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. The Real Estate Group segment provides debt, mortgage loans, and equity capital to borrowers, property owners, and real estate developers. and I will never, forget that that conviction, of one Michael Arougheti. There are 6 executives at Ares Management Corp getting paid more, with David B. Kaplan having the highest compensation of $54,974,317. There is a big difference between June and September in terms of a reopening and increased mobility. In each edition, we feature a leader or rising star whos changing the game in his or her own way. I think they've got, you know, the increased challenge of the energy crisis and the strong dollar exacerbating the inflation picture for them. When you get into a period like we went through in March and April of last year, its very hard for a lot of leaders to say that they dont know. Block by block amd piece by piece, we pulled the institutional fabric together that we now call The Promise Homes Company. 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. Three. Learn More on Michael J. Arougheti's trading history. 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. Over the last 9 years, insiders at Ares Management Corp have traded over $747,414,700 worth of Ares Management Corp stock and bought 550,746 units worth $8,027,035 In the last twelve months, Ares Management insiders bought shares 20 times. Michael is not an obviously emotional person, to the outside world. 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. I don't think that will end anytime soon. The estimated net worth of Michael J Arougheti is at least $177 Million dollars as of 2023-02-12. For the last almost 10 years, it seems like almost every market has been correlated and performing well. Dismiss. I think the good news is its very consistent with my own personal world view. So there's a fundamentally different positioning when you manage private capital versus liquid capital. Arougheti: Ares has a history of navigating volatile markets well, so if you look at the history of the firm, the period of growth for us it was the largest was through the global financial crisis and through COVID. Share Your Design Ideas, New JerseysMurphy Defends $10 Billion Rainy Day Fund as States Economy Slows, This Week in Crypto: Ukraine War, Marathon Digital, FTX. All of those things came to bear immediately when we went into the crisis. The business owners that power this multibillion dollar industry are changing, and a new era of the business of sports is underway. He serves on the Ares Exe Read More Contact Michael Arougheti's Phone Number and Email Last Update 11/21/2022 1:55 PM Email And material, at that time, to our very survival. Jobs People Learning Dismiss Dismiss. Inflation, a hawkish Fed, fears of a recession have all made 2022 a tough environment for investing. Love and authenticity tends to have that effect on people. The New York Times Reports: "No existing defense can stop it." Hes sort of a walking brain, and I am pretty sure he has a genius IQ. Tue, Mar . 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. And thanks to that early vote of confidence, and the early stage founding capital from Michael Arougheti and Tony Ressler in early 2017, last late last year, in December, 2021, the company itself standing on its own now secured its own $200 million credit facility: Now reportedly the largest capital raise for a Black owned company in a decade, according to Black Enterprise. 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 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. Mr. Arougheti also is a member of the Ares Credit Group's U.S. And then surprisingly, when the private markets slow, you usually see public markets challenged as well. It's also a reflection, I think of the investors understanding that embedded value that sits in our private credit portfolios. Michael Arougheti is 47, he's been the President, Chief Executive Officer, Co-Founder, and Director of Ares Management Corp since 2018. And call on him, I did often. What does that mean for margins and kind of the stickiness of these high prices? 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. Mr. Arougheti was instrumental in the growth of Ares. Aroughetis noting of the importance of being transparent, empathetic, vulnerable is telling and admitting that many of us coming through the finance track are not classically trained in emotional intelligence. 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. Over the next several years, I covered Aress IPO, its deals, and Aroughetis ascension to CEO in 2018. 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 is no stranger to the single-family rental market; it joined Pretium Partners in a $2.4B joint-venture purchase of Front Yard Residential Corp. which closed in 2021. And then he met with me weekly, for close to four years, making himself fully available to my dream, treating it like it was his own. Inflation? While Ares is mostly credit focused, they have built a brand that seems more venerable than many credit shops before them. So 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. Thats not how leadership is classically trained. 