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. omg. And then he met with me weekly, for close to four years, making himself fully available to my dream, treating it like it was his own. Mayer is widely considered among the best available at his position. The move comes as Ares business becomes more complex and larger with $106bn assets under management in real estate, private equity and . We obviously navigated the pandemic with a significant amount of government and central bank intervention. Additionally, he is a member of the PATH Organization Leadership Council. This button displays the currently selected search type. 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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. The oldest executive at Ares Management Corp is Paul Joubert, 72, who is the Independent Director. The New York Times Reports: "No existing defense can stop it." This Supreme Court Case Could Redefine Crime, YellowstoneBackers Wanted to Cash OutThen the Streaming Bubble Burst, How Countries Leading on Early Years of Child Care Get It Right, Female Execs Are Exhausted, Frustrated and Heading for the Exits, More Iranian Schoolgirls Sickened in Suspected Poisoning Wave, No Major Offer Expected on Childcare in UK Budget, Oil Investors Get $128 Billion Handout as Doubts Grow About Fossil Fuels, Climate Change Is Launching a MutantSeed Space Race, This Former Factory Is Now New Taipeis Edgiest Project, What Do You Want to See in a Covid Memorial? Arougheti:I think, for traditional private equity for many it likely will be. Credit is crowded PE firms including the Blackstone Group (NYSE: BX), KKR, the Carlyle Group (Nasdaq: CG) and Apollo (NYSE: APO) have all grown their credit business substantially . hopefully Ares can be big but also keep it real. See above for full video.). Inflation, a hawkish Fed, fears of a recession have all made 2022 a tough environment for investing. The HOPE Community Credit Score Index A Closer Look at the Twin Identities of Washington, DC. They did this three times. Get this delivered to your inbox, and more info about our products and services. And when Michael Arougheti committed, that gave license to Tony Ressler, his co-founder at Ares Management, that he could do the same. And then the friendship came. Last year, Los Angeles-based Ares made a $150 million preferred equity investment in Inter Miami CF. Data is a real-time snapshot *Data is delayed at least 15 minutes. And then surprisingly, when the private markets slow, you usually see public markets challenged as well. But there are echoes of the past. So we actually tend to see a consolidation of share and maybe counterintuitive and acceleration of capital that comes onto our platform to help navigate. 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. Thats not how leadership is classically trained. It absolutely starts with the health crisis and the speed with which we get people inoculated. That's not necessarily true for traditional 60/40 portfolios, when you have money, you have to express a view on what you think is the best opportunity in the market. So we have some publicly traded credit companies, ARCC, ACRE, that largely manage floating rate assets. The challenge right now is in 2022, given how well the portfolio's performed and how deployed, they were given the significant amount of volume in 2021, the market now is digesting the need for more capital against the backdrop of a lack of capital. And, myself included, that can often be very hard to do you tend to create boundaries between your work self and your home self. What is Michael J. Arougheti's net worth? Mr. Arougheti also serves on the boards of directors of Operation HOPE, a not-for profit organization focused on expanding economic opportunity in underserved communities through economic education and empowerment. But today, I wanted to give just that credit. The firm now oversees $197 billion. So, how do we get out of crisis mode by getting people back into the office and driving the business forward? 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. -0.38 -0.45%. They purchased a total of 8,706,492 shares worth more than $85,604,376.84. I think that, for those of us who embraced it, it created a level of trust, of empathy, of relatability. There are no ways to adequately describe a man with conviction. And he did. And the decisions they make have huge consequences, not just for the bottom line, but for communities, cities, even entire countries. Of having a willingness to try new things. 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. He is a member of the Ares Executive Management Committee and the firm's. Ressler, an Ares . 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. Ares Management CEO Michael Arougheti discusses consolidation in the asset management industry with Bloomberg's Erik Schatzker at the Bloomberg Invest virtual conference. What makes us and any organization special is culture. Mr. Arougheti was instrumental in the growth of Ares. What I've been pleased with is in our portfolios, inflation is present, it has shifted from cost of goods to cost of labor, at least in our US portfolios, but the margins are still at or near all time highs. Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. So that was the good news. But when you go remote, youre effectively letting everybody into your home, whether thats the sights or sounds or just the challenges. Whitepages people search is the most trusted directory. Trusted by millions of genealogists since 2003. It makes him no less potent, to which Aress rapid global expansion of late is a testament. 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. They made a major commitment to the work of my life, but they did it without fanfare, without press release, and without any desire for their own recognition. That was June, 2017. (Photo by Matt Winkelmeyer/Getty Images) Coogler, who has . Times. 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. , thanks for sharing these insights with top executives - super useful. Learn More on Ares Management's active insiders. One of the things that Ive said to my partners here is to think of Ares as a growth company in a growth industry. Learn More on Ares Management's active insiders. The estimated Net Worth of Michael J Arougheti is at least $235 Million dollars as of 11 November 2022. 