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TE Michael Mayer says he wants to win a Super Bowl with the Bengals. It's also a reflection, I think of the investors understanding that embedded value that sits in our private credit portfolios. Prior to joining Ares in 2004, Mr. Arougheti was employed by Royal Bank of Canada ("RBC") from 2001 to 2004, where he was a Managing Partner of the Principal Finance Group of RBC Capital Partners and a member of the firm's Mezzanine Investment Committee. Mr. Arougheti owns over 9,400 units of Ares Management Corp stock worth over $37,633,080 and over the last 16 years he sold ARES stock worth over $185,033,029. A traditional portfolio of stocks and bonds is deeply in the red, leaving investors to seek diversity elsewhere. Leaders can see this crisis as a burden or an opportunity from a DE&I perspective. And that's a function of great performance, but it's also a function of what they call the denominator effect, which is as public market valuations come down, traditional fixed income valuations come down, those allocators of capital that are managing to a model have less capital to deploy into private equity. It's just waiting for the market to really open up to be more aggressive. (Source: Bloomberg) A traditional portfolio of stocks and bonds is deeply in the red, leaving investors to seek diversity elsewhere. "All of the work that weve been doing around diversity, inclusion, belonging, ESG that accelerated because, while the pandemic is global, it exposed inequities in the economy and in our society that created lots of other reverberations in the business." Direct Lending Investment Committee and the Ares Equity Income Opportunity Strategy Portfolio Review Committee. The HOPE Community Credit Score Index A Closer Look at the Twin Identities of Washington, DC. Together, we built The Promise Homes Company into the largest Black controlled owner of singles family residential rental homes in the country, with $150 million in assets. When you look at the economy, its a tale of two cities. Mr. Arougheti joined RBC in October 2001 from Indosuez Capital, where he was a Principal and an Investment Committee member, responsible for originating, structuring and executing leveraged transactions across a broad range of products and asset classes. When you manage an organization through crisis, you learn a lot about yourself, but you also learn a lot about the organization that supports you. If the market is healthy, you can pivot to some of the more regular-way buyout and credit investing. It absolutely starts with the health crisis and the speed with which we get people inoculated. Ares Management CEO Michael Arougheti breaks down where to find yield in a world of uncertainty DA on CNBCEvents.com Sponsors Previous Years Delivering Alpha Ares Management CEO Michael. So if you look at the amount of issuance that we saw in the high grade market, if you look at the amount of liquidity that's been in the system, companies have built up a pretty substantial war chest of liquidity, and the consumer is coming off of a pretty significant amount of government assistance globally. I don't think that will end anytime soon. And that's pretty attractive to most investors right now. After catching up for an hour recently, tackling a slew of questions and meaty subjects, Mike Arougheti had a question for me. We had explored the roller coaster of emotions and urgent steps induced by the COVID-19 pandemic. I think that capital will get raised, I think it will just take a little bit longer. They did it, because thats simply who they are. Arougheti:Yeah, we're already seeing the pipeline start to build into the end of the year. Arougheti: Ares has a history of navigating volatile markets well, so if you look at the history of the firm, the period of growth for us it was the largest was through the global financial crisis and through COVID. Youre effectively purpose-built to navigate this type of environment, where if the market is stressed, you can pivot to distressed investing, whether thats portfolios or single assets. But, he said as we were about to hang up, I dont ever want to take credit for the efforts and successes of others.. In addition to that, something thats been true my whole career but Ive come to appreciate lately is just how important it is to build high-quality teams. Ive come to learn that there are certain times when you have to lead from out in front, driving the business forward by leading the charge. Additionally, he is a member of the PATH Organization Leadership Council. There is a big difference between June and September in terms of a reopening and increased mobility. Michael J. Arougheti is an entrepreneur and businessperson who founded Ares Management Corp., Ares Management LP, Ares Management LLC and Ares Management Corp (Private Equity) and who has been the head of 8 different companies. And the thing is, they did it so