Ares Management Considering Acquisition of Leonard Green & Partners
Los Angeles-based Ares Management is reportedly in talks to acquire Leonard Green & Partners, an $85 billion private equity firm. The potential deal aims to strengthen Ares' underperforming PE business and expand its fee-generating assets. While Ares has grown into the world's largest private credit manager with over $644 billion in total alternative investments, its PE segment remains relatively small compared to peers like Blackstone or Apollo Global Management. Ares’ four private equity funds since 2012 have raised less than $20 billion combined. Performance has been mixed, particularly for the ACOF V fund (launched in 2017), which delivered a net MOIC of 1.2x and IRR of 3.7%. In contrast, its earlier funds showed stronger returns. The firm's credit business dominates both assets under management and fee generation. The acquisition would significantly boost Ares' PE presence by quadrupling the segment’s size. Leonard Green has a strong West Coast footprint with notable investments in brands like Whole Foods and Shake Shack. This move reflects broader consolidation trends among listed private capital managers, as firms seek to expand capabilities and meet investor demands for more diversified offerings.
Tickers: $ARES
Topics: Alternative Investments Ares Management Leonard Green & Partners Private Equity