Aroughetis Vandelay Homes II LLC financed the purchase with a $21.1 million loan from J.P. Morgan, according to records. Ares Management, however, has been a beneficiary of the current environment. Whats unique about where we are now is I cant remember a cycle where weve had such a balance in healthy-company opportunity and distressed opportunity. Picker: Are you surprised by that? So, what feels different now versus where we were pre-pandemic is theres a sense not just of urgency, but accountability up and down the chain. When you think of yourself as a growth company, you manage yourself differently from a cultural and operational standpoint. The investment management firm has about $325 billion of assets under management, according to its website. 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. 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. We had explored the roller coaster of emotions and urgent steps induced by the COVID-19 pandemic. Sign up for free newsletters and get more CNBC delivered to your inbox. Copyright 2018 | John Hope Bryant and JohnHopeBryantHoldings, LLC | All rights reserved. And then they did it again, one day at one of our HOPE Global Forum, watching a pitch competition of young Black and Brown business owners in the making. So, there was something about the shift to remote work that I think broke down some of those barriers and forced people to open their lives up a little bit more to their colleagues. We have pools of capital that are designed to provide liquidity where other means of liquidity are not working. People, of deep convictions. Enter your email address below to get our daily insider buying and selling report. 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. And I will never forget it. The Frankels paid $14.4 million for the spec Miami Beach mansion in August 2020, and just sold it at a 120 percent markup. ARES DYNAMIC CREDIT ALLOCATION FUND, INC. Transcript : Ares Management Corporation Presents at The Bank of America Securities 2023 Financial Services Conference, Feb-16-2023 09:40 AM, Transcript : Ares Management Corporation, Q4 2022 Earnings Call, Feb 09, 2023, Bloomberg Video: Sizing up the Private Credit Market, Transcript : Ares Management Corporation, Q3 2022 Earnings Call, Oct 27, 2022, Transcript : Ares Management Corporation Presents at Barclays Global Financial Services Conference, Sep-13-2022 12:00 PM, Transcript : Ares Management Corporation, Q2 2022 Earnings Call, Jul 28, 2022, Transcript : Ares Management Corporation Presents at Bernstein 38th Annual Strategic Decisions Conference, Jun-02-2022 02:30 PM, President, Chief Executive Officer & Director, Ares Commercial Real Estate Management LLC, Director, Co-Founder & Chief Executive Officer, Program for Appropriate Technology in Health. 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. Michael J. Arougheti has not been actively trading shares of Ares Management during the past quarter. 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. 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. So, Ares, I think we've been fortunate that we're outperforming not just the public asset management peers, but the markets generally. And that's obviously pretty attractive to an investor who's looking for certainty of yield. Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. Welcome toHuman Capital, an open exploration of the ideas and people moving financial services forward. And then surprisingly, when the private markets slow, you usually see public markets challenged as well. So the way that we're approaching it is we're obviously looking for what we think is the best risk adjusted return globally. 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. Todd Michael Glaser and Rony Seikaly developed the Sunset Island IV mansion and sold it to the Frankels. He tipped the scale of HOPE for me, on several occasions. It's somewhat counter cyclical. Of having a willingness to try new things. 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. And if so, do you think that the markets are already pricing that in? A lot of people look to their leadership to say, heres where were going and I know that for the following reasons. 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. The corporate mailing address for Mr. Arougheti and other Ares Management executives is 2000 AVE OF THE STARS 12TH FLOOR, LOS ANGELES CA, 90067. Ares Management Corporation is a leading global alternative investment manager operating three integrated businesses across Credit, Private Equity and Real Estate. Aroughetis noting of the importance of being transparent, empathetic, vulnerable is telling and admitting that many of us coming through the finance track are not classically trained in emotional intelligence. Randy Frankel, a former managing director at Goldman Sachs, and his Wall Street partners acquired the baseball team the Tampa Bay Rays in 2004. Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. For the last almost 10 years, it seems like almost every market has been correlated and performing well. Such is the man the world refers to as Michael Arougheti. You take different risks along different time frames. You see, these men of conviction are different. is a very unique organization, in part given its steady, consistent rise, and focus on credit. So that was the good news. This chart shows Michael J Arougheti's buying and selling at Ares Management by year and by quarter. So there are a lot of structural competitive advantages that we have as an alt manager, one of the largest is just the structure of our funds. Youre seeing it recently: Public markets are near record highs, fixed-income markets are near record tights, but we know that fundamental stresses and challenges remain. The best advice I would give now is that you have to lead different people differently. And material, at that time, to our very survival. 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. You cant execute well on a good strategy if you dont have a strong culture, and you cant rally people around core values and a cultural imperative if you dont have the strategic vision for who you are and who the company is. If you look at institutional allocations to alternatives, they are predicted to double likely over the next five to 10 years at a compound annual growth rate of about 15%. And then it will, it will pick back up again. 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. And I think that's true for the publicly traded markets as well. Insiders at Ares Management own 47.4% of the company. Leslie Picker:How long do you think these tailwinds for your business will last? I don't think that will end anytime soon. Got a confidential news tip? The Real Estate Group segment provides debt, mortgage loans, and equity capital to borrowers, property owners, and real estate developers. CNBC's Delivering Alpha newsletter 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. Trusted information source for millions of people worldwide . (Photo by Matt Winkelmeyer/Getty Images) Coogler, who has . And I also think that some of the large public platforms similarly continue to raise money. Mr. Arougheti also is a member of the Ares Credit Group's U.S. You dont hear people talking about asset-management firms in that light. He additionally serves as Co-Chairman of Ares Capital Corporation (NASDAQ: ARCC) (ARCC) and as a director of Ares Commercial Real Estate Corporation (NYSE: ACRE) (ACRE). Click Subscribe above to be notified of future editions. Michael Arougheti is 47, he's been the President, Chief Executive Officer, Co-Founder, and Director of Ares Management Corp since 2018. And kind. The good news is that if you look at corporate America, you have many companies that were indirectly COVID-impacted that have figured out how to navigate things and are now doing OK. And there are just certain companies in certain industries that are directly challenged and will have a harder go of it. Most recently, Michael J. Arougheti sold 2,983 shares of the business's stock in a transaction on Thursday, November 10th. Thank you!! So there's a lot to digest. Last month, Reed Smith attorney Constantine Karides paid $17.3 million for a waterfront home on Sunset Island I. And I will never forget it. All of the cultural initiatives that we were executing on accelerated. Ares Management can also be reached via phone at (310) 201-4100 and via email at [emailprotected] Learn More on Michael J. Arougheti's contact information. Dismiss. Finance is an apprentice business, one often hears in this sector. Hence the demand that we see for private credit assets globally, and maybe a dissatisfaction with the performance of traditional 60/40 portfolios and what seems to be more consistent volatility in the traded markets. On average, Ares Management Corp executives and independent directors trade stock every 19 days with the average trade being worth of $9,916,050. 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. So we're going in with more health than we typically would have when we're talking about recession risk, the order of magnitude that some people are anxious about. We obviously navigated the pandemic with a significant amount of government and central bank intervention. 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. All of the things that we were embarking on around business development accelerated. President of Ares at the time, he stood alone, observing the partygoers, content being a fly on the wall. 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. And the thing is, they did it so casually. 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. 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. A Division of NBCUniversal. 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.
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