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. Ares Management Announces New Senior Leadership Changes So I think with private equity specifically, and I wouldn't say the same right now for private credit, and real assets, there's a little bit of a rebalancing that needs to take place just because we're not seeing as many exits. I remember clearly, the many times I pushed him to have the company he led, Ares Management, to support Operation HOPE, but the timing back then was not right. That was June, 2017. Data is a real-time snapshot *Data is delayed at least 15 minutes. Hence the demand that we see for private credit assets globally, and maybe a dissatisfaction with the performance of traditional 60/40 portfolios and what seems to be more consistent volatility in the traded markets. 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. So if all we do is continue to invest at the top end of a company's capital structure, or lend against a real asset, with rates going up the way that they are, there's significant embedded profit potential. The Sharpe Angle: Ares Management CEO Michael Arougheti says this macro CBS News Reports: "It's an entirely new type of weapon." But it's been a little bit easier to navigate in the sense that there's not one sector that's getting consistently challenged by the current environment, it's giving people a little bit of a reprieve, now and again. In each edition, we feature a leader or rising star whos changing the game in his or her own way. Of having a willingness to try new things. Find the names and birth dates of Arougheti family members, different addresses of residence, family members' occupations as well as death and burial information. The good news is that if you look at corporate America, you have many companies that were indirectly COVID-impacted that have figured out how to navigate things and are now doing OK. And there are just certain companies in certain industries that are directly challenged and will have a harder go of it. CNBC's Delivering Alpha newsletter 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. Its been such an interesting year because in so many ways, it was probably one of the most challenging of my career. Are you still seeing that as active? It's somewhat counter cyclical. When expanded it provides a list of search options that will switch the search inputs to match the current selection. The most active insiders traders include Michael J Arougheti, Antony P Ressler, and Bennett Rosenthal. And our family has been enriched, spiritually and emotionally, from that bond, the most. 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. You set a cultural agenda thats a little bit more willing to take risk and fail along the growth curve, as compared to a traditional, stodgy view of asset management. Get notified the next time Michael J. Arougheti buys or sells Ares Management stock. For the last almost 10 years, it seems like almost every market has been correlated and performing well. Arougheti: Yes and no. And then surprisingly, when the private markets slow, you usually see public markets challenged as well. Direct Lending and Pathfinder Investment Committees, the Ares Equity Income Opportunity Strategy Portfolio Review Committee and the Ares Sports, Media and Entertainment Investment Committee. Michael Arougheti Ares Management - CNBC Mr. Arougheti oversaw an investment team that originated, managed and monitored a diverse portfolio of middle-market leveraged loans, senior and junior subordinated debt, preferred equity and common stock and warrants on behalf of RBC and other third-party institutional investors. 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. Director, Co-Founder, Chief Executive Officer and President of Ares. It additionally provides investors access to directly originated fixed and floating rate credit assets and the ability to capitalize on illiquidity premiums across the credit spectrum. The HOPE Community Credit Score Index A Closer Look at the Twin Identities of Washington, DC. It operates through the following segments: Credit Group, Private Equity Group and Real Estate Group. I think Ive become a more patient leader. A lot of people talk about this idea that crises accelerate trends that are already in place, and I agree with that. For me, as a leader, what it also highlighted was the importance of being transparent, empathetic, vulnerable. I was surprised at how quickly people could transition to working remotely. 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. Ares Management Corp. ARES (U.S.: NYSE) - The Wall Street Journal Join now Sign in . And I think that's true for the publicly traded markets as well. There are 6 executives at Ares Management Corp getting paid more, with David B. Kaplan having the highest compensation of $54,974,317. Its very rewarding. 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. ARES DYNAMIC CREDIT ALLOCATION FUND, INC. Transcript : Ares Management Corporation Presents at The Bank of America Securities 2023 Financial Services Conference, Feb-16-2023 09:40 AM, Transcript : Ares Management Corporation, Q4 2022 Earnings Call, Feb 09, 2023, Bloomberg Video: Sizing up the Private Credit Market, Transcript : Ares Management Corporation, Q3 2022 Earnings Call, Oct 27, 2022, Transcript : Ares Management Corporation Presents at Barclays Global Financial Services Conference, Sep-13-2022 12:00 PM, Transcript : Ares Management Corporation, Q2 2022 Earnings Call, Jul 28, 2022, Transcript : Ares Management Corporation Presents at Bernstein 38th Annual Strategic Decisions Conference, Jun-02-2022 02:30 PM, President, Chief Executive Officer & Director, Ares Commercial Real Estate Management LLC, Director, Co-Founder & Chief Executive Officer, Program for Appropriate Technology in Health. The second thing on my mind is that managing in crisis is different than managing status quo. As I was preparing to take the job, this friend reminded me of the Maya Angelou quote, People will forget what you said, people will forget what you did, but people will never forget how you made them feel. I think that is so poignant as a leader. So we have a ways to go. Michael's personal network of family, friends, associates & neighbors include Elinor Bly, Joel Arougheti, Jeanne Arougheti, Paul Arougheti and Florence Stepper. 