Ares Administration is buying the worldwide enterprise of GLP Capital Companions, excluding its operations in Better China, for $3.7bn (£2.8bn).
The acquisition will practically double Ares’ belongings below administration (AUM) to roughly $96bn throughout North America, Europe, Asia and Latin America.
GCP Worldwide is a world various asset administration agency with $44bn of AUM as of 30 June 2024.
It has a presence in main geographies, together with Japan, Europe and the US, and has established itself in rising economies, resembling Brazil and Vietnam.
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GCP Worldwide can also be gaining a fame in international information centre investing and operations, with a number of giant hyperscale improvement tasks in course of, representing over 1GW of IT capability in key markets throughout London, Tokyo, Osaka and São Paulo.
“We’ve lengthy admired the worldwide actual property expertise of GCP and its capabilities in facilitating the economic system of the longer term, which incorporates investing in and managing industrial, information centre and self-storage belongings,” stated Michael Arougheti, chief government and president of Ares. “As a mixed enterprise, we imagine that Ares’ and GCP Worldwide’s skilled administration groups, extremely collaborative cultures and funding observe information will create a powerhouse in international actual belongings investing.”
Ares stated the transaction is anticipated to be”modestly accretive” in its first 12 months, with “meaningfully greater accretion” anticipated in future years.
Ares Actual Property co-heads stated Invoice Benjamin and Julie Solomon added: “Combining our platforms will additional improve our sturdy place within the business and bolster Ares as a world market chief in actual property with vertically built-in capabilities. We’re excited for the alternatives that we will pursue along with our expanded product suite, like-minded cultures and our skill to put money into belongings that facilitate the brand new economic system.”
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The transaction will comply with a separation of GCP Worldwide from GLP Capital Companions’ remaining enterprise, which can stay impartial and headquartered in Singapore with a concentrate on investing in Better China.
GCP co-founder Ming Mei will function chief government of GLP and GCP’s remaining enterprise. He may also proceed to assist GCP Worldwide and Ares as an Ares associate and senior advisor.
Steele and GCP Worldwide’s management groups answerable for managing and working the funds in Japan, Europe, the US, Brazil and Vietnam will be part of Ares as a part of the transaction.
The transaction is anticipated to shut within the first half of 2025 topic to regulatory approvals.
Ares has secured bridge financing from Morgan Stanley Senior Funding and Citigroup World Markets to assist the deal.
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