Ares Management Corporation Buys Landmark Partners, a Secondaries Powerhouse
Posted on 03/31/2021
Ares Management Corporation (NYSE: ARES) announced that a subsidiary of Ares has entered into a definitive agreement with a subsidiary of BrightSphere Investment Group Inc. (NYSE: BSIG) and Landmark Investment Holdings LP to acquire 100% of Landmark Partners, LLC, one of the largest investors in acquiring secondary private fund ownership stakes in the alternative asset management industry. The transaction is valued at US$ 1.08 billion, including approximately US$ 787 million in cash and approximately $293 million in Ares Operating Group Units, in each case subject to certain adjustments.
With 150 employees across six global offices, Landmark manages private equity, real estate and infrastructure secondaries funds totaling US$ 18.7 billion in assets under management as of December 31, 2020. Landmark has an investor base of more than 600 fund investors. Landmark was founded in 1989.
The acquisition of Landmark further expands Ares’ product offering into a segment of alternative asset management. The secondary market provides sellers with the ability to achieve liquidity on their private market fund interests and enables buyers to invest later in a fund’s life, typically benefiting from seasoned portfolios and accelerated cash flows.
The transaction is expected to close in the second quarter of 2021 and is subject to customary closing conditions, including regulatory approvals.
RBC Capital Markets, LLC and Credit Suisse Securities (USA) LLC acted as financial advisors to Ares and Kirkland & Ellis LLP served as legal counsel. Morgan Stanley & Co LLC acted as financial advisor to BrightSphere. Goldman Sachs & Co. LLC acted as financial advisor to Landmark Partners LLC. Ropes & Gray served as legal counsel to both Landmark and BrightSphere.