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. The house at 2535 Shelter Avenue also sold for more than double its previous purchase price in 2020. And our family has been enriched, spiritually and emotionally, from that bond, the most. Marko Gojanovic of One Sothebys International Realty represented the Frankels in the latest sale, and Reid Heidenry with the same firm represented Arougheti. But when you go remote, youre effectively letting everybody into your home, whether thats the sights or sounds or just the challenges. Ares Management Corporation is a leading global alternative investment manager operating three integrated businesses across Credit, Private Equity and Real Estate. He served two terms as Mayor of Atlanta, one of the fastest growing cities in the world. I tried my best to help him with his endeavors and dreams, and he (and his wife Nelly Bly) certainly leaned into mine. I kind of laugh at that because culture and strategy go hand in hand. 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. But ultimately, the market is there, and the demand for the product is there. Get this delivered to your inbox, and more info about our products and services. 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. 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. I think what was true for a lot of organizations was folks believed in the importance of DE&I and ESG, they were passionate about it, but organizationally it had not become a top priority. Picker:So in recent months and we've spoken, private equity has been essentially the kind of the laggard in terms of dealmaking. And the decisions they make have huge consequences, not just for the bottom line, but for communities, cities, even entire countries. Learn More on Michael J. Arougheti's contact information. And the thing is, they did it so casually. Additionally, Mr. Arougheti is a member of the PATH Organization Leadership Council. this connects so much to was you said on monday in the call about "executive presence" when you mentioned "project an image, a feeling, an ambiance" when you gave tips for everyday executive presence. That happens when you surround yourself with the best people, trust them, and lead alongside them neither from the front nor the back. In the moment, I thought back to the first time I met Arougheti, in a 50,000-square-foot house (not his) (or mine) in Beverly Hills almost a decade ago. And that's obviously pretty attractive to an investor who's looking for certainty of yield. Would you say that's coming back then? So we have some publicly traded credit companies, ARCC, ACRE, that largely manage floating rate assets. Dismiss. Leslie Picker:How long do you think these tailwinds for your business will last? Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. 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. All of the things that we were embarking on around business development accelerated. So when you're in an environment now, where the cost of financing is going up, maybe the availability of financing is going down, and rates are rising, putting pressure on discount rates, the markets will pause to try to evaluate where assets will clear. Ares is an investor in David Beckhams Inter Miami CF, the Major League Soccer team and the venture that plans to develop a major mixed-use soccer complex in Miami. So I don't want to say that that's good. 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. Sometimes all you can do is throw them a life jacket and say swim as hard as you can !. Ares, led by co-founder and CEO Michael Arougheti, is a global alternative investment manager with roughly $262 billion of assets under management, including its purchase of Black Creek Group. As of 11 November 2022 he still owns at least 460,738 units of Ares Management Corp stock. 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. what I remember from interviewing Michael on a panel years ago is his razor sharp intelligence! Create a free family tree for yourself or for Michael Arougheti and we'll search for valuable new . Ressler, an Ares . Ares Management, however, has been a beneficiary of the current environment. Sign up for free newsletters and get more CNBC delivered to your inbox. by John Hope Bryant | Feb 28, 2022 | Bryant on Leaders and Leadership, John Hope Bryant Authored, Operation HOPE. 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. But they did it. [BREAKING] New "Living Missile" to Replace Nuclear Missiles. Picker: And you are not, is this typical for you? This tale of two cities is going to be the framework to think about the recovery. What is Michael J. Arougheti's net worth? Thats why I think that the opportunity to lead in this type of a crisis, as difficult as it is, is really a unique opportunity for anybody. Separate. So, the places where you would be seeing the most distress, we just dont have that much of it. When you look at the economy, its a tale of two cities. So one of the ways we can express a view on the market is by not investing. (Source: Bloomberg) So the way that we're approaching it is we're obviously looking for what we think is the best risk adjusted return globally. Insiders at Ares Management own 47.4% of the company. Below are excerpts from our recent conversation. What makes our culture special is that its deeply rooted in partnership, in entrepreneurialism, in growth mindset. But, he said as we were about to hang up, I dont ever want to take credit for the efforts and successes of others.. 