Ares Management CEO Mike Arougheti Talks Record Breaking Fundraising Year
Dec 11, 2024
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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.
Mike Arougheti highlights Ares Management's record-breaking fundraising year, reflecting a shift towards diversified capital sources beyond traditional institutions.
The podcast emphasizes emerging investment opportunities in real estate, particularly in industrial properties and data centers amid evolving global supply chains.
Deep dives
Impact of Open Source AI Models
Open source AI models from Meta are accessible to a wide audience, including small businesses and students, allowing them to utilize advanced technologies at no cost. This accessibility fosters innovation and growth, enabling smaller entities to leverage AI for their specific needs without incurring hefty expenses. By democratizing AI resources, Meta aims to level the playing field, encouraging more diverse participation in the tech landscape. The implications of this move suggest significant advancements in how AI is integrated into various sectors, potentially leading to enhanced productivity and creativity.
Trends in Capital Raising for Investment Firms
Investment firms have witnessed a diversification in their capital sources, indicating a shift from traditional institutional fundraising to a more varied mix. Currently, a significant portion of capital is being raised from wealth management and retail, along with publicly traded vehicles. This shift enables firms to operate from a stronger financial base, setting a positive outlook for future fundraising and investment opportunities. As markets evolve, continued adaptation in strategy is essential for maintaining competitiveness and maximizing investment potential.
Opportunities in Real Estate Markets
The real estate market presents numerous opportunities, particularly in sectors such as industrial properties and data centers, driven by changing global supply chains. While some segments, like office spaces, face challenges, there remains potential in transitional opportunities that could yield significant returns. Investors are advised to remain vigilant and focus on local conditions, as market dynamics vary widely from one location to another. The anticipated stability of interest rates combined with economic growth is expected to support transaction volumes in real estate moving forward.
Ares Management CEO Mike Arougheti discusses his record breaking fundraising year and investment opportunities with Bloomberg's Sonali Basak at the Goldman Sachs Financial Services Conference.