And we've been pretty vocal that again, if all we do is sit on our existing exposures, we can see core earnings growing, you know, in the double digit range just because of the rise in base rates. Sign up for free newsletters and get more CNBC delivered to your inbox. President of Ares at the time, he stood alone, observing the partygoers, content being a fly on the wall. 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. 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. They did this three times. One of the reasons is we're one of the largest private credit managers 90% of our private credit exposures are floating rate. omg. Additionally, Mr. Arougheti is a member of the PATH Organization Leadership Council. Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. All Rights Reserved. Ares Management co-founder and CEO Michael Arougheti bought the property, records show. The simple reason for that is you have this bifurcation in the economy and within the consumer, and it will show up in different places as we continue to recover from this. The business owners that power this multibillion dollar industry are changing, and a new era of the business of sports is underway. 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. 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. Click Subscribe above to be notified of future editions. So if there is a silver lining to all the challenges globally, right now, we're going into this period of volatility with real strong underpinnings. Michael Arougheti, co-founder and CEO of Ares Management, joins "Squawk Box" by phone to discuss the markets and the unprecedented economic turmoil driven by the coronavirus outbreak. Picker:So six to 12 months puts us at what, January? 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. Love and authenticity tends to have that effect on people. But most of our portfolio managers and investors are investing at a slower pace than they normally would as they wait to see how these markets develop. 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. 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. Why do you think that is? What is Michael J. Arougheti's net worth? And it's moving around a little bit, right. And without betraying their confidences, let me just say that what Michael and Nelly did for HOPE, and at the time they did it, was extraordinary. Arougheti: So this is - we're talking about the US specifically. Over the next several years, I covered Aress IPO, its deals, and Aroughetis ascension to CEO in 2018. Similarly, our clients the folks who allocate capital to us are holding us accountable for change. Join the conversation with your own take on these topics in the comments below. And, myself included, that can often be very hard to do you tend to create boundaries between your work self and your home self. Such is the man the world refers to as Michael Arougheti. Last updated: 2 February 2023 at 9:52pm EST. 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. 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). While Ares is mostly credit focused, they have built a brand that seems more venerable than many credit shops before them. With hundreds of billions of dollars worth of floating rate credit and real assets, the firm's $200B book has surprisingly held up well. Additionally, he is a member of the PATH Organization Leadership Council. Currently, Mr. Arougheti is Co-Chairman of Ares Acquisition Corp., President, Chief Executive Officer & Director at Ares Management Corp., Co-Chairman & Executive Vice President at Ares Capital Corp., Director, CEO & President at Ares Management LLC, President, Chief Executive Officer & Director at Ares Management GP LLC and Co-Chairman and Executive Vice President at Ares Management Corp (Private Equity) (which are all subsidiaries of Ares Management Corp.) and Senior Advisor at Volery Capital Partners LLC. this connects so much to was you said on monday in the call about "executive presence" when you mentioned "project an image, a feeling, an ambiance" when you gave tips for everyday executive presence. So when the markets get challenged, that's when our investment opportunity becomes the most attractive. What does that mean for margins and kind of the stickiness of these high prices? Arougheti: Yes and no. 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. in Ethics, Politics and Economics, cum laude, from Yale University. In each edition, we feature a leader or rising star whos changing the game in his or her own way. 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. 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. 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. 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. Director, Co-Founder, Chief Executive Officer and President of Ares. 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? CBS News Reports: "It's an entirely new type of weapon." 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"). When youre going through this amount of uncertainty, what I found served us well from the first day back in March 2020 was the value of over-communicating and, in many instances, saying that you didnt know. All of those things came to bear immediately when we went into the crisis. Share Your Design Ideas, New JerseysMurphy Defends $10 Billion Rainy Day Fund as States Economy Slows, This Week in Crypto: Ukraine War, Marathon Digital, FTX. I think many managers got accustomed to very quick fundraisers and I think they got accustomed to fundraisers happening prior to return of money. Got a confidential news tip? Separate. And the thing is, they did it so casually. 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. Michael Arougheti Expand search. And Michael Arougheti, was all of that. How do you preserve that at scale? And Michael Arougheti, was all of that. (Patrick T. Fallon/Getty Images) 'Nobody is really prepared':. 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. So the way that we're approaching it is we're obviously looking for what we think is the best risk adjusted return globally. 