I'd subscribe to that podcast on a heartbeat, People will forget what you said, people will forget what you did, but people will never forget how you made them feel.. And that was no accident either. 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. Musk Made a Mess at Twitter. Mr. Arougheti received a B.A. 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. Mr. Arougheti received an undergraduate degree from Yale University. Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. Where we are now, were deploying actively in almost every strategy across the firm because of this bifurcation. So if there is a silver lining to all the challenges globally, right now, we're going into this period of volatility with real strong underpinnings. 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. 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. 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. (Source: Bloomberg) 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. The estimated Net Worth of Michael J Arougheti is at least $235 Million dollars as of 11 November 2022. And let me just say this it was meaningful. Theres a conversation I had with a very close friend that still sticks with me. Learn More on Ares Management's active insiders. Its accelerated, the participation is broader, and added to that is a heightened sense of urgency. 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. Picker: So that would imply that fundraising is a bit more challenging as well in PE? There are 13 older and 6 younger executives at Ares Management Corp. I kind of laugh at that because culture and strategy go hand in hand. With hundreds of billions of dollars worth of floating rate credit and real assets, the firm's $200B book has surprisingly held up well. They did this three times. Treating me, like I was his own. Michael J. Arougheti is an entrepreneur and businessperson who founded Ares Management Corp., Ares Management LP, Ares Management LLC and Ares Management Corp (Private Equity) and who has been the head of 8 different companies. Mr. Arougheti also is a member of the Ares Credit Group's U.S. Ares Management Corporation's (ARES) CEO Michael Arougheti on Q3 2021 In the last twelve months, insiders at the asset manager sold shares 15 times. Certainly, Michael and Nelly would never say an external word. Id like to think that Ive become more strategic in my thinking, as opposed to just tactical around parts of the business. Michael Arougheti. A Man of Conviction. - John Hope Bryant (Clickhereto subscribe to the Delivering Alpha newsletter.). Just life family. I was doing the same, so we struck up a conversation. Michael Arougheti Co-Founder, CEO and President at Ares Management New York, New York, United States 7K followers 377 connections Join to follow Ares Management Corporation Yale University. A sponsor. I have worked with Ares over the years (and some of their predecessors), and invariably, the interactions have been very professional and thoughtful. 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. Mr. Arougheti was instrumental in the growth of Ares. 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. When you manage an organization through crisis, you learn a lot about yourself, but you also learn a lot about the organization that supports you. 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. Sign up for free newsletters and get more CNBC delivered to your inbox. Three. The investment management firm has about $325 billion of assets under management, according to its website. It was designed by Domo Architecture + Design and includes a guest house, cabana and pool. I think that capital will get raised, I think it will just take a little bit longer. 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. 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. 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. 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. 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. Arougheti: Well, this is like something we haven't seen before. A key support beam. What it really highlighted for me was the importance of being flexible. A dream planted, but not much more. The Private Equity Group segment manages shared control investments in corporate private equity funds. 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. 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. Sticker shock: Ranking South Floridas priciest residential rentals, Here are Chicago's top 10 construction permits issued in May. 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. Get this delivered to your inbox, and more info about our products and services. 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? And then it will, it will pick back up again. From media and technology to finance and real estate, leagues and teams across the globe have matured into far more than just back page entertainment. 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. How do you preserve that at scale? Learn More about Michael J. Arougheti's net worth. Got a confidential news tip? On average, Michael trades about 111,368 units every 78 days since 2006. That happens when you surround yourself with the best people, trust them, and lead alongside them neither from the front nor the back. Michael J. Arougheti has not been actively trading shares of Ares Management during the past quarter. Mr. Arougheti also serves on the boards of directors of Operation HOPE, a not-for profit organization focused on expanding economic opportunity in underserved communities through economic education and empowerment. Michael Arougheti - Co-Founder, Current CEO and President - Ares 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. Michael Arougheti Net Worth (2023) | wallmine He bought the property for $9.3 million and sold it to the next door neighbor for $14 million. 