Latest news with #GCPInternational
CNBC
5 days ago
- Business
- CNBC
Private equity bosses turn bullish on Europe
BERLIN – At the world's largest gathering of private equity professionals, the buzz around opportunity in Europe is undeniable, in a sharp reversal of sentiment from this time last year. That shift comes amid subdued dealmaking, depressed new listings on public markets and stuttering returns, coupled with U.S. President Donald Trump's volatile policymaking stateside. Blair Jacobson, co-president of private equity firm Ares Management, told the SuperReturn conference in Berlin on Wednesday that there was a "feeling right now that European markets are very attractive." Positive factors include falling interest rates and Germany's 500 billion euro fiscal package, he said. Jacobson said he was also encouraged by last year's Draghi report, which urged deregulation and increasing European competitiveness. "Europe is growing up and taking control of its own destiny, which can be positive for macro trends," he said, noting there was more of a pull factor into Europe than a push factor out of the U.S. Ares is focusing more on its international exposure and sees massive opportunities outside of the U.S., Jacobson added — evidenced by its recent acquisition of global alternative asset manager GCP International for $3.7 billion, which increased its exposure in Europe as well as in Asian infrastructure. Optimism toward Europe comes amid lackluster appetite from institutional investors. Data from Prequin shows Europe-focused private credit funds raised nearly $26 billion, down by 69% compared to the $82 billion peak hit in 2021. But Jacobson's comments were echoed by Blackstone's Vice Chairman Thomas Nides, who said that increased political stability in France, Germany and the U.K. means "shifting money into Europe is certainly not a bad bet." Nides nonetheless stressed that the muted M&A and IPO activity observed at a time of chaotic policymaking in Washington "will pass". "Trump keeps everyone on edge, and for people who are market participants, that's anxiety ridden. Boardrooms are cautious in decision-making," he said. "When you're a long-term investor you need to invest through cycles… Things will calm down, issues around tariffs will subside over time, and we'll get back to equilibrium." Asset managers are building headcount in Europe on the potential for new opportunity, Tamsin Coleman, private debt specialist at Mercer, told CNBC. "There hasn't been a wholesale shift in capital from the U.S., only at the edges or home buyers who were overweight in the U.S. adjusting slightly," she added. Digital infrastructure such as data centers, energy efficiency and defense came up repeatedly as key areas of growth potential during the SuperReturn morning sessions on Wednesday, including by Ivano Sessa, partner and co-head European private equity at Bain Capital. "We like to invest in pockets of growth in Europe," Sessa told the conference, calling defense a sensitive but interesting area in which the combination of risk-adjusted growth potential and visibility was "very unique." Highlighting the sentiment shift, Julian Salisbury, co-chief investment officer at Sixth Street, told a panel moderated by CNBC's Leslie Picker that "last year, everybody seemed all-in on growth in the U.S. That's usually a sign you should start considering other options." Salisbury noted the yawning valuation gap in European assets versus their U.S. counterparts since 2008, along with the desire among many growth-oriented European companies to list in the U.S. or be taken private from the public markets. "There's a real opportunity for private lenders [in Europe] to invest at lower valuations. There are still great businesses here," he said. As an example, he cited Sixth Street's recent investment in fried chicken franchise Wingstop, a growing business he says is resilient to factors such as interest rate fluctuations. Challenges to regional investment remain. James Reynolds, global co-head of private credit at Goldman Sachs Asset Management, told CNBC's "Early Edition Europe" on Wednesday that the business had over 150 portfolio companies in Europe that were growing and making acquisitions. "The barriers to entry and the barriers to compete in Europe, we find are a bit higher than maybe anywhere else, you're getting paid for complexity. You need to have offices all over. You need real presence, local presence. You don't do a deal in the same way in northern Europe, Southern Europe," Reynolds said. "Origination [sourcing investment] is a scarce commodity here, and so a lot of the capital is not getting access to the deals." Rajaa Mekouar, co-chief operating officer of Belgian single family office Capnor and founder of Calista Direct Investors, told CNBC that hype around Europe had dominated SuperReturn so far — but that she was skeptical it would move the needle that much in terms of capital flows from the U.S. "Everyone's comparing Europe and the U.S., and Europe is certainly back in favor after being ignored. But if the U.S. is in a political mess then so is Europe, which is a group of countries with different dynamics. So for us it's not a clear debate," she said. "In the U.S. you still have the sheer size of the market, and we still see resilience in the lower- mid-tier. Some fund managers may slow down their U.S. allocation, but investors there remain more risk-prone, and it will remain impossible to scale a tech company in Europe in the way it can be in the U.S.," she added.
