Ares Administration is buying the worldwide enterprise of GLP Capital Companions, excluding its operations in Higher China, for $3.7bn (£2.8bn).
The acquisition will practically double Ares’ property beneath administration (AUM) to roughly $96bn throughout North America, Europe, Asia and Latin America.
GCP Worldwide is a world different asset administration agency with $44bn of AUM as of 30 June 2024.
It has a presence in main geographies, together with Japan, Europe and the US, and has established itself in rising economies, similar to Brazil and Vietnam.
Learn extra: Ares buys lower-mid market lender Riverside Credit score Options
GCP Worldwide can be gaining a fame in international knowledge centre investing and operations, with a number of giant hyperscale growth tasks in course of, representing over 1GW of IT capability in key markets throughout London, Tokyo, Osaka and São Paulo.
“Now we have lengthy admired the worldwide actual property expertise of GCP and its capabilities in facilitating the economic system of the long run, which incorporates investing in and managing industrial, knowledge centre and self-storage property,” stated Michael Arougheti, chief govt and president of Ares. “As a mixed enterprise, we imagine that Ares’ and GCP Worldwide’s skilled administration groups, extremely collaborative cultures and funding monitor information will create a powerhouse in international actual property investing.”
Ares stated the transaction is predicted to be”modestly accretive” in its first yr, with “meaningfully increased accretion” anticipated in future years.
Ares Actual Property co-heads stated Invoice Benjamin and Julie Solomon added: “Combining our platforms will additional improve our robust place within the business and bolster Ares as a world market chief in actual property with vertically built-in capabilities. We’re excited for the alternatives that we will pursue along with our expanded product suite, like-minded cultures and our capability to put money into property that facilitate the brand new economic system.”
Learn extra: Ares: Non-public credit score market will double inside 5 years
The transaction will observe a separation of GCP Worldwide from GLP Capital Companions’ remaining enterprise, which is able to stay unbiased and headquartered in Singapore with a concentrate on investing in Higher China.
GCP co-founder Ming Mei will function chief govt of GLP and GCP’s remaining enterprise. He can even proceed to assist GCP Worldwide and Ares as an Ares accomplice and senior advisor.
Steele and GCP Worldwide’s management groups chargeable for managing and working the funds in Japan, Europe, the US, Brazil and Vietnam will be a part of Ares as a part of the transaction.
The transaction is predicted to shut within the first half of 2025 topic to regulatory approvals.
Ares has secured bridge financing from Morgan Stanley Senior Funding and Citigroup World Markets to assist the deal.
Learn extra: Ares dominates shortlist for Different Credit score Awards