So if you look at our $340 billion of assets, over $90 billion of it is unvested. 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. And the decisions they make have huge consequences, not just for the bottom line, but for communities, cities, even entire countries. Picker:So given all of this Ares' stock price is basically flat on the year which is outperforming the S&P, it's outperforming your peers, but still flat. After catching up for an hour recently, tackling a slew of questions and meaty subjects, Mike Arougheti had a question for me. Its accelerated, the participation is broader, and added to that is a heightened sense of urgency. The estimated net worth of Michael J. Arougheti is at least $39.08 million as of November 10th, 2022. But they did it. Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. We obviously navigated the pandemic with a significant amount of government and central bank intervention. Ares Management co-founders Tony Ressler and Michael Arougheti provided founding investments and served on the company's investment committee until last year. He was elected Congressman three times and is a leading figure in the civil rights movement. The most recent stock trade was executed by Antony P Ressler on 10 February 2023, trading 16,879 units of ARES stock currently worth $1,436,740. 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. When you get to a certain size as an organization, you have to appreciate that you inspire different people differently. 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. What it really highlighted for me was the importance of being flexible. And the thing is, they did it so casually. So, Ares, I think we've been fortunate that we're outperforming not just the public asset management peers, but the markets generally. Whitepages people search is the most trusted directory. Enter your email address below to get our daily insider buying and selling report. When you talk about belonging, youre talking about being able to bring your authentic self to work. |, They did it, because thats simply who they are, Operation HOPE, U.S. Small Business Administration and U.S. Treasury Host Roundtable to Celebrate Freedmans Bank. Michael Arougheti is co-founder, chief executive officer and president, as well as a director of Ares Management Corp. 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. TE Michael Mayer says he wants to win a Super Bowl with the Bengals. in Ethics, Politics and Economics, cum laude, from Yale University. The business owners that power this multibillion dollar industry are changing, and a new era of the business of sports is underway. Michael's personal network of family, friends, associates & neighbors include Elinor Bly, Joel Arougheti, Jeanne Arougheti, Paul Arougheti and Florence Stepper. Even to fail in doing that. 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. The New York Times Reports: "No existing defense can stop it." All of the things that we were embarking on around business development accelerated. Learn More about Michael J. Arougheti's net worth. 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). And I also think that some of the large public platforms similarly continue to raise money. And it's moving around a little bit, right. Arougheti: Yeah, so the good news is about being an alternative manager is we don't have to invest the dollars that our clients give us. I think what we do well is we tend to avoid big mistakes. Data is a real-time snapshot *Data is delayed at least 15 minutes. CBS News Reports: "It's an entirely new type of weapon." He additionally serves as Co-Chairman of Ares Capital Corporation ("ARCC"), Co-Chairman of Ares Acquisition Corporation ("AAC") and as a director of Ares Commercial Real Estate Corporation ("ACRE"). (Source: Bloomberg) If you turn your attention to Europe, in certain parts of Asia, the story might be different. Copyright 2018 | John Hope Bryant and JohnHopeBryantHoldings, LLC | All rights reserved. Michael Arougheti is 47, he's been the President, Chief Executive Officer, Co-Founder, and Director of Ares Management Corp since 2018. It operates through the following segments: Credit Group, Private Equity Group and Real Estate Group. With hundreds of billions of dollars' worth of floating rate credit and real assets, the firm's book has surprisingly held up well. Id like to think that Ive become more strategic in my thinking, as opposed to just tactical around parts of the business. They are most only concerned with the outcome, not the credit. Randy Frankel, a former managing director at Goldman Sachs, and his Wall Street partners acquired the baseball team the Tampa Bay Rays in 2004. All of the work that weve been doing around diversity, inclusion, belonging, ESG that accelerated because, while the pandemic is global, it exposed inequities in the economy and in our society that created lots of other reverberations in the business. And kind. How do you preserve that at scale? Thats the good news and the bad news. They made a major commitment to the work of my life, but they did it without fanfare, without press release, and without any desire for their own recognition. I think Ive always intuitively known that, but Ive gotten more opportunities to test it. We had explored the roller coaster of emotions and urgent steps induced by the COVID-19 pandemic. A traditional portfolio of stocks and bonds is deeply in the red, leaving investors to seek diversity elsewhere. When expanded it provides a list of search options that will switch the search inputs to match the current selection. So I don't want to say that that's good. by John Hope Bryant | Feb 28, 2022 | Bryant on Leaders and Leadership, John Hope Bryant Authored, Operation HOPE. The investment management firm has about $325 billion of assets under management, according to its website. Picker:As you think about the inflationary environment, in particular, and in planning for your own business in conversations with LPs, what's your take for how long we will be in a current situation like we're in right now? Michael J. Arougheti serves as President, Chief Executive Officer, Co-Founder, Director of the Company. 