Ares Management Bundle
Who Owns Ares Management Corporation?
Understanding a company's ownership is key to its strategy and market influence. Ares Management Corporation, a major global alternative investment manager, became publicly traded in May 2014 through its IPO, a significant shift in its ownership structure.
Founded in 1997, Ares Management has grown into a leading alternative asset manager with $572.4 billion in total assets under management as of June 30, 2025. This growth reflects a 28% increase from the previous year, with fee-paying AUM reaching $349.6 billion.
The ownership of Ares Management Corporation has evolved considerably since its inception. Initially, it was owned by its founding team and early investors. Following its IPO, ownership expanded to include public shareholders and significant institutional investors. This transition provides a foundation for analyzing the company's governance and future direction, including its strategic tools like the Ares Management BCG Matrix.
Who Founded Ares Management?
Ares Management Corporation was co-founded in 1997 by a group of experienced professionals, including Antony Ressler, Michael Arougheti, David Kaplan, John H. Kissick, and Bennett Rosenthal. Their collective expertise in leveraged finance, private equity, and capital markets laid the groundwork for the firm’s initial focus on credit-related investment strategies.
Founding Vision
The founders leveraged their extensive backgrounds to establish the firm's foundation. Antony Ressler, for example, had prior experience co-founding Apollo and overseeing its capital markets activities.
Early Strategy Focus
Ares Management's initial strategy was heavily centered on credit-oriented investments. This focus allowed the firm to build a strong reputation in a specialized area of finance.
Expansion of Strategies
Beyond its initial credit focus, Ares Management strategically expanded its investment offerings. The firm ventured into private equity in 2002 and launched its Tradable Credit Group in 2004.
Capital Base Growth
A significant early milestone was the initial public offering of Ares Capital Corporation (ARCC) in 2004. This move was crucial for increasing the firm's permanent capital base.
Founders' Vision in Action
The founding team's vision for providing flexible capital solutions and diversifying investment offerings guided these early strategic decisions and the firm's growth.
Seed Capital and Equity
While precise details on the initial seed capital and equity distribution for the private entity are not publicly disclosed, the founders' combined experience was the primary driver of the company's establishment.
The early ownership structure of Ares Management was intrinsically tied to its founding partners, reflecting their collective vision and contributions. While specific equity splits at inception remain private, the founders' deep experience in financial markets was the bedrock of the firm's establishment. This foundational period saw strategic expansions, including entry into private equity and the launch of its Tradable Credit Group, alongside the pivotal IPO of Ares Capital Corporation in 2004, which significantly bolstered its capital. Understanding the Marketing Strategy of Ares Management provides further context on how these early ownership dynamics influenced its market approach.
Key Founding Figures
Ares Management Corporation was co-founded by Antony Ressler, Michael Arougheti, David Kaplan, John H. Kissick, and Bennett Rosenthal.
- Antony Ressler
- Michael Arougheti
- David Kaplan
- John H. Kissick
- Bennett Rosenthal
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How Has Ares Management’s Ownership Changed Over Time?
Ares Management Corporation's journey to its current ownership structure began with its initial public offering on May 2, 2014. This event marked a significant transition from its prior ownership by Ares Partners Management Company LLC, the Abu Dhabi Investment Authority, and an affiliate of Alleghany Corporation.
| Event | Date | Impact |
|---|---|---|
| Initial Public Offering (IPO) | May 2, 2014 | Became a publicly traded company on the NYSE under 'ARES', raising $217 million. |
| Acquisition of Area Property Partners, L.P. | 2013 | Expanded real estate private equity operations. |
| Acquisition of GCP International | March 2025 | Significantly broadened real estate and infrastructure capabilities, boosting AUM. |
Following its IPO, Ares Management Corporation has experienced substantial shifts in its ownership, with institutional investors now playing a dominant role. As of July 29, 2025, the company is held by 1296 institutional owners and shareholders, collectively possessing 224,907,596 shares. This growing institutional stake is evident in the increase of institutional holdings from 80.80% to 88.27% by June 2024, with mutual funds also raising their stake from 65.94% to 68.98% during the same period. Key institutional shareholders include Vanguard Group Inc., Wellington Management Group Llp, Sumitomo Mitsui Financial Group, Inc., BlackRock, Inc., Capital World Investors, JPMorgan Chase & Co, and Fmr Llc. These changes reflect a strategic approach to growth, integrating organic expansion with targeted acquisitions to enhance market presence and capabilities, aligning with the Mission, Vision & Core Values of Ares Management.
Ares Management's Evolving Shareholder Landscape
The ownership of Ares Management Corporation has become increasingly concentrated among institutional investors since its public debut. This trend highlights the company's appeal to large financial entities seeking exposure to alternative investments.
- 1296 institutional owners as of July 29, 2025.
- Institutional holdings rose to 88.27% by June 2024.