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. What makes our culture special is that its deeply rooted in partnership, in entrepreneurialism, in growth mindset. 2023 CNBC LLC. The corporate mailing address for Mr. Arougheti and other Ares Management executives is 2000 AVE OF THE STARS 12TH FLOOR, LOS ANGELES CA, 90067. 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. Data is a real-time snapshot *Data is delayed at least 15 minutes. Michael J Arougheti is the Co-Founder, CEO and President of Ares Management Corp and owns about 1,601,605 shares of Ares Management Corp (ARES) stock worth over $137 Million.Michael J Arougheti is the Executive Vice President of Ares Capital Corp and owns about 1,782,709 shares of Ares Capital . And that was no accident either. That comes with a broader view into different parts of the world and different parts of the organization. We had just dissected his three years as CEO of Ares Management, the publicly traded investment firm managing almost $200 billion in assets. Ares Management's global platform had $149 billion of assets under management as of March 31, 2020 with more than 1,200 employees in over 20 offices in more than 10 countries. Its accelerated, the participation is broader, and added to that is a heightened sense of urgency. And our family has been enriched, spiritually and emotionally, from that bond, the most. But at the same time, it was probably the most rewarding. That will help accelerate us on the other side of this. Ares Management, however, has been a beneficiary of the current environment. And they have done it for far too many other organizations to name. Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. From media and technology to finance and real estate, leagues and teams across the globe have matured into far more than just back page entertainment. Separate. Together, personally, they both became the financial backers for the founding of my Promise Homes Company dream. There are 13 older and 6 younger executives at Ares Management Corp. 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. Sticker shock: Ranking South Floridas priciest residential rentals, Here are Chicago's top 10 construction permits issued in May. What I continue to learn every time I delegate and trust, every time we give somebody a part of the business to run and hold accountable for success, is it just turbocharges the growth here. The oldest executive at Ares Management Corp is PaulJoubert, 72, who is the Independent Director. 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. Michael J. Arougheti has not been actively trading shares of Ares Management during the past quarter. Michael J. Arougheti serves as President, Chief Executive Officer, Co-Founder, Director of the Company. But, he said as we were about to hang up, I dont ever want to take credit for the efforts and successes of others.. 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. 2023 CNBC LLC. 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 . So if you look over the last 20 years, we're seeing a meaningful increase in allocations on the part of institutional and retail investors to alternatives. So you know, each cycle is different. In the last twelve months, insiders at the asset manager sold shares 15 times. Convicted. And then there are a lot of times, which I think are the most powerful, when youre leading from inside, shoulder-to-shoulder with people. 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. Its very rewarding. and I will never, forget that that conviction, of one Michael Arougheti. Arougheti: So this is - we're talking about the US specifically. Will His AI Plans Be Any Different? 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. For me. UPDATED, May 10, 12:20 p.m.: Tampa Bay Rays co-owner Randy Frankel more than doubled his money with the sale of his waterfront Miami Beach mansion. The records show the division opened a case on Dec. 8, 2022, to investigate threats and allegations of child abuse by Michael Haight. Ares Management Corporation (NYSE:NYSE:ARES) Q1 2022 Earnings Conference Call April 28, 2022 11:00 AM ETCompany ParticipantsCarl Drake - Head, Public Markets, Investor Relations Michael. 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. A dream planted, but not much more. 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. 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. Currently, Mr. Arougheti is Co-Chairman of Ares Acquisition Corp., President, Chief Executive Officer & Director at . Three. And that's pretty attractive to most investors right now. Michael didnt stop there. Michael Arougheti Mr. Arougheti is a Co-Founder of Ares and has served as a Director and the President of Ares Management since 2014. 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. Ares Management LP said Dec. 18 that Michael J Arougheti, co-founder and president, was named CEO effective Jan. 1, replacing Tony Ressler who will continue as executive chairman. He served two terms as Mayor of Atlanta, one of the fastest growing cities in the world. When expanded it provides a list of search options that will switch the search inputs to match the current selection. Michael's personal network of family, friends, associates & neighbors include Elinor Bly, Joel Arougheti, Jeanne Arougheti, Paul Arougheti and Florence Stepper. 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. 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. A beginning. In this role, Ive had to think more holistically about where the business is going. Ares is no stranger to the single-family rental market; it joined Pretium Partners in a $2.4B joint-venture purchase of Front Yard Residential Corp. which closed in 2021. So Michael and his super talented author,wife Nelly (Bly) decided to do it personally, themselves. All of the things that we were embarking on around business development accelerated. 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. Frankel is also a real estate investor and owner of wineries and restaurants. Thank you!! 