Ares Acquires AMP’s Infrastructure Debt Platform Business
Posted on 12/24/2021
Ares Management Corporation announced that its subsidiary, Ares Holdings L.P., has entered into a definitive agreement to acquire AMP’s PrivateMarketsCo Infrastructure Debt platform, one of the largest infrastructure debt investment platforms globally with approximately US$ 8 billion in assets under management, as of September 30, 2021. The transaction consideration is A$ 428 million (US$ 308 million) and will be funded using cash on hand and Ares’ US$ 1.1 billion revolving credit facility.
The Infrastructure Debt team is led by its Global Head, Patrick Trears, and has 17 investment professionals located across London, Sydney, Singapore and New York.
Upon closing of the transaction, Infrastructure Debt will be led by Patrick Trears and will be reported as part of a new segment for Ares called the Ares Real Assets Group. This segment will also include Real Estate led by Bill Benjamin and Infrastructure Equity led by Keith Derman and Andrew Pike. The Ares Real Assets Group would represent approximately US$ 48 billion of assets under management as-adjusted for the transaction, as of September 30, 2021.
The transaction is expected to be immediately accretive to Ares’ after-tax realized income per share of class A common stock. It is expected to close in the first quarter of 2022 and is subject to customary closing conditions, including satisfaction of applicable regulatory requirements.
Advisors
Morgan Stanley & Co. LLC acted as financial advisor to Ares and Kirkland & Ellis LLP and DLA Piper served as legal counsel. Broadhaven Capital Partners acted as financial advisor to PrivateMarketsCo and Nixon Peabody served as legal counsel.
Keywords: AMP Limited, Ares Management.