Yahoo
03-03-2025
- Business
- Yahoo
Ares Management Corporation Completes Acquisition of GCP International
Establishes Over $115 Billion Global Real Assets Platform With Enhanced Capabilities Across New Economy Sectors and Attractive Geographies NEW YORK, March 03, 2025--(BUSINESS WIRE)--Ares Management Corporation (NYSE: ARES) ("Ares") announced today that it has completed its acquisition of the international business of GLP Capital Partners Limited, excluding its operations in Greater China, and certain of its affiliates ("GCP International"). With the addition of GCP International, Ares' leading global alternative investment platform managed over $525 billion in assets, including more than $115 billion in its global Real Assets business, as of December 31, 2024. The transaction adds important geographic exposure in Asia with a significant presence in Japan through one of the largest logistics platforms in the country, local logistics platforms in emerging economies such as Brazil and Vietnam and an expanded presence in Europe and the U.S. The addition of GCP International alongside the recently completed acquisition of Walton Street Mexico cements Ares as a top three global owner and operator of logistics assets with over 570 million square feet of logistics properties around the world. Further, the acquisition of GCP International has enhanced Ares' capabilities in other high-conviction sectors, including digital infrastructure and self-storage. More broadly, Ares has reinforced its position as a leading global real estate investor, differentiated by its local investment approach and vertically integrated operating and development capabilities across sectors and regions. In addition, Ares now operates a digital infrastructure business with several large hyperscale projects in process across key global markets that collectively represent over 1GW of IT capacity, including approximately 500MW in projects currently underway, as well as a substantial pipeline of future growth. These projects have attracted strong investor interest and, in combination with Ares' existing climate, real estate and digital infrastructure capabilities, should enable Ares to achieve significant scale for this business. Ares' strong presence in logistics, digital infrastructure and traditional real estate sectors positions the platform as a leader in fast-growing new economy sectors. Ares believes the opportunities in these sectors will continue to be fueled by rising demand for new technologies, significant changes in global supply chains and evolving demographic trends that are transforming how communities live and work. Ming Mei, currently CEO of GLP and GCP's remaining business, will continue to support Ares' growth initiatives as a Partner and Senior Advisor, and Michael Steele, most recently President at GCP International, has joined Ares as a Partner in its Real Assets Group. In addition, colleagues across GCP International's global team have joined Ares Real Estate, which will continue to be led by Co-Heads Bill Benjamin and Julie Solomon. "We are proud to welcome our new team members as we establish a powerhouse in the critical real asset sectors driving the new economy," said Michael Arougheti, Chief Executive Officer of Ares. "Together, we have the scale, relationships and experience to benefit from the long-term secular tailwinds that are facilitating unprecedented growth in logistics, digital infrastructure and clean energy assets. We look forward to accelerating execution against our strategic objectives, including growing our global footprint and expanding across asset classes and institutional and retail investor offerings, to deliver an enhanced value proposition for our investors, stockholders and other market participants." "Over the last decade, we have aimed to solidify Ares Real Estate as a leading global investor through our skilled team, longstanding investor and sponsor relationships and performance across market cycles," said Mr. Benjamin and Ms. Solomon. "As we start on this next chapter, the combination of our collaborative cultures, strong sector focus and deep local networks gives us conviction in the power of our platform. We are more excited than ever to be bringing together two top-tier firms and are confident that our integrated team's breadth of experience and disciplined investment approach will fuel our ability to capitalize on attractive long-term structural trends in global real estate markets." Advisors Eastdil Secured, L.L.C., Barclays, Goldman Sachs & Co. LLC and Wells Fargo Securities, LLC served as financial advisors to Ares, with Latham & Watkins acting as legal counsel. Citigroup, Morgan Stanley & Co. LLC, Greenhill, a Mizuho affiliate, UOB Group and Deutsche Bank served as financial advisors to GCP International and Kirkland & Ellis LLP served as legal counsel. 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 December 31, 2024, including the acquisition of GCP International which closed on March 1, 2025, Ares Management Corporation's global platform had over $525 billion of assets under management, with operations across North America, South America, Europe, Asia Pacific and the Middle East. For more information, please visit Forward-Looking Statements Statements included herein contain forward-looking statements within the meaning of the federal securities laws. 