Ares Management CEO Michael Arougheti breaks down where to find yield in a world of uncertainty DA on CNBCEvents.com Sponsors Previous Years Delivering Alpha Ares Management CEO Michael. In each edition, we feature a leader or rising star whos changing the game in his or her own way. It's just waiting for the market to really open up to be more aggressive. What it really highlighted for me was the importance of being flexible. Picker: What about on the supply side of the equation? You dont hear people talking about asset-management firms in that light. Arougheti: It's slowing, anytime the market goes through this type of a transition or a reset, transaction volumes will naturally slow in the private market. MICHAEL MOULDS | News, Sports, Jobs - The Alpena News Learn More on Michael J. Arougheti's trading history. 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As I was preparing to take the job, this friend reminded me of the Maya Angelou quote, People will forget what you said, people will forget what you did, but people will never forget how you made them feel. I think that is so poignant as a leader. He is a member of the Ares Executive Management Committee and the firms Management Committee. Really what wound up happening was our employees were awakened the onset of the pandemic, the increased empathy at work, the issues of societal justice around them. 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. Michael Arougheti is co-founder, chief executive officer and president, as well as a director of Ares Management Corp. Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. Would you say that's coming back then? 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. 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. 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. Arougheti: So this is - we're talking about the US specifically. Hes sort of a walking brain, and I am pretty sure he has a genius IQ. Following the completion of the sale, the chief executive officer now directly owns 470,138 shares of the company's stock, valued at $39,971,132.76. 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. I think that capital will get raised, I think it will just take a little bit longer. He was elected Congressman three times and is a leading figure in the civil rights movement. The case was due on Jan. 7, meaning the division had to . Arougheti:I think, for traditional private equity for many it likely will be. Michael has a reported annual income of $100 - 149,999 and a current net worth value of greater than $250,000 - $499,999. As of 11 November 2022 he still owns at least 460,738 units of Ares Management Corp stock. Tue, Mar . Arougheti last name - Arougheti family - MyHeritage Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. It operates through the following segments: Credit Group, Private Equity Group and Real Estate Group. 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If the only thing you know about sports is who wins and who loses, you are missing the highest stakes action of all. . Mike Arougheti, Ares Management LLC: Profile and Biography 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. 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. Kudos to Ares. Arougheti: For us and others that look like us, it's been as good as we've seen in quite some time. And the decisions they make have huge consequences, not just for the bottom line, but for communities, cities, even entire countries. Despite that, that issue and I think that's a reflection of, of a consolidation of LP dollars with fewer GPS. 2023 CNBC LLC. Such a comment is admirable, and reflects a more mindful leadership. in Ethics, Politics and Economics, cum laude, from Yale University. Thats one of the unique things about businesses like ours. 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. The most active insiders traders include Michael J Arougheti, Antony P Ressler, and Bennett Rosenthal. 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. Michael Arougheti A Co-Founder, Director, Chief Executive Officer & President at Ares Management Mr. Arougheti is Co-Founder, Chief Executive Officer and President, as well as a Director of Ares Management Corporation. The estimated net worth of Michael J. Arougheti is at least $39.08 million as of November 10th, 2022. Mr. Arougheti joined RBC in October 2001 from Indosuez Capital, where he was a Principal and an Investment Committee member, responsible for originating, structuring and executing leveraged transactions across a broad range of products and asset classes. Also in April, investor and Anatomy Fitness owner Chris Paciello flipped a waterfront teardown on Sunset Island I for a 50 percent gain in one month. 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. And I also think that some of the large public platforms similarly continue to raise money. 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. Michael Arougheti - Biography It makes him no less potent, to which Aress rapid global expansion of late is a testament. But the pandemic, as well as the events of the summer around the killing of George Floyd that gave us an opportunity, and an imperative, to double our investment in these initiatives. And that opportunity to deploy lasted maybe three weeks. Where we are now, were deploying actively in almost every strategy across the firm because of this bifurcation. 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. 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. 