US-based alternative asset manager Ares Management has purchased a controlling stake in Hong Kong-based specialist investment firm SSG Capital Management.
The financial details of the deal were not disclosed although Ares, which has roughly $144 billion assets under management, has stated that the transaction will be mostly composed of class A common shares that will be subject to a multi-year lock-up alongside a cash component.
The deal is expected to close in the second or third quarter of this year.
“We believe that SSG is the ideal partner for Ares to further expand into the strategically important Asian region,” said Michael Arougheti, Ares president and chief executive.
“We are excited to partner with Ares and to capitalise on the significant investment opportunities we collectively see for the Asian region in the years to come,” added Edwin Wong, chief executive of SSG Capital.
Established in 2009, SSG Capital had more than $6 billion in assets under management as of September 2019.
As a result of the deal with Ares, the firm now expects to be more active in real assets sectors such as infrastructure and real estate as well as consumer retail. Geographically, the majority of its investments will continue to focus on India with South Korea, Australia and other Asian countries making up the rest of the asset allocation.
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