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Section 1: 8-K (8-K)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 


 

FORM 8-K

 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported): December 18, 2017

 

ARES MANAGEMENT, L.P.

(Exact name of registrant as specified in its charter)

 

Delaware

 

001-36429

 

80-0962035

(State or Other Jurisdiction
of Incorporation)

 

(Commission
File Number)

 

(IRS Employer
Identification No.)

 

2000 Avenue of the Stars, 12th Floor, Los Angeles, CA

 

90067

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code (310) 201-4100

 

N/A

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

 

Emerging growth company o

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  o

 

 

 



 

Item 5.02.   Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

 

On December 18, 2017, the registrant announced that Michael J Arougheti was appointed as Chief Executive Officer of its general partner, effective  January 1, 2018. Mr. Arougheti will also continue to serve as a Director and the President of the registrant’s general partner.

 

In connection with Mr. Arougheti’s appointment, effective January 1, 2018, Antony P. Ressler stepped down from his position as Chief Executive Officer of the registrant’s general partner and has been named Executive Chairman of the registrant’s general partner.

 

Further, on December 18, 2017, the registrant announced that Michael R. McFerran was appointed as Chief Operating Officer of its general partner, effective  January 1, 2018. Mr. McFerran will also continue to serve as Executive Vice President and Chief Financial Officer of the registrant’s general partner.

 

The registrant also announced that Ryan Berry was appointed as Chief Marketing & Strategy Officer of its general partner, effective January 1, 2018.  Further, the registrant announced that Ryan Berry and Michael R. McFerran were admitted to the board of managers of Ares Partners Holdco LLC, the sole member of the registrant’s general partner, effective January 1, 2018.  In connection with the foregoing, the board of managers of Ares Partners Holdco LLC was expanded from five to seven managers.

 

Biographical information for each of Messrs. Arougheti and McFerran is set forth in the registrant’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2017, and such information is incorporated by reference herein.

 

There are no arrangements or understandings between either Mr. Arougheti or Mr. McFerran and any other person pursuant to which he was appointed as Chief Executive Officer or Chief Operating Officer, respectively, and there are no relationships between either Mr. Arougheti or Mr. McFerran and the registrant that would require disclosure under Item 404(a) of Regulation S-K of the Securities Exchange Act of 1934, as amended.

 

Item 7.01   Regulation FD Disclosure.

 

On December 18, 2017, the registrant issued a press release announcing the changes referenced in Item 5.02 above, including Messrs. Arougheti’s, McFerran’s and Berry’s appointments. The text of the press release is attached as Exhibit 99.1 to this Form 8-K.

 

The information disclosed under this Item 7.01, including Exhibit 99.1 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.

 

Item 9.01 Financial Statements and Exhibits.

 

(d)        Exhibits:

 

Exhibit
Number

 

Exhibit Description

99.1

 

Press release dated December 18, 2017

 

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Exhibit Index

 

Exhibit
Number

 

Exhibit Description

99.1

 

Press release dated December 18, 2017

 

3



 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date:       December 18, 2017

 

 

ARES MANAGEMENT, L.P.

 

 

 

By: Ares Management GP LLC, its general partner

 

 

 

By:

/s/ Michael D. Weiner

 

Name:

Michael D. Weiner

 

Title:

Executive Vice President, Chief Legal Officer & Secretary

 

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Section 2: EX-99.1 (EX-99.1)

Exhibit 99.1

 

Ares Management Announces New Senior Leadership Changes

 

Michael J Arougheti Appointed Chief Executive Officer

 

Tony Ressler to Serve as Executive Chairman

 

Michael McFerran Appointed Chief Operating Officer

 

Ryan Berry Appointed Chief Marketing & Strategy Officer

 

LOS ANGELES—December 18, 2017 —Ares Management, L.P. (NYSE:ARES) announced today it has made several executive appointments, effective January 1, 2018.

 

·     Co-Founder and President Michael J Arougheti has also been named Chief Executive Officer of Ares Management. This promotion reflects the many contributions Mr. Arougheti has made to the successful expansion of the Ares platform and recognizes his vision for its continued growth, his public company executive experience and his demonstrated company and industry leadership over the past 13 years.

 

·     Co-Founder, Chief Executive Officer and Chairman Tony Ressler will continue as Executive Chairman of Ares Management where he will primarily focus on major client marketing, corporate strategy and brand building activities for the firm.

 

·     Chief Financial Officer Michael McFerran has also been appointed as Ares’ Chief Operating Officer in addition to continuing to serve as Ares’ Chief Financial Officer. He will now oversee all of Ares’ Finance and Accounting, Information Technology, Operations and Human Resources activities.

 

·     Head of Ares’ Strategy & Relationship Management Group Ryan Berry is being appointed to Chief Marketing & Strategy Officer.

 

·     Ryan Berry and Michael McFerran will also join the board of Ares Partners Holdco LLC, the sole owner of the general partner of Ares, and will serve alongside current members Michael J Arougheti, Tony Ressler, Co-Founders and Global Private Equity Co-Heads David Kaplan and Bennett Rosenthal and Global Head of Credit Kipp deVeer.  Michael Weiner will continue to independently advise the board in his role as Chief Legal Officer.

