- Ares Management is exploring a merger with GLP Capital Partners. The resulting company would be one of the world’s largest alternative asset managers.
- The deal would add approximately $66B in assets under management across Japan, Southeast Asia, Europe, the US, and Brazil.
- Ares aims to increase its AUM to over $750B by 2028 with a series of strategic M&A deals.
Ares Management Corp. (ARES) is in talks to acquire GLP Capital Partners Ltd., according to Bloomberg. The move could rank among the largest in the alternative investment industry in recent years.
Deal Details
The merger would significantly enhance Ares’ global presence and asset management portfolio, adding about $66B in AUM spread across multiple continents.
Interestingly, news of the potential deal made ARES shares slump 5.7%, the biggest intraday decline for the company since March 2023. But just a few hours later, shares were down just 3.5%, valuing the company at approximately $41B.
Expansion Plans
Ares has been actively expanding via numerous acquisitions, including the purchase of Crescent Point Capital and BootstrapLabs. The global firm aims to boost its AUM by more than 75% to surpass $750B by 2028.
This specific deal would involve merging GCP’s operations outside China, expanding Ares’ footprint in Japan, Southeast Asia, Europe, the U.S., and Brazil. GCP specializes in logistics properties, digital infrastructure, and renewable energy and runs dozens of funds.
Why It Matters
While the structure of the potential deal has not been finalized, and other suitors could emerge, the acquisition reflects a broader industry push for consolidation and diversification. Ares isn’t the only asset manager interested in M&A right now.
Notable recent transactions include BlackRock’s (BX) acquisition of Global Infrastructure Partners for $12.5B, TPG Inc.’s (TPG) purchase of Angelo Gordon for $2.7B, and T. Rowe Price’s (TROW) acquisition of Oak Hill Advisors for up to $4.2B. European firm EQT AB also expanded by acquiring Baring Private Equity Asia Ltd.
