United States investor Ares Management Corporation (Ares) announced Monday that it has entered into a definitive agreement to acquire 100 percent of Crescent Point Capital (CPC), a Singapore-based private equity firm.

This transaction highlights a continuation of Ares’ global expansion and creates a compelling opportunity for Ares to capitalize on the strong growth prospects for dedicated Asia Pacific private equity strategies, Ares said in a statement.

Ares has established direct sourcing and investment capabilities in the Asia Pacific region across the credit, private equity, real estate and infrastructure asset classes through Ares Asia, previously known as Ares SSG.

Ares Asia operates with approximately 165 professionals across a local footprint of nine offices in key Asia Pacific markets, as of March 31, 2023.

“We are proud of the significant Asia Pacific presence that we have established over the years, and we believe that CPC is an excellent platform that will further enhance our footprint and capabilities in the region,

“We have enjoyed the opportunity to develop a great relationship with the Crescent Point team. They are experienced investors who we believe will bring impactful synergies to our existing Asia team,” said Michael Arougheti, Chief Executive Officer and President of Ares.

Ares Asia Head Edwin Wong also said that similar to Ares, the firm believes CPC possesses a highly collaborative culture.

“We believe that they will bring deep private equity experience, relationships and a demonstrated track record of investing in markets that will greatly complement our efforts and footprint in the region,

“The expansion of our local capabilities will also strengthen our position as a creative solutions provider to management teams and sponsors in the market,” he added.

As part of Ares, CPC is expected to benefit from the advantages of Ares’ scaled global platform and network, including Ares’ local market presence across the Asia Pacific region.

The transaction provides opportunities to enhance CPC’s growth through greater access to capital, market intelligence, transaction opportunities and expanded investor relationships.

“We look forward to joining Ares and we firmly believe that this combination will help further catalyze the growth of our business,” said David Hand, Managing Partner of CPC.

“As part of a leading global brand and scaled platform, we expect to realize several shared benefits that will support our ability to deliver attractive investment returns for our investors, including greater market intelligence and a broader set of local sponsor relationships,” he added.

The transaction is expected to be immediately accretive to Ares’ after-tax realized income per share of Class A and non-voting common stock.

The transaction consideration will be primarily comprised of Ares Class A common shares subject to a multi-year lock-up.

The transaction is expected to close in the third quarter of 2023 and is subject to customary closing conditions, including regulatory approvals.

Founded in 2003, CPC pursues a private equity strategy focused on investing in industry-leading consumer companies across the larger Southeast Asia markets and China.

The firm focuses on forming close partnerships with its portfolio companies by providing hands-on operational, financial and strategic value-add from the inception of an investment through to its exit.

Since inception, it has completed investments in more than 50 transactions in our target markets, with 31 partial or complete monetization events accomplished as of March 31, 2023.

The firm has approximately 50 professionals. Besides Singapore, it also has a presence in China, Indonesia, the Philippines and Vietnam.

The firm has approximately $3.8 billion of assets under management, as of March 31, 2023.

Ares is a global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, private equity, real estate and infrastructure asset classes.

As of March 31, 2023, Ares’ global platform had approximately $360 billion of assets under management, with more than 2,600 employees operating across North America, Europe, Asia Pacific and the Middle East.

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