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. Miami-based House of One designed the interiors. Mr. Arougheti also is a member of the Ares Credit Group's U.S. 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. Ares CEO Arougheti Says PE Is 'Not a Growth Business' And that's pretty attractive to most investors right now. Russia's war on Ukraine latest: Putin casts war as battle for nation's survival, India FM Jaishankar says Soros dangerous, debate needed on democracy, Buffett's Berkshire profit falls on investments, currencies, Bill Gates buys Heineken stake, despite saying he's 'not a big beer drinker', Elon Musk recruits team to develop OpenAI rival - The Information, Hedge fund manager Chris Hohn demands Airbus drop Atos deal - letter, Elon Musk's challenge: Stay ahead of the competition, ISS urges Apple shareholders to vote for CEO Tim Cook, other execs' pay packages, Elon Musk accuses media of racism after newspapers drop 'Dilbert' cartoon, French media billionaire Niel fails with bid for TNT television frequence - Arcom. Ares Management Corp. ARES (U.S.: NYSE) - The Wall Street Journal Marko Gojanovic of One Sothebys International Realty represented the Frankels in the latest sale, and Reid Heidenry with the same firm represented Arougheti. Director, Co-Founder, Chief Executive Officer and President of Ares. 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. A Division of NBCUniversal. 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. For the last almost 10 years, it seems like almost every market has been correlated and performing well. Finance is an apprentice business, one often hears in this sector. 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. So if you look at our $340 billion of assets, over $90 billion of it is unvested. It's just waiting for the market to really open up to be more aggressive. What Im hoping is that we can continue to have that mindset as we scale. All of the cultural initiatives that we were executing on accelerated. 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. The oldest executive at Ares Management Corp is Paul Joubert, 72, who is the Independent Director. Tue, Mar . Arougheti: For us and others that look like us, it's been as good as we've seen in quite some time. Hes sort of a walking brain, and I am pretty sure he has a genius IQ. But all of our leaders learned to support their people by opening their own lives up to them. Get this delivered to your inbox, and more info about our products and services. Arougheti last name - Arougheti family - MyHeritage Separate. The Co-Founder of Ares Management Corporation (NYSE:ARES), Michael ", (The below has been edited for length and clarity. A lot of people look to their leadership to say, heres where were going and I know that for the following reasons. CNBC's Leslie Picker 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. 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. 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). 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? Picker: What about on the supply side of the equation? Convicted. Learn More on Ares Management's active insiders. If you turn your attention to Europe, in certain parts of Asia, the story might be different. So that in and of itself is not surprising. With hundreds of billions of dollars' worth of floating rate credit and real assets, the firm's book has surprisingly held up well. Understanding that really informs how we invest and the types of tools were using to invest into those different pockets. And therefore you're not going to see as much transaction volume as people manage their liquidity. What makes us and any organization special is culture. Sign up for free newsletters and get more CNBC delivered to your inbox. 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. What I've been pleased with is in our portfolios, inflation is present, it has shifted from cost of goods to cost of labor, at least in our US portfolios, but the margins are still at or near all time highs. 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 become a more patient leader. Dismiss. The records show the division opened a case on Dec. 8, 2022, to investigate threats and allegations of child abuse by Michael Haight. And our family has been enriched, spiritually and emotionally, from that bond, the most. 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 I also think that some of the large public platforms similarly continue to raise money. Sometimes all you can do is throw them a life jacket and say swim as hard as you can !. The estimated net worth of Michael J Arougheti is at least $177 Million dollars as of 2023-02-12. Arougheti:Yeah, we're already seeing the pipeline start to build into the end of the year. And when Michael Arougheti committed, that gave license to Tony Ressler, his co-founder at Ares Management, that he could do the same. So that was the good news. We have pools of capital that are designed to provide liquidity where other means of liquidity are not working. All that being said, you also have to be measured in the way that you deploy through a cycle. Ares Management, however, has been a beneficiary of the current environment. 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. Kudos to Ares. Michael Arougheti on LinkedIn: Ares Management Q4 2022 Earnings Results Obituary: Michael S. Simon - Lewiston Sun Journal Global Business and Financial News, Stock Quotes, and Market Data and Analysis. He is a member of the Ares Executive Management Committee and the firm's. Last year, Los Angeles-based Ares made a $150 million preferred equity investment in Inter Miami CF. 