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? So, Ares, I think we've been fortunate that we're outperforming not just the public asset management peers, but the markets generally. 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. Arougheti: Yeah, so the good news is about being an alternative manager is we don't have to invest the dollars that our clients give us. This is going to be top of mind for a lot of leaders this year and, I think, into next. Michael Arougheti is 47, he's been the President, Chief Executive Officer, Co-Founder, and Director of Ares Management Corp since 2018. I think they've got, you know, the increased challenge of the energy crisis and the strong dollar exacerbating the inflation picture for them. And we're now seeing the retail investor really take hold as well. Ares Management co-founders Tony Ressler and Michael Arougheti provided founding investments and served on the company's investment committee until last year. 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. If the market is healthy, you can pivot to some of the more regular-way buyout and credit investing. 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. 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"). All of those things came to bear immediately when we went into the crisis. Thank you Michael Arougheti. Learn More about insider trades at Ares Management. Great interview and loved the throwback articles - maybe put together a book? The business owners that power this multibillion dollar industry are changing, and a new era of the business of sports is underway. A gentle soul and bright spirit left us on Feb. 13 when Michael "Mike" Moulds, age 73, of Pierson, Michigan, passed away unexpectedly. 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. Additionally, Mr. Arougheti is a member of the PATH Organization Leadership Council. 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. Thats why I think that the opportunity to lead in this type of a crisis, as difficult as it is, is really a unique opportunity for anybody. Michael Arougheti Co-Founder, CEO and President at Ares Management New York, New York, United States 7K followers 377 connections Join to follow Ares Management Corporation Yale University. Director, Co-Founder, Chief Executive Officer and President of Ares. Dismiss. All that being said, you also have to be measured in the way that you deploy through a cycle. You see, these men of conviction are different. So if you look at our $340 billion of assets, over $90 billion of it is unvested. Insiders at Ares Management own 47.4% of the company. Got a confidential news tip? Arougheti: Yes and no. Arougheti: Well, this is like something we haven't seen before. But every time I speak with my friend Tony Ressler, I also feel and see the heart of Michael Arougheti, because Michael introduced me to Tony. It's also a reflection, I think of the investors understanding that embedded value that sits in our private credit portfolios. How is that easier than to digest? And that opportunity to deploy lasted maybe three weeks. What Im hoping is that we can continue to have that mindset as we scale. And material, at that time, to our very survival. 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. And call on him, I did often. All Rights Reserved. Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. 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. And I will never forget it. Mr. Arougheti received a B.A. It was designed by Domo Architecture + Design and includes a guest house, cabana and pool. It's just waiting for the market to really open up to be more aggressive. Enter your email address below to get our daily insider buying and selling report. When you look at the economy, its a tale of two cities. And I think that's true for the publicly traded markets as well. I tried my best to help him with his endeavors and dreams, and he (and his wife Nelly Bly) certainly leaned into mine. Hes sort of a walking brain, and I am pretty sure he has a genius IQ. You dont hear people talking about asset-management firms in that light. It operates through the following segments: Credit Group, Private Equity Group and Real Estate Group. Michael J. Arougheti is also Partner at Direct Lending Group, Inc. and Member of Program for Appropriate Technology in Health and on the board of 7 other companies. 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. Explore historical records and family tree profiles about Michael Arougheti on MyHeritage, the world's family history network. We're not having that experience. Fortunately weve got enough stimulus that weve now kind of stabilized and bridged. So the way that we're approaching it is we're obviously looking for what we think is the best risk adjusted return globally. Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. The Real Estate Group segment provides debt, mortgage loans, and equity capital to borrowers, property owners, and real estate developers. 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. A sponsor. Where we are now, were deploying actively in almost every strategy across the firm because of this bifurcation. Similarly, our clients the folks who allocate capital to us are holding us accountable for change. This chart shows Michael J Arougheti's buying and selling at Ares Management by year and by quarter. Tampa Bay Rays co-owner sold it for over double his 2020 purchase price, 1635 West 22nd Street with Ares Management's Michael Arougheti and Randy Frankel (Michael Ruiz with LPG, Getty). The Frankels paid $14.4 million for the spec Miami Beach mansion in August 2020, and just sold it at a 120 percent markup. 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. He is a member of the Ares Executive Management Committee and the firms Management Committee. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Mr. Arougheti received an undergraduate degree from Yale University. It additionally provides investors access to directly originated fixed and floating rate credit assets and the ability to capitalize on illiquidity premiums across the credit spectrum. Create a free family tree for yourself or for Michael Arougheti and we'll search for valuable new .