Ares Management Corporation expands its real estate business with the acquisition of Black Creek, a US real estate investment manager with $ 11.6 billion (€ 9.49 billion) in assets under management (AUM).
The 100% acquisition will bring the Los Angeles-based alternative investment manager’s global real estate portfolio from $ 207 billion to $ 29 billion.
The transaction follows a series of efforts by Ares to grow, including an attempt to take over the private markets arm of AMP Capital and the successful acquisition of aftermarket specialist Landmark Partners.
Black Creek manages $ 11.6 billion in core and core plus real estate assets through two unlisted real estate investment trusts (REITs) and several institutional funds, including a property-driven open-end vehicle American industrialist.
The company, founded in 1993, invests in several types of properties, has more than 100 investment professionals in eight offices across the United States.
Ares said the company’s primary and primary focus, and its 25-year presence in U.S. industrial markets, would complement its existing capabilities in value-added and opportunistic strategies and real estate debt.
Last month, Ares announced that it had raised $ 1.7 billion for its latest US opportunistic real estate fund
The acquisition will also strengthen Ares’ retail distribution capacity and increase its perpetual, non-traded REIT capital by $ 5.1 billion with the addition of two non-traded REITs.
“We are very pleased to complete this strategic transaction with Black Creek, which further expands our real estate business, expands us into core / core-plus strategies and provides us with a leading non-traded REIT retail distribution platform.” , said Michael Arougheti. , CEO and Chairman of Ares.
“We believe this highly complementary combination will add significant revenue synergies to our real estate business as we bring new products to our existing investor base. “
Raj Dhanda, CEO of Black Creek Group, said: “As a leading company with many global relationships and a collaborative culture, Ares was the ideal partner for Black Creek Group, and this agreement will allow the combined Ares Real Estate Group to expand our capabilities. , scope and potential for growth.
Upon closing, key members of Black Creek’s management team will remain in place and be part of the Ares real estate group, led by Bill Benjamin.
The consideration for the transaction will include an initial amount composed of cash, Ares operating group units and a possible performance-based earn-out payable in a combination of cash and equity of Ares.