Ares Management Announces Launch of Offering of Class A Common Stock
Ares Management (NYSE: ARES) has announced an underwritten public offering of 2,650,000 shares of Class A common stock. The company has also granted the underwriters an option to purchase an additional 397,500 shares. The net proceeds from this offering will be used for general corporate purposes, including debt repayment, strategic acquisitions, and growth initiatives. The offering is being managed by Morgan Stanley, BofA Securities, J.P. Morgan, RBC Capital Markets, and Wells Fargo Securities. A registration statement has been filed with the SEC and is effective. The offering will be made via a preliminary prospectus supplement and accompanying prospectus, both of which can be accessed through the SEC's website.
- Launch of 2,650,000 shares of Class A common stock could fuel corporate growth.
- Proceeds intended for debt repayment, potentially improving the company's financial health.
- Funds earmarked for strategic acquisitions could drive long-term growth.
- Involvement of major financial institutions like Morgan Stanley and J.P. Morgan adds credibility.
- Increase in shares could lead to stock dilution for existing shareholders.
- Underwritten offering may indicate a need for immediate capital, possibly reflecting underlying financial constraints.
Insights
Ares Management’s decision to launch a public offering of
From a financial perspective, the offering might lead to short-term dilution of existing shareholders’ equity due to the increase in the number of outstanding shares. However, this dilution could be offset if the proceeds are effectively used to generate higher returns through strategic investments or acquisitions.
Given the participation of major underwriters like Morgan Stanley, BofA Securities and J.P. Morgan, the offering appears to be well-supported and could attract considerable investor interest. It’s also notable that Ares has the option to sell an additional
Rating: Positive (1)
The market's reaction to Ares Management’s public offering will be crucial. Given Ares' history of strategic acquisitions and growth initiatives, this move could signal to the market that the company is poised for further expansion. The use of proceeds for general corporate purposes provides flexibility, allowing Ares to capitalize on emerging opportunities.
Short-term market implications may include a potential dip in share price due to dilution, but long-term investors might view this as a positive, given Ares’ track record. The effective use of proceeds can lead to improved market positioning and competitive advantage, ultimately enhancing shareholder value.
For retail investors, understanding the context of this offering within Ares' broader strategy is essential. The choice of renowned underwriters can also be seen as a vote of confidence in the offering's success.
Rating: Positive (1)
Morgan Stanley, BofA Securities, J.P. Morgan, RBC Capital Markets and Wells Fargo Securities are acting as joint bookrunning managers for the Offering.
A registration statement on Form S-3 relating to these securities has been filed with the Securities and Exchange Commission (the “SEC”) and has become effective. The Offering may be made only by means of a preliminary prospectus supplement and accompanying prospectus. A copy of the preliminary prospectus supplement and accompanying prospectus related to the Offering can be obtained for free by visiting the SEC’s website at http://www.sec.gov or by contacting Morgan Stanley, Attention: Prospectus Department, 180 Varick Street, 2nd Floor,
This press release does not constitute an offer to sell or a solicitation of an offer to buy these securities, nor does it constitute an offer, solicitation or sale of these securities in any jurisdiction in which such offer, solicitation or sale is unlawful. 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, 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 March 31, 2024, Ares Management Corporation’s global platform had approximately
Forward-Looking Statements
Statements included herein contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, 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 SEC. Ares 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240612285229/en/
Investors:
Greg Mason
or
Carl Drake
irares@aresmgmt.com
+1-888-818-5298
Source: Ares Management Corporation
FAQ
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