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. And that's a function of great performance, but it's also a function of what they call the denominator effect, which is as public market valuations come down, traditional fixed income valuations come down, those allocators of capital that are managing to a model have less capital to deploy into private equity. We obviously navigated the pandemic with a significant amount of government and central bank intervention. We had just dissected his three years as CEO of Ares Management, the publicly traded investment firm managing almost $200 billion in assets. Ares Management Corp. is engaged in providing investment management and consultancy services. Three. He served two terms as Mayor of Atlanta, one of the fastest growing cities in the world. 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. Inflation, a hawkish Fed, fears of a recession have all made 2022 a tough environment for investing. One of the things that Ive said to my partners here is to think of Ares as a growth company in a growth industry. Michael J Arougheti Net Worth (2023) - GuruFocus.com Thats when leadership is most rewarding. And I will never forget it. I think Ive always intuitively known that, but Ive gotten more opportunities to test it. Arougheti: It's slowing, anytime the market goes through this type of a transition or a reset, transaction volumes will naturally slow in the private market. It's also a reflection, I think of the investors understanding that embedded value that sits in our private credit portfolios. 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. Mr. Arougheti joined Royal Bank of Canada in October 2001 from Indosuez Capital, where he was a Principal and an Investment Committee member, responsible for originating, structuring and executing leveraged transactions across a broad range of products and asset classes. And if I didnt say this here, now, I guess no one would ever know. He joined my board of directors for Operation HOPE, and later I joined his board, for a new publicly traded company called Ares Commercial Real Estate REIT. Convicted. But when you go remote, youre effectively letting everybody into your home, whether thats the sights or sounds or just the challenges. A sponsor. Michael Arougheti, co-founder and CEO of Ares Management, joins "Squawk Box" by phone to discuss the markets and the unprecedented economic turmoil driven by the coronavirus outbreak. Frankel and his wife, Barbara, sold their two-story, 8,500-square-foot home at 1635 West 22nd Street on the Sunset Islands for $31.5 million. 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. Leaders can see this crisis as a burden or an opportunity from a DE&I perspective. Leslie Picker:How long do you think these tailwinds for your business will last? Copyright 2018 | John Hope Bryant and JohnHopeBryantHoldings, LLC | All rights reserved. in Ethics, Politics and Economics, cum laude, from Yale University. We have pools of capital that are designed to provide liquidity where other means of liquidity are not working. He is so busy doing, executing on his beliefs, that he makes little to no noise of or about himself, as he cuts through the challenges before him. So if you look at the amount of issuance that we saw in the high grade market, if you look at the amount of liquidity that's been in the system, companies have built up a pretty substantial war chest of liquidity, and the consumer is coming off of a pretty significant amount of government assistance globally. In the moment, I thought back to the first time I met Arougheti, in a 50,000-square-foot house (not his) (or mine) in Beverly Hills almost a decade ago. Helping me was certainly not his job, nor his calling or his role in life, but he never once made me feel like I was secondary to what was his primary. We want to hear from you. 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. The largest trade he's ever made was exercising 666,667 units of Ares Management Corp stock on 4 December 2020 worth over $54,453,361. 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. Whenever I called on Michael, he was there. And call on him, I did often. After catching up for an hour recently, tackling a slew of questions and meaty subjects, Mike Arougheti had a question for me. 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. And if so, do you think that the markets are already pricing that in? What about the companies that are seeking that type of financing? And the simple answer for that is buyers and sellers need to take time to re agree on what the appropriate price for a company or an asset are. 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. Picker: So how would you characterize the credit quality within your portfolio right now? Direct Lending and Pathfinder Investment Committees, the Ares Equity Income Opportunity Strategy Portfolio Review Committee and the Ares Sports, Media and Entertainment Investment Committee. Ares Management Corporation (ARES) CEO Michael Arougheti on Q1 2022 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. Dismiss. , thanks for sharing these insights with top executives - super useful. Whats interesting about this environment is that we had to pivot from growth opportunity in our business to real crisis management, and now we find ourselves in this in-between place were still in the middle of a crisis, but the business is not projecting itself that way. (Clickhereto subscribe to the Delivering Alpha newsletter.). Thats not how leadership is classically trained. 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I think many managers got accustomed to very quick fundraisers and I think they got accustomed to fundraisers happening prior to return of money. Ive come to learn that there are certain times when you have to lead from out in front, driving the business forward by leading the charge. It required thinking a lot more holistically. Mr. Arougheti joined RBC in October 2001 from Indosuez Capital, where he was a Principal and an Investment Committee member, responsible for originating, structuring and executing leveraged transactions across a broad range of products and asset classes. And Michael Arougheti, was all of that. Sign up for free newsletters and get more CNBC delivered to your inbox. 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. 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. (Patrick T. Fallon/Getty Images) 'Nobody is really prepared':. Direct Lending Investment Committee and the Ares Equity Income Opportunity Strategy Portfolio Review Committee. He tipped the scale of HOPE for me, on several occasions. Mr. Arougheti received a B.A. 