Ares to acquire AMP’s infrastructure debt platform for $308m

Dec 25, 2021 | News

Ares Management Corporation, a leading global alternative investment manager, announced today that its subsidiary, Ares Holdings, has entered into a definitive agreement to acquire AMP’s PrivateMarketsCo Infrastructure Debt platform, one of the largest infrastructure debt investment platforms globally with approximately $8bn in assets under management, as of September 30, 2021. The transaction consideration is $308m and will be funded using cash on hand and Ares’ $1.1bn revolving credit facility.

The Infrastructure Debt team is led by its Global Head, Patrick Trears, and has 17 dedicated investment professionals located across London, Sydney, Singapore and New York. The team has established a strong risk-adjusted, long-term track record investing approximately US$9 billion of capital across nearly 60 transactions globally with a focus on the digital, utilities, transportation and renewable energy sectors. With a leading reputation among sponsors and developers, the team brings robust direct investment origination and high-quality deal flow capabilities. Given its strong positioning and the compelling market dynamics, the Infrastructure Debt platform has been a leading fundraiser over the past five years with support from a global investor base of approximately 100 institutional investors.

This transaction adds complementary investment capabilities to Ares’ current activities in the rapidly growing infrastructure asset class. The Infrastructure Debt team is anticipated to expand and enhance Ares’ existing infrastructure strategy, which has historically focused on value-add equity and flexible capital across the power and climate infrastructure sectors. As part of Ares, the Infrastructure Debt team will be positioned to benefit from the advantages of Ares’ scaled global platform that includes its leading private credit franchise. This combination is expected to bolster future investment, market intelligence and fundraising efforts.

Get the week’s top news delivered directly to your inbox – Sign up for our newsletter

Sign up

“We are pleased to announce this acquisition of a highly complementary infrastructure debt platform. We believe that this strategic combination will further propel our infrastructure investment capabilities and expand our global footprint,” said Michael Arougheti, Chief Executive Officer and President of Ares. “The team shares a similar credit mindset with Ares, and our infrastructure leadership has enjoyed a great relationship with Patrick and other senior leaders for over a decade. Together we believe we are well-positioned to leverage the full scale of the Ares platform and relationships to provide optimal capital solutions for our investment partners and generate attractive risk-adjusted returns for our investors.”

“We have great respect for Ares as a global leader in the alternative investment industry and are excited to join the team,” said Patrick Trears. “We believe that this strategic combination will help accelerate our business and drive significant benefits for our investors and deal counterparties.”

Upon closing of the transaction, Infrastructure Debt will be led by Patrick Trears and will be reported as part of a new segment for Ares called the Ares Real Assets Group. This segment will also include Real Estate led by Bill Benjamin and Infrastructure Equity led by Keith Derman and Andrew Pike. The Ares Real Assets Group would represent approximately US$48 billion of assets under management as-adjusted for the transaction, as of September 30, 2021.

The transaction is expected to be immediately accretive to Ares’ after-tax realized income per share of class A common stock. It is expected to close in the first quarter of 2022 and is subject to customary closing conditions, including satisfaction of applicable regulatory requirements.

Source: Business Wire

Can’t stop reading? Read more