Ares Management And Kayne Anderson To Merge

(RTTNews) - Ares Management L.P. (ARES) and Kayne Anderson Capital Advisors, L.P. announced that they have entered into a definitive merger agreement to create Ares Kayne Management, L.P., one of the largest and most diversified alternative asset managers with a combined $113 billion of assets under management as of March 31, 2015.

As per the terms of the agreement, Ares will provide $2.55 billion in consideration, the majority of which will be in the form of Ares Operating Group Units.

The transaction is expected to close on or around January 1, 2016, subject to customary regulatory approvals, Kayne Anderson investor consents and other closing conditions.

Upon closing, the merger is expected to be accretive to Ares' economic net income, distributable earnings and fee-related earnings per unit.

Founded in 1984, Kayne Anderson has approximately 110 investment professionals across eight U.S. offices managing investments across energy and energy infrastructure, specialty real estate, middle market credit and growth private equity. Upon closing, Kayne Anderson Chairman and Founder Richard Kayne and Ares Chairman and CEO Ressler will serve together as Co-Chairmen of Ares Kayne Management, L.P.

Kayne Anderson President and CEO Robert Sinnott will become Chairman of the newly-formed Energy Group at Ares Kayne, which will include all of Kayne's energy investment activities including energy private equity, private energy income and energy infrastructure marketable securities. Substantially all of Kayne Anderson's non-energy investment professionals will join Ares' existing investment groups in Private Equity, Real Estate and Direct Lending. The two companies will continue to manage their existing funds and operate under their existing brand names.

In addition to Kayne, Sinnott and Kevin McCarthy of Kayne Anderson will join Ares Kayne's Board of Directors and Sinnott, McCarthy and Al Rabil will join Ares Kayne's Management Committee.

Ressler, Michael Arougheti and Michael McFerran will continue their respective roles as Chief Executive Officer, President and Chief Financial Officer. Kayne Anderson employees will generally be restricted until May 2016 from transferring any equity received in connection with the transaction and will also be subject to phased lockup restrictions on sales through 2021, similar to existing Ares employee unit holders.