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. All of the cultural initiatives that we were executing on accelerated. Welcome toHuman Capital, an open exploration of the ideas and people moving financial services forward. The Sunset Islands have emerged as a top neighborhood in Miami Beach, especially amid the pandemic. Direct Lending and Pathfinder Investment Committees, the Ares Equity Income Opportunity Strategy Portfolio Review Committee and the Ares Sports, Media and Entertainment Investment Committee. Arougheti:So what it really means is one of the ways to think about this credit cycle, or this potential recessionary environment in the US is that it may likely be sector specific. If the market is healthy, you can pivot to some of the more regular-way buyout and credit investing. 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. With hundreds of billions of dollars worth of floating rate credit and real assets, the firm's $200B book has surprisingly held up well. The estimated Net Worth of Michael J Arougheti is at least $235 Million dollars as of 11 November 2022. What does that mean for margins and kind of the stickiness of these high prices? Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. Arougheti:Yeah, we're already seeing the pipeline start to build into the end of the year. is a very unique organization, in part given its steady, consistent rise, and focus on credit. So, there was something about the shift to remote work that I think broke down some of those barriers and forced people to open their lives up a little bit more to their colleagues. This button displays the currently selected search type. Why do you think that is? The Sharpe Angle: Ares Management CEO Michael Arougheti says this macro environment is 'like something we haven't seen before', Don't bet that the bottom is in for what were high-growth tech firms, private equity investors say, Ken Griffins hedge fund Citadel is up again in 2023 following a record year, Third Point's Daniel Loeb takes a passive stake in AMD. Its accelerated, the participation is broader, and added to that is a heightened sense of urgency. Michael and I met casually, but our bond as brothers and friends, early on, was anything but casual. And that's pretty attractive to most investors right now. We had examined his road map for the year ahead. 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. Fortunately weve got enough stimulus that weve now kind of stabilized and bridged. TE Michael Mayer says he wants to win a Super Bowl with the Bengals Dismiss. This button displays the currently selected search type. [BREAKING] New "Living Missile" to Replace Nuclear Missiles. From there, its really going to be a function of what incremental fiscal and monetary stimulus exists. (Source: Bloomberg) You take different risks along different time frames. Id like to think that Ive become more strategic in my thinking, as opposed to just tactical around parts of the business. Ares Management Corporation is a leading global alternative investment manager operating three integrated businesses across Credit, Private Equity and Real Estate. 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. 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. Together, personally, they both became the financial backers for the founding of my Promise Homes Company dream. Whats been rewarding for me is that we have spent so much time over the years building culture here around our core attributes of collaboration and social responsibility and entrepreneurialism. A Division of NBCUniversal. Michael didnt stop there. I sit here now, a year removed from the beginning of that, and feel that the culture we had built and the strategic positioning of the company we had pursued positioned us well to navigate the crisis. Just life family. He bought the property for $9.3 million and sold it to the next door neighbor for $14 million. Leaders can see this crisis as a burden or an opportunity from a DE&I perspective. 2023 CNBC LLC. That is going to be an interesting management challenge in and of itself going from crisis management back to ordinary course without losing the progress that weve made operationally and culturally. Ares Makes $150M Play on David Beckham Miami Soccer Venture The HOPE Community Credit Score Index A Closer Look at the Twin Identities of Washington, DC. 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? Thats when leadership is most rewarding. 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. And then it will, it will pick back up again. The Sharpe Angle: Ares Management CEO Michael Arougheti says this macro environment is 'like something we haven't seen before' Inflation, a hawkish Fed and fears of a recession have all made. And there are certain times when you have to lead from the back, letting others step up to drive the organization forward while you push it along and clean things up from the back. They did this three times. CINCINNATI (WXIX) - Former Notre Dame All-American tight . When youre going through this amount of uncertainty, what I found served us well from the first day back in March 2020 was the value of over-communicating and, in many instances, saying that you didnt know. Additionally, Mr. Arougheti is a member of the PATH Organization Leadership Council. Arougheti: Yes, and no. 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 . And material, at that time, to our very survival. -0.38 -0.45%. Arougheti: Yes and no. In addition to that, something thats been true my whole career but Ive come to appreciate lately is just how important it is to build high-quality teams. Michael J Arougheti is the Co-Founder, CEO and President of Ares Management Corp and owns about 1,601,605 shares of Ares Management Corp (ARES) stock worth over $137 Million.Michael J Arougheti is the Executive Vice President of Ares Capital Corp and owns about 1,782,709 shares of Ares Capital . Picker: So how would you characterize the credit quality within your portfolio right now? And it's moving around a little bit, right. He additionally serves as Co-Chairman of Ares Capital Corporation (NASDAQ: ARCC) (ARCC) and as a director of Ares Commercial Real Estate Corporation (NYSE: ACRE) (ACRE). in Ethics, Politics and Economics, cum laude, from Yale University. 