- Mutual funds increased their stake to 68.98% by June 2024.
- Major shareholders include Vanguard Group and BlackRock.
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Who Sits on Ares Management’s Board?
Ares Management Corporation's Board of Directors is responsible for guiding the company's strategic decisions and overseeing its operations. As of April 19, 2024, the board consists of eleven directors, including key figures involved in the company's founding and leadership.
| Director Name | Key Roles | Affiliations |
|---|---|---|
| Antony Ressler | Finance Committee Chair, Governance Committee Chair, Nominating Committee Chair | Co-founder |
| Michael Arougheti | Chief Executive Officer, President, Director | Co-founder, Ares Management Corporation |
| Michael Lynton | Director | |
| Judy Olian | Director | |
| Toni Bush | Director | |
| Eileen Naughton | Director | |
| David Kaplan | Director | |
| Paul Joubert | Director | |
| Ashish Bhutani | Director | |
| Bennett Rosenthal | Director | Leadership positions in Ares investment groups |
| Kipp deVeer | Director | Leadership positions in Ares investment groups |
The voting power within Ares Management Corporation is structured through a multi-class share system, designed to concentrate control. Class A common stock typically carries one vote per share. However, Class B and Class C common stock can significantly influence voting outcomes. Specifically, when the 'Ares Ownership Condition' is met, Class B common stock holders collectively receive votes equal to four times the aggregate votes of Class A stock, minus the votes of Class C stock. Ares Management GP LLC holds all Class B Common Stock. Class C common stock, which is non-economic, grants its holder votes equivalent to the number of Ares Operating Group Units held by limited partners outside the corporation and its subsidiaries. Ares Voting LLC is the sole holder of Class C Common Stock. This arrangement allows Ares Management Corporation to be classified as a 'controlled company' under NYSE governance standards, benefiting from exemptions from certain rules. The introduction of Class C Common Stock in March 2020 did not alter the total voting power held by Ares VoteCo, which continues to be determined by Ares Operating Group Units.
Understanding Ares Management's Voting Structure
Ares Management Corporation's ownership structure is complex, with a multi-class share system influencing voting power. This structure is key to understanding who truly controls the company's direction.
- Class A common stock holders have one vote per share.
- Class B common stock can grant significantly more voting power under specific conditions.
- Class C common stock's voting power is tied to Ares Operating Group Units.
- Ares Management GP LLC and Ares Voting LLC are key entities in the voting structure.
- This setup allows Ares Management to operate as a 'controlled company' under NYSE rules.
Understanding the intricacies of Ares Management Corporation's board and voting power is crucial for comprehending its corporate governance and the influence of its key stakeholders. For a deeper dive into the company's history and evolution, explore this Brief History of Ares Management.
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What Recent Changes Have Shaped Ares Management’s Ownership Landscape?
Over the past few years, Ares Management Corporation has experienced substantial growth, significantly increasing its assets under management and expanding its global reach through strategic acquisitions. This expansion has solidified its position in the alternative investment landscape, influencing its ownership trends.
| Metric | Value (as of July 2025) | Year-over-Year Change |
| Total Assets Under Management (AUM) | $572.4 billion | +28% |
| Fee-Paying AUM | $349.6 billion | +27% |
| Institutional Owners | 1296 | N/A |
| Shares Held by Institutional Owners | Over 224 million | N/A |
| Insider Ownership Stake | 11% directly, 22% indirectly | N/A |
Recent developments highlight Ares Management Corporation's strategic expansion and robust financial performance. The acquisition of GCP International in March 2025 significantly bolstered its Real Assets Group, particularly in logistics real estate, extending its operational footprint into new international markets. This move, coupled with strong fundraising and investment performance, contributed to a notable increase in total assets under management. In 2024, the company achieved record financial results, with AUM growing to $484 billion, driven by substantial new capital commitments and deployment. Fee Related Earnings and Realized Income also saw significant year-over-year increases, underscoring the company's operational efficiency and growth trajectory.
AUM Growth Drivers
Ares Management Corporation's assets under management have seen considerable growth, reaching $572.4 billion as of June 30, 2025. This expansion is largely attributed to successful fundraising initiatives and strong investment performance across its various strategies.
Strategic Acquisitions Impact
The acquisition of GCP International in March 2025 significantly enhanced Ares' Real Assets Group. This strategic move expanded its infrastructure capabilities and global presence in logistics real estate.
Financial Performance Highlights
In 2024, Ares Management reported over $1 billion in GAAP Net Income, with both Fee Related Earnings and Realized Income showing strong year-over-year growth. This financial strength supports its ongoing expansion efforts.
Ownership Structure and Trends
Institutional investors remain significant stakeholders, holding a substantial portion of the company's shares. While some insider selling has occurred, management and insiders continue to maintain a considerable ownership stake, reflecting confidence in the company's future, as detailed in the Target Market of Ares Management analysis.
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