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. Picker: And you are not, is this typical for you? Here are some of the teachers. Over the next several years, I covered Aress IPO, its deals, and Aroughetis ascension to CEO in 2018. I was surprised at how quickly people could transition to working remotely. And that's pretty attractive to most investors right now. All Rights Reserved. Mr. Michael J. Arougheti is a Senior Advisor at Volery Capital Partners LLC, a President, Chief Executive Officer & Director at Ares Management Corp., a Co-Chairman & Executive Vice President. Miami-based House of One designed the interiors. We found 290 records for Arougheti last name 128 Family Trees 29 Birth, Marriage & Death 19 Census & Voter Lists 8 Immigration & Travel View all records Explore your family history with: Its been such an interesting year because in so many ways, it was probably one of the most challenging of my career. Currently, Mr. Arougheti is Co-Chairman of Ares Acquisition Corp., President, Chief Executive Officer & Director at Ares Management Corp., Co-Chairman & Executive Vice President at Ares Capital Corp., Director, CEO & President at Ares Management LLC, President, Chief Executive Officer & Director at Ares Management GP LLC and Co-Chairman and Executive Vice President at Ares Management Corp (Private Equity) (which are all subsidiaries of Ares Management Corp.) and Senior Advisor at Volery Capital Partners LLC. in Ethics, Politics and Economics, cum laude, from Yale University. 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. 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. Arougheti:You have to look at it on a relative basis. 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. Michael Arougheti:I think we have to talk about secular tailwinds in alternatives, and then maybe some of the cyclical tailwinds that we're seeing as well. But now there are things like take privates that are being talked about, again, where we're now mining flow in the public market, or rescue financing as some of the distressed strategies that we operate in are starting to be a liquidity provider, given that the liquid markets are effectively closed right now. The company was founded by Michael J. Arougheti, David B. Kaplan, John H. Kissick, Antony P. Ressler, and Bennett Rosent. Michael didnt stop there. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. So we have a ways to go. Ares Management, however, has been a beneficiary of the current environment. 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. 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. They sold a total of 6,394,959 shares worth more than $255,128,106.92. 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. Most recently he sold 9,400 units of ARES stock worth $799,376 on 11 November 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. There are 13 older and 6 younger executives at Ares Management Corp. That will help accelerate us on the other side of this. Mike Arougheti, Ares Management LLC: Profile and Biography - Bloomberg Markets Live Now Bloomberg TV+ Bloomberg Markets The Close Romaine Bostick breaks down the day's top stories and trading. Get this delivered to your inbox, and more info about our products and services. Mr. Arougheti also is a member of the Ares Credit Groups U.S. Veritas $450M loan default: A sign of things to come? 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. What we found was that we had an employee base that was already incredibly passionate about progress along those initiatives, and over the course of the past year it has grown exponentially. Similarly, our clients the folks who allocate capital to us are holding us accountable for change. 1635 West 22nd Street (Michael Ruiz with LPG). From there, its really going to be a function of what incremental fiscal and monetary stimulus exists. Block by block amd piece by piece, we pulled the institutional fabric together that we now call The Promise Homes Company. Tampa Bay Rays co-owner sold it for over double his 2020 purchase price, 1635 West 22nd Street with Ares Management's Michael Arougheti and Randy Frankel (Michael Ruiz with LPG, Getty). Arougheti: Yes, and no. This net worth estimate does not reflect any other investments that Mr. Arougheti may own. The . A non-waterfront home on Sunset Island II recently traded for $12.5 million, setting a record for dry sales in all of Miami Beach. Ares Management co-founder and CEO Michael. Picker: So how would you characterize the credit quality within your portfolio right now? A lot of people talk about this idea that crises accelerate trends that are already in place, and I agree with that. One of the things that Ive said to my partners here is to think of Ares as a growth company in a growth industry. Where we are now, were deploying actively in almost every strategy across the firm because of this bifurcation. And call on him, I did often. The most recent insider tranaction occured on February, 15th when Director Corporate Opportunities F Ares sold 4,770,000 shares worth more