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. The firm now oversees $197 billion. There are 6 executives at Ares Management Corp getting paid more, with David B. Kaplan having the highest compensation of $54,974,317. Mr. Arougheti received a B.A. And I think one of the key jobs that we have at Ares is to mine our historical experience and recognize patterns. 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. 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. Dismiss. 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. You take different risks along different time frames. Board Leadership - Operation HOPE And then there are a lot of times, which I think are the most powerful, when youre leading from inside, shoulder-to-shoulder with people. Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. 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 . Its been such an interesting year because in so many ways, it was probably one of the most challenging of my career. Most recently, Michael J. Arougheti sold 2,983 shares of the business's stock in a transaction on Thursday, November 10th. He helped me assemble a team, and he introduced me to the language and structure and approach that I would need to implement, to make this new venture successful. Michael Hollick on Instagram: "What an awesome week and celebration for Michael Arougheti - Historical records and family trees - MyHeritage After catching up for an hour recently, tackling a slew of questions and meaty subjects, Mike Arougheti had a question for me. Arougheti: Yes and no. Block by block amd piece by piece, we pulled the institutional fabric together that we now call The Promise Homes Company. 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. in Ethics, Politics and Economics, cum laude, from Yale University. what I remember from interviewing Michael on a panel years ago is his razor sharp intelligence! Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. Promise Homes secures $200M to expand single-family rental portfolio See above for full video.). 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. Picker: So how would you characterize the credit quality within your portfolio right now? Michael Arougheti | Ares Capital Corporation 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. Not just because people were remote, but because youre also in a much different headspace, balancing home and family and kids. And the thing is, they did it so casually. Arougheti named CEO at Ares Management | PE Hub 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. 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. CBS News Reports: "It's an entirely new type of weapon." Michael Arougheti - Biography - MarketScreener.com Inflation? When you look at the economy, its a tale of two cities. Love and authenticity tends to have that effect on people. 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. Insiders at Ares Management own 47.4% of the company. Because if our experience has taught us anything, things can change to the positive as quickly as they change to the negative. Michael Arougheti is 47, he's been the President, Chief Executive Officer, Co-Founder, and Director of Ares Management Corp since 2018. He served two terms as Mayor of Atlanta, one of the fastest growing cities in the world. Arougheti:I think, in the US market, we still have a shot, I think the Fed is on the task, if you look at the strength of the market, and this what makes it particularly challenging to invest in, all of the data that we see, up until this point in our significant private portfolios, we tell you that the economy is still quite strong, corporate balance sheets are well positioned, the consumer is still relatively underleveraged. 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. Michael J. Arougheti is an entrepreneur and businessperson who founded Ares Management Corp., Ares Management LP, Ares Management LLC and Ares Management Corp (Private Equity) and who has been the head of 8 different companies. The good news is that if you look at corporate America, you have many companies that were indirectly COVID-impacted that have figured out how to navigate things and are now doing OK. And there are just certain companies in certain industries that are directly challenged and will have a harder go of it. Arougheti: Yes, and no. 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. It's also a reflection, I think of the investors understanding that embedded value that sits in our private credit portfolios. 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). Whitepages people search is the most trusted directory. That comes with a broader view into different parts of the world and different parts of the organization. So if all we do is continue to invest at the top end of a company's capital structure, or lend against a real asset, with rates going up the way that they are, there's significant embedded profit potential. One of the reasons is we're one of the largest private credit managers 90% of our private credit exposures are floating rate. Michael and I met casually, but our bond as brothers and friends, early on, was anything but casual. 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. Ares Management Corporation (NYSE:NYSE:ARES) Q1 2022 Earnings Conference Call April 28, 2022 11:00 AM ETCompany ParticipantsCarl Drake - Head, Public Markets, Investor Relations Michael. Randy Frankel, a former managing director at Goldman Sachs, and his Wall Street partners acquired the baseball team the Tampa Bay Rays in 2004.