 

These promotions and new roles reflect both the successful growth of the Ares platform and recognize each individual’s valuable and ongoing contributions to the Company’s continued success and trajectory in achieving its strong growth objectives. Since its IPO in 2014, Ares has grown its assets under management by approximately 37% and its Economic Net Income has increased by approximately 44% on a comparative last twelve month basis.

 

“Today’s appointments recognize the tremendous contributions that Mike Arougheti, Mike McFerran and Ryan Berry have made in leading Ares during its recent growth while remaining equally committed to preserving our unique corporate culture,” said Mr. Ressler.  “Mike Arougheti was instrumental in building and growing our Credit Group and expanding our businesses in the U.S. and Europe, and now is the time for him to assume greater oversight of all of Ares.”

 



 

Mr. Ressler continued, “Over the past two years, both Mike McFerran and Ryan Berry have been  improving a range of critical business operations and marketing functions across the Firm.  As Executive Chairman, I look forward to continuing to work closely with each of them as we continue to create meaningful value for our clients and unitholders.”

 

“I greatly appreciate the Board’s confidence in me, and I am grateful for the opportunity to continue to work closely with our deep executive team to expand investment opportunities and continue to grow our platform, better serve our growing investor base and take advantage of the significant strategic opportunities ahead,” said Mr. Arougheti.

 

“As Ares has continued to grow, with assets under management that this year crossed the $100 billion mark, I look forward to working with our extraordinary team of talented professionals to continue to develop our operational capabilities and infrastructure to support the continued growth of Ares,” said Mr. McFerran.  “The ability to foster better integration, collaboration and partnership across our non-investment functions will allow us to scale more effectively and drive competitive advantages.”

 

“We have a great opportunity to significantly deepen and broaden our investor relationships given the growing interest in the strong track records, market positioning and product breadth of our Credit, Private Equity and Real Estate Groups,” said Mr. Berry.  “With our new CEO’s vision for Ares, and Tony now able to spend much more time on marketing, brand building and strategy with large investors around the world, we will be incredibly well-positioned for future growth.”

 

Michael Arougheti

Mr. Arougheti is a Co-Founder of Ares and has served as a Director and the President of Ares Management since 2014. Mr. Arougheti was instrumental in the growth of Ares Capital Corporation (NASDAQ: ARCC) from its initial IPO of $165 million in 2004 to its current market capitalization of approximately $7 billion.  He is a Partner in the Ares Credit Group, serves on multiple investment committees, and is a member of the Management Committee of Ares Management. He also serves as Co-Chairman of Ares Capital Corporation and as a director of Ares Commercial Real Estate Corporation (NYSE: ACRE). Mr. Arougheti received a B.A. in Ethics, Politics and Economics, cum laude, from Yale University.

 

Michael McFerran

Since 2015, Mr. McFerran has served as Executive Vice President and Chief Financial Officer of Ares Management, a Partner in and Head of the Ares Finance Department, and a member of the Management Committee of Ares Management. Among other duties, he serves as a member of the Ares Operations Management Group and the Ares Enterprise Risk Committee. Prior to joining Ares in March 2015, Mr. McFerran was a Managing Director at KKR where he was Chief Financial Officer of KKR’s credit business and Chief Operating Officer and Chief Financial Officer at KKR Financial Holdings LLC.  Mr. McFerran holds an M.B.A. from the Haas School of Business at U.C. Berkeley and a B.S. in Business Administration from San Francisco State University.

 

Ryan Berry

Mr. Berry is the Head of the Ares Strategy & Relationship Management Group and a member of the Management Committee of Ares Management.  He is responsible for supporting the ongoing global expansion of the Firm with his teams of relationship managers and M&A professionals.  Mr. Berry joined Ares in 2005 and spent several years working as an investment professional in the Ares Private Equity Group.  Mr. Berry holds a B.A., with distinction, from the Ivey Business School at Western University in Business Administration and a B.A. from Huron University College at Western University in Cross Disciplinary Studies.

 

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About Ares Management, L.P.

 

Ares Management, L.P. is a publicly traded, leading global alternative asset manager with approximately $106 billion of assets under management as of September 30, 2017 and more than 15 offices in the United States, Europe and Asia. Since its inception in 1997, Ares has adhered to a disciplined investment philosophy that focuses on delivering strong risk-adjusted investment returns throughout market cycles. Ares believes each of its three distinct but complementary investment groups in Credit, Private Equity and Real Estate is a market leader based on assets under management and investment performance. Ares was built upon the fundamental principle that each group benefits from being part of the greater whole. For more information, visit www.aresmgmt.com.

 

Contact

 

Media

Bill Mendel

Mendel Communications

212-397-1030

bill@mendelcommunications.com

 

Investor Relations

Carl Drake

800-340-6597

cdrake@aresmgmt.com

 

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