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. Mr. Arougheti owns 470,138 shares of Ares Management stock worth more than $39,200,106 as of February 9th. Michael has a reported annual income of $100 - 149,999 and a current net worth value of greater than $250,000 - $499,999. [BREAKING] New "Living Missile" to Replace Nuclear Missiles. 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. Mr. Arougheti owns 470,138 shares of Ares Management stock worth more than $39,077,871 as of March 4th. Direct Lending and Pathfinder Investment Committees, the Ares Equity Income Opportunity Strategy Portfolio Review Committee and the Ares Sports, Media and Entertainment Investment Committee. The second thing on my mind is that managing in crisis is different than managing status quo. That was June, 2017. As the President, Chief Executive Officer, Co-Founder, and Director of Ares Management Corp, the total compensation of Michael Arougheti at Ares Management Corp is $12,665,700. Thats not how leadership is classically trained. The best advice I would give now is that you have to lead different people differently. 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. Mr. Arougheti received a B.A. Its accelerated, the participation is broader, and added to that is a heightened sense of urgency. He was elected Congressman three times and is a leading figure in the civil rights movement. In the last twelve months, Ares Management insiders bought shares 20 times. For me. So, Ares, I think we've been fortunate that we're outperforming not just the public asset management peers, but the markets generally. 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. Mike Arougheti, Ares Management LLC: Profile and Biography - Bloomberg Markets Live Now Bloomberg TV+ Bloomberg Markets The Close Romaine Bostick breaks down the day's top stories and trading. Most recently, Michael J. Arougheti sold 2,983 shares of the business's stock in a transaction on Thursday, November 10th. in Ethics, Politics and Economics, cum laude, from Yale University. Michael B. Jordan attends the Hollywood Walk Of Fame Star Ceremony honoring Michael B. Jordan on March 1, 2023, in Hollywood, California. 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. 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. 2023 CNBC LLC. And call on him, I did often. And there are certain times when you have to lead from the back, letting others step up to drive the organization forward while you push it along and clean things up from the back. I think that's a reflection of the nature of our business. That comes with a broader view into different parts of the world and different parts of the organization. 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 -. Arougheti: Well, this is like something we haven't seen before. And that's pretty attractive to most investors right now. 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. Veritas $450M loan default: A sign of things to come? 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 . He joined my board of directors for Operation HOPE, and later I joined his board, for a new publicly traded company called Ares Commercial Real Estate REIT. A lot of people look to their leadership to say, heres where were going and I know that for the following reasons. It's also a reflection, I think of the investors understanding that embedded value that sits in our private credit portfolios. 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. Randy Frankel, a former managing director at Goldman Sachs, and his Wall Street partners acquired the baseball team the Tampa Bay Rays in 2004. Just life family. 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. What Im hoping is that we can continue to have that mindset as we scale. This tale of two cities is going to be the framework to think about the recovery. Ares Management, however, has been a beneficiary of the current environment. Michael Arougheti is 47, he's been the President, Chief Executive Officer, Co-Founder, and Director of Ares Management Corp since 2018. So we're giving a little bit back in the private flow. He served two terms as Mayor of Atlanta, one of the fastest growing cities in the world. The Big Take is the very best of Bloomberg's in-depth, original reporting from around the globe every day. The firm now oversees $197 billion. Whats interesting about this environment is that we had to pivot from growth opportunity in our business to real crisis management, and now we find ourselves in this in-between place were still in the middle of a crisis, but the business is not projecting itself that way. Ares Management Corporation is a leading global alternative investment manager operating three integrated businesses across Credit, Private Equity and Real Estate. 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. So if you look at our $340 billion of assets, over $90 billion of it is unvested. (Photo by Matt Winkelmeyer/Getty Images) Coogler, who has . Michael Arougheti is co-founder, chief executive officer and president, as well as a director of Ares Management Corp. But all of our leaders learned to support their people by opening their own lives up to them. He previously occupied the position of Principal at Royal Bank of Canada and Managing Partner-Principal Finance Group at RBC Capital Partners Ltd. (a subsidiary of Royal Bank of Canada), Principal at Onyx Partners, Inc., Executive Vice President at Columbia Savings & Loan Association (Milwaukee, Wisconsin), Member-Mergers & Acquisitions Group at Kidder, Peabody & Co., Inc., Principal at Taylor & Co. Law Offices LLP, Co-Chairman for ACRE Capital LLC, Director at Evercom, Inc., Director at Imperial Capital LLC and Principal at Indosuez Capital. Mr. Arougheti received a B.A. This chart shows Michael J Arougheti's buying and selling at Ares Management by year and by quarter. Convicted. Among leaders of the major alternative-asset managers think Blackstone, Apollo, Carlyle, KKR Arougheti is the understated, cerebral CEO. 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. Michael Arougheti is 47, he's been the President, Chief Executive Officer, Co-Founder, and Director of Ares Management Corp since 2018. What makes us and any organization special is culture. The most active insiders traders include Michael J Arougheti, Antony P Ressler, and Bennett Rosenthal. 