Ares Co-Presidents Navigate Global Growth Strategy

In Brief:

Newly appointed Ares Management Co-Presidents Kipp deVeer and Blair Jacobson joined Bloomberg's Sonali Basak for a recent interview highlighting Ares' unique dual-leadership structure spanning both sides of the Atlantic, with Jacobson based in London and deVeer in New York. They discussed their record deployment in 2024 despite economic uncertainty, the firm's strategic global expansion with 1,000 employees outside the US managing nearly $100 billion in assets, and their views on current market conditions including refinancing risks and the slow recovery of M&A activity.

Big Picture Drivers:

• Global expansion: Ares established presence across continents with dual leadership

• Market dynamics: Lower interest rates improving deal economics across regions

• Political landscape: Elections in UK, France, and Germany creating policy uncertainty

• Risk assessment: Focus shifting from liquidity concerns to refinancing challenges

Key Topics Covered:

• Co-leadership structure: Strategic advantages of having presidents in New York and London

• Deployment strategy: Record capital deployment despite market volatility

• M&A environment: Signs of slow recovery in dealmaking activity

• Retail investors: Potential for expanding access to private credit strategies

Key Insights:

• US opportunity: Strong investor preference for US assets despite high valuations

• European opportunity: Private credit market "5-10 years behind the US" in penetration

• Refinancing concerns: Companies face challenges refinancing debt taken on at lower rates

• Hybrid capital: Growing opportunities in structures between debt and equity

By The Numbers:

• Global footprint: 1,000 employees outside the US managing nearly $100 billion

• Team size: Over 3,000 employees globally and growing

• Experience: Kipp deVeer's 20 years at the firm showing continuity in leadership

• Interest rate impact: 50-150 basis point reductions significantly improving deal economics

Memorable Quotes:

• "Everybody's waiting for that M&A machine across asset classes to pick back up." - Kipp deVeer

• "From a European perspective it's really five or 10 years behind the US market when you look at penetration of private credit." - Blair Jacobson

The Wrap: 

Ares Management's strategic elevation of co-presidents across two continents signals the firm's commitment to global growth while navigating complex market conditions. With record deployment in 2024 and a cautiously optimistic outlook for 2025, Ares is positioning itself to capitalize on opportunities in both established and emerging markets, particularly as interest rates decline and refinancing needs create openings for their opportunistic strategies.