A subsidiary of Ares Management completed its acquisition of Black Creek Group’s U.S. real estate investment advisory and distribution business.
As a real estate investment management firm, Black Creek has approximately 300 professionals operating across eight offices throughout the U.S. and approximately $11.6 billion of assets under management as of March 31, 2021. The transaction increases Ares’ assets under management to approximately $239 billion as of March 31, 2021, including the acquisition of Landmark Partners, which closed in early June, and the acquisition of Black Creek Group.
Over its more than 25-year history, Black Creek has established a track record in core and core-plus real estate investment, with a specialty in the industrial sector. Since inception, Black Creek’s vertically integrated industrial platform has bought or built more than $23.3 billion of assets across the U.S. market. Additionally, as a retail fundraising platform with $5.1 billion in perpetual, non-traded REIT capital as of March 31, 2021, Black Creek is expected to enhance Ares’ retail distribution capacity and provide an opportunity to further scale retail distribution for Ares’ existing and new alternative asset products. Over the next several months, Black Creek will transition to the Ares brand, with key members of the Black Creek leadership team remaining in place and becoming part of the Ares Real Estate Group, which is led by Bill Benjamin.
“We are excited to welcome the Black Creek team to Ares and believe that this combination is highly complementary to our leading real estate business,” Michael Arougheti, CEO and president of Ares, said. “We look forward to building upon Black Creek’s well-regarded retail distribution platform as we seek to provide compelling product solutions to the strategically important retail channel.”
“The integration with Black Creek marks a pivotal expansion of our group’s capabilities and products and meaningfully broadens our footprint in the U.S.,” Benjamin said. “As a combined business with approximately $29 billion in AUM and flexible capital across a full range of investment solutions, including dedicated vehicles in the high conviction industrial sector, we will be able to provide a more comprehensive offering and the integration is expected to further drive operating, sourcing and informational benefits for our investors.”
“Over the course of Black Creek Group’s history, we have been committed to delivering high-quality products, and this commitment remains as we join the Ares team,” Raj Dhanda, who is now a partner and global COO of Ares Real Estate Group, said. “Joining the Ares team will not only expand upon our capabilities but capitalize on the collective strengths of our integrated platforms. We expect that this excellent pairing will benefit both our products and investors as we leverage both organizations’ extensive networks, insights and infrastructures to enhance investment opportunities.”
