Key Takeaways
- • Ares Management and OMERS Private Equity sold National Veterinary Associates, one of the world's largest veterinary and pet care services organizations, to JAB Investors (a privately held German conglomerate) in an undisclosed transaction.
- • Ares committed $165 million in capital to a joint venture with Development Capital Resources subsidiary for oil and natural gas drilling in the Permian Basin's Wolfcamp formation near Midland, Texas, with operations expected to continue through 2020.
- • Development Capital Resources has deployed more than $1.3 billion across four transactions since its formation in early 2017, partnering with Ares-managed funds to acquire and fund participating interests in exploration and production projects across Texas, Oklahoma, and California.
- • The energy venture drilling program has already commenced, positioning Ares to capitalize on operational activity in one of North America's most prolific hydrocarbon-producing regions.
Summary
Ares Management executed two significant capital deployment transactions during the week of June 19, 2019, reflecting the firm's diversified investment strategy across consumer services and energy infrastructure. The Century City-based alternative asset manager divested its stake in National Veterinary Associates, a major global player in veterinary and pet care services, by selling to JAB Investors alongside co-investor OMERS Private Equity. JAB, a Luxembourg-headquartered German conglomerate with a portfolio spanning consumer goods, forestry, coffee, luxury fashion, and fast food operations, acquired the Agoura Hills-based firm; however, financial terms remained undisclosed.
Concurrent with the pet care exit, Ares deployed $165 million into a joint venture structured with Development Capital Resources, a Houston-based investment vehicle focused on North American exploration and production. The capital commitment targets oil and natural gas drilling operations in the Permian Basin's Wolfcamp formation in the Midland, Texas area. The drilling program commenced ahead of the reported transaction announcement and is scheduled to continue through 2020, positioning Ares within an operational framework rather than a pre-development venture.
Development Capital Resources, established in early 2017, has emerged as a meaningful allocator to the E&P sector, having structured four separate transactions representing cumulative capital commitments exceeding $1.3 billion in partnership with Ares-managed funds. These investments span participating interests in projects across Texas, Oklahoma, and California. The Permian Basin allocation represents a continuation of Ares' infrastructure and energy strategy, targeting mid-lifecycle assets in established producing regions where operational risk is lower than greenfield development programs. The dual transaction activity demonstrates Ares' capacity to simultaneously execute exits from mature consumer service investments while maintaining active deployment into energy infrastructure opportunities.
Concurrent with the pet care exit, Ares deployed $165 million into a joint venture structured with Development Capital Resources, a Houston-based investment vehicle focused on North American exploration and production. The capital commitment targets oil and natural gas drilling operations in the Permian Basin's Wolfcamp formation in the Midland, Texas area. The drilling program commenced ahead of the reported transaction announcement and is scheduled to continue through 2020, positioning Ares within an operational framework rather than a pre-development venture.
Development Capital Resources, established in early 2017, has emerged as a meaningful allocator to the E&P sector, having structured four separate transactions representing cumulative capital commitments exceeding $1.3 billion in partnership with Ares-managed funds. These investments span participating interests in projects across Texas, Oklahoma, and California. The Permian Basin allocation represents a continuation of Ares' infrastructure and energy strategy, targeting mid-lifecycle assets in established producing regions where operational risk is lower than greenfield development programs. The dual transaction activity demonstrates Ares' capacity to simultaneously execute exits from mature consumer service investments while maintaining active deployment into energy infrastructure opportunities.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.