Ares Management Raises Over $2.3 Billion of Equity Commitments to Support the Long-Term Growth of Aspida

Rhea-AI Summary

Ares Management (NYSE: ARES) has secured over $2.3 billion in equity commitments to support Aspida Holdings , a life insurance and annuity company. Combined with a recent $700 million credit facilities offering, total capital raised exceeds $3 billion.

Aspida has grown to over $19 billion in total assets as of September 30, 2024, leveraging its technology platform for annuity and reinsurance clients. The company maintains an open architecture sub-advisor selection, with Ares Insurance Solutions (AIS) managing its assets. The portfolio is over 90% investment grade and matched to liabilities.

The funding aims to capitalize on increasing retirement solution demands driven by increased life expectancy, rising healthcare costs, and elevated expenses. Aspida's platform combines spread-based business model and digital capabilities with AIS's asset origination and investment expertise.

Positive

• Raised over $2.3 billion in equity commitments plus $700 million in credit facilities
• Grown to over $19 billion in total assets in four years
• Portfolio is over 90% investment grade
• Oversubscribed credit facility offering indicates strong investor interest

Negative

• None.

Insights

Financial Analyst

The $2.3 billion equity raise combined with $700 million in credit facilities represents a substantial capital injection that positions Aspida for significant market expansion. With $1.5 billion in dry powder capable of supporting $15 billion in new business, this provides an impressive 10x leverage potential for growth. The current $19 billion asset base demonstrates strong execution in just four years.

The 90% investment-grade portfolio composition signals a conservative approach to risk management while maintaining competitive returns. This balanced strategy is particularly attractive in the current market environment where safety and yield are paramount. The open architecture model for sub-advisors enables optimal portfolio construction while maintaining risk control.

For Ares shareholders, this represents a strategic expansion in the high-margin insurance sector, diversifying revenue streams beyond traditional alternative investments. The insurance platform provides stable, recurring fee income and opportunities for asset management synergies across the broader Ares platform.

Insurance Industry Expert

This capital raise comes at an optimal time in the insurance market cycle. The demographic tailwinds of aging populations and increasing healthcare costs are driving unprecedented demand for retirement solutions. Aspida's technology-first approach, focusing on user experience and operational efficiency, positions it well against legacy insurers burdened with outdated systems.

The spread-based business model, combined with Ares' expertise in alternative investments, provides a competitive advantage in product pricing and investment returns. This is particularly relevant as retirees seek enhanced after-tax returns in a challenging interest rate environment. The $15 billion new business capacity could translate to significant market share gains in the rapidly growing annuity market.

Market Research Analyst

The retirement solutions market is experiencing a structural shift as traditional pension plans decline and individuals seek guaranteed income products. Aspida's rapid growth to $19 billion in assets within four years validates the market opportunity and execution capability. The additional capital strengthens their competitive position against established players.

The oversubscribed credit facility indicates strong institutional confidence in the business model. The combination of Ares' investment capabilities with Aspida's modern technology platform creates a compelling value proposition in the fragmented insurance market. This positions them well to capture market share from traditional insurers who struggle with legacy systems and lower investment returns.

Aspida Is Well-Positioned to Meet the Growing Demand for Retirement Income and Solutions With Over $1.5 Billion of Dry Powder That Could Support Over $15 Billion of New Business

NEW YORK--(BUSINESS WIRE)-- Ares Management Corporation (“Ares”) (NYSE: ARES), a leading global alternative investment manager, announced today that it has raised over $2.3 billion of equity commitments from third parties, Ares and affiliates of Ares to support the long-term growth of Aspida Holdings Ltd. (“Aspida”). Aspida is a life insurance and annuity company based in Durham, N.C. and supported by the Ares Insurance Solutions (“AIS”) business as its dedicated investment management, capital solutions and corporate development partner. In addition, Aspida recently closed an oversubscribed offering of $700 million in credit facilities bringing total capital raised to more than $3 billion.

