Ares Management Corporation agrees Crescent Point Capital deal

October 2023 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

October 2023 Issue

Ares Management Corporation has entered into a definitive agreement to acquire 100 percent of Crescent Point Capital (CPC), a leading Asia-focused private equity firm with approximately $3.8bn of assets under management (AUM).

The transaction will be primarily comprised of Ares class A common shares subject to a multiyear lockup, said Ares, which is listed on the New York Stock Exchange. The deal is expected to close in the third quarter of 2023, subject to customary closing conditions, including regulatory approvals.

Typically, CPC invests in private companies across Southeast Asia and China. Its portfolio includes Chinese healthcare firm Jianke, Philippine consumer food producer Axelum Resources, Vietnam-based children’s entertainment platform N Kid and Asian online travel platform Wego. The company has exited businesses such as AirAsia, e-commerce company Baozun, shopping and commercial centre Ngee Ann City and several hospitality projects in Vietnam, according to its website.

Ares is active across the Asia-Pacific region in the credit, private equity, real estate and infrastructure asset classes. The company has established direct sourcing and investment capabilities. Ares Asia operates with approximately 165 professionals across a local footprint of nine offices in key Asia-Pacific markets.

“We are proud of the significant Asia Pacific presence that we have established over the years, and we believe that CPC is an excellent platform that will further enhance our footprint and capabilities in the region,” said Michael Arougheti, chief executive and president of Ares. “We have enjoyed the opportunity to develop a great relationship with the Crescent Point team. They are experienced investors who we believe will bring impactful synergies to our existing Asia team.”

“Similar to Ares, we believe CPC possesses a highly collaborative culture,” said Edwin Wong, head of Ares Asia. “We believe that they will bring deep private equity experience, relationships and a demonstrated track record of investing in markets that will greatly complement our efforts and footprint in the region. The expansion of our local capabilities will also strengthen our position as a creative solutions provider to management teams and sponsors in the market.”

As part of Ares, CPC is expected to benefit from the advantages of Ares’ scaled global platform and network, including Ares’ local market presence across the Asia-Pacific region. The transaction provides opportunities to enhance CPC’s growth through greater access to capital, market intelligence, transaction opportunities and expanded investor relationships.

“We look forward to joining Ares and we firmly believe that this combination will help further catalyze the growth of our business,” said David Hand, managing partner of CPC. “As part of a leading global brand and scaled platform, we expect to realize several shared benefits that will support our ability to deliver attractive investment returns for our investors, including greater market intelligence and a broader set of local sponsor relationships.”

Founded in 2003, CPC has approximately 50 professionals. The team is headquartered in Singapore and has a presence in China, Indonesia, the Philippines and Vietnam. CPC pursues a PE strategy focused on investing in industry-leading consumer companies across the larger southeast Asia markets and China. Supported by a growing investor base over its nearly 20-year history, CPC has established a strong reputation and delivered attractive results investing through market cycles in its target sectors and geographies.

As of 31 March 2023, the firm’s global platform had approximately $360bn of AUM, with more than 2600 employees operating across North America, Europe, Asia Pacific and the Middle East.

The private equity industry has taken a growing interest in the Asia-Pacific region in recent years. In October 2022, Swedish private equity firm EQT completed its combination with Hong Kong-based Baring Private Equity Asia in a reported $7.6bn deal. CVC Capital Partners also acquired Malaysia’s Affin Hwang Asset Management in 2022.

Richard Summerfield