Ares Management, L.P. (NYSE:ARES) announced today that it has completed
its acquisition of Energy Investors Funds (“EIF”), a leading asset
manager in the energy infrastructure industry with approximately $4
billion of assets under management across four commingled funds and
related co-investment vehicles. The transaction closed on January 1,
2015, and is expected to be accretive to Ares.
“The EIF transaction provides Ares an entry into the large and growing
energy infrastructure industry and attractive investment opportunities
where we can leverage our existing core competencies to bring
differentiated investment results,” said Michael Arougheti, Co-Founder
and President of Ares. “EIF represents exactly what we look for in
pursuing accretive, strategically valuable acquisitions. The team brings
an established track record of excellence in an investment strategy that
is attractive for our collective fund investors and a deep expertise
that we believe will benefit and further diversify Ares’ existing
strategies.”
Ares’ new energy infrastructure equity investment team focuses on
generating long-term, stable cash-flowing investments in the power
generation, transmission and midstream energy sector. Along with EIF’s
team of approximately 40 professionals, the transaction brings Ares a
strong long-term investment track record and significant fee-paying
assets under management of approximately $4 billion in an asset class
that is well insulated from the volatility in the oil and gas industry.
“We are delighted to welcome EIF—a reputable team with tremendous
experience in the energy infrastructure sector, having invested in more
than 100 diversified investments with a combined asset value of over $15
billion, and one that we believe will be an excellent cultural fit with
our collaborative investment teams at Ares,” added Bennett Rosenthal,
Co-Founder and Senior Partner of Ares and Co-Head of the Ares Private
Equity Group. “We expect that the EIF team will greatly benefit from
Ares’ sourcing, market intelligence and relationship network advantages
to enhance its already excellent investment performance. We believe that
Ares investors will be attracted to the long term, contractual nature of
the investments and potential risk-adjusted returns within the
infrastructure sector, enabling us to grow our assets under management
in the future.”
As a result of this transaction, the Ares Private Equity Group has
approximately $14 billion of assets under management, pro forma for the
EIF transaction as of September 30, 2014, across U.S./Europe corporate
private equity, China corporate private equity and U.S. energy
infrastructure private equity.
“We are pleased to join the Ares platform and capitalize on the
significant and growing investment opportunities as the nation replaces
its aging energy infrastructure and builds new power and midstream
assets to meet capacity needs over the coming decade,” said Herbert
Magid, a Managing Partner at EIF and now a Senior Partner in the Private
Equity Group at Ares. “The benefits of the Ares platform are already
apparent to us and we believe these advantages will enhance our
performance and growth prospects.”
Proskauer Rose LLP acted as legal advisor and Latham & Watkins LLP acted
as regulatory advisor to Ares, and Morgan, Lewis & Bockius LLP acted as
legal advisor to EIF.
About Ares Management, L.P.
Ares is a leading global alternative asset manager with approximately
$84 billion of assets under management and more than 15 offices in the
United States, Europe and Asia as of September 30, 2014, pro forma for
the EIF transaction. Since its inception in 1997, Ares has adhered to a
disciplined investment philosophy that focuses on delivering strong
risk-adjusted investment returns throughout market cycles. Ares believes
each of its four distinct but complementary investment groups in
Tradable Credit, Direct Lending, Private Equity and Real Estate is a
market leader based on assets under management and investment
performance. Ares was built upon the fundamental principle that each
group benefits from being part of the greater whole.
About Energy Investors Funds
EIF was founded in 1987 as one of the first private equity fund managers
focused on the independent power industry. EIF’s investment strategy is
to create diversified portfolios of energy infrastructure related assets
across the power generation, transmission, and midstream sectors that
are expected to provide superior risk-adjusted equity returns with
current cash flow and capital appreciation. From its offices in Boston,
New York, and San Francisco, EIF manages over $4 billion of AUM in four
comingled private equity funds as well as related co-investment vehicles
as of September 30, 2014.
Forward Looking Statements
Statements included herein may constitute “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act of
1995, which relate to future events or future performance or financial
condition. These statements are not guarantees of future performance,
condition or results and involve a number of risks and uncertainties.
Actual results may differ materially from those in the forward-looking
statements as a result of a number of factors, including those described
from time to time in Ares’ filings with the Securities and Exchange
Commission. Ares’ undertakes no duty to update any forward-looking
statements made herein.
Copyright Business Wire 2015