Ares Management Corporation (Ares) has agreed to acquire 100% of Black Creek Group’s U.S. real estate investment advisory and distribution business (Black Creek), a real estate investment management firm.
Founded in 1993, Black Creek had approximately $11.6 billion of assets under management, as of March 31, 2021, in core / core-plus real estate strategies across two non-traded Real Estate Investment Trusts (REITs) and various institutional fund vehicles.
”With an experienced team focused on core / core-plus strategies, the transaction is expected to broaden the existing capabilities and product offerings of the Ares Real Estate Group. Additionally, the acquisition of Black Creek will expand the Ares real estate platform with vehicles that complement Ares’ existing real estate debt and U.S. and European value-add and opportunistic funds,” said the companies in a joint statement.
“We are very pleased to enter into this strategic transaction with Black Creek, which 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,” said Michael Arougheti, Chief Executive Officer and President of Ares.
“This acquisition presents an attractive opportunity to further enhance our team’s capabilities and grow our leading global real estate equity and debt business to approximately $29 billion in assets under management with offices spanning across the U.S. and Europe,” said Bill Benjamin, Partner and Head of the Ares Real Estate Group.
“As a leading firm with extensive global relationships and a collaborative culture, Ares was the ideal partner for Black Creek Group and this agreement will allow the combined Ares Real Estate Group to expand our capabilities, reach and growth potential. We are excited for our leadership teams to work together and capitalize on what we believe will be a promising future,” said said Raj Dhanda, Chief Executive Officer at Black Creek Group.
”The transaction consideration will include an upfront amount comprised of a combination of cash and Ares Operating Group Units in addition to a potential performance-based earnout payable in a combination of cash and Ares equity,” said in the statement.