01—Abstract
Summary
Summary of the 8-K filed February 5, 2025. Cited figures are marked; the original filing is the authoritative source.
Ares Management Corporation (NYSE: ARES) filed an 8-K on February 5, 2025 announcing a leadership change at the top of the firm.
Effective immediately, the Board appointed R. Kipp deVeer and Blair Jacobson as the new Co-Presidents of Ares. Michael Arougheti, a Co-Founder, stepped down as President but remains Chief Executive Officer and a Board member.
The filing reports no financial results, guidance, or changes to compensation disclosed in the 8-K itself, so the event is primarily a governance and succession announcement. Both new Co-Presidents are long-tenured insiders. Mr. deVeer joined Ares in 2004, helped found and build the Ares Credit Group (described as the firm's largest business), and has served as CEO of Ares Capital Corporation since 2014.
Mr. Jacobson joined in 2012 to build the European Direct Lending platform. Both are stepping back from day-to-day management of the Credit Group so they can focus on firm-wide strategic and operational initiatives, investor and counterparty relationships, and developing the next generation of leaders. Credit Group day-to-day leadership transfers to Mitchell Goldstein and Michael Smith (Co-Heads since 2017), and European Direct Lending continues under Michael Dennis and Matt Theodorakis.
For investors, the key items are continuity and succession planning rather than a change in strategy. The move also has a knock-on effect at Ares Capital (ARCC), where Kort Schnabel will become CEO effective April 30, 2025, and Jim Miller will remain sole President.
Investors should watch whether the new structure keeps Credit Group execution steady and whether the Co-Presidents' broader remit affects the firm's growth in its credit, real estate, private equity and infrastructure platforms. Ares reported over $484 billiona in assets under management as of December 31, 2024.
02—Key points
Key Highlights
- R. Kipp deVeer and Blair Jacobson were appointed Co-Presidents of Ares Management effective February 5, 2025, in newly created roles.
- Michael Arougheti, Co-Founder, stepped down as President but remains CEO and a Board member.
- deVeer will step back from day-to-day Credit Group management; Credit Group Co-Heads Mitchell Goldstein and Michael Smith continue in their roles.
- Jacobson's European Direct Lending and European credit responsibilities continue under Michael Dennis and Matt Theodorakis.
- Kort Schnabel will succeed deVeer as CEO of Ares Capital Corporation effective April 30, 2025; Jim Miller becomes sole President of Ares Capital.
- The 8-K discloses no new compensation arrangements, related-party transactions, or family relationships requiring disclosure for the appointees.
- Ares had over $484 billion in AUM as of December 31, 2024.
03—Questions
Frequently Asked Questions
Does this leadership change affect Ares' strategy or financial outlook?
The filing does not discuss financial results, guidance, or strategy changes. The company describes the appointments as creating newly expanded roles focused on firm-wide strategic and operational initiatives, with the existing Credit Group and European Direct Lending leadership remaining in place.
Why did Michael Arougheti step down as President?
The 8-K states that Arougheti stepped down as President concurrent with the appointment of the Co-Presidents. He remains Chief Executive Officer and a Board member. The filing does not give further reasons for the change.
Who will run the Ares Credit Group, which the company calls its largest business?
Mitchell Goldstein and Michael Smith, who have co-led the Credit Group since 2017, will continue as Co-Heads. deVeer will move away from day-to-day management of the group to focus on the broader Co-President role.
Who will lead Ares Capital Corporation after deVeer?
Kort Schnabel has been appointed CEO of Ares Capital Corporation effective April 30, 2025. Jim Miller, currently Co-President alongside Schnabel, will continue as sole President of Ares Capital.
04—Continue