoo
6 days ago
- Business
- Yahoo
Apollo, Ares to Open Professional Sports Investments to Retail Clients
Only the richest investors can afford to place big bets on professional sports teams that generally come with billion-dollar price tags. Don't look now, but retail investors may have just found a bookie. Some of the leading alternative investment managers, like Apollo and Ares Management, are working on new funds that would open the exclusive world of sports investing to individual investors. Ares' top chief Michael Arougheti reportedly said financial advisors had specifically requested the new strategies for their clients. It's the latest move to democratize investments in sports, while opening up a whole new segment of lucrative customers to alternative asset managers. READ ALSO: Bonsai With Clients? Here Are Advisors' Favorite Pastimes and M&A Just Broke More Records. But What Happens to Clients? Neck and Neck Ares became the undisputed heavyweight in the sports sector after it raised a $3.7 billion fund in 2022. Its next venture will target both debt and equity investments across sports leagues and media businesses in a semi-liquid fund that pays out quarterly, according to a Bloomberg report published last week. The Los Angeles-based firm has its sights on some $100 billion in assets from individual investors by 2028, which it said could generate an estimated $600 million in management fees. Not to be outdone, Apollo wants to build a 'permanent capital vehicle' that would eye up longer-term investments in the industry. That strategy would primarily focus on loans to professional sports teams and leagues, with the option to take equity positions, per the report. The funds come on the heels of a groundbreaking decision by the National Football League to allow private equity firms to take minority stakes in individual franchises last year — a rule that paved the way for owners to raise fresh capital. About a third of all teams in both Major League Baseball and the National Basketball Association are already backed by PE. The Home Stretch. It could become big business for the alts industry. Alternative assets are expected to top $2.5 trillion by the end of 2028, according to a 2024 report from Cerulli. The research also found: Advisors owned roughly $1.4 trillion in less-than-fully-liquid alternative investment assets last year. While just 13% of AUM is from the retail channel, it's projected to almost double to 23% over the next three years. The downside is that the funds will likely only be accessible to accredited investors — those who generally meet $1 million in investable assets minimums, or other income thresholds — and can sometimes come with minimums in the millions of dollars, experts said. Space will also be limited until more products launch, with similar funds closing in about a month. Get 'em while they're hot. This post first appeared on The Daily Upside. To receive financial advisor news, market insights, and practice management essentials, subscribe to our free Advisor Upside newsletter.
Business Wire
7 days ago
- Business
- Business Wire
Ares Management Enhances Infrastructure Debt Team and Global Positioning to Advance Growth
NEW YORK--(BUSINESS WIRE)--Ares Management Corporation ('Ares') (NYSE: ARES), a leading global alternative investment manager, announced today enhancements to its Infrastructure Debt team, including the most recent addition of Jon Plavnick as a Partner. Mr. Plavnick is based in New York and will focus on sourcing, structuring and managing infrastructure debt investments throughout the Americas. In addition, Spencer Ivey, Ares Partner and Head of Americas and Asia-Pacific Infrastructure Debt, has relocated to Ares' Sydney office to help accelerate the strategy's buildout in the Asia-Pacific region. Mr. Plavnick brings nearly two decades of experience in infrastructure debt, most recently serving as a Partner at Global Infrastructure Partners ('GIP'), where he played a key role in advancing the firm's global infrastructure private credit platform. Prior to GIP, he was responsible for high-yield and distressed private credit opportunities as a Managing Director at Oaktree Capital Management, in addition to previous roles at BNP Paribas and Deutsche Bank. 'Over the past three years ago, we have continued to enhance the positioning of our Infrastructure Debt platform as a leading, scaled financing solutions provider to businesses and assets across the digital, transport, energy and utility sectors,' said Patrick Trears, Partner and Global Head of Ares Infrastructure Debt. 'We are thrilled to welcome Jon, and we look forward to benefitting from his deep sector knowledge, strong origination network and commitment to collaboration as we continue to reinforce the strength of our capabilities. In addition, having worked with Spencer for 15 years to build our existing platform, I am confident that his focus on expanding our presence and increasing our access to the attractive opportunities in the Asia-Pacific region should further propel our global growth.' 'Equity investment in infrastructure has increased significantly, bolstered by the assets' essential nature and demonstrated resilience through cycles, and the resulting demand for flexible and scalable financing continues to outweigh supply,' said Mr. Plavnick. 