Ares Holdings, a subsidiary of Ares Management Corp., late last week inked a definitive agreement to acquire AMP’s PrivateMarketsCo Infrastructure Debt platform.
The A$428 million ($308 million) deal will be funded using cash on hand and Ares’ $1.1 billion revolving credit facility, officials announced. The platform itself is one of the largest infrastructure debt programs in the world with roughly $8 billion in assets under management.
The transaction is expected to close in the first quarter of 2022 and will be immediately accretive to Ares’ after-tax realized income per share of class A common stock. Ares said the addition of the infrastructure debt team will expand and enhance its existing strategy, which historically has focused on the power and climate infrastructure sectors.
“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 [Trears] and other senior leaders for over a decade.”
Trears leads the infrastructure debt team that boasts 17 dedicated investment professionals spread out across global financial capitals of London, Sydney, Singapore and New York. The team’s track record spans $9 billion of capital across nearly 60 transactions with a focus on the digital, utilities, transportation and renewable energy sectors.
Overall AMP’s PrivateMarketsCo has A$50 billion in AUM and more than 100 investment professionals on staff. The firm’s strength in real estate has cemented its place as one of the top 10 infrastructure equity managers globally.
Upon the close of the transaction, Trears will lead the infrastructure debt business at Ares as part of a new segment called Ares Real Assets Group. This $48 billion unit will also include real estate, which is led by Bill Benjamin, and infrastructure equity, led by Keith Derman and Andrew Pike.
“We have great respect for Ars as a global leader in the alternative investment industry and are excited to join the team,” said Trears. “We believe that this strategic combination will help accelerate our business and drive significant benefits for our investors and deal counterparties.”