That was June, 2017. One of the things that Ive said to my partners here is to think of Ares as a growth company in a growth industry. Mr. Arougheti owns 470,138 shares of Ares Management stock worth more than $39,200,106 as of February 9th. So we're going in with more health than we typically would have when we're talking about recession risk, the order of magnitude that some people are anxious about. Michael Arougheti, co-founder and CEO of Ares Management, joins "Squawk Box" by phone to discuss the markets and the unprecedented economic turmoil driven by the coronavirus outbreak. I think many managers got accustomed to very quick fundraisers and I think they got accustomed to fundraisers happening prior to return of money. A lot of people look to their leadership to say, heres where were going and I know that for the following reasons. Thats whether youre talking about the corporate economy or the consumer economy. 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. Trusted information source for millions of people worldwide . 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. 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. Join now Sign in . All Rights Reserved. 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. Recent buyers of multimillion-dollar homes in South Florida, including Miami Beach and Palm Beach, have been able to flip their properties for big profits due to heightened demand. 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. All of the cultural initiatives that we were executing on accelerated. 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. Credit is crowded PE firms including the Blackstone Group (NYSE: BX), KKR, the Carlyle Group (Nasdaq: CG) and Apollo (NYSE: APO) have all grown their credit business substantially . hopefully Ares can be big but also keep it real. 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 we actually tend to see a consolidation of share and maybe counterintuitive and acceleration of capital that comes onto our platform to help navigate. What makes our culture special is that its deeply rooted in partnership, in entrepreneurialism, in growth mindset. Get notified the next time Michael J. Arougheti buys or sells Ares Management stock. From there, its really going to be a function of what incremental fiscal and monetary stimulus exists. 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. Would you say that's coming back then? 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. And he did. 1635 West 22nd Street (Michael Ruiz with LPG). I was doing the same, so we struck up a conversation. I tried my best to help him with his endeavors and dreams, and he (and his wife Nelly Bly) certainly leaned into mine. 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. We have pools of capital that are designed to provide liquidity where other means of liquidity are not working. The Credit Group segment offers credit strategies across the liquid and illiquid spectrum, including syndicated bank loans, high yield bonds, credit opportunities, special situations, asset-backed investments and U.S. and European direct lending. And then it will, it will pick back up again. So we have some publicly traded credit companies, ARCC, ACRE, that largely manage floating rate assets. Arougheti: Yes and no. 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. Of having a willingness to try new things. Finance is an apprentice business, one often hears in this sector. You cant execute well on a good strategy if you dont have a strong culture, and you cant rally people around core values and a cultural imperative if you dont have the strategic vision for who you are and who the company is. Thats not how leadership is classically trained. On average, Michael trades about 111,368 units every 78 days since 2006. This chart shows Michael J Arougheti's buying and selling at Ares Management by year and by quarter. 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. Love and authenticity tends to have that effect on people. And the thing is, they did it so casually. 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. 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. A dream planted, but not much more. 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. USD. We had explored the roller coaster of emotions and urgent steps induced by the COVID-19 pandemic. 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 . 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 this role, Ive had to think more holistically about where the business is going. 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. What it really highlighted for me was the importance of being flexible. Thats one of the unique things about businesses like ours. He previously occupied the position of Principal at Royal Bank of Canada and Managing Partner-Principal Finance Group at RBC Capital Partners Ltd. (a subsidiary of Royal Bank of Canada), Principal at Onyx Partners, Inc., Executive Vice President at Columbia Savings & Loan Association (Milwaukee, Wisconsin), Member-Mergers & Acquisitions Group at Kidder, Peabody & Co., Inc., Principal at Taylor & Co. Law Offices LLP, Co-Chairman for ACRE Capital LLC, Director at Evercom, Inc., Director at Imperial Capital LLC and Principal at Indosuez Capital. Michael's personal network of family, friends, associates & neighbors include Elinor Bly, Joel Arougheti, Jeanne Arougheti, Paul Arougheti and Florence Stepper. Trusted by millions of genealogists since 2003. Not just because people were remote, but because youre also in a much different headspace, balancing home and family and kids. One of the reasons is we're one of the largest private credit managers 90% of our private credit exposures are floating rate. It's just waiting for the market to really open up to be more aggressive. Michael Arougheti is co-founder, chief executive officer and president, as well as a director of Ares Management Corp. What about the companies that are seeking that type of financing? The records show the division opened a case on Dec. 8, 2022, to investigate threats and allegations of child abuse by Michael Haight. The Big Take is the very best of Bloomberg's in-depth, original reporting from around the globe every day. 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"). As of 11 November 2022 he still owns at least 460,738 units of Ares Management Corp stock. I think the good news is its very consistent with my own personal world view. Understanding that really informs how we invest and the types of tools were using to invest into those different pockets. And that's pretty attractive to most investors right now. Hes sort of a walking brain, and I am pretty sure he has a genius IQ. Leaders can see this crisis as a burden or an opportunity from a DE&I perspective. What Im hoping is that we can continue to have that mindset as we scale. 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. The Frankels paid $14.4 million for the spec Miami Beach mansion in August 2020, and just sold it at a 120 percent markup. 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. So, how do we get out of crisis mode by getting people back into the office and driving the business forward? Mehdi Bolour faces 25 criminal charges over illegally rented Hollywood building, Prince Harry, Meghan Markle asked to leave U.K. home, Real estate investor pleads guilty to stealing $3M, Massive unbuilt Arizona estate asks record $75M, Amazon hits brakes on construction of second headquarters. In each edition, we feature a leader or rising star whos changing the game in his or her own way. What I continue to learn every time I delegate and trust, every time we give somebody a part of the business to run and hold accountable for success, is it just turbocharges the growth here. All Rights Reserved. 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. 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. 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. Direct Lending and Pathfinder Investment Committees, the Ares Equity Income Opportunity Strategy Portfolio Review Committee and the Ares Sports, Media and Entertainment Investment Committee. 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. Picker: So you've seen a full transition from the cost of goods we've seen, and things like fuel costs go down, lumber go down, other raw materials go down, shift to the cost of wages, which have, of course gone up, not keeping pace with inflation. Michael is not an obviously emotional person, to the outside world. They sold a total of 6,394,959 shares worth more than $255,128,106.92. All of the things that we were embarking on around business development accelerated. , thanks for sharing these insights with top executives - super useful.

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