than $124,306,200.00. And without betraying their confidences, let me just say that what Michael and Nelly did for HOPE, and at the time they did it, was extraordinary. "All of the work that weve been doing around diversity, inclusion, belonging, ESG that accelerated because, while the pandemic is global, it exposed inequities in the economy and in our society that created lots of other reverberations in the business." If you look at institutional allocations to alternatives, they are predicted to double likely over the next five to 10 years at a compound annual growth rate of about 15%. Because if our experience has taught us anything, things can change to the positive as quickly as they change to the negative. All of those things came to bear immediately when we went into the crisis. And when Michael Arougheti committed, that gave license to Tony Ressler, his co-founder at Ares Management, that he could do the same. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Why do you think that is? 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. There are 6 executives at Ares Management Corp getting paid more, with David B. Kaplan having the highest compensation of $54,974,317. Love and authenticity tends to have that effect on people. Ares Management co-founder and CEO Michael Arougheti bought the property, records show. 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. We wouldn't blame Ares Management Corporation (NYSE:ARES) shareholders if they were a little worried about the fact that Michael Arougheti, the Co-Founder recently netted about US$15m selling . Whenever I called on Michael, he was there. Thats not how leadership is classically trained. Last month, Reed Smith attorney Constantine Karides paid $17.3 million for a waterfront home on Sunset Island I. So if you look at recent memory, going through the early days of COVID, in 2020, that felt like it was going to be a severely disrupted market for quite some time. I was doing the same, so we struck up a conversation. Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. ", (The below has been edited for length and clarity. So, there are big parts of our corporate-opportunities and distressed and special-situations businesses that are very busy in those more stressed parts of the market. Moulds, Michael 12/27/1949 2/13/2023 Pierson, Michigan. Michael J. Arougheti has not been actively trading shares of Ares Management during the past quarter. What about the companies that are seeking that type of financing? You see, these men of conviction are different. We want to hear from you. 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. Learn More about insider trades at Ares Management. Mr. Arougheti owns over 9,400 units of Ares Management Corp stock worth over $37,633,080 and over the last 16 years he sold ARES stock worth over $185,033,029. SAN LORENZO, Calif. - Michael "Mike" Simon, 61, passed away peacefully on Feb. 23, 2023 with family by his side, after a year-long fight with brain cancer. Most recently, Michael J. Arougheti sold 2,983 shares of the business's stock in a transaction on Thursday, November 10th. What is Michael J. Arougheti's net worth? Michael has a reported annual income of $100 - 149,999 and a current net worth value of greater than $250,000 - $499,999. And therefore you're not going to see as much transaction volume as people manage their liquidity. Mr. Arougheti received a B.A. I don't think that will end anytime soon. This is going to be top of mind for a lot of leaders this year and, I think, into next. UPDATED, May 10, 12:20 p.m.: Tampa Bay Rays co-owner Randy Frankel more than doubled his money with the sale of his waterfront Miami Beach mansion. Convicted. The HOPE Community Credit Score Index A Closer Look at the Twin Identities of Washington, DC. (Photo by Matt Winkelmeyer/Getty Images) Coogler, who has . 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. 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. And I will never forget it. 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 Big Take is the very best of Bloomberg's in-depth, original reporting from around the globe every day. And they have done it for far too many other organizations to name. 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. Would you say that's coming back then? All of the cultural initiatives that we were executing on accelerated. 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. I tried my best to help him with his endeavors and dreams, and he (and his wife Nelly Bly) certainly leaned into mine. I think what was true for a lot of organizations was folks believed in the importance of DE&I and ESG, they were passionate about it, but organizationally it had not become a top priority. But today, as we sit here, there's a particularly interesting set of crosscurrents, that's now starting to see a divergence of opportunity around the globe. Director, Co-Founder, Chief Executive Officer and President of Ares. Picker:So in recent months and we've spoken, private equity has been essentially the kind of the laggard in terms of dealmaking. Thats whether youre talking about the corporate economy or the consumer economy. So, how do we get out of crisis mode by getting people back into the office and driving the business forward? Prior to joining Ares in 2004, Mr. Arougheti was employed by Royal Bank of Canada ("RBC") from 2001 to 2004, where he was a Managing Partner of the Principal Finance Group of RBC Capital Partners and a member of the firm's Mezzanine Investment Committee. So we're not only dealing with inflation, but we're now dealing with the impacts of a strong