Ares Management entered into a definitive agreement to acquire the international business of GLP Capital Partners and certain of its affiliates, excluding its operations in Greater China, and existing capital commitments to certain managed funds, in a transaction valued at $3.7 billion.
The consideration includes approximately $1.8 billion in cash and approximately $1.9 billion in Ares class A common shares, subject to customary adjustments. The transaction is structured to include long-term performance incentives designed to align GCP International leadership with the interests of fund clients and Ares stockholders. The acquisition will firmly establish Ares Real Estate as one of the largest global vertically integrated platforms and nearly doubles its assets under management (AUM) to approximately $96 billion across North America, Europe, Asia and Latin America. The transaction is expected to be modestly accretive to Ares’ after-tax realized income per share of class A and non-voting common stock in the first full calendar year following the acquisition with meaningfully higher accretion expected in future years.
“We have long admired the global real estate experience of GCP and its capabilities in facilitating the economy of the future, which includes investing in and managing industrial, data center and self-storage assets,” Michael Arougheti, CEO and president of Ares, said. “As a combined business, we believe that Ares’ and GCP International’s experienced management teams, highly collaborative cultures and investment track records will create a powerhouse in global real assets investing.”
“We have great respect for the business that the GCP International leadership team has built, and we believe that there are attractive strategic synergies between our firms,” Bill Benjamin and Julie Solomon, co-heads of Ares Real Estate, said. “Combining our platforms will further enhance our strong position in the industry and bolster Ares as a global market leader in real estate with vertically integrated capabilities. We are excited for the opportunities that we can pursue together with our expanded product suite, like-minded cultures and our ability to invest in assets that facilitate the new economy.”
“We have strong conviction that combining GCP International’s and Ares’ investment and operating capabilities, expansive networks and collaborative cultures will create one of the world’s leading real assets investment management businesses,” Ming Mei, co-founder and CEO of GCP and GLP, said. “We are excited for the new opportunities the transaction will create for our current clients, and we look forward to continuing to partner with teams across GCP International and Ares to drive success for the combined business.”
“We are thrilled to join Ares, a pioneer and market leader in alternative investing,” Michael Steele, president of GCP International, said. “Our commitment to long-term business building and our ability to identify and focus on new economy sectors with large addressable markets and strong secular tailwinds have enabled us to distinguish ourselves in the market and grow rapidly. In Ares, we have found a partner that shares our philosophy and entrepreneurial culture. We look forward to integrating with the Ares team, and continuing to build upon our successful, long-term track records and scale our combined platform for the benefit of all stakeholders.”
The transaction will follow a separation of GCP International from GLP Capital Partners’ remaining business, which will remain independent and headquartered in Singapore with a focus on investing in Greater China. Mei will serve as CEO of GLP and GCP’s remaining business, along with its leadership team in China and a select number of other global executives. He will also continue to support GCP International’s and Ares’ growth and success as an Ares partner and senior advisor. Steele and GCP International’s leadership teams responsible for managing and operating the funds in Japan, Europe, the U.S., Brazil and Vietnam will join Ares as part of the transaction.
“We are excited by the growth that our Greater China business can achieve at a time when opportunities in the region are in abundance,” Mei said.
The transaction is expected to close in H1/25 subject to customary regulatory approvals and other closing conditions. Ares has secured fully committed bridge financing from Morgan Stanley Senior Funding and Citigroup Global Markets in relation to the transaction.
Eastdil Secured, Barclays, Goldman Sachs and Wells Fargo Securities served as financial advisors to Ares, with Latham & Watkins acting as legal counsel. Citigroup, Morgan Stanley, Greenhill, a Mizuho affiliate, UOB Group and Deutsche Bank served as financial advisors to GCP International and Kirkland & Ellis served as legal counsel.
