Los Angeles–based global alternative asset manager Ares Management Corp. announced completion of plans to convert to a corporation as part of a move to increase trading liquidity in its stock and broaden stock ownership among institutional and retail investors.
Ares Management Corp., which trades under the ticker symbol “ARES,” converted to a corporation this week under Delaware law and changed its name from Ares Management LP, as it formerly was a limited partnership.
Since Ares had already elected to be taxed as a corporation for U.S. federal and state income tax purposes effective March 1, 2018, no material tax or financial changes are expected from the state law conversion, the company stated.
“We are pleased to have completed our legal conversion from a partnership to a corporation,” said Michael Arougheti, chief executive and president of Ares Management Corp., in a statement.
Founded in 1997, Ares is an alternative asset manager with roughly $125 billion of assets under management as of Sept. 30, with 18 offices in the United States, Europe, Asia and Australia. It oversees and invests in alternative strategies, including credit, private equity and real estate activities.
Existing common and preferred shares of Ares Management LP have been converted into Class A common and Series A preferred shares of Ares Management Corp., respectively. Following the conversion, Class A shares will have voting rights equivalent to about 20 percent of the total.
Finance reporter Pat Maio can be reached at firstname.lastname@example.org or (323) 556-8329.
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