Summary
Ares Management, L.P. (ARES) has announced a significant business combination and merger with Kayne Anderson Capital Advisors, L.P. (KACALP). This strategic move involves Ares acquiring the equity interests of KACALP and its affiliated entities, expanding its alternative investment management capabilities. The transaction is expected to close around January 1, 2016, and will result in a name change for Ares to "Ares Kayne Management, L.P.". The deal's consideration includes a substantial cash component of $750 million and the issuance of approximately 94.7 million partnership units in Ares' operating entities, which will represent roughly 31% of the outstanding common units post-transaction. This acquisition is designed to bolster Ares' presence in niche investment areas such as upstream oil and gas, energy infrastructure, specialized real estate, middle market credit, growth private equity, and distressed municipal opportunities, leveraging KACALP's established expertise since 1984.
Key Highlights
- 1Ares Management, L.P. is acquiring Kayne Anderson Capital Advisors, L.P. (KACALP) through a business combination and merger.
- 2The transaction is expected to close around January 1, 2016, subject to customary closing conditions.
- 3Ares Management, L.P. will be renamed "Ares Kayne Management, L.P." following the closing.
- 4Consideration for the acquisition includes $750 million in cash, with an option to substitute up to $250 million with additional partnership units.
- 5The deal involves the issuance of approximately 94.7 million partnership units in Ares' operating entities to the KA Owners, representing about 31% of Ares' common units post-closing.
- 6The acquisition expands Ares' investment focus into niche areas like upstream oil and gas, energy infrastructure, and specialized real estate.
- 7Key personnel from Kayne Anderson, including Richard Kayne, Robert Sinnott, and Kevin McCarthy, will join Ares' board and leadership.