Summary
Ares Management Corporation (ARES) announced a significant acquisition of Landmark Partners, LLC for a total consideration of $1.08 billion. This transaction, expected to close in the second quarter of 2021, comprises approximately $787 million in cash and $293 million in equity consideration. The acquisition of Landmark, a private equity real estate firm, is expected to bolster Ares' capabilities and expand its footprint in a key alternative asset class. In connection with the transaction, Ares will issue up to approximately 5.52 million operating group units (OGUs) of its subsidiary, Ares Holdings, L.P. These OGUs represent about 2% of Ares' total equity as of March 29, 2021, and will be exchanged for shares of Class A common stock over a three-year period post-closing. Additionally, a management incentive plan of up to $340 million has been established for Landmark personnel, primarily comprised of performance-based restricted units tied to future fundraising and revenue targets.
Key Highlights
- 1Ares Management Corp is acquiring Landmark Partners, LLC for $1.08 billion.
- 2The acquisition consideration includes $787 million in cash and $293 million in equity.
- 3The transaction is expected to close in the second quarter of 2021.
- 4Ares will issue approximately 5.52 million operating group units (OGUs) as partial consideration.
- 5These OGUs represent approximately 2% of Ares' total equity as of March 29, 2021.
- 6A management incentive plan (Landmark MIP) of up to $340 million is being established for Landmark employees.
- 7The acquisition is intended to enhance Ares' capabilities in private equity real estate.