casually. View phone numbers, addresses, public records, background check reports and possible arrest records for Michael Arougheti. Inflation, a hawkish Fed, fears of a recession have all made 2022 a tough environment for investing. Aroughetis Vandelay Homes II LLC financed the purchase with a $21.1 million loan from J.P. Morgan, according to records. Frankel is also a real estate investor and owner of wineries and restaurants. All of those things came to bear immediately when we went into the crisis. The Credit Group segment offers credit strategies across the liquid and illiquid spectrum, including syndicated bank loans, high yield bonds, credit opportunities, special situations, asset-backed investments and U.S. and European direct lending. So I don't want to say that that's good. A non-waterfront home on Sunset Island II recently traded for $12.5 million, setting a record for dry sales in all of Miami Beach. So Michael and his super talented author,wife Nelly (Bly) decided to do it personally, themselves. While Ares is mostly credit focused, they have built a brand that seems more venerable than many credit shops before them. So if you look at the positioning of most portfolios, they were, if not fully invested in moving towards full investment, and enjoyed great performance in 2021. Currently, Mr. Arougheti is Co-Chairman of Ares Acquisition Corp., President, Chief Executive Officer & Director at . But when you go remote, youre effectively letting everybody into your home, whether thats the sights or sounds or just the challenges. Such a comment is admirable, and reflects a more mindful leadership. Together, personally, they both became the financial backers for the founding of my Promise Homes Company dream. The . You can see the complete history of Mr. Arougheti stock trades at the bottom of the page. Ares Management Corporation is a leading global alternative investment manager operating three integrated businesses across Credit, Private Equity and Real Estate. And it's hard to generalize about a market that's trillions of dollars deep and, and is global, I would say the following, private equity enjoyed a wonderful rebound coming out of COVID. Hes sort of a walking brain, and I am pretty sure he has a genius IQ. I remember clearly, the many times I pushed him to have the company he led, Ares Management, to support Operation HOPE, but the timing back then was not right. Fortunately weve got enough stimulus that weve now kind of stabilized and bridged. This button displays the currently selected search type. Times. And material, at that time, to our very survival. Some people struggled figuring out how to be in that environment. Mr. Arougheti joined RBC in October 2001 from Indosuez Capital, where he was a Principal and an Investment Committee member, responsible for originating, structuring and executing leveraged transactions across a broad range of products and asset classes. 84 Likes, 1 Comments - Michael Hollick (@mikehollick) on Instagram: "What an awesome week and celebration for my dads 70th So awesome to spend time with our family" He tipped the scale of HOPE for me, on several occasions. I kind of laugh at that because culture and strategy go hand in hand. Arougheti:So what it really means is one of the ways to think about this credit cycle, or this potential recessionary environment in the US is that it may likely be sector specific. Are you still seeing that as active? So there's a fundamentally different positioning when you manage private capital versus liquid capital. So you know, each cycle is different. What we found was that we had an employee base that was already incredibly passionate about progress along those initiatives, and over the course of the past year it has grown exponentially. So one of the ways we can express a view on the market is by not investing. When you talk about belonging, youre talking about being able to bring your authentic self to work. Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. Certainly, Michael and Nelly would never say an external word. The New York Times Reports: "No existing defense can stop it." Ares Management Corporation (NYSE:NYSE:ARES) Q3 2021 Earnings Conference Call October 27, 2021 12:00 PM ETCompany ParticipantsCarl Drake - Head, Public Company, IRMichael Arougheti -. It makes him no less potent, to which Aress rapid global expansion of late is a testament. So if you say, cost of goods, inflation, that had an impact on retail, hospitality, consumer facing businesses, as you now shift, and you see easing in that now, maybe you're seeing some pressure on service oriented businesses, you know, that are either facing off with a consumer or trying to navigate a tightening labor market. Dismiss. In this role, Ive had to think more holistically about where the business is going. This button displays the currently selected search type. CNBC's Leslie Picker sat down with Ares CEO Michael Arougheti who says