Key Takeaways
- • Ares Management Corporation (NYSE: ARES) has entered into a definitive agreement to acquire 100% of Crescent Point Capital (CPC), a Singapore-headquartered Asia-focused private equity firm with approximately $3.8 billion in assets under management as of March 31, 2023.
- • CPC, founded in 2003 with about 50 professionals, invests in consumer companies across Southeast Asia and China, with a presence in China, Indonesia, the Philippines and Vietnam.
- • The consideration will be primarily Ares Class A common shares subject to a multi-year lock-up, and the deal is expected to be immediately accretive to Ares' after-tax realized income per share.
- • The transaction is expected to close in the third quarter of 2023, subject to customary closing conditions including regulatory approvals.
- • The deal expands Ares Asia, which operates roughly 165 professionals across nine Asia Pacific offices, into dedicated Asia Pacific private equity, a strategy Ares sees as having strong growth prospects.
Summary
Ares Management Corporation (NYSE: ARES) announced a definitive agreement to acquire 100% of Crescent Point Capital (CPC), a leading Asia-focused private equity firm, according to a Business Wire release dated July 17, 2023. CPC had approximately $3.8 billion of assets under management as of March 31, 2023. Founded in 2003, the firm employs about 50 professionals, is headquartered in Singapore, and has a presence in China, Indonesia, the Philippines and Vietnam. Its private equity strategy targets industry-leading consumer companies in the larger Southeast Asia markets and China. The firm reports completing more than 50 transactions in its target markets since inception, with 31 partial or complete monetization events as of March 31, 2023.
The acquisition extends Ares' Asia Pacific footprint. Ares already operates direct sourcing and investment capabilities across credit, private equity, real estate and infrastructure through Ares Asia, formerly known as Ares SSG. Ares Asia has approximately 165 professionals across nine offices in key Asia Pacific markets, as of March 31, 2023. Ares CEO and President Michael Arougheti said the firm believes CPC "is an excellent platform that will further enhance our footprint and capabilities in the region." Edwin Wong, Head of Ares Asia, said CPC's private equity experience and local sponsor relationships would complement the existing efforts and strengthen Ares' position as a creative solutions provider to management teams and sponsors in the market.
David Hand, Managing Partner of CPC, said the combination would give the firm access to Ares' scaled global platform, including greater access to capital, market intelligence, transaction opportunities and expanded investor relationships. The release describes the transaction as a continuation of Ares' global expansion.
Financially, the transaction is expected to be immediately accretive to Ares' after-tax realized income per share of Class A and non-voting common stock. Consideration will be primarily Ares Class A common shares subject to a multi-year lock-up. The deal is expected to close in the third quarter of 2023 and remains subject to customary closing conditions, including regulatory approvals. Latham & Watkins served as legal counsel to Ares, while Kirkland & Ellis and Milbank LLP advised CPC. Ares reported approximately $360 billion in global assets under management as of March 31, 2023, with more than 2,600 employees. The release notes that completion depends on Ares' ability to consummate the acquisition and integrate CPC effectively.
The acquisition extends Ares' Asia Pacific footprint. Ares already operates direct sourcing and investment capabilities across credit, private equity, real estate and infrastructure through Ares Asia, formerly known as Ares SSG. Ares Asia has approximately 165 professionals across nine offices in key Asia Pacific markets, as of March 31, 2023. Ares CEO and President Michael Arougheti said the firm believes CPC "is an excellent platform that will further enhance our footprint and capabilities in the region." Edwin Wong, Head of Ares Asia, said CPC's private equity experience and local sponsor relationships would complement the existing efforts and strengthen Ares' position as a creative solutions provider to management teams and sponsors in the market.
David Hand, Managing Partner of CPC, said the combination would give the firm access to Ares' scaled global platform, including greater access to capital, market intelligence, transaction opportunities and expanded investor relationships. The release describes the transaction as a continuation of Ares' global expansion.
Financially, the transaction is expected to be immediately accretive to Ares' after-tax realized income per share of Class A and non-voting common stock. Consideration will be primarily Ares Class A common shares subject to a multi-year lock-up. The deal is expected to close in the third quarter of 2023 and remains subject to customary closing conditions, including regulatory approvals. Latham & Watkins served as legal counsel to Ares, while Kirkland & Ellis and Milbank LLP advised CPC. Ares reported approximately $360 billion in global assets under management as of March 31, 2023, with more than 2,600 employees. The release notes that completion depends on Ares' ability to consummate the acquisition and integrate CPC effectively.
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