After launching four years ago, Aspida has organically grown its platform to over $19 billion in total assets, as of September 30, 2024, by leveraging its scalable, user-friendly technology platform designed to deliver high quality customer service to its individual annuity and reinsurance clients. Moreover, Aspida maintains an open architecture sub-advisor selection, which underscores its focus on seeking to maximize returns for clients. As part of that structure, the AIS team manages Aspida’s assets by leveraging significant insurance investment experience, differentiated asset origination and asset-liability and capital management solutions. With the strength of the Ares platform, the AIS team has helped build Aspida a diversified portfolio of high-quality investments that is over 90% investment grade and well-matched to its liabilities.

“This is a remarkable milestone for Aspida, and the Ares team is proud to provide continued support through our capital investment and the AIS team’s services,” said David Reilly and Ryan Myrick, Partners and Co-Heads of AIS. “Propelled by secular tailwinds, including increased life expectancy, rising health care costs and elevated expenses, retirement planners have turned to annuities to offer enhanced after-tax returns. By pairing Aspida’s spread-based business model and digital platform with AIS’s leading asset origination and investment capabilities, we believe Aspida is well-positioned to capitalize on these trends and drive continued growth and value creation for its clients and investors.”

“We are excited to announce this significant achievement for Aspida, which reflects the growing demand for our versatile platform offerings and the strength of our relationship with Ares,” said Lou Hensley, Chief Executive Officer and President of Aspida. “In just four years, we are delivering on our mission to support clients’ financial security by leveraging cutting-edge technology designed to provide superior speed, service and scalability. Combined with access to Ares’ leading global investment platform, Aspida has been able to capitalize on the increasing demand for retirement solutions. On behalf of the entire Aspida team, I want to extend my gratitude to Ares and all our investors for their continued trust and confidence in Aspida’s vision and future.”

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 September 30, 2024, Ares Management Corporation's global platform had approximately $464 billion of assets under management, with more than 3,100 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.

About Aspida

Aspida Holdings Ltd., through its subsidiaries (collectively “Aspida”), is focused on providing retirement and reinsurance solutions, with total assets of over $19 billion as of September 30, 2024. Aspida’s U.S. platform – Aspida Life Insurance Company – is based in Durham, N.C., and focuses on leveraging technology and agility to help clients achieve – and protect – their dreams. Aspida Re, with offices in Hamilton, Bermuda and the Cayman Islands, is focused on providing efficient and secure reinsurance solutions to life and annuity clients globally. Aspida seeks to be a trusted partner in its clients’ financial security while driving its growth by doing good for the communities it serves. A subsidiary of Ares Management Corporation (NYSE: ARES) acts as the dedicated investment manager, capital solutions and corporate development partner to Aspida. For more information, please visit: www.aspida.com or follow them on LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250109221478/en/

Ares Media:

Jacob Silber, +1-212-301-0376

media@aresmgmt.com

Aspida Media:

Blaire Swayze

Blaire.Swayze@aspida.com

Source: Ares Management Corporation

FAQ

How much capital did Ares Management (ARES) raise for Aspida in 2024?

Ares Management raised over $2.3 billion in equity commitments and $700 million in credit facilities, totaling more than $3 billion in capital raised for Aspida.

What is Aspida's total asset value as of September 2024?

Aspida's total assets were over $19 billion as of September 30, 2024.

What percentage of Aspida's portfolio is investment grade?

Over 90% of Aspida's portfolio is investment grade.

How will ARES's capital raising impact Aspida's growth potential?

The capital raised provides over $1.5 billion in dry powder that could support over $15 billion of new business, positioning Aspida to meet growing retirement income demands.

What market trends is Aspida targeting with ARES's investment?

Aspida is targeting secular trends including increased life expectancy, rising healthcare costs, and elevated expenses, where retirement planners seek enhanced after-tax returns through annuities.