Ares Management to Begin Earning Fees on Approximately $3 Billion of
Incremental AUM from the Acquisition
Ares Credit Group Managing in Excess of $35 Billion in Pro Forma
Direct Lending Assets as of September 30, 2016
LOS ANGELES--(BUSINESS WIRE)--
Ares Management, L.P. (NYSE:ARES) announced today that it will begin
earning fees on approximately $3 billion of incremental AUM as a result
of the completion of Ares Capital Corporation’s (NASDAQ:ARCC)
acquisition of American Capital, Ltd., which closed on January 3, 2017.
As a result of the acquisition, ARCC, the largest business development
company in the U.S., increased its total assets from $9.1 billion to
approximately $12.3 billion on a pro forma basis as of September 30,
2016, including a pro forma investment portfolio of $11.8 billion and
314 portfolio companies and cash of $0.2 billion.
As part of its commitment to growing its leadership position in the
highly attractive direct lending asset class, Ares Management provided
financial support for the transaction through its subsidiary Ares
Capital Management LLC, which is the external manager of ARCC, including
approximately $275 million in cash at closing and the future waiver of
up to $10 million per quarter of ARCC’s Part I income based fees for ten
calendar quarters, beginning in the second quarter of 2017, to the
extent earned and payable by ARCC in each such quarter.
“This transaction is highly strategic and financially attractive to Ares
Management as it helps us build upon our industry-leading franchise as a
middle market direct lender. Whether investors come to Ares as
shareholders in ARCC, through commingled funds or as part of a
separately managed account, we believe that our market leadership,
scaled platform in both the U.S. and Europe, and consistent performance
in the sector will continue to add meaningful long-term value to our
company and its unitholders,” said Tony Ressler, Chairman and Chief
Executive Officer of Ares Management, L.P.
Since the transaction results in an increase in ARCC’s fee paying assets
by approximately $3 billion on a pro forma basis as of September 30,
2016, Ares Management expects that the transaction will result in
increased fees to Ares Management and, taking into account the
transaction support described above, is expected to be accretive to both
its distributable earnings and after-tax economic net income per unit
(net of preferred unit distributions).
About Ares Management, L.P.
Ares Management, L.P. is a publicly traded, leading global alternative
asset manager with approximately $100 billion of assets under management
as of September 30, 2016, pro forma for Ares Capital’s acquisition of
American Capital, and more than 15 offices in the United States, Europe
and Asia. Since its inception in 1997, Ares Management has adhered to a
disciplined investment philosophy that focuses on delivering strong
risk-adjusted investment returns throughout market cycles. Ares
Management believes each of its three distinct but complementary
investment groups in Credit, Private Equity and Real Estate is a market
leader based on assets under management and investment performance. Ares
Management was built upon the fundamental principle that each group
benefits from being part of the greater whole. For more information,
visit www.aresmgmt.com.
Forward Looking Statements
Statements included herein may constitute “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act of
1995, which relate to future events or future performance or financial
condition. These statements are not guarantees of future performance,
condition or results and involve a number of risks and uncertainties.
Actual results may differ materially from those in the forward-looking
statements as a result of a number of factors, including those described
from time to time in Ares Management’s filings with the Securities and
Exchange Commission. Ares Management undertakes no duty to update any
forward-looking statements made herein.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170103006341/en/
Media:
Mendel Communications
Bill Mendel, +1 212-397-1030
[email protected]
or
Investors:
Ares
Management, L.P.
Carl Drake, +1 800-340-6597
[email protected]
or
Veronica
Mendiola, +1 212-808-1150
[email protected]
Source: Ares Management, L.P.