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. And then the friendship came. For me. And he did. And I will never forget it. Thank you Michael Arougheti. So Michael and his super talented author,wife Nelly (Bly) decided to do it personally, themselves. Similarly, our clients the folks who allocate capital to us are holding us accountable for change. There are 13 older and 6 younger executives at Ares Management Corp. All of the cultural initiatives that we were executing on accelerated. I sit here now, a year removed from the beginning of that, and feel that the culture we had built and the strategic positioning of the company we had pursued positioned us well to navigate the crisis. So, you have to lead in a new way. 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. And then they did it again, one day at one of our HOPE Global Forum, watching a pitch competition of young Black and Brown business owners in the making. What it really highlighted for me was the importance of being flexible. ", (The below has been edited for length and clarity. 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And they have done it for far too many other organizations to name. Ares Management names Michael Arougheti as chief executive The move comes as Ares business becomes more complex and larger with $106bn assets under management in real estate, private equity and . Theres always this debate about whats more important, culture or strategy. If the market is healthy, you can pivot to some of the more regular-way buyout and credit investing. I don't think that will end anytime soon. Ares Management Corporation's (ARES) CEO Michael Arougheti on Q3 2021 So, how do we get out of crisis mode by getting people back into the office and driving the business forward? . omg. Ares Management's insider roster includes Michael Arougheti (CEO), Antoinette Bush (Director), R. Deveer (Insider), David Kaplan (Insider), Michael McFerran (CFO), Antony Ressler (Chairman), Bennett Rosenthal (Insider), and Aghili Sagati (General Counsel). 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. And therefore you're not going to see as much transaction volume as people manage their liquidity. And I think now we're back to kind of what it used to be, which is to invest my money well, return it, and it could take 12 to 18 months. And we've been pretty vocal that again, if all we do is sit on our existing exposures, we can see core earnings growing, you know, in the double digit range just because of the rise in base rates. Marko Gojanovic of One Sothebys International Realty represented the Frankels in the latest sale, and Reid Heidenry with the same firm represented Arougheti. Yes, I did the work, and I did a great deal of the building, but everything has a start. -0.38 -0.45%. Michael J. Arougheti serves as President, Chief Executive Officer, Co-Founder, Director of the Company. It makes him no less potent, to which Aress rapid global expansion of late is a testament. And Michael Arougheti, was all of that. MICHAEL MOULDS | News, Sports, Jobs - The Alpena News And it's moving around a little bit, right. Mr. Arougheti received a B.A. Ares Management LP said Dec. 18 that Michael J Arougheti, co-founder and president, was named CEO effective Jan. 1, replacing Tony Ressler who will continue as executive chairman. All of the things that we were embarking on around business development accelerated. The records show the division opened a case on Dec. 8, 2022, to investigate threats and allegations of child abuse by Michael Haight. And the thing is, they did it so casually. So if you look over the last 20 years, we're seeing a meaningful increase in allocations on the part of institutional and retail investors to alternatives. Share Your Design Ideas, New JerseysMurphy Defends $10 Billion Rainy Day Fund as States Economy Slows, This Week in Crypto: Ukraine War, Marathon Digital, FTX. The house at 2535 Shelter Avenue also sold for more than double its previous purchase price in 2020. All rights reserved 2023 The Real Deal is a registered Trademark of Korangy Publishing Inc. But most of our portfolio managers and investors are investing at a slower pace than they normally would as they wait to see how these markets develop. Here are some of the teachers. When you get to a certain size as an organization, you have to appreciate that you inspire different people differently. Mr. Arougheti joined RBC in October 2001 from Indosuez Capital, where he was a Principal and an Investment Committee member, responsible for originating, structuring and executing leveraged transactions across a broad range of products and asset classes. Michael Arougheti - Biography That was probably the biggest challenge for me in those early days, leveraging the things that we had built, but leading in a new way. While Ares is mostly credit focused, they have built a brand that seems more venerable than many credit shops before them. To experiment. The case was due on Jan. 7, meaning the division had to . People cant leave their home challenges at home, go to work, and then go back to them its all a bit more fluid than that right now. So we actually tend to see a consolidation of share and maybe counterintuitive and acceleration of capital that comes onto our platform to help navigate. 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. Arougheti:So what it really means is one of the ways to think about this credit cycle, or this potential recessionary environment in the US is that it may likely be sector specific. Frankel is also a real estate investor and owner of wineries and restaurants. what I remember from interviewing Michael on a panel years ago is his razor sharp intelligence! Thats why I think that the opportunity to lead in this type of a crisis, as difficult as it is, is really a unique opportunity for anybody. Picker: Are you surprised by that? He was elected Congressman three times and is a leading figure in the civil rights movement. Last month, Reed Smith attorney Constantine Karides paid $17.3 million for a waterfront home on Sunset Island I. All of those things came to bear immediately when we went into the crisis. He is a member of the Ares Executive Management Committee and the firm's. They are most only concerned with the outcome, not the credit. Additionally, Mr. Arougheti is a member of the PATH Organization Leadership Council. So when the markets get challenged, that's when our investment opportunity becomes the most attractive. But all of our leaders learned to support their people by opening their own lives up to them.