Ares Management Corporation Stock Price, News & Analysis

Second Avenue Capital Partners (SACP), SB360 Capital Partners (SB360), and Ares Commercial Finance (Ares) have closed a $112 million Senior Secured Revolving Credit Facility and Term Loan for Backcountry, a premium outdoor gear and apparel retailer. This financing package supported CSC Generation Enterprise's acquisition of Backcountry and refinanced a previous facility.

Backcountry, founded in 1996, has evolved from a small online ski gear shop to an omni-channel retailer with four e-commerce banners, presence on two 3rd party marketplaces, and nine retail stores. The company sells its own brand and products from established and emerging brands.

This deal marks another collaboration between CSC and SACP, following their partnership in the Sur La Table acquisition in 2020. The financing structure leverages the expertise of SACP, SB360, and Ares to provide a tailored solution for Backcountry's needs.

Ares Management (NYSE: ARES) has successfully closed its Ares U.S. Real Estate Opportunity Fund IV (AREOF IV), raising over $3.3 billion for opportunistic real estate investments in the U.S. This marks the largest Ares Real Estate closed-end fundraise to date, significantly surpassing the $2.2 billion raised for its predecessor fund. Combined with capital raised for its European opportunistic real estate strategy, Ares now has $5.5 billion in aggregate opportunistic capital.

AREOF IV focuses on acquiring distressed assets, enhancing undermanaged properties, and pursuing risk-mitigated development in desirable submarkets. The fund has already made notable investments, including the $1.07 billion acquisition and redevelopment of the Hyatt Regency Orlando and providing preferred equity for the conversion of 55 Broad Street in New York City's Financial District.

Ares Management has announced that its CEO and President, Michael Arougheti, will be presenting at the Barclays Global Financial Services Conference on Tuesday, September 10, 2024, at 9:45am ET. The presentation will be available via a live audio webcast in the Investor Resources section of the company's website at www.aresmgmt.com.

For those unable to attend the live event, a replay will be made available on the company's website shortly after the presentation concludes. This event provides an opportunity for investors and analysts to gain insights into Ares Management's strategies and performance directly from its top executive.

Automated Industrial Robotics Inc. (AIR) has acquired Sewtec Automation, a UK-based industrial automation company. This strategic move expands AIR's geographic footprint and strengthens its engineering capabilities. The acquisition was primarily funded by an additional investment from an Ares Management Private Equity fund.

Sewtec brings over 170 team members and a 75,000 square-foot facility to AIR's portfolio. With this addition, AIR now has over 400 employees and 275,000 square feet of automation hub space across the US, Ireland, and the UK. The company aims to leverage this expanded capacity to deliver differentiated industrial automation solutions globally.

This acquisition aligns with AIR's growth strategy, positioning it to capitalize on the increasing global demand for manufacturing automation solutions across diverse sectors.

Hyatt Hotels (NYSE:H) has completed the sale of Hyatt Regency Orlando for $1.07 billion to RIDA Development and an Ares Management Real Estate fund. The deal includes a long-term management agreement under the Hyatt Regency brand. Hyatt retained $265 million of non-controlling preferred equity and provided $50 million in seller financing for adjacent land.

This sale exceeds Hyatt's $2 billion asset-disposition commitment, with the company realizing $2.6 billion in gross proceeds over three years. RIDA and Ares plan to invest in renovations and develop a new Grand Hyatt hotel on adjacent land, potentially creating a combined 4,000+ room complex near the Orange County Convention Center.

Ares Management (NYSE:ARES) reported record-breaking U.S. direct lending activity for Q2 2024 and the 12 months ended June 30, 2024. The company closed $12.8 billion in commitments across 93 transactions in Q2, contributing to a 12-month total of $38.3 billion across 295 transactions. This represents a new record for Ares' U.S. Direct Lending business.

The press release highlights 11 significant transactions where Ares served in various roles, including administrative agent, lead arranger, and book runner. These deals span diverse industries such as fraud prevention, food & beverage, veterinary services, scientific research software, personal care, dental equipment, fire safety, car wash services, packaged ice, healthcare operations software, and aerospace MRO services.

Ares Management (NYSE:ARES) reported strong second quarter 2024 results, with GAAP net income of $94.9 million and earnings per share of $0.43. The company achieved record gross fundraising of $26 billion and its second-highest level of deployment in history. After-tax realized income was $332.0 million, with $0.99 per share. Fee related earnings reached $324.5 million.

CEO Michael Arougheti highlighted the growing interest from institutional and high net worth investors in Ares' private market investment solutions. CFO Jarrod Phillips noted double-digit growth across key financial metrics and a record $120 billion in available capital. Ares declared a quarterly dividend of $0.93 per share, payable on September 30, 2024.

Ares Management (NYSE: ARES) has announced the final closing of its Ares Senior Direct Lending Fund III (SDL III), raising $15.3 billion in equity commitments, significantly exceeding its initial target of $10 billion. The total capital base for SDL III is expected to reach $33.6 billion, including related vehicles and anticipated leverage. This makes SDL III the largest direct lending fund in Ares' history and the largest institutional fund in the market.

SDL III is nearly double the size of its predecessor, SDL II, which had $14.9 billion in total debt and equity commitments. The fund has already deployed about one-third of its capital, committing $9.0 billion to over 165 companies. Ares' U.S. Direct Lending strategy focuses on providing senior secured loans to middle market companies in North America, targeting businesses with $10 million to over $150 million of EBITDA.

Ares Management (NYSE: ARES) has announced a significant £755 million preferred equity investment in Quintain, the company behind London's iconic Wembley Park estate. This investment is led by Ares' Alternative Credit strategy, with Lone Star Funds contributing £337 million. Wembley Park, an 85-acre mixed-use development, has already received over £2.8 billion in investment, transforming it into a premier destination with retail, office space, parks, and around 5,000 homes.

The partnership aims to further develop Wembley Park and strengthen Quintain's position in London's undersupplied residential rental market. As part of the deal, Stefano Questa from Ares will join Quintain's Board of Directors. This collaboration marks a significant step in Quintain's evolution under Lone Star's ownership and demonstrates Ares' capability to provide creative capital solutions for high-quality assets.