US-based alternative asset management firm Ares Management Corporation has completed the acquisition of its Asian peer SSG Capital Management, according to an announcement.
Hong Kong-headquartered SSG Capital Management is now operating under the Ares SSG brand. Its senior executives Edwin Wong, Shyam Maheshwari, Andreas Vourloumis and Peter Cairns have joined the Ares Management Committee.
Wong serves as the co-managing partner and CEO of Ares SSG.
The completion of the transaction followed an agreement between the companies in January this year.
Ares Management, which has developed its private credit franchises mainly in North America and Europe, said the acquisition has bolstered its pan-Asia investment strategies with over $6 billion in assets under management as of 31 March 2020.
Earlier in April 2020, Ares Management received a $384-million investment from Asian investor Sumitomo Mitsui Banking Corporation.
Ares SSG, incepted in 2009, is focused on special situations investing in Greater China, India and Southeast Asia. The firm has since grown two families of funds: SSG Capital Partners and Secured Lending Opportunities.
Last year, it closed the fifth flagship fund SSG Capital Partners V at $1.9 billion and raised an additional $825 million for a sidecar fund. Limited partners included US pension funds California State Teachers’ Retirement System and Virginia Retirement System.
Virginia Retirement System has also committed $300 million to Ares SSG’s latest vehicle – SSG Secured Lending Opportunities III.
Ares SSG had closed its first lending fund at $325 million in 2015 and its successor Fund II at $815 million in 2017.
“This is an exciting opportunity for Ares to fortify its on-the-ground presence in Asia and replicate the success that Ares has attained in North America and Europe,” said Eric Vimont, co-managing partner and head of strategy for Ares SSG.
“The Ares SSG platform is well-positioned to build upon existing relationships and local infrastructure to provide underserved middle-market companies in Asia with an alternative to traditional capital sources. Each region will present a different opportunity set that will evolve over time,” he added.