Ares Management Corporation Expands Presence in Asia with Acquisition of Crescent Point Capital

Ares Management Corporation, a global alternative investment manager, has announced its definitive agreement to acquire Crescent Point Capital (CPC), a leading Asia-focused private equity firm. This strategic acquisition will further enhance Ares' footprint in the Asia Pacific region and strengthen its position as a creative solutions provider in the market.

CPC, founded in 2003, has established itself as a prominent player in the private equity space, with approximately $3.8 billion of assets under management. The firm focuses on investing in industry-leading consumer companies across Southeast Asia and China, and has delivered attractive results throughout its nearly 20-year history.

Ares, with its direct sourcing and investment capabilities in the Asia Pacific region, sees this acquisition as an opportunity to capitalize on the strong growth prospects for dedicated Asia Pacific private equity strategies. Ares Asia, previously known as Ares SSG, operates with approximately 165 professionals across nine offices in key Asia Pacific markets. The combination of Ares and CPC will bring deep private equity experience, relationships, and a broader set of local sponsor relationships.

Both Ares and CPC share a collaborative culture and a commitment to delivering attractive investment returns for their investors. As part of Ares, CPC is expected to benefit from Ares' scaled global platform and network, including its local market presence across the Asia Pacific region. The transaction will provide CPC with greater access to capital, market intelligence, transaction opportunities, and expanded investor relationships.

Michael Arougheti, Chief Executive Officer and President of Ares, said, "We are proud of the significant Asia Pacific presence that we have established over the years, and we believe that CPC is an excellent platform that will further enhance our footprint and capabilities in the region." Edwin Wong, Head of Ares Asia, added, "The expansion of our local capabilities will also strengthen our position as a creative solutions provider to management teams and sponsors in the market."

The transaction is expected to be immediately accretive to Ares' after-tax realized income per share. The consideration for the acquisition will be primarily comprised of Ares Class A common shares subject to a multi-year lock-up. The deal is expected to close in the third quarter of 2023, subject to customary closing conditions and regulatory approvals.

Latham & Watkins served as legal counsel to Ares, while Kirkland & Ellis and Milbank LLP acted as legal counsel to CPC.

About Ares Management Corporation

Ares Management Corporation is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across various asset classes. The company aims to provide flexible capital to support businesses and create value for stakeholders. With approximately $360 billion of assets under management and a global presence, Ares seeks to generate consistent and attractive investment returns throughout market cycles.

About Crescent Point Capital

Crescent Point Capital is a private equity firm focused on investing in category-leading companies in Southeast Asia and China. The firm emphasizes forming close partnerships with portfolio companies and providing hands-on operational, financial, and strategic value-add throughout the investment lifecycle. With a track record of successful investments, Crescent Point Capital is committed to delivering attractive returns to its investors.

Forward-Looking Statements

This article contains forward-looking statements that reflect Ares Management Corporation's current views and expectations regarding future events, operations, and financial performance. These statements are based on the company's beliefs, assumptions, and available information, and are subject to various risks and uncertainties. Actual results may vary materially from those indicated in the forward-looking statements due to factors such as the successful integration of CPC into Ares' operations and the growth of the business. Ares Management Corporation does not undertake any obligation to publicly update or review any forward-looking statement.

In conclusion, Ares Management Corporation's acquisition of Crescent Point Capital will strengthen its presence in the Asia Pacific region and provide enhanced opportunities for growth and value creation for its investors. The combination of Ares' global platform and CPC's expertise in private equity will create a powerful force in the market, offering innovative solutions and generating attractive investment returns.