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. Hence the demand that we see for private credit assets globally, and maybe a dissatisfaction with the performance of traditional 60/40 portfolios and what seems to be more consistent volatility in the traded markets. Got a confidential news tip? It was designed by Domo Architecture + Design and includes a guest house, cabana and pool. Last month, Reed Smith attorney Constantine Karides paid $17.3 million for a waterfront home on Sunset Island I. 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. Id like to think that Ive become more strategic in my thinking, as opposed to just tactical around parts of the business. 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. And if I didnt say this here, now, I guess no one would ever know. As the President, Chief Executive Officer, Co-Founder, and Director of Ares Management Corp, the total compensation of Michael Arougheti at Ares Management Corp is $12,665,700. Even to fail in doing that. Join now Sign in . I LOVE this series!! Because if our experience has taught us anything, things can change to the positive as quickly as they change to the negative. So there's a lot to digest. A traditional portfolio of stocks and bonds is deeply in the red, leaving investors to seek diversity elsewhere. So if you look at our $340 billion of assets, over $90 billion of it is unvested. On average, Ares Management Corp executives and independent directors trade stock every 19 days with the average trade being worth of $9,916,050. Similarly, our clients the folks who allocate capital to us are holding us accountable for change. And he did. Mr. Arougheti owns over 9,400 units of Ares Management Corp stock worth over $37,633,080 and over the last 16 years he sold ARES stock worth over $185,033,029. The reason I say 'no' is we've, despite the pandemic, we've had so much stimulus come into the market that people have had time to prepare. So we're giving a little bit back in the private flow. Arougheti:You have to look at it on a relative basis. 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. He tipped the scale of HOPE for me, on several occasions. in Ethics, Politics and Economics, cum laude, from Yale University. They didnt just fill the air with kind platitudes, they filled our bank account with the very resources we needed to go from surviving to thriving, to winning. The Private Equity Group segment manages shared control investments in corporate private equity funds. A traditional portfolio of stocks and bonds is deeply in the red, leaving investors to seek diversity elsewhere. And I also think that some of the large public platforms similarly continue to raise money. And to oversimplify what's a complex series of global flows, it really comes down to a global desire for durable yield. All Rights Reserved. Sign up for free newsletters and get more CNBC delivered to your inbox. Get notified the next time Michael J. Arougheti buys or sells Ares Management stock. Additionally, he is a member of the PATH Organization Leadership Council. So that was the good news. That was June, 2017. Leaders can see this crisis as a burden or an opportunity from a DE&I perspective. 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). 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. TE Michael Mayer says he wants to win a Super Bowl with the Bengals. Picker:So six to 12 months puts us at what, January? Moulds, Michael 12/27/1949 2/13/2023 Pierson, Michigan. Michael Arougheti Age : 49 Public asset : 1,047,166,505 USD Country of residence : Unknown Linked companies : Ares Management Corporation - Ares Capital Corporation - Ares Acquisition Corporation - Ares Commercial Real Estate Corporation Biography of Michael Arougheti The Frankels paid $14.4 million for the spec Miami Beach mansion in August 2020, and just sold it at a 120 percent markup. Arougheti:Yeah, we're already seeing the pipeline start to build into the end of the year. So I've been encouraged by that from an activity and deployment level. 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. I was surprised at how quickly people could transition to working remotely. Where we are now, were deploying actively in almost every strategy across the firm because of this bifurcation. Its been such an interesting year because in so many ways, it was probably one of the most challenging of my career. 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. We had examined his road map for the year ahead. Most recently, Michael J. Arougheti sold 2,983 shares of the business's stock in a transaction on Thursday, November 10th. It's just waiting for the market to really open up to be more aggressive. 