8-K: Ares Management Appoints Kipp deVeer and Blair Jacobson as Co-Presidents

Ares Management Corporation appoints Kipp deVeer and Blair Jacobson as Co-Presidents, effective immediately, while Michael Arougheti continues as CEO.

Summary

• Ares Management Corporation has appointed Kipp deVeer and Blair Jacobson as Co-Presidents, effective February 5, 2025.
• Michael Arougheti will continue to serve as Chief Executive Officer.
• DeVeer and Jacobson will transition from their roles in the Credit Group to focus on firm-wide strategic and operational initiatives.
• Mitchell Goldstein and Michael Smith will continue as Co-Heads of Ares Credit Group, a role they have held since 2017.
• Michael Dennis and Matt Theodorakis will continue to jointly lead the European Direct Lending strategy.
• Kort Schnabel will become Chief Executive Officer of Ares Capital Corporation, an Ares subsidiary, effective April 30, 2025.
• Jim Miller will continue as sole President of Ares Capital.
• As of December 31, 2024, Ares Management Corporation had over $484 billion of assets under management.

Sentiment

Score: 8

Explanation: The announcement is positive, highlighting strategic leadership changes and continued growth. The management comments are optimistic, and the company's AUM is substantial.

Positives

• The appointment of Co-Presidents is expected to drive firm-wide strategic and operational initiatives.
• The existing leadership in the Credit Group and European Direct Lending will remain in place, ensuring continuity.
• Senior talent development is a top priority at Ares.
• Ares Management Corporation has a substantial $484 billion in assets under management.

Future Outlook

The newly appointed Co-Presidents are expected to drive strategic and operational initiatives and develop the next generation of leaders at Ares.

Management Comments

• Mr. Arougheti stated that senior talent development is a top priority at Ares.
• Mr. Arougheti expressed confidence that the new Co-Presidents will make a significant positive impact.
• Mr. deVeer expressed honor and humility in being named Co-President.
• Mr. Jacobson is excited to leverage his international experience in his new role.

Industry Context

This announcement reflects a strategic leadership transition within a major alternative investment manager, potentially signaling a focus on growth and operational efficiency.

Comparison to Industry Standards

• Ares Management's $484 billion in AUM places it among the leading global alternative investment managers, comparable to firms like Blackstone, Apollo, and KKR.
• The appointment of Co-Presidents is a less common leadership structure compared to the single CEO model, but it is used by some firms to distribute responsibilities and leverage diverse expertise.

Management Changes

Stakeholder Impact

• Shareholders may view the leadership changes positively, anticipating improved strategic direction and operational efficiency.
• Employees may experience changes in reporting structures and responsibilities.
• Investors and counterparties can expect continued engagement with the firm under the new leadership structure.

Key Dates

Keywords

Ares Management, Kipp deVeer, Blair Jacobson, Michael Arougheti, Co-Presidents, Leadership, Ares Capital, Alternative Investment, Assets Under Management, Credit Group