Private equity investor Ares Management will acquire Indicus Advisors, an investment manager in European leveraged finance and global structured corporate credit. Terms of the deal were not released. Ares Management is based in Los Angeles.
Ares Management LLC announced today that it has signed a definitive agreement to acquire Indicus Advisors, a top tier investment manager in European Leveraged Finance and Global Structured Corporate Credit. The terms of the transaction were not disclosed and it is subject to UK regulatory approval.
“This transaction will enhance our presence in European corporate credit where we will manage in excess of $5 billion in long-only, long/short, structured products and private debt investment strategies,” said Tony Ressler, Senior Partner and Chairman of the Executive Committee of Ares Management. “We believe that European corporate credit will continue to grow for years to come and Ares Management will participate significantly in this growth by offering highly attractive risk/reward opportunities to our investors.”
“Our European credit franchise is already a critical component to our global investment platform, and we are thrilled to have David Reilly, Ujjaval Desai, Francois Gauvin and Keith Ashton join the Ares Capital Markets Group leadership team,” added Greg Margolies, Senior Partner of Ares Management and Global Head of the Ares Capital Markets Group. “We anticipate that they will meaningfully benefit from our global scale as a top manager of corporate credit as well as from collaborating with our colleagues in the Ares Private Debt Group in Europe who have extensive regional relationships and industry-leading origination and structuring capabilities.”
Seventeen Indicus professionals will join the Ares Capital Markets Group in Ares’ London and New York offices. Based in London, David Reilly and Ujjaval Desai will be named Co-Heads of Ares Capital Markets Europe and will be responsible for all of Ares’ European syndicated debt and global structured products.
“This exciting combination will bring together our complementary skill sets and resources, which will yield superior sourcing opportunities, credit analysis, information flow and product differentiation,” said David Reilly and Ujjaval Desai, Co-Founders of Indicus. “Our joint team will be much more significant in the marketplace at a time when we are seeing compelling opportunities for our investor base in existing and new mandates.”
About Ares Management LLC
Ares Management LLC is a global alternative asset manager and SEC registered investment adviser, which will have approximately $43 billion of committed capital under management and approximately 420 employees after this transaction. Ares is headquartered in Los Angeles with professionals located across the United States, Europe and Asia and has the ability to invest in all levels of a company’s capital structure — from senior debt to common equity. Ares’ investment activities are managed by dedicated teams in its Capital Markets, Private Debt and Private Equity investment platforms. Ares Management was built upon the fundamental principle that each platform benefits from being part of the greater whole. This multi-asset class synergy provides its professionals with insights into industry trends, access to significant deal flow and the ability to assess relative value.
About Indicus Advisors
Based in London and New York, Indicus Advisors manages over $2 billion of assets across various fund formats and provides advisory services on approximately $4 billion of investments. The firm’s investment management and advisory activities complement each other to help investors create value within tailored, risk-managed frameworks. Indicus has a global institutional investor base primarily comprised of leading insurance companies, pension funds, endowments and foundations.
In European corporate credit, Indicus has industry-leading performance in annualized distributions, default ratios and volatility. In structured credit, the firm was recently named the 2011 CreditFlux Winner for Best CLO Recovery Fund.