'I believe the Ares Infrastructure Debt platform is well positioned to meet this exciting opportunity, and I am eager to work alongside Patrick, Spencer and the talented global team as we build on their achievements and deploy in the key sectors that we believe will define the next wave of infrastructure.' Originally from Australia, Mr. Ivey has helped lead the platform's growth from New York over the past 11 years, including through Ares' acquisition of the Infrastructure Debt business in 2022. 'Driven by secular demographic tailwinds, including rapid urbanization and a growing middle class, coupled with industry megatrends of digitization and the energy transition, the opportunity for private infrastructure debt capital in Asia-Pacific is significant,' said Mr. Ivey. 'By leveraging the deep experience of our team and the strength of Ares' global Credit platform, our Asia-Pacific business is focused on providing differentiated solutions to support the infrastructure demand in this market.' These developments follow recent team enhancements designed to further strengthen the global Ares Infrastructure Debt platform. This includes the addition of investment professionals Brent Canada as a Partner in New York in 2022 and Lorenzo Ceretti as a Partner in London in 2023. In addition, Daniel Katz, who joined Ares in 2006 and was previously a Partner in Ares' U.S. Direct Lending strategy and co-led portfolio management, was appointed Head of Portfolio Management for Ares Infrastructure Debt in 2024 and oversees portfolio monitoring and restructuring. With over two decades of industry experience investing across market cycles, the global Ares Infrastructure Debt team has an established track record and longstanding relationships that allow the platform to seek to generate exclusive deal flow and high-quality investment opportunities. As of March 31, 2025, the Ares Infrastructure Debt strategy managed nearly $11 billion in assets and has deployed over $21 billion in its 15-year history. The team's approximately 25 investment professionals operate across offices in London, New York, Singapore and Sydney. 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 March 31, 2025, Ares Management Corporation's global platform had approximately $546 billion of assets under management with operations across North America, South America, Europe, Asia Pacific and the Middle East. For more information, please visit
Business Wire
19-06-2025
- Business
- Business Wire
Ares Management Launches First ELTIF to Expand Access to European Direct Lending Strategy
LONDON--(BUSINESS WIRE)--Ares Management Corporation (NYSE: ARES) ('Ares'), a leading global alternative investment manager, announced today the launch of its first European Long-Term Investment Fund ('ELTIF') vehicle, the Ares European Strategic Income ELTIF Fund ('AESIF ELTIF'), a semi-liquid perpetual direct lending fund that will provide individual investors in the European Economic Area with expanded access to Ares' leading European Direct Lending strategy. AESIF ELTIF is the latest offering through the wealth channel and its first under the updated ELTIF regime. Designed to deliver a diversified portfolio largely comprising directly originated, senior secured floating rate loans to businesses in Western Europe, AESIF ELTIF seeks to provide a durable income solution with downside protection and yield stability. AESIF ELTIF is intended to widen individual investor participation in Ares' European Direct Lending strategy through lower investment minimums relative to traditional alternative investment products. Ares launched its European Direct Lending strategy in 2007, gaining a first mover advantage, and has established itself as a market leader. The strategy comprises approximately 95 investment professionals operating across seven offices in Europe and managed over $77 billion in assets, as of March 31, 2025. Since its inception, the European Direct Lending business has completed over 390 investments totaling more than €73 billion. 'Ares strongly believes in our ability to provide individual investors with attractive investment solutions as they seek to diversify their portfolios in response to volatility and uncertainty in the public markets,' said Andrea Fernandez, Head of Product Management and Investor Relations for European Credit, and Daniel Sinclair, Partner in European Direct Lending. 'As part of this commitment, AESIF ELTIF enables us to offer qualifying individuals the same high-quality, localized origination and strong portfolio management capabilities we offer our institutional investors.' 'We are pleased to further expand access to our leading European direct lending capabilities for individual investors in Europe, underscoring the strong demand for income-producing asset classes such as private credit,' said Mark Serocold, Partner and EMEA Head of Wealth Management Solutions. 