Asset manager Ares Management L.P said it would buy Kayne Anderson Capital Advisors for $2.55 billion to expand its investing expertise, especially in the energy sector.
Ares said it will pay the majority of the deal consideration with Ares Operating Group units.
The companies had a combined $113 billion of assets under management as of March 31, Ares said.
The merger, upon closing, is expected to add to Ares’ economic net income, distributable earnings and fee-related earnings per unit.
Kayne Anderson, which is a leading U.S. energy and energy infrastructure investor and also deals with specialty real estate, middle market credit and growth private equity, will enhance Ares’ expertise in these sectors.
Upon closing of the deal around Jan. 1, Kayne Anderson Chairman Richard Kayne and Ares Chief Executive Tony Ressler will become co-chairmen of Ares Kayne Management, L.P.
(Reporting by Sudarshan Varadhan in Bengaluru; Editing by Leslie Adler)
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