Ares Management completed its conversion to a corporation under Delaware law and changed its name from Ares Management, L.P. to Ares Management Corporation.
Since Ares had already elected to be taxed as a corporation for U.S. federal and state income tax purposes effective March 1, 2018, no material tax or financial changes are expected from the state law conversion.
Existing common and preferred shares of Ares Management, L.P. have been converted into Class A common and Series A preferred shares of Ares Management Corporation, respectively.
Following the conversion, the Class A common shares will have voting rights equivalent to approximately 20% of the total and will be entitled to vote on typical stockholder matters under Delaware law. Both the Class A common and Series A preferred shares will continue to receive Form 1099 DIV reporting and are eligible for the favorable tax rates applicable to qualified dividend income.
“We are pleased to have completed our legal conversion from a partnership to a corporation,” said Michael Arougheti, president and CEO of Ares Management. “We are excited for the next chapter of growth as a public company. We believe the corporate conversion will lead to increased trading liquidity and further broaden our ownership base among institutional and retail investors, including additional passive and active owners as a result of potential index fund inclusion.”
