Ares Management Corporation Announces Agreement to Acquire Landmark Partners

Rhea-AI Summary

Ares Management Corporation (NYSE: ARES) has entered into a definitive agreement to acquire 100% of Landmark Partners, LLC for $1.08 billion. The deal includes approximately $787 million in cash and $293 million in Ares Operating Group Units. Landmark, a leader in secondary private fund ownership stakes, has $18.7 billion in assets under management. The acquisition aims to enhance Ares' offerings in alternative investments, capitalizing on increasing investor interest and expected strong performance. Landmark's management team, recognized for their innovative solutions, will remain integral to the new venture.

Positive

• Strategic acquisition of Landmark Partners enhances Ares' investment capabilities in private market secondaries.
• Landmark's strong historical growth rate of 17% in assets under management over the past four years.
• Expected synergies from combining Ares' global platform with Landmark's innovative transaction structures.

Negative

• None.

Ares Management Corporation (“Ares”) (NYSE: ARES) announced today that a subsidiary of Ares has entered into a definitive agreement with a subsidiary of BrightSphere Investment Group Inc. (NYSE: BSIG) and Landmark Investment Holdings LP to acquire 100% of Landmark Partners, LLC (collectively with its subsidiaries, “Landmark”), one of the largest and most experienced investors in acquiring secondary private fund ownership stakes in the alternative asset management industry. The transaction is valued at $1.08 billion, including approximately $787 million in cash and approximately $293 million in Ares Operating Group Units, in each case subject to certain adjustments.

With 150 employees across six global offices, Landmark manages private equity, real estate and infrastructure secondaries funds totaling $18.7 billion in assets under management as of December 31, 2020. Supported by a global, institutional investor base of more than 600 fund investors, Landmark is viewed as a trusted and innovative counterparty in developing flexible transaction solutions to an extensive roster of financial sponsors and institutional investors. Landmark was founded in 1989 and is led by its highly experienced management team who have capitalized on the increasing investor appetite for private market secondaries with a compound annual growth rate of 17% in its assets under management over the past four years.

“We are incredibly proud to announce this transaction with Landmark, a pioneer in developing the asset class of private market secondaries,” said Michael Arougheti, Chief Executive Officer and President of Ares. “We believe secondary investments are only increasing in their appeal to a growing group of investors and we are excited to include these strategies in our comprehensive alternatives offering. We have known Landmark’s leadership team for many years and hold them in high regard for their approach to partnership and demonstrated ability to develop creative, win-win solutions. We look forward to welcoming Frank Borges, Tim Haviland and their colleagues and we expect significant benefits for our investors, employees and other stakeholders from this combination.”

“We are excited to join forces with Ares as we enter this new chapter in Landmark’s history,” said Francisco Borges, Chairman and Managing Partner of Landmark Partners. “Ares’ global platform and significant resources will enhance our combined investment capabilities and my partners and I look forward to driving continued strong performance, transaction structuring innovation and business growth for many years to come. As a reflection of this optimism, I am very pleased that our management team has agreed to accept significant equity in the combined firm.”

“As alternative assets continue to gain share, we believe growth in the secondaries market should also continue to accelerate,” said Timothy Haviland, President and Managing Partner of Landmark Partners. “We are excited to enhance and expand our already strong market position as a new investment group within the broader Ares platform. Our approach and processes are culturally similar to Ares’ and we look forward to building on key sourcing, r

FAQ

What is the value of Ares' acquisition of Landmark Partners?

The total transaction value is $1.08 billion, consisting of approximately $787 million in cash and $293 million in Ares Operating Group Units.

What does Landmark Partners specialize in?

Landmark Partners specializes in acquiring secondary private fund ownership stakes in the alternative asset management industry.

How much assets does Landmark manage?

As of December 31, 2020, Landmark manages $18.7 billion in assets under management.

Who are the key figures involved in the acquisition?

Key figures include Michael Arougheti, CEO of Ares, and Francisco Borges, Chairman of Landmark Partners.

What are the expected benefits of the acquisition for Ares?

Ares expects to enhance its investment capabilities, drive performance, and innovate transaction structuring.