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). So, what feels different now versus where we were pre-pandemic is theres a sense not just of urgency, but accountability up and down the chain. And let me just say this it was meaningful. 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. 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. So when the markets get challenged, that's when our investment opportunity becomes the most attractive. CBS News Reports: "It's an entirely new type of weapon." Sticker shock: Ranking South Floridas priciest residential rentals, Here are Chicago's top 10 construction permits issued in May. (Photo by Matt Winkelmeyer/Getty Images) Coogler, who has . All that being said, you also have to be measured in the way that you deploy through a cycle. The Real Estate Group segment provides debt, mortgage loans, and equity capital to borrowers, property owners, and real estate developers. The Private Equity Group segment manages shared control investments in corporate private equity funds. The Sharpe Angle: Ares Management CEO Michael Arougheti says this macro Michael B. Jordan attends the Hollywood Walk Of Fame Star Ceremony honoring Michael B. Jordan on March 1, 2023, in Hollywood, California. Dismiss. Ares Management co-founder and CEO Michael Arougheti bought the property, records show. So there's a lot to digest. Moulds, Michael 12/27/1949 2/13/2023 Pierson, Michigan. They sold a total of 6,394,959 shares worth more than $255,128,106.92. Ares Management can also be reached via phone at (310) 201-4100 and via email at [emailprotected] Learn More on Michael J. Arougheti's contact information. Direct Lending and Pathfinder Investment Committees, the Ares Equity Income Opportunity Strategy Portfolio Review Committee and the Ares Sports, Media and Entertainment Investment Committee. But every time I speak with my friend Tony Ressler, I also feel and see the heart of Michael Arougheti, because Michael introduced me to Tony. Sometimes all you can do is throw them a life jacket and say swim as hard as you can !. Mr. Arougheti received a B.A. Randy Frankel, a former managing director at Goldman Sachs, and his Wall Street partners acquired the baseball team the Tampa Bay Rays in 2004. Are you surprised that the credit quality has been able to withstand some of the pressures of a rising interest rate environment and lack of liquidity in the system? Michael B. Jordan receives Walk of Fame star - TheGrio So that was the good news. 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. See above for full video.). And they have done it for far too many other organizations to name. He tipped the scale of HOPE for me, on several occasions. Last month, Reed Smith attorney Constantine Karides paid $17.3 million for a waterfront home on Sunset Island I. 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. in Ethics, Politics and Economics, cum laude, from Yale University. Mr. Arougheti received a B.A. And that was no accident either. The shares were sold at an average price of $85.02, for a transaction totalling $253,614.66. I think that, for those of us who embraced it, it created a level of trust, of empathy, of relatability. But at the same time, it was probably the most rewarding. Michael Arougheti Mr. Arougheti is a Co-Founder of Ares and has served as a Director and the President of Ares Management since 2014. Marko Gojanovic of One Sothebys International Realty represented the Frankels in the latest sale, and Reid Heidenry with the same firm represented Arougheti. Most recently, Michael J. Arougheti sold 2,983 shares of the business's stock in a transaction on Thursday, November 10th. ", (The below has been edited for length and clarity. Or is it faster or slower? The house at 2535 Shelter Avenue also sold for more than double its previous purchase price in 2020. I think Ive always intuitively known that, but Ive gotten more opportunities to test it. All Rights Reserved. , thanks for sharing these insights with top executives - super useful. And then surprisingly, when the private markets slow, you usually see public markets challenged as well. in Ethics, Politics and Economics, cum laude, from Yale University. Ares Management's global platform had $149 billion of assets under management as of March 31, 2020 with more than 1,200 employees in over 20 offices in more than 10 countries. 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. But today, I wanted to give just that credit. I LOVE this series!! 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? The simple reason for that is you have this bifurcation in the economy and within the consumer, and it will show up in different places as we continue to recover from this. We want to hear from you. There is a big difference between June and September in terms of a reopening and increased mobility. A dream planted, but not much more. Picker: Are you surprised by that? So if you look at the amount of issuance that we saw in the high grade market, if you look at the amount of liquidity that's been in the system, companies have built up a pretty substantial war chest of liquidity, and the consumer is coming off of a pretty significant amount of government assistance globally. What makes us and any organization special is culture. A beginning. And then the friendship came. It's also a reflection, I think of the investors understanding that embedded value that sits in our private credit portfolios. Ares Management Corporation (NYSE:NYSE:ARES) Q3 2021 Earnings Conference Call October 27, 2021 12:00 PM ETCompany ParticipantsCarl Drake - Head, Public Company, IRMichael Arougheti -. 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.
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