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. Additionally, Mr. Arougheti is a member of the PATH Organization Leadership Council. Arougheti: So this is - we're talking about the US specifically. Data is a real-time snapshot *Data is delayed at least 15 minutes. This button displays the currently selected search type. 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. All of the things that we were embarking on around business development accelerated. 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. 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 . That happens when you surround yourself with the best people, trust them, and lead alongside them neither from the front nor the back. Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. Enter your email address below to get our daily insider buying and selling report. I think that's a reflection of the nature of our business. It required thinking a lot more holistically. So if you look at our $340 billion of assets, over $90 billion of it is unvested. There are 13 older and 6 younger executives at Ares Management Corp. 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. Got a confidential news tip? So, there are big parts of our corporate-opportunities and distressed and special-situations businesses that are very busy in those more stressed parts of the market. Copyright 2018 | John Hope Bryant and JohnHopeBryantHoldings, LLC | All rights reserved. Will His AI Plans Be Any Different? 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. Michael Arougheti Mr. Arougheti is a Co-Founder of Ares and has served as a Director and the President of Ares Management since 2014. 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. 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. 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. Michael J. Arougheti serves as President, Chief Executive Officer, Co-Founder, Director of the Company. In the last twelve months, Ares Management insiders bought shares 20 times. How is that easier than to digest? Picker: So how would you characterize the credit quality within your portfolio right now? 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. Mr. Arougheti also is a member of the Ares Credit Group's U.S. Michael didnt stop there. 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. In the last twelve months, insiders at the asset manager sold shares 15 times. And, myself included, that can often be very hard to do you tend to create boundaries between your work self and your home self. We're not having that experience. When you talk about belonging, youre talking about being able to bring your authentic self to work. 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. 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. 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. What about the companies that are seeking that type of financing? 1635 West 22nd Street (Michael Ruiz with LPG). Thats whether youre talking about the corporate economy or the consumer economy. And therefore you're not going to see as much transaction volume as people manage their liquidity. If the only thing you know about sports is who wins and who loses, you are missing the highest stakes action of all. That is probably the single biggest challenge that we will face as the company continues to grow and expand. The Frankels paid $14.4 million for the spec Miami Beach mansion in August 2020, and just sold it at a 120 percent markup. Convicted. In each edition, we feature a leader or rising star whos changing the game in his or her own way. A lot of people talk about this idea that crises accelerate trends that are already in place, and I agree with that. 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. in Ethics, Politics and Economics, cum laude, from Yale University. what I remember from interviewing Michael on a panel years ago is his razor sharp intelligence! 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. I think Ive always intuitively known that, but Ive gotten more opportunities to test it. When expanded it provides a list of search options that will switch the search inputs to match the current selection. So Michael and his super talented author,wife Nelly (Bly) decided to do it personally, themselves. A gentle soul and bright spirit left us on Feb. 13 when Michael "Mike" Moulds, age 73, of Pierson, Michigan, passed away unexpectedly. Marko Gojanovic of One Sothebys International Realty represented the Frankels in the latest sale, and Reid Heidenry with the same firm represented Arougheti. Ryan Berry will become chief marketing and strategy officer. 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. 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. For me, as a leader, what it also highlighted was the importance of being transparent, empathetic, vulnerable. 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. Learn More on Michael J. Arougheti's contact information. Thank you Michael Arougheti. With hundreds of billions of dollars' worth of floating rate credit and real assets, the firm's book has surprisingly held up well. Typically when you go through a crisis of this magnitude, its a little slower to recover in terms of the new-deal market, and it tends to be much more distressed. So there's a fundamentally different positioning when you manage private capital versus liquid capital. When the markets are so uncertain. 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. Are you surprised that the credit quality has been able to withstand some of the pressures of a rising interest rate environment and lack of liquidity in the system? So we're giving a little bit back in the private flow. Moulds, Michael 12/27/1949 2/13/2023 Pierson, Michigan. And it's moving around a little bit, right. One of the reasons is we're one of the largest private credit managers 90% of our private credit exposures are floating rate. So when you're in an environment now, where the cost of financing is going up, maybe the availability of financing is going down, and rates are rising, putting pressure on discount rates, the markets will pause to try to evaluate where assets will clear. Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. Would you say that's coming back then? For me. 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. One of the things that Ive said to my partners here is to think of Ares as a growth company in a growth industry. 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 . Recent buyers of multimillion-dollar homes in South Florida, including Miami Beach and Palm Beach, have been able to flip their properties for big profits due to heightened demand. 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. A sponsor. Over the last 9 years, insiders at Ares Management Corp have traded over $747,414,700 worth of Ares Management Corp stock and bought 550,746 units worth $8,027,035 So if you say, cost of goods, inflation, that had an impact on retail, hospitality, consumer facing businesses, as you now shift, and you see easing in that now, maybe you're seeing some pressure on service oriented businesses, you know, that are either facing off with a consumer or trying to navigate a tightening labor market. The Sharpe Angle: Ares Management CEO Michael Arougheti says this macro environment is 'like something we haven't seen before', Don't bet that the bottom is in for what were high-growth tech firms, private equity investors say, Ken Griffins hedge fund Citadel is up again in 2023 following a record year, Third Point's Daniel Loeb takes a passive stake in AMD. I think that capital will get raised, I think it will just take a little bit longer. I was surprised at how quickly people could transition to working remotely. Id like to think that Ive become more strategic in my thinking, as opposed to just tactical around parts of the business. 