Ares Management to acquire Asia-focused Crescent Point Capital
Global asset management firm, Ares Management Corporation, announced its definitive agreement to fully acquire Crescent Point Capital (CPC), a prominent Asia-focused private equity firm with roughly $3.8 billion in assets under management as of March 31, 2023.
Crescent Point Capital, founded in 2003, is a renowned name in the private equity landscape of Asia, with approximately 50 professionals based across its offices in Singapore, China, Indonesia, the Philippines, and Vietnam. The firm is known for its strategy of investing in leading consumer companies in Southeast Asia and China, having built a reputation for delivering attractive returns over its nearly 20-year history. To date, Crescent Point Capital has completed investments in more than 50 transactions in its target markets, with 31 partial or complete monetization events.
On the other hand, Ares Management Corporation has developed a strong presence in the Asia Pacific region through Ares Asia, previously known as Ares SSG. The company has around 165 professionals across nine offices in key Asia Pacific markets, as of the end of March 2023. The acquisition of Crescent Point Capital underscores Ares’ continued global expansion and its intent to capitalize on the robust growth prospects for dedicated Asia Pacific private equity strategies.
Ares Management Corporation CEO and President, Michael Arougheti, expressed his confidence in the acquisition, stating, “We are proud of the significant Asia Pacific presence that we have established over the years, and we believe that CPC is an excellent platform that will further enhance our footprint and capabilities in the region.”
Joining Ares is expected to provide Crescent Point Capital with a range of benefits, including access to Ares Management Corporation’s extensive global platform and network, market intelligence, expanded investor relationships, and greater access to capital. David Hand, Managing Partner of Crescent Point Capital, shared his optimism about the deal, stating, “We look forward to joining Ares and we firmly believe that this combination will help further catalyze the growth of our business.”
The deal, expected to close in the third quarter of 2023, is anticipated to immediately increase Ares Management Corporation’s after-tax realized income per share of Class A and non-voting common stock. The transaction consideration will mainly consist of Ares Management Corporation Class A common shares, subject to a multi-year lock-up and is contingent on regulatory approvals and other customary closing conditions.