Ares signals appetite for larger PE platform amid acquisition speculation

Ares Management is open to expanding its presence in private equity through acquisitions, with chief executive Michael Arougheti indicating the alternative asset manager would benefit from a larger buyout business if the right opportunity emerges, according to a report by Reuters.

Speaking on the firm’s latest earnings call, Arougheti said Ares is evaluating whether its private equity platform should be larger, adding that the answer is “probably” yes, provided any transaction delivers strategic, cultural and financial benefits.

His comments follow reports that Ares, which oversees approximately $671bn in assets under management, held discussions about acquiring middle-market buyout firm Leonard Green & Partners, which manages around $85bn. Ares reportedly declined to comment on the talks.

Arougheti said any acquisition would need to strengthen the firm’s overall business, generate attractive economics and align culturally with Ares’ existing platform.

He added that while the strategic rationale for expanding the firm’s private equity capabilities is compelling, valuation discipline remains essential.

The remarks reinforce Ares’ long-term ambition to broaden its platform beyond its core private credit franchise. The firm has grown into one of the world’s largest alternative investment managers, with significant businesses spanning credit, real estate, infrastructure and private equity.

An expanded buyout platform could also position Ares to benefit from increasing allocations to private markets within retirement savings vehicles, an area that executives have previously identified as a major long-term growth opportunity.