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. But today, I wanted to give just that credit. So, the places where you would be seeing the most distress, we just dont have that much of it. Picker: Are you surprised by that? I think many managers got accustomed to very quick fundraisers and I think they got accustomed to fundraisers happening prior to return of money. 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. He serves on the Ares Exe Read More Contact Michael Arougheti's Phone Number and Email Last Update 11/21/2022 1:55 PM Email You take different risks along different time frames. Its been such an interesting year because in so many ways, it was probably one of the most challenging of my career. And they have done it for far too many other organizations to name. Direct Lending and Pathfinder Fund Investment Committees, the Ares Equity Income Opportunity Strategy Portfolio Review Committee and the Ares Operations Management Group. Veritas $450M loan default: A sign of things to come? Most recently he sold 9,400 units of ARES stock worth $799,376 on 11 November 2022. Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. 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. He is a member of the Ares Executive Management Committee and the firms Management Committee. Join now Sign in . If you turn your attention to Europe, in certain parts of Asia, the story might be different. I don't think that will end anytime soon. 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. So we have a ways to go. When expanded it provides a list of search options that will switch the search inputs to match the current selection. Mayer is widely considered among the best available at his position. What is Michael J. Arougheti's net worth? And I also think that some of the large public platforms similarly continue to raise money. In addition, he makes $12,665,700 as President, Chief Executive Officer, Co-Founder, and Director at Ares Management Corp. Michael has made over 55 trades of the Ares Management Corp stock since 2008, according to the Form 4 filled with the SEC. Michael Arougheti Expand search. The records show the division opened a case on Dec. 8, 2022, to investigate threats and allegations of child abuse by Michael Haight. 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. What Im hoping is that we can continue to have that mindset as we scale. The reason I say 'no' is we've, despite the pandemic, we've had so much stimulus come into the market that people have had time to prepare. Ares Management CEO Michael Arougheti discusses consolidation in the asset management industry with Bloomberg's Erik Schatzker at the Bloomberg Invest virtual conference. Ares Management co-founder and CEO Michael. 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. And so we're also seeing increasing demand for things like real assets and private equity. To experiment. Additionally, Mr. Arougheti is a member of the PATH Organization Leadership Council. But today, as we sit here, there's a particularly interesting set of crosscurrents, that's now starting to see a divergence of opportunity around the globe. And the thing is, they did it so casually. Thank you!! He tipped the scale of HOPE for me, on several occasions. When you get into a period like we went through in March and April of last year, its very hard for a lot of leaders to say that they dont know. Thats true for the consumer as well you have a sizable segment of the population that is doing OK, and you have a segment of the population that, unfortunately, is being devastated. Theres a conversation I had with a very close friend that still sticks with me. China Seeks Peaceful Reunification With Taiwan in Key Report, Second Norfolk Southern Train Derails in Ohio in a Month, Bank of Canada Risks Falling Too Far Behind Fed, Scotia Says, Feds Daly Says More Rate Hikes Likely Needed to Cool Inflation, Colombia Prices Rise Less than Forecast to a Fresh 24-Year High, Amazon Is Closing Its Cashierless Stores in NYC, San Francisco and Seattle, Federal Grants Aim to Reconnect Communities Divided by Highways, China E-Commerce Giant JD Set for $1.4 Billion Discount Spree, The UK Is Using Drones to Prosecute Small-Boat Migrant Smugglers, Trump Vows to Finish Mission, Cements Dominance Over CPAC, Bolsonaro Says Mission Isnt Over as US Conservatives Fete Him, Harrods Shrugs Off Recession Fears as Rich Get Richer, FT Says, Wealthy NYC Family Feuds Over $258 Million Madison Avenue Sale, Porsche, Ferrari E-Fuel Push at Heart of EU Engine Debate, Tom Sizemore, 'Saving Private Ryan' Actor, Dies at 61. Similarly, our clients the folks who allocate capital to us are holding us accountable for change. 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. 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" 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 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. Michael B. Jordan attends the Hollywood Walk Of Fame Star Ceremony honoring Michael B. Jordan on March 1, 2023, in Hollywood, California. All of those things came to bear immediately when we went into the crisis. 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. And Michael Arougheti, was all of that. Learn More about insider trades at Ares Management. Picker: What about on the supply side of the equation? 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. 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. They are most only concerned with the outcome, not the credit. And that's obviously pretty attractive to an investor who's looking for certainty of yield. 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. 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. We want to hear from you. And that's pretty attractive to most investors right now. |, 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. The best advice I would give now is that you have to lead different people differently. We had explored the roller coaster of emotions and urgent steps induced by the COVID-19 pandemic. TE Michael Mayer says he wants to win a Super Bowl with the Bengals. 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"). (Source: Bloomberg) ". 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. Or is it faster or slower? 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. Mr. Arougheti also is a member of the Ares Credit Group's U.S. The Sharpe Angle: Ares Management CEO Michael Arougheti says this macro environment is 'like something we haven't seen before' Inflation, a hawkish Fed and fears of a recession have all made. After catching up for an hour recently, tackling a slew of questions and meaty subjects, Mike Arougheti had a question for me. All Rights Reserved. Certainly, Michael and Nelly would never say an external word. Picker: So you've seen a full transition from the cost of goods we've seen, and things like fuel costs go down, lumber go down, other raw materials go down, shift to the cost of wages, which have, of course gone up, not keeping pace with inflation. On average, Michael trades about 111,368 units every 78 days since 2006. 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. But now there are things like take privates that are being talked about, again, where we're now mining flow in the public market, or rescue financing as some of the distressed strategies that we operate in are starting to be a liquidity provider, given that the liquid markets are effectively closed right now.