'The updated ELTIF regime is aligned to our mission of democratizing private markets investments, and we believe we will continue seeing a shift in allocations to the private markets as a wider pool of qualifying individual investors become eligible to participate.' Since the launch of the wealth channel in 2021, Ares has remained focused on scaling its wealth platform to deliver private markets access and education to financial advisors and their clients. With a growing team of approximately 150 professionals located in offices throughout the U.S., Europe and Asia, Ares' wealth channel represents one of the most resourced wealth distribution and client service platforms in the alternatives industry today. 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 March 31, 2025, Ares Management Corporation's global platform had approximately $546 billion of assets under management, with operations across North America, South America, Europe, Asia Pacific and the Middle East. For more information, please visit Disclaimers Interests in AESIF ELTIF have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the 'Securities Act'), or the applicable securities laws of any United States state or any non-United States jurisdiction. The interest in AESIF ELTIF may not be offered, sold or delivered directly or indirectly in the United States or to or for the account or benefit of any 'U.S. Person' except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and any applicable state laws. As such, any 'U.S. Person' may not receive and should not act or rely on this Press Release or any other materials related to AESIF ELTIF. The information contained in this Press Release is being made available solely for information purposes. Any potential investors are urged to carefully read the applicable Prospectus and other materials in their entirety before making an investment decision. Any potential investors should conduct their own investigations and analysis of Ares, AESIF ELTIF and the information set forth in the applicable Prospectus and other materials. Nothing in this Press Release or the other applicable materials should be construed as a recommendation to invest in any securities or as legal, accounting or tax advice. Before making any decision to invest in AESIF ELTIF, potential investors should carefully review information relating to Ares and AESIF ELTIF and consult with their own legal, accounting, tax and other advisors when considering the merits of any investment. There can be no assurance that AESIF ELTIF will meet its investment objectives or otherwise be able to successfully carry out its investment program. There can be no assurance that an investor will receive a return on its capital, and therefore, an investor should only invest in AESIF if such investor is able to withstand a total loss of its investment. All data as of March 31, 2025. Diversification does not assure profit or protect against market loss. References to downside protection are not guarantees against loss of investment capital or value.
Business Wire
18-06-2025
- Business
- Business Wire
Ares Management Acquires Stake in France SailGP Team
NEW YORK--(BUSINESS WIRE)--SailGP announced today that Ares Sports, Media and Entertainment funds ('Ares') have acquired a minority stake in the France SailGP Team. The strategic investment marks Ares' entry into SailGP, reinforcing the growing momentum behind the global racing championship. The firm joins a consortium of investors in the France SailGP Team, including international football superstar Kylian Mbappé. SailGP Managing Director Andrew Thompson said, 'Today is an exciting milestone for SailGP, as we welcome Ares to our growing group of investors and team owners. The investment in our French team by an organization with a stellar portfolio of first-rate sports properties underlines the strength of SailGP's global league model and reinforces the commercial potential of our teams. Ares brings both institutional capital and deep strategic insights – they'll be a highly-valuable collaborator in growing the French team and the Rolex SailGP Championship more broadly.' Jim Miller, Co-Lead of Ares' Sports, Media and Entertainment strategy said, 'SailGP has achieved impressive growth across its teams, viewership and engagement, and we are thrilled to enter the league and join the France SailGP Team's existing owners group at this inflection point. With the team's expanding ecosystem of dedicated athletes, sponsors and fans, alongside Ares' experience investing in premier global sports teams, we are eager to lend our capabilities as the team continues to build on its momentum.' A leading global alternative investment manager, Ares Management has an extensive track record in sports, media and entertainment investing. Ares' investment in the France SailGP team expands its existing portfolio of professional sports team investments, including Inter Miami CF, McLaren Racing and Atlético de Madrid, among others. ABOUT SAILGP | The most exciting racing on water, the Rolex SailGP Championship sees national teams battling it out in identical high-tech, high-speed 50-foot foiling catamarans at iconic venues around the world. Racing faster than the wind at speeds approaching 100 km/h (60 mph), SailGP is driven by the sport's top athletes, with national pride, personal glory, and a total prize money of US $12 million at stake. Visit to find out more.
