Ares Management Special Opportunities Team to Join its Global Credit Group
Ares Management Corporation (ARES) announced the integration of its Special Opportunities strategy into the Credit Group, forming the Opportunistic Credit team. This move aims to enhance collaboration, leverage the firm's global Credit platform, and provide flexible debt and equity solutions to companies. Co-Heads Aaron Rosen and Craig Snyder will lead the team, focusing on creative financing for middle market companies. The strategy's integration is expected to optimize origination capabilities, sponsor relationships, and underwriting practices. As of December 31, 2023, the Ares Credit Group managed approximately $300 billion in assets with 490 investment professionals.
The strategic shift for Ares Management Corporation's Special Opportunities strategy to join the firm’s Credit Group under the new banner of Opportunistic Credit is a significant structural move. This transition is anticipated to foster enhanced synergy across Ares’ credit platform, potentially leading to more effective capital deployment and innovative financial products tailored for middle-market companies. By concentrating on the niche between traditional direct lending and private equity, Ares aims to capitalize on an under-served market segment, which could result in competitive advantages and potentially higher margins.
Furthermore, the consolidation under the Credit Group umbrella may streamline operational efficiencies and optimize resource allocation, which can be critical for maintaining a competitive edge in the financial industry. The move also signals a proactive approach by Ares to adapt to evolving industry dynamics, particularly the growing demand for flexible capital solutions by businesses navigating transitional phases. This could position Ares as a go-to provider for such specialized financing, positively influencing its market share and reputation.
The announcement by Ares Management Corporation regarding the reorganization of its Special Opportunities strategy into the Opportunistic Credit team within the Credit Group may have implications for investor sentiment and the firm's financial performance. The transition indicates a strategic emphasis on direct origination and a multi-strategy approach, which may lead to diversification of revenue streams and a more robust risk management framework. The leadership continuity with Aaron Rosen and Craig Snyder at the helm could offer reassurance to investors about the stability of the strategy during the transition.
From a financial perspective, the integration is likely to affect the firm's assets under management (AUM), with the Credit Group's AUM expected to be approximately $300 billion post-transition. This could potentially enhance Ares' bargaining power and economies of scale. Investors will be watching closely for the impact of this change on Ares' financial metrics, such as net interest margins, return on equity and earnings per share, in subsequent reporting periods.
The move by Ares Management Corporation to reclassify its Special Opportunities strategy as Opportunistic Credit within its Credit Group may reflect broader economic trends. Middle-market companies often face challenges in securing capital through traditional banking channels, especially in an economic environment characterized by uncertainty or tightening credit conditions. By positioning itself as a provider of flexible debt and structured equity solutions, Ares could be anticipating an increase in demand from these companies seeking alternative financing.
The strategy also suggests that Ares is adapting to potential shifts in the credit cycle, preparing to offer transitional capital during periods of economic volatility. This proactive positioning could serve to mitigate risks associated with economic downturns and capitalize on opportunities during recovery phases, thus impacting the broader credit market's dynamics and potentially influencing the behavior of other financial institutions.
02/26/2024 - 06:30 AM
Move Expected to Enhance Collaboration Across Ares’ Leading Credit Platform
Aaron Rosen and Craig Snyder Named Co-Heads of Opportunistic Credit
NEW YORK --(BUSINESS WIRE)--
Ares Management Corporation (NYSE: ARES) today announced that its Special Opportunities strategy, currently a business within its Private Equity Group, will be joining the firm’s Credit Group and will be named Opportunistic Credit. Moving the strategy to the Credit Group is expected to enable greater collaboration across the Ares platform, enhancing benefits to Ares’ limited partners, sponsor partners and portfolio companies.
The Opportunistic Credit team will build on the accomplishments of the Special Opportunities strategy and leverage the experience and broad direct origination network across the firm’s leading global Credit platform. The team will continue to partner with healthy companies and businesses in need of transitional capital and provide flexible debt and non-control equity solutions to both private and public companies. This multi-strategy approach seeks to fill the void between for-control private equity and more traditional direct lending and emphasizes differentiated deal flow through direct origination.
“As industry dynamics continue to evolve, we are seeing an expanding investment opportunity for private lenders who can deliver creative and flexible debt and structured equity solutions to middle market companies,” said Kipp deVeer, Head of the Ares Credit Group. “Aligning our Special Opportunities team with our industry-leading global Credit Group is intended to further ensure that we are maximizing our broad origination capabilities, deepening our long-standing sponsor relationships and optimizing our underwriting, structuring and portfolio management experience, all of which we believe will benefit our fund investors.”
The Opportunistic Credit team will be led by Aaron Rosen and Craig Snyder, who serve as Co-Portfolio Managers of Special Opportunities and have been instrumental to the growth of that strategy since it launched. Mr. Rosen and Mr. Snyder have been involved in the leadership of the team and its day-to-day operations since 2018 and they will continue to be supported by long-tenured team members, including Felix Bernshteyn, Brad Friedman, James Kim and Matt Underwood. The team has approximately 30 dedicated investment professionals in the United States and United Kingdom .
“Bringing the Special Opportunities business under the Credit Group umbrella is designed to enhance our investing capabilities and create value for our portfolio companies and our investors,” said Mr. Rosen.
“We are extremely proud of the accomplishments of the Special Opportunities business to date and look forward to working even more closely with our colleagues in Credit and across the Ares platform to take advantage of the growing market opportunity,” added Mr. Snyder .
Adjusted for this change, the Ares Credit Group had approximately $300 billion U.S. , Europe and Asia Pacific as of December 31, 2023. The Opportunistic Credit strategy will be reflected within the Ares Credit Group in Ares’ public reporting, effective March 31, 2024.
Forward-Looking Statements
Statements included herein contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which reflect our current views with respect to, among other things, future events, operations and financial performance. 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,” “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 our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy and liquidity. Actual results may vary materially from those indicated in these forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission. Ares Management Corporation does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
Nothing in this press release constitutes an offer to sell or solicitation of an offer to buy any securities of Ares or an investment fund managed by Ares or its affiliates.
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, private equity, real estate 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 December 31, 2023, Ares Management Corporation's global platform had approximately $419 billion North America , Europe , Asia Pacific and the Middle East . For more information, please visit www.aresmgmt.com .
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Source: Ares Management Corporation
What is the name of the Special Opportunities strategy after joining the Credit Group at Ares Management Corporation?
The Special Opportunities strategy will be named Opportunistic Credit after joining the Credit Group at Ares Management Corporation.
Who will lead the Opportunistic Credit team at Ares Management Corporation?
Aaron Rosen and Craig Snyder will serve as Co-Heads of the Opportunistic Credit team at Ares Management Corporation.
What is the main focus of the Opportunistic Credit team at Ares Management Corporation?
The Opportunistic Credit team will focus on providing flexible debt and non-control equity solutions to private and public companies, targeting healthy companies and those in need of transitional capital.
How many investment professionals are part of the Opportunistic Credit team at Ares Management Corporation?
The Opportunistic Credit team at Ares Management Corporation comprises approximately 30 dedicated investment professionals in the United States and United Kingdom.
When will the integration of the Opportunistic Credit strategy be reflected in Ares Management Corporation's public reporting?
The integration of the Opportunistic Credit strategy into the Ares Credit Group will be reflected in Ares Management Corporation's public reporting effective March 31, 2024.