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. Of having a willingness to try new things. 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. Mr. Arougheti also is a member of the Ares Credit Group's U.S. The Frankels paid $14.4 million for the spec Miami Beach mansion in August 2020, and just sold it at a 120 percent markup. Picker: As you digest all of that, do you think it's possible to avoid a hard landing? 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. And I also think that some of the large public platforms similarly continue to raise money. Copyright 2018 | John Hope Bryant and JohnHopeBryantHoldings, LLC | All rights reserved. Last year, Los Angeles-based Ares made a $150 million preferred equity investment in Inter Miami CF. 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. 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? And I will never forget it. 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. Get this delivered to your inbox, and more info about our products and services. 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. Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. 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. Where we are now, were deploying actively in almost every strategy across the firm because of this bifurcation. 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. 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. 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 I will never, forget that that conviction, of one Michael Arougheti. But they did it. Michael Arougheti A Co-Founder, Director, Chief Executive Officer & President at Ares Management Mr. Arougheti is Co-Founder, Chief Executive Officer and President, as well as a Director of Ares Management Corporation. The Sunset Islands have emerged as a top neighborhood in Miami Beach, especially amid the pandemic. Inflation, a hawkish Fed and fears of a recession have all made 2022 a tough environment for investing. Learn More about insider trades at Ares Management. 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. Direct Lending and Pathfinder Investment Committees, the Ares Equity Income Opportunity Strategy Portfolio Review Committee and the Ares Sports, Media and Entertainment Investment Committee. And that was no accident either. And the decisions they make have huge consequences, not just for the bottom line, but for communities, cities, even entire countries. So you know, each cycle is different. They sold a total of 6,394,959 shares worth more than $255,128,106.92. We found 290 records for Arougheti last name 128 Family Trees 29 Birth, Marriage & Death 19 Census & Voter Lists 8 Immigration & Travel View all records Explore your family history with: 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" This button displays the currently selected search type. 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. Will His AI Plans Be Any Different? Picker: It's shifting. A gentle soul and bright spirit left us on Feb. 13 when Michael "Mike" Moulds, age 73, of Pierson, Michigan, passed away unexpectedly. See above for full video.). Ares Management co-founder and CEO Michael. 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. Aroughetis Vandelay Homes II LLC financed the purchase with a $21.1 million loan from J.P. Morgan, according to records. Michael's mailing address filed with the SEC is 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES, CA, 90067. Mr. Arougheti also is a member of the Ares Credit Group's U.S. CINCINNATI (WXIX) - Former Notre Dame All-American tight . And then there are big parts of our business that are investing in health care and technology and single-family residential and all of the things that are doing well. Picker:So in recent months and we've spoken, private equity has been essentially the kind of the laggard in terms of dealmaking. I LOVE this series!! Arougheti: Yes, and no. 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. The investment management firm has about $325 billion of assets under management, according to its website. Arougheti:You have to look at it on a relative basis. But at the same time, it was probably the most rewarding. Dismiss. Mr. Arougheti also is a member of the Ares Credit Group's U.S. 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. Chart Data in Insider Trading History Table. Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. 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. And one small company is building them for the Pentagon! Learn More on Michael J. Arougheti's contact information. 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. We want to hear from you. Join now Sign in . 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. Inflation? Tue, Mar . How is that easier than to digest? 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. in Ethics, Politics and Economics, cum laude, from Yale University. What about the companies that are seeking that type of financing? This net worth estimate does not reflect any other investments that Mr. Arougheti may own. 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. |, They did it, because thats simply who they are, Operation HOPE, U.S. Small Business Administration and U.S. Treasury Host Roundtable to Celebrate Freedmans Bank. 2023 CNBC LLC. is a very unique organization, in part given its steady, consistent rise, and focus on credit. 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.. We have pools of capital that are designed to provide liquidity where other means of liquidity are not working. Sometimes all you can do is throw them a life jacket and say swim as hard as you can !. 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. Are you still seeing that as active? This button displays the currently selected search type. Picker: Are you surprised by that? People, of deep convictions. Whenever I called on Michael, he was there. You had a picture of it!!! 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. camp bethany louisiana,