MGT and Ares Management Combine Forces to Create First Unicorn in SLED Services Industry

Rhea-AI Summary

MGT announced a $350 million investment from Ares Management on Dec 3, 2025, valuing MGT at $1.25 billion. Ares, with approximately $572 billion AUM, joins existing backers Vistria Group, J.P. Morgan and WhiteHorse Capital. MGT said the capital will expand its capacity for larger acquisitions and accelerate a four-year value-creation plan that began after Vistria's majority investment in April 2023. Since that investment, MGT reports it has tripled enterprise value, completed 13 strategic acquisitions, employs over 1,100 people, and serves more than 2,500 clients, including K-12 and government customers.

Positive

• Investment of $350 million from Ares
• Implied valuation of $1.25 billion
• Ares with $572 billion AUM joins investors
• Enterprise value tripled since April 2023
• 13 strategic acquisitions completed since 2016
• 1,100+ employee-owners serving 2,500 clients

Negative

• None.

Insights

Private Equity Strategist

Large growth capital injection positions MGT as a billion‑dollar SLED platform with scale for bigger deals.

Ares Management provided a $350 million equity investment at a $1.25 billion company valuation on Dec. 3, 2025, joining existing backers. That combination of fresh capital and an experienced alternative asset manager explicitly increases MGT's capacity to pursue larger acquisitions and accelerate its stated four‑year value‑creation plan.

The clear dependencies are execution and capital deployment: MGT is described as midway through a four-year plan that previously tripled its enterprise value via programmatic M&A and organic growth. Continued value creation depends on completing additional strategic acquisitions and integrating them successfully, as well as delivering the operational improvements the plan targets. Watch near-term announcements of deal activity and milestones tied to the four‑year plan; these will show whether the new capital translates into scale and value within the plan timeframe.

Public Sector Services Analyst

Deal strengthens a specialist SLED provider with sector reach and a broad client footprint.

MGT serves over 2,500 clients with 1,100+ employee‑owners and lists mission areas including technology modernization, AI, cyber, campus security, human capital, fiscal and facilities management, and K‑12 school improvement. The combination of a large institutional investor and MGT's stated domain focus should expand resources directed at these mission‑critical services.

Caveats are explicit and operational: the announcement ties the funding to an intent to accelerate acquisitions and growth but provides no specific deal pipeline or integration targets. Relevant monitorables include reported acquisition count and timing, measurable progress on the four‑year value‑creation milestones, and any public updates that quantify impacts on client delivery. Expect observable signals in the next 12–24 months as the firm acts on the new capital.

TAMPA, Fla., Dec. 3, 2025 /PRNewswire/ -- MGT, a national technology and advisory solutions leader serving state, local, and education (SLED) and government clients, announced it has closed a $350 million investment from Ares Management Corporation, valuing the company at $1.25 billion. Ares Management Corporation, one of the world's largest alternative investment managers with approximately $572 billion in assets under management (AUM), joins existing MGT backers The Vistria Group, J.P. Morgan and WhiteHorse Capital.

"This investment validates both our strategy and our commitment to building the category-of-one social impact and performance leader in SLED," said Trey Traviesa, chief executive officer, MGT. "With Ares' support, we significantly expand our capacity to undertake larger acquisitions and accelerate the high-impact growth and transformation we set out to achieve in our ambitious value-creation plan."

MGT is midway through a four-year value-creation plan following Vistria's majority investment in April 2023. Since then, the company has tripled in enterprise value with rapid growth driven by its programmatic M&A strategy, strong organic growth and ambitious business transformation execution. Steeped in SLED domain expertise, MGT's 1,100-plus employee-owners now serve over 2,500 clients, impacting over 200 million people annually, including 20 million K-12 students. The company's broad portfolio of specialized technology and advisory solutions addresses mission-critical priorities – including technology modernization and AI, cyber and campus security, human capital, fiscal and facilities management, and K-12 school improvement – for state and local government agencies, K-12 districts, and higher education institutions across the U.S.

Founded in 1975, MGT has expanded rapidly under new leadership since 2016, through a combination of organic growth and 13 strategic acquisitions. In 2025, MGT ranked No. 830 on the Inc. 5000, recognizing the nation's fastest-growing private companies, and No. 6 on CRN's Fast Growth 150 list, honoring the fastest-growing technology companies in North America.

For more information on MGT, visit mgt.us or download the Annual Impact Report at mgt.us/2024_impact_report.

About The Vistria Group
The Vistria Group is building a new kind of private investment firm that seeks to deliver both financial returns and societal impact. It invests in essential industries like healthcare, knowledge and learning solutions, financial services, and housing, which deliver value for investors as well as communities, employees, and consumers. With $17 billion in assets under management, The Vistria Group works alongside management teams as true partners, drawing on its deep sector knowledge, operational expertise, unique network, diverse team, and impact orientation to achieve transformational growth.

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. Ares seeks to provide flexible capital to support businesses and create value for its stakeholders and within its communities.

Media Contact:
Lawrence Cowan
COO, Revenue Operations, MGT
801‑556‑2164
lcowan@mgt.us 

View original content:https://www.prnewswire.com/news-releases/mgt-and-ares-management-combine-forces-to-create-first-unicorn-in-sled-services-industry-302631210.html

SOURCE MGT

FAQ

What did ARES announce about its investment in MGT on Dec 3, 2025?

Ares invested $350 million in MGT, valuing the company at $1.25 billion.

How does the Dec 3, 2025 ARES deal change MGT's valuation?

The transaction sets MGT's valuation at $1.25 billion, marking unicorn status.

What strategic plans did MGT cite after the ARES investment (Dec 3, 2025)?

MGT said the capital will enable larger acquisitions and accelerate its four-year value-creation plan.

Who are MGT's other investors alongside ARES as of Dec 3, 2025?

Existing backers listed are Vistria Group, J.P. Morgan, and WhiteHorse Capital.

How much has MGT grown since Vistria's April 2023 investment?

MGT reports its enterprise value tripled since the April 2023 majority investment.

What scale does MGT report after the ARES investment (employees and clients)?

MGT reports 1,100+ employees and service to more than 2,500 clients.