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. Aroughetis Vandelay Homes II LLC financed the purchase with a $21.1 million loan from J.P. Morgan, according to records. 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. People cant leave their home challenges at home, go to work, and then go back to them its all a bit more fluid than that right now. Inflation, a hawkish Fed and fears of a recession have all made 2022 a tough environment for investing. 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. Such is the man the world refers to as Michael Arougheti. Ive come to learn that there are certain times when you have to lead from out in front, driving the business forward by leading the charge. 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. Whats unique about where we are now is I cant remember a cycle where weve had such a balance in healthy-company opportunity and distressed opportunity. Learn More on Ares Management's active insiders. Mr. Arougheti joined Royal Bank of Canada 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. Currently, Mr. Arougheti is Co-Chairman of Ares Acquisition Corp., President, Chief Executive Officer & Director at Ares Management Corp., Co-Chairman & Executive Vice President at Ares Capital Corp., Director, CEO & President at Ares Management LLC, President, Chief Executive Officer & Director at Ares Management GP LLC and Co-Chairman and Executive Vice President at Ares Management Corp (Private Equity) (which are all subsidiaries of Ares Management Corp.) and Senior Advisor at Volery Capital Partners LLC. 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). My experience would tell you that that's usually a six to 12 month process, that has to take into account a shared view of what the economy is going to look like, and take into account what the new financing markets look like. Learn More about Michael J. Arougheti's net worth. Mr. Arougheti also is a member of the Ares Credit Group's U.S. Convicted. How do you preserve that at scale? With hundreds of billions of dollars' worth of floating rate credit and real assets, the firm's book has surprisingly held up well. From there, its really going to be a function of what incremental fiscal and monetary stimulus exists. Frankel is also a real estate investor and owner of wineries and restaurants. 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. All rights reserved 2023 The Real Deal is a registered Trademark of Korangy Publishing Inc. And that opportunity to deploy lasted maybe three weeks. What it really highlighted for me was the importance of being flexible. Arougheti: Well, this is like something we haven't seen before. The second thing on my mind is that managing in crisis is different than managing status quo. Ares Management's investment groups collaborate to deliver innovative investment solutions and consistent and attractive investment returns for fund investors throughout market cycles. Chart Data in Insider Trading History Table. People, of deep convictions. 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. 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. Are you still seeing that as active? Additionally, Mr. Arougheti is a member of the PATH Organization Leadership Council. 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? He is so busy doing, executing on his beliefs, that he makes little to no noise of or about himself, as he cuts through the challenges before him. Kudos to Ares. Mr. Arougheti owns 470,138 shares of Ares Management stock worth more than $39,077,871 as of March 4th. And that's pretty attractive to most investors right now. 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. Welcome toHuman Capital, an open exploration of the ideas and people moving financial services forward. But there are echoes of the past. 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. And then it will, it will pick back up again. "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." You had a picture of it!!! The company was founded by Michael J. Arougheti, David B. Kaplan, John H. Kissick, Antony P. Ressler, and Bennett Rosent. Arougheti: Yes, and no. 84 Likes, 1 Comments - Michael Hollick (@mikehollick) on Instagram: "What an awesome week and celebration for my dads 70th So awesome to spend time with our family" Mr. Arougheti received a B.A. Thats whether youre talking about the corporate economy or the consumer economy. Together, personally, they both became the financial backers for the founding of my Promise Homes Company dream. The best advice I would give now is that you have to lead different people differently. 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. Ares Management, however, has been a beneficiary of the current environment. Youre seeing it recently: Public markets are near record highs, fixed-income markets are near record tights, but we know that fundamental stresses and challenges remain. Ares Management Corp executives and other stock owners filed with the SEC include: Track performance, allocation, dividends, and risks, Annotate, download XLSX & look up similar tables, Filter, compare, and track coins & tokens, Stocks and cryptocurrency portfolio tracker.