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," "approximately," "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 Ares' beliefs, assumptions and expectations of Ares' future performance, taking into account all information currently available to Ares. Such forward-looking statements are subject to various risks and uncertainties, including Ares' ability to effectively integrate each of GCP International and Walton Street Mexico into Ares' operations and to achieve the expected benefits therefrom, and assumptions including those relating to the acquisitions of GCP International and Walton Street Mexico, Ares' operations, financial results, financial condition, business prospects, growth strategy and liquidity. Some of these factors are described in the Annual Report on Form 10-K for the year ended December 31, 2024, including under the headings "Item 1A. Risk Factors" and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations." These factors should not be construed as exhaustive and should be read in conjunction with the risk factors and other cautionary statements that are included in this report and in Ares' other periodic filings. If one or more of these or other risks or uncertainties materialize, or if Ares' underlying assumptions prove to be incorrect, Ares' actual results may vary materially from those indicated in these forward-looking statements. New risks and uncertainties arise over time, and it is not possible for Ares to predict those events or how they may affect Ares. Therefore, you should not place undue reliance on these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. Ares does not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. View source version on Contacts Media: Priscila Roney, +1-212-808-1185media@ Investors: Greg Mason, Carl Drakeirares@
Associated Press
05-02-2025
- Business
- Associated Press
Ares Management Corporation Reports Fourth Quarter and Full Year 2024 Results
Ares Management Corporation (NYSE:ARES) today reported its financial results for its fourth quarter and full year ended December 31, 2024. GAAP net income attributable to Ares Management Corporation was $177.3 million for the quarter ended December 31, 2024. On a basic and diluted basis, net income attributable to Ares Management Corporation per share of Class A and non-voting common stock was $0.72 for the quarter ended December 31, 2024. After-tax realized income was $434.7 million for the quarter ended December 31, 2024. After-tax realized income per share of Class A common stock was $1.23 for the quarter ended December 31, 2024. Fee related earnings were $396.2 million for the quarter ended December 31, 2024. 'During 2024, we set many financial records, including our best year ever in gross fundraising and capital deployed. We raised $93 billion of new funds in 2024 and ended the year with $484 billion of AUM,' said Michael Arougheti, Chief Executive Officer of Ares. 'We continued to expand our investment platform, diversify our distribution channels across institutional, wealth and insurance and generate compelling investment performance for our investors. As we head into 2025, we are optimistic that we are entering into a more active transaction environment which should create more investment opportunities for our platform.' 'With a record $95 billion of assets under management not yet paying fees, we are well positioned to invest opportunistically across a broad range of our strategies for investors and to drive continued strong growth in our key financial metrics over the next several years,' said Jarrod Phillips, Chief Financial Officer of Ares. 'We are making excellent progress on GCP International and we now expect the transaction will close in the first quarter. We believe the GCP International business we are acquiring is well positioned and we expect progress on a number of new fundraising initiatives this year.' Common Stock Dividend Ares declared a quarterly dividend of $1.12 per share of its Class A and non-voting common stock, payable on March 31, 2025 to its Class A and non-voting common stockholders of record at the close of business on March 17, 2025. Preferred Stock Dividend Ares declared a quarterly dividend of $0.84375 per share of its 6.75% Series B mandatory convertible preferred stock, payable on April 1, 2025 to its preferred stockholders of record at the close of business on March 15, 2025. Dividend Reinvestment Program Ares has a Dividend Reinvestment Program for its Class A common stockholders that will be effective for the quarterly dividend on March 31, 2025. Equiniti Trust Company is engaged to administer the plan on behalf of Ares. Additional information can be located on the Investor Resources section of our website. Additional Information Ares issued a full detailed presentation of its fourth quarter and full year 2024 results, which can be viewed at on the Investor Resources section of our home page under Events and Presentations. The presentation is titled 'Fourth Quarter and Full Year 2024 Earnings Presentation.' 2025 Annual Stockholders Meeting The Board of Directors set April 7, 2025 as the record date for Ares' 2025 Annual Meeting of Stockholders. The 2025 Annual Meeting of Stockholders will be held on June 6, 2025. Conference Call and Webcast Information Ares will host a conference call on February 5, 2025 at 10:00 a.m. (Eastern Time) to discuss fourth quarter and full year results. All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Home page of the Investor Resources section of our website at Please visit the website to test your connection before the webcast. Domestic callers can access the conference call by dialing +1 (800) 343-5172. International callers can access the conference call by dialing +1 (203) 518-9856. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected and to reference the conference ID ARESQ424. For interested parties, an archived replay of the call will be available through March 5, 2025 to domestic callers by dialing +1 (800) 839-2475 and to international callers by dialing +1 (402) 220-7220. An archived replay will also be available through March 5, 2025 on a webcast link located on the Home page of the Investor Resources section of our website. 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 December 31, 2024, Ares Management Corporation's global platform had over $484 billion of assets under management, with operations across North America, Europe, Asia Pacific and the Middle East. For more information, please visit 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. Greg Mason Copyright Business Wire 2025. PUB: 02/05/2025 06:05 AM/DISC: 02/05/2025 06:04 AM
