Bloomberg Talks Ares Management CEO Mike Arougheti Talks Record Breaking Fundraising Year
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Dec 11, 2024 Mike Arougheti, CEO of Ares Management, shares insights into his firm’s record-breaking fundraising year and innovative capital-raising strategies. He discusses emerging investment opportunities despite high interest rates, showcasing the link between available capital and increased M&A activity expected by 2025. Arougheti highlights the resilience of private credit and real estate markets, while emphasizing the importance of adapting strategies for distressed assets and diversified portfolios in a shifting economic landscape.
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Fundraising Diversification
- Ares Management has diversified its fundraising approach beyond traditional institutional investors.
- About two-thirds of their capital now comes from sources like wealth management, retail, and insurance.
Deployment Growth
- Ares Management's deployment of capital has grown alongside its dry powder.
- They anticipate increased deployment in 2025 due to a recovering M&A market.
Interest Rate Impact
- Higher interest rates benefit Ares Management's private credit business but hinder the M&A market.
- Rate stability is more crucial than significant rate cuts for increasing transaction volumes.