Ares Explores Deal for Real Estate Investor GLP Capital Partners

Jun 18, 2024 | News

Ares Management Corp. is exploring a potential deal for real estate investment firm GLP Capital Partners Ltd., which could rank as one of the biggest combinations in the alternative asset management industry in recent years, people with knowledge of the matter said.

The Los Angeles-based firm is in talks on a possible merger with GCP’s operations outside China, some of the people said, asking not to be identified because the information is private. That would add around $66 billion of assets under management spread across Japan, Southeast Asia, Europe, the US and Brazil, according to one of the people.

GCP runs dozens of funds that deploy money into real assets and private equity with a focus on logistics property, digital infrastructure and renewable energy. Large investment firms have been increasingly pursuing mergers with rivals as they look to push into new areas and bulk up their assets under management, playing to a preference for one-stop shops offering a range of strategies.

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Ares has been expanding via acquisitions, agreeing last year to buy Asian private equity firm Crescent Point Capital. It also acquired BootstrapLabs, an AI-focused venture capital firm. Ares has said it aims to boost its assets under management more than 75% to surpass $750 billion by the end of 2028.

The latest potential deal would rank among the sector’s biggest combinations of the past few years based on the amount of capital GCP oversees. BlackRock Inc. agreed in January to acquire Global Infrastructure Partners for about $12.5 billion, which turned the world’s largest money manager into a major infrastructure player and added over $100 billion of assets.

 

Source:Yahoo Finance

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