dollar globally, we still haven't quite gotten through the supply chain constraints that we're dealing with, and then overlay just for good measure of global, global conflict and energy crisis. So if you look at the positioning of most portfolios, they were, if not fully invested in moving towards full investment, and enjoyed great performance in 2021. And I think one of the key jobs that we have at Ares is to mine our historical experience and recognize patterns. But when you go remote, youre effectively letting everybody into your home, whether thats the sights or sounds or just the challenges. what I remember from interviewing Michael on a panel years ago is his razor sharp intelligence! I have worked with Ares over the years (and some of their predecessors), and invariably, the interactions have been very professional and thoughtful. And if so, do you think that the markets are already pricing that in? The challenge right now is in 2022, given how well the portfolio's performed and how deployed, they were given the significant amount of volume in 2021, the market now is digesting the need for more capital against the backdrop of a lack of capital. Dismiss. Thats when leadership is most rewarding. Click Subscribe above to be notified of future editions. And then there are big parts of our business that are investing in health care and technology and single-family residential and all of the things that are doing well. Liquidity pumped into the credit markets during the pandemic could stave off a spike in defaults for several years, Ares Management Corp. Chief Executive Officer Michael . 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. omg. While Ares is mostly credit focused, they have built a brand that seems more venerable than many credit shops before them. Picker: Are you surprised by that? Thats one of the unique things about businesses like ours. Mr. Arougheti owns 470,138 shares of Ares Management stock worth more than $39,077,871 as of March 4th. Mr. Arougheti owns 470,138 shares of Ares Management stock worth more than $39,200,106 as of February 9th. Additionally, Mr. Arougheti is a member of the PATH Organization Leadership Council. He bought the property for $9.3 million and sold it to the next door neighbor for $14 million. 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. And that opportunity to deploy lasted maybe three weeks. Kudos to Ares. That was June, 2017. Despite that, that issue and I think that's a reflection of, of a consolidation of LP dollars with fewer GPS. For the last almost 10 years, it seems like almost every market has been correlated and performing well. Prior to joining Ares in 2004, Mr. Arougheti was employed by Royal Bank of Canada from 2001 to 2004, where he was a Managing Partner of the Principal Finance Group of RBC Capital Partners and a member of the firm's Mezzanine Investment Committee. I LOVE this series!! The case was due on Jan. 7, meaning the division had to . 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. Leslie Picker:How long do you think these tailwinds for your business will last? 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. Dismiss. And then the friendship came. And that's obviously pretty attractive to an investor who's looking for certainty of yield. They purchased a total of 8,706,492 shares worth more than $85,604,376.84. So I've been encouraged by that from an activity and deployment level. Michael and I met casually, but our bond as brothers and friends, early on, was anything but casual. 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 that was no accident either. 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. 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. So that was the good news. -0.38 -0.45%. Sometimes all you can do is throw them a life jacket and say swim as hard as you can !. When you look at the economy, its a tale of two cities. 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. 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. President of Ares at the time, he stood alone, observing the partygoers, content being a fly on the wall. We want to hear from you. I think the good news is its very consistent with my own personal world view. 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. now if I can only get you to co-write my current one. The best advice I would give now is that you have to lead different people differently. The second thing on my mind is that managing in crisis is different than managing status quo. This tale of two cities is going to be the framework to think about the recovery. Inflation? So given all that, and given just where you see opportunity, are there certain sectors that you're putting more capital to work, say, than others, just given kind of the macro backdrop you just outlined? Additionally, he is a member of the PATH Organization Leadership Council. That's not necessarily true for traditional 60/40 portfolios, when you have money, you have to express a view on what you think is the best opportunity in the market. Ares Management CEO Michael Arougheti discusses consolidation in the asset management industry with Bloomberg's Erik Schatzker at the Bloomberg Invest virtual conference. In the last twelve months, insiders at the asset manager sold shares 15 times. Some people struggled figuring out how to be in that environment. Get notified the next time Michael J. Arougheti buys or sells Ares Management stock. Youre effectively purpose-built to navigate this type of environment, where if the market is stressed, you can pivot to distressed investing, whether thats portfolios or single assets.