SMBC agreed to buy 12.1 million Class A shares of Ares Management at $31.64 each, about $384 million, giving it roughly 4.9% of the firm. SMBC bought the shares directly from Ares. The partnership covers selling Ares funds to SMBC's clients in Japan, SMBC investing in Ares products, especially private credit, and working together on leveraged finance in the US and Asia. The price and timing The $31.64 price was the average over the 30 trading days before the deal, when markets were falling sharply. Ares said it would use the money for growth plans, including its insurance business Aspida, new products for Japan and buying chances created by the turmoil. Who owns Ares After the purchase, Ares's co-founders, other employees and their entities still held about 61% of the firm. The co-founders include chief executive Michael Arougheti, Antony Ressler, David Kaplan, John Kissick and Bennett Rosenthal. The two firms At the end of 2019, Ares managed $149 billion across credit, private equity and real estate and had about 1,200 employees in more than 20 offices. SMBC Group had about ¥212 trillion of total assets. Ares said the two firms already had a long relationship.