that "when the markets get challenged, that's when our investment opportunity becomes the most attractive. USD. Following the completion of the sale, the chief executive officer now directly owns 470,138 shares of the company's stock, valued at $39,971,132.76. Whats been rewarding for me is that we have spent so much time over the years building culture here around our core attributes of collaboration and social responsibility and entrepreneurialism. Michael Arougheti took the reins of alternative-asset manager Ares Management on Jan. 1, 2018. A key support beam. There are 13 older and 6 younger executives at Ares Management Corp. Click Subscribe above to be notified of future editions. Mr. Arougheti received a B.A. Prior to joining Ares in 2004, Mr. Arougheti was employed by Royal Bank of Canada from 2001 to 2004, where he was a Managing Partner of the Principal Finance Group of RBC Capital Partners and a member of the firm's Mezzanine Investment Committee. Ares Management co-founders Tony Ressler and Michael Arougheti provided founding investments and served on the company's investment committee until last year. In the last twelve months, insiders at the asset manager sold shares 15 times. Direct Lending and Pathfinder Fund Investment Committees, the Ares Equity Income Opportunity Strategy Portfolio Review Committee and the Ares Operations Management Group. And thanks to that early vote of confidence, and the early stage founding capital from Michael Arougheti and Tony Ressler in early 2017, last late last year, in December, 2021, the company itself standing on its own now secured its own $200 million credit facility: Now reportedly the largest capital raise for a Black owned company in a decade, according to Black Enterprise. Ares Management, however, has been a beneficiary of the current environment. And, myself included, that can often be very hard to do you tend to create boundaries between your work self and your home self. Frankel and his wife, Barbara, sold their two-story, 8,500-square-foot home at 1635 West 22nd Street on the Sunset Islands for $31.5 million. I think that if you talk to any leader of an organization, they would tell you that no matter how experienced they were or well prepared for every eventuality, nobody is really prepared for a global pandemic and all of the things that come with it. The most recent stock trade was executed by Antony P Ressler on 10 February 2023, trading 16,879 units of ARES stock currently worth $1,436,740. I'd subscribe to that podcast on a heartbeat, People will forget what you said, people will forget what you did, but people will never forget how you made them feel.. I tried my best to help him with his endeavors and dreams, and he (and his wife Nelly Bly) certainly leaned into mine. Picker:So six to 12 months puts us at what, January? Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Below are excerpts from our recent conversation. Would you say that's coming back then? Arougheti: It's slowing, anytime the market goes through this type of a transition or a reset, transaction volumes will naturally slow in the private market. Michael J. Arougheti is an entrepreneur and businessperson who founded Ares Management Corp., Ares Management LP, Ares Management LLC and Ares Management Corp (Private Equity) and who has been the head of 8 different companies. Inflation? He is a member of the Ares Executive Management Committee and the firms Management Committee. You take different risks along different time frames. But now there are things like take privates that are being talked about, again, where we're now mining flow in the public market, or rescue financing as some of the distressed strategies that we operate in are starting to be a liquidity provider, given that the liquid markets are effectively closed right now. Ive found in my career that the leaders Ive respected most were people who knew how to lead different types of people in different ways. Thats whether youre talking about the corporate economy or the consumer economy. He is a member of the Ares Executive Management Committee, the Ares Enterprise Risk Committee and is on the Board of Directors of the Ares Charitable Foundation. Last year, Los Angeles-based Ares made a $150 million preferred equity investment in Inter Miami CF. To experiment. ". So when you're in an environment now, where the cost of financing is going up, maybe the availability of financing is going down, and rates are rising, putting pressure on discount rates, the markets will pause to try to evaluate where assets will clear. Michael J. Arougheti has not been actively trading shares of Ares Management during the past quarter. It's somewhat counter cyclical. Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. And then the friendship came. All Rights Reserved. The Credit Group provides solutions for traditional fixed income investors seeking to access the syndicated bank loan and high yield bond markets and capitalize on opportunities across traded corporate credit. I sit here now, a year removed from the beginning of that, and feel that the culture we had built and the strategic positioning of the company we had pursued positioned us well to navigate the crisis. But the pandemic, as well as the events of the summer around the killing of George Floyd that gave us an opportunity, and an imperative, to double our investment in these initiatives. And thats required if you want to see change happen and you want to see it happen quickly and sustainably. Get notified the next time Michael J. Arougheti buys or sells Ares Management stock. Helping me was certainly not his job, nor his calling or his role in life, but he never once made me feel like I was secondary to what was his primary. Ares, led by co-founder and CEO Michael Arougheti, is a global alternative investment manager with roughly $262 billion of assets under management, including its purchase of Black Creek Group. The investment management firm has about $325 billion of assets under management, according to its website. Learn More on Michael J. Arougheti's trading history. Mr. Arougheti owns 470,138 shares of Ares Management stock worth more than $39,200,106 as of February 9th. , thanks for sharing these insights with top executives - super useful. When you get to a certain size as an organization, you have to appreciate that you inspire different people differently. We wouldn't blame Ares Management Corporation (NYSE:ARES) shareholders if they were a little worried about the fact that Michael Arougheti, the Co-Founder recently netted about US$15m selling . But today, I wanted to give just that credit. People cant leave their home challenges at home, go to work, and then go back to them its all a bit more fluid than that right now. (Photo by Matt Winkelmeyer/Getty Images) Coogler, who has . My sense is that in this new administration, we will see more. Michael Arougheti:I think we have to talk about secular tailwinds in alternatives, and then maybe some of the cyclical tailwinds that we're seeing as well. So I've been encouraged by that from an activity and deployment level. The oldest executive at Ares Management Corp is Paul Joubert, 72, who is the Independent Director. You had a picture of it!!! Also in April, investor and Anatomy Fitness owner Chris Paciello flipped a waterfront teardown on Sunset Island I for a 50 percent gain in one month. Insiders at Ares Management own 47.4% of the company. He additionally serves as Co-Chairman of Ares Capital Corporation ("ARCC"), Co-Chairman of Ares Acquisition Corporation ("AAC") and as a director of Ares Commercial Real Estate Corporation ("ACRE"). He bought the property for $9.3 million and sold it to the next door neighbor for $14 million. Got a confidential news tip? Private investment firms driven by credit, focusing more on the balance sheet than the story, tend to operate in a less docile manner - less often on boards, less often delivering the CEO, less often sensitive to the sustainability of the legacy or even equity value. Picker:So given all of this Ares' stock price is basically flat on the year which is outperforming the S&P, it's outperforming your peers, but still flat. Prior to joining Indosuez in 1994, Mr. Arougheti worked at Kidder, Peabody & Co., where he was a member of the firm's Mergers and Acquisitions Group. All Rights Reserved. SAN LORENZO, Calif. - Michael "Mike" Simon, 61, passed away peacefully on Feb. 23, 2023 with family by his side, after a year-long fight with brain cancer. As of 11 November 2022 he still owns at least 460,738 units of Ares Management Corp stock. He additionally serves as Co-Chairman of Ares Capital Corporation ("ARCC"), Co-Chairman of Ares Acquisition Corporation ("AAC") and as a director of Ares Commercial Real Estate Corporation ("ACRE"). I think that's a reflection of the nature of our business. Arougheti: Well, this is like something we haven't seen before. So, you have to lead in a new way. So I think with private equity specifically, and I wouldn't say the same right now for private credit, and real assets, there's a little bit of a rebalancing that needs to take place just because we're not seeing as many exits. Will His AI Plans Be Any Different? is a very unique organization, in part given its steady, consistent rise, and focus on credit. Typically when you go through a crisis of this magnitude, its a little slower to recover in terms of the new-deal market, and it tends to be much more distressed. Mayer is widely considered among the best available at his position. All of the cultural initiatives that we were executing on accelerated. 