Ares buys asset manager GCP International for $3.7bn
Ares Management is acquiring the international business of GLP Capital Partners, excluding its operations in Greater China, for $3.7bn (£2.8bn).
The acquisition will nearly double Ares’ assets under management (AUM) to approximately $96bn across North America, Europe, Asia and Latin America.
GCP International is a global alternative asset management firm with $44bn of AUM as of 30 June 2024.
It has a presence in major geographies, including Japan, Europe and the US, and has established itself in emerging economies, such as Brazil and Vietnam.
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GCP International is also gaining a reputation in global data centre investing and operations, with several large hyperscale development projects in process, representing over 1GW of IT capacity in key markets across London, Tokyo, Osaka and São Paulo.
“We have long admired the global real estate experience of GCP and its capabilities in facilitating the economy of the future, which includes investing in and managing industrial, data centre and self-storage assets,” said Michael Arougheti, chief executive and president of Ares. “As a combined business, we believe that Ares’ and GCP International’s experienced management teams, highly collaborative cultures and investment track records will create a powerhouse in global real assets investing.”
Ares said the transaction is expected to be”modestly accretive” in its first year, with “meaningfully higher accretion” expected in future years.
Ares Real Estate co-heads said Bill Benjamin and Julie Solomon added: “Combining our platforms will further enhance our strong position in the industry and bolster Ares as a global market leader in real estate with vertically integrated capabilities. We are excited for the opportunities that we can pursue together with our expanded product suite, like-minded cultures and our ability to invest in assets that facilitate the new economy.”
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The transaction will follow a separation of GCP International from GLP Capital Partners’ remaining business, which will remain independent and headquartered in Singapore with a focus on investing in Greater China.
GCP co-founder Ming Mei will serve as chief executive of GLP and GCP’s remaining business. He will also continue to support GCP International and Ares as an Ares partner and senior advisor.
Steele and GCP International’s leadership teams responsible for managing and operating the funds in Japan, Europe, the US, Brazil and Vietnam will join Ares as part of the transaction.
The transaction is expected to close in the first half of 2025 subject to regulatory approvals.
Ares has secured bridge financing from Morgan Stanley Senior Funding and Citigroup Global Markets to support the deal.
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