Ares Management to Acquire Black Creek Group, Creating Company with $29B in Assets Under Management
LOS ANGELES AND DENVER — A subsidiary of Los Angeles-based Ares Management has agreed to acquire 100 percent of Denver-based Black Creek Group’s U.S. real estate investment advisory and distribution business.
Black Creek Group had approximately $11.6 billion assets under management as of March 31 in core/core-plus real estate strategies across two non-traded REITs and various institutional fund vehicles and spanning industrial, multifamily, office and retail property types. Additionally, the firm’s senior management team has an average of 25 years of experience in sourcing, acquiring, operating and developing properties in the United States.
The transaction is expected to expand the Ares Real Estate Capital’s existing capabilities and product offerings. The buyers says the deal will also broaden its real estate platform with vehicles that complement the firm’s existing real estate debt and U.S. and European value-add and opportunistic funds.
The combined real estate group will have approximately $29 billion assets under management and the transaction will boost Ares’ non-traded REIT capital by $5.1 billion.
Upon closing, key members of the Black Creek leadership team will remain in place and become part of the Ares Real Estate Group, which Bill Benjamin leads.
“[This transaction] further scales our real estate business, expands us into core/core-plus strategies and provides us with a leading non-traded REIT retail distribution platform,” says Michael Arougheti, CEO and president of Ares.
Eastdil Secured acted as financial advisor to Ares and Latham & Watkins served as legal counsel. Hodes Weill & Associates acted as financial advisor to Black Creek and Simpson Thacher & Bartlett served as legal counsel.