LOS ANGELES (CelebrityAccess) — Ares Capital Corporation, a publicly traded lender managed by alternative-investment firm Ares Management, announced plans to acquire SMG's parent company American Capital in a merger agreement almost 3.5 billion.
The combined company of Ares Capital and American Capital would manage more than $13 billion at fair value as of March 31, the companies said.
Ares Management, which is providing $275 million of the acquisition price, said it expects to earn more in management and performance fees as Ares Capital’s fee-earning assets increase, though it will waive as much as $100 million in performance fees over 2 1/2 years.
The combined company will remain externally managed by Ares Capital Management LLC and all current Ares Capital officers and directors will remain in their current roles.
"Ares Capital believes that the significant size and scale of the combined company will create many strategic and financial benefits and will position the combined company to capitalize on favorable market conditions," the companies said in a joint statement.
Ares was co-founded by Antony P. "Tony" Ressler, who also co-founded private equity firm Apollo Global Management, and who, with Grant Hill, co-owns the Atlanta Hawks. – Staff Writers