Ares Management has agreed to acquire BlueCove, a London-based systematic fixed-income investment firm, to establish a new business division focused on quantitative credit strategies.

The acquisition, expected to close in early 2026, will lead to the creation of Ares Systematic Credit, a new arm within Ares’ $377bn Credit Group that will combine data science, technology, and fixed-income expertise to deliver scalable investment solutions.

Founded in 2018 by Alex Khein and Hugh Willis, both former BlueBay Asset Management executives, BlueCove has built a proprietary investment platform that applies systematic and data-driven methods to credit markets, spanning high-yield, investment-grade, and convertible bonds.

Ares first invested in BlueCove through a minority stake in 2023. Since then, BlueCove’s assets under management have tripled to $5.5bn, driven by institutional demand for quantitative credit strategies.

Under the new structure, Khein will lead Ares Systematic Credit, supported by BlueCove’s 60-person team, with Willis assuming the role of Senior Advisor.

Michael Smith, Co-Head of Ares Credit Group, commented: “Since first partnering with BlueCove, the business has grown from strength to strength, further solidifying our conviction about the future of systematic credit investing.”

BlueCove CEO Alex Khein said the deal reflects a “shared culture of innovation and entrepreneurship,” adding that joining Ares will accelerate the firm’s mission to advance systematic investing within global fixed-income markets.

Founded in 1997, Ares is one of the world’s largest alternative investment managers, overseeing $572bn in assets across credit, private equity, real estate, and infrastructure.

The acquisition reinforces Ares’ continued expansion in quantitative and technology-driven credit investing, one of the fastest-growing segments of the global alternatives market.

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