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. And one small company is building them for the Pentagon! And that's a function of great performance, but it's also a function of what they call the denominator effect, which is as public market valuations come down, traditional fixed income valuations come down, those allocators of capital that are managing to a model have less capital to deploy into private equity. And then the friendship came. ARES DYNAMIC CREDIT ALLOCATION FUND, INC. Transcript : Ares Management Corporation Presents at The Bank of America Securities 2023 Financial Services Conference, Feb-16-2023 09:40 AM, Transcript : Ares Management Corporation, Q4 2022 Earnings Call, Feb 09, 2023, Bloomberg Video: Sizing up the Private Credit Market, Transcript : Ares Management Corporation, Q3 2022 Earnings Call, Oct 27, 2022, Transcript : Ares Management Corporation Presents at Barclays Global Financial Services Conference, Sep-13-2022 12:00 PM, Transcript : Ares Management Corporation, Q2 2022 Earnings Call, Jul 28, 2022, Transcript : Ares Management Corporation Presents at Bernstein 38th Annual Strategic Decisions Conference, Jun-02-2022 02:30 PM, President, Chief Executive Officer & Director, Ares Commercial Real Estate Management LLC, Director, Co-Founder & Chief Executive Officer, Program for Appropriate Technology in Health. Additionally, Mr. Arougheti is a member of the PATH Organization Leadership Council. Thats whether youre talking about the corporate economy or the consumer economy. 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. 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 also is a member of the Ares Credit Group's U.S. and I will never, forget that that conviction, of one Michael Arougheti. Similarly, our clients the folks who allocate capital to us are holding us accountable for change. I LOVE this series!! 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. Just life family. 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. From there, its really going to be a function of what incremental fiscal and monetary stimulus exists. I think that's a reflection of the nature of our business. 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"). Learn More about insider trades at Ares Management. 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. 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 J. Arougheti is also Partner at Direct Lending Group, Inc. and Member of Program for Appropriate Technology in Health and on the board of 7 other companies. They purchased a total of 8,706,492 shares worth more than $85,604,376.84. Its accelerated, the participation is broader, and added to that is a heightened sense of urgency. , thanks for sharing these insights with top executives - super useful. And therefore you're not going to see as much transaction volume as people manage their liquidity. When expanded it provides a list of search options that will switch the search inputs to match the current selection. 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 opportunity to deploy lasted maybe three weeks. There is a big difference between June and September in terms of a reopening and increased mobility. ". TE Michael Mayer says he wants to win a Super Bowl with the Bengals. But there are echoes of the past. 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. All of the cultural initiatives that we were executing on accelerated. 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. Would you say that's coming back then? I kind of laugh at that because culture and strategy go hand in hand. Arougheti:Yeah, we're already seeing the pipeline start to build into the end of the year. You take different risks along different time frames. Ares Management, however, has been a beneficiary of the current environment. 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 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. Michael didnt stop there. 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. Trusted information source for millions of people worldwide . So you know, each cycle is different. 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. It's somewhat counter cyclical. 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. You can see the complete history of Mr. Arougheti stock trades at the bottom of the page. He is a member of the Ares Executive Management Committee and the firms Management Committee. Data is a real-time snapshot *Data is delayed at least 15 minutes. 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. Back to the comment I made about the crisis accelerating trends already in place, we had already been deep into our journey around ESG and diversity, equity, and inclusion. This is going to be top of mind for a lot of leaders this year and, I think, into next. 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. Ares Management CEO Michael Arougheti discusses consolidation in the asset management industry with Bloomberg's Erik Schatzker at the Bloomberg Invest virtual conference. And there are certain times when you have to lead from the back, letting others step up to drive the organization forward while you push it along and clean things up from the back. For me. 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. 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. Picker: Are you surprised by that? Arougheti: For us and others that look like us, it's been as good as we've seen in quite some time. So the way that we're approaching it is we're obviously looking for what we think is the best risk adjusted return globally. 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. omg. 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's a fundamentally different positioning when you manage private capital versus liquid capital. 2023 CNBC LLC. I think many managers got accustomed to very quick fundraisers and I think they got accustomed to fundraisers happening prior to return of money. 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. 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. And the decisions they make have huge consequences, not just for the bottom line, but for communities, cities, even entire countries. 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. 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 if you look over the last 20 years, we're seeing a meaningful increase in allocations on the part of institutional and retail investors to alternatives. Block by block amd piece by piece, we pulled the institutional fabric together that we now call The Promise Homes Company. Ares Management co-founder and CEO Michael. 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. 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. 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. 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. He tipped the scale of HOPE for me, on several occasions. The case was due on Jan. 7, meaning the division had to . What makes our culture special is that its deeply rooted in partnership, in entrepreneurialism, in growth mindset. And so we're also seeing increasing demand for things like real assets and private equity. Are you