Ares Management Corporation (NYSE: ARES)

Ares Management Corporation (NYSE: ARES) is navigating the risk and returns in the world of alternate investments by orchestrating financial solutions for clients that go beyond mere traditional asset management. By making bold yet calculated plays that deliver long-term value and constructing resilient investment structures, the company consistently contributes to revitalizing distressed assets and accelerating the growth of mid-sized enterprises.

Trusted stewards of scalable and flexible capital for nearly three decades, Ares has grown into a global alternative investment manager with footprints across North America, Europe, Asia Pacific and the Middle East. Since its inception, the company has generated cycle-tested performance for investors by offering them primary and secondary investment solutions across credit, private equity, real estate and infrastructure.

One of the reasons why Ares stands as an unassailable leader is due to its value-oriented investment strategy. By targeting assets with a history of stable cash flows and identifiable growth prospects through intensive due diligence and disciplined portfolio management, the company meets the full spectrum of its clients’ financing needs.

In a market long fixated on public equities, Ares has built a reputation in private credit as an experienced evaluator. Its credit group manages over $348.8 billion and uses bottom-up research to identify investments that deliver attractive relative value compared to their fundamental credit risk profile. The division offers a spectrum of investment solutions, including syndicated loans, high-yield bonds and alternative credit investments, to give companies directly originated fixed and floating-rate credit assets. This strategy diversifies traditional fixed-income portfolios and enables investors to capitalize on liquidity premiums across the credit spectrum.

“There is a pretty significant intersection between credit and insurance. Putting more senior resources and attention on driving organization design and performance there will be a big benefit,” says Michael Arougheti, CEO and president.

A time-tested and consistent approach is adopted in the field of real estate and infrastructure, identifying and investing in assets located in liquid markets with diversified economies to leverage their transformation and growth. The company’s real estate investments encompass both equity and debt opportunities backed by a vertically integrated platform, tenured team and thematic investment approach. Its infrastructure investments focus on various sectors, like energy, transportation and digital services, as they play a crucial role in economic development and societal advancement.

Beyond these divisions, its private equity group focuses on control-oriented capital solutions and proactively deploys capital in a disciplined manner in both dislocated and deflated market environments. Unlike the traditional buyout approach that prioritizes quick turnarounds, Ares plays the long game, improving operational efficiencies and ensuring sustainable value.

A notable instance demonstrating Ares’ expertise in orchestrating complex financial solutions involves a leading aerospace and transportation company that needed to refinance its existing debt to enhance financial stability and operational flexibility. Due to the scale and complexity of its needs, the organization faced significant challenges in actualizing the goal.

Recognizing the potential in the client’s assets and operations, Ares, in collaboration with two other private financiers, structured a three-year, $1 billion secured term loan facility. This strategic move was designed to provide the client with the necessary liquidity to manage its debt obligations with ease.

Ares’ history is shaped by these instances, which showcase a commitment to a disciplined investment philosophy that consistently helps deliver value to its investors and stakeholders. By broadening its investment capabilities and geographic reach, the company stands as a proof of how strategic insight and operational insight builds financial ecosystems that sustain businesses and economies.