Ares Management Corporation (NYSE: ARES), a U.S.-based alternative investment group, has reached an agreement to acquire Crescent Point Capital (CPC), a prominent private equity firm headquartered in Singapore. The acquisition deal encompasses the full ownership of CPC, a leading Asia-focused private equity entity managing approximately $3.8 billion in assets as of March 31, 2023.
While Ares Management Corporation did not disclose the specific value of the deal, it emphasized that the acquisition of Crescent Point Capital presents a strategic opportunity for the firm to leverage the growth potential in the dedicated Asia-Pacific private equity sector.
Crescent Point Capital (CPC) comprises approximately 50 skilled professionals and operates from its headquarters in Singapore, with additional footprints in China, Indonesia, the Philippines, and Vietnam.
The firm’s core focus revolves around implementing a private equity strategy to invest in industry-leading consumer companies within the expansive Southeast Asia markets and China.
The strategic deal is expected to create mutual benefits, providing CPC access to Ares’ scaled global platform and network and augmenting its regional capabilities. As part of the agreement, the transaction is anticipated to have an immediate positive impact on Ares’ after-tax realized income per share of Class A and non-voting common stock.
The consideration for the transaction primarily comprises Ares Class A common shares, subject to a multi-year lock-up period. Pending customary closing conditions and regulatory approvals, the transaction is projected to conclude in the third quarter of 2023.
Ares Management’s Chief Executive Officer and President, Michael Arougheti, expressed pride in the significant presence established by the company in the Asia Pacific region and viewed the acquisition of Crescent Point Capital as a transformative opportunity to strengthen their position further.
Edwin Wong, Head of Ares Asia, emphasized the shared culture of collaboration between the two firms, emphasizing CPC’s potential to reinforce Ares’ position as a creative solutions provider to management teams and sponsors in the market.
The transaction consideration will primarily consist of Ares Class A common shares, subject to a multi-year lock-up period. The deal’s completion is projected to occur in the third quarter of 2023, pending customary closing conditions, including regulatory approvals.
Legal representation for the transaction was provided by Latham & Watkins, serving as counsel to Ares, and Kirkland & Ellis, along with Milbank LLP, acting as legal advisors to Crescent Point Capital.