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Michael's mailing address filed with the SEC is 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES, CA, 90067. Inflation, a hawkish Fed and fears of a recession have all made 2022 a tough environment for investing. Of having a willingness to try new things. The estimated Net Worth of Michael J Arougheti is at least $235 Million dollars as of 11 November 2022. Picker:As you think about the inflationary environment, in particular, and in planning for your own business in conversations with LPs, what's your take for how long we will be in a current situation like we're in right now? Or is it faster or slower? And I will never forget it. Understanding that really informs how we invest and the types of tools were using to invest into those different pockets. And to oversimplify what's a complex series of global flows, it really comes down to a global desire for durable yield. He is a member of the Ares Executive Management Committee and the firm's. Direct Lending and Pathfinder Investment Committees, the Ares Equity Income Opportunity Strategy Portfolio Review Committee and the Ares Sports, Media and Entertainment Investment Committee. CBS News Reports: "It's an entirely new type of weapon." Among leaders of the major alternative-asset managers think Blackstone, Apollo, Carlyle, KKR Arougheti is the understated, cerebral CEO. Director, Co-Founder, Chief Executive Officer and President of Ares. So we have some publicly traded credit companies, ARCC, ACRE, that largely manage floating rate assets. All of the things that we were embarking on around business development accelerated. Mr. Arougheti also serves on the board of directors of Operation HOPE, a not-for-profit organization focused on expanding economic opportunity in underserved communities through education and empowerment. When you think of yourself as a growth company, you manage yourself differently from a cultural and operational standpoint. Mehdi Bolour faces 25 criminal charges over illegally rented Hollywood building, Prince Harry, Meghan Markle asked to leave U.K. home, Real estate investor pleads guilty to stealing $3M, Massive unbuilt Arizona estate asks record $75M, Amazon hits brakes on construction of second headquarters. When expanded it provides a list of search options that will switch the search inputs to match the current selection. I think Ive always intuitively known that, but Ive gotten more opportunities to test it. In the moment, I thought back to the first time I met Arougheti, in a 50,000-square-foot house (not his) (or mine) in Beverly Hills almost a decade ago. Sticker shock: Ranking South Floridas priciest residential rentals, Here are Chicago's top 10 construction permits issued in May. Back to the comment I made about the crisis accelerating trends already in place, we had already been deep into our journey around ESG and diversity, equity, and inclusion. We had examined his road map for the year ahead. And they have done it for far too many other organizations to name. Most recently, Michael J. Arougheti sold 2,983 shares of the business's stock in a transaction on Thursday, November 10th. The oldest executive at Ares Management Corp is PaulJoubert, 72, who is the Independent Director. What Im hoping is that we can continue to have that mindset as we scale. The corporate mailing address for Mr. Arougheti and other Ares Management executives is 2000 AVE OF THE STARS 12TH FLOOR, LOS ANGELES CA, 90067. now if I can only get you to co-write my current one. Dismiss. Ares Management Corp executives and other stock owners filed with the SEC include: Track performance, allocation, dividends, and risks, Annotate, download XLSX & look up similar tables, Filter, compare, and track coins & tokens, Stocks and cryptocurrency portfolio tracker. Over the next several years, I covered Aress IPO, its deals, and Aroughetis ascension to CEO in 2018. So given all that, and given just where you see opportunity, are there certain sectors that you're putting more capital to work, say, than others, just given kind of the macro backdrop you just outlined? The Frankels paid $14.4 million for the spec Miami Beach mansion in August 2020, and just sold it at a 120 percent markup. They sold a total of 6,394,959 shares worth more than $255,128,106.92. And I will never forget it. Get this delivered to your inbox, and more info about our products and services. The largest trade he's ever made was exercising 666,667 units of Ares Management Corp stock on 4 December 2020 worth over $54,453,361. Tue, Mar . Great interview and loved the throwback articles - maybe put together a book? 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Mr. Arougheti oversaw an investment team that originated, managed and monitored a diverse portfolio of middle-market leveraged loans, senior and junior subordinated debt, preferred equity and common stock and warrants on behalf of RBC and other third-party institutional investors. My experience would tell you that that's usually a six to 12 month process, that has to take into account a shared view of what the economy is going to look like, and take into account what the new financing markets look like.