Global alternative asset manager Ares Management has sold a 6.25 per cent equity stake in itself for $250m to Alleghany Corporation, which has also pledged to invest up to $1bn alongside the firm.
Ares said it planned to use the investment as sponsor capital in its investment vehicles, which range from senior debt to common equity.
Ares senior partner and executive committee chairman Tony Ressler said, “We believe this strategic transaction with Alleghany, a highly regarded, well-run company with expertise in specialty insurance, asset management and opportunistic equity investing, will greatly benefit our entire platform.
“We are thrilled to have Alleghany join the Abu Dhabi Investment Authority as a strategic investor to meet the diverse needs of our blue chip investor base across more than 100 vehicles.
“In working closely with Alleghany’s leadership team, we recognized how similar our corporate cultures are, which further confirmed the enormous potential of this relationship.”
Los Angeles-based Ares Management held the final closing of its $4.7bn Ares Corporate Opportunities Fund IV in August last year, well above its $4bn target.
The fund was 35 per cent larger than Ares’ ACOF III predecessor, which closed in 2008.
Ares is led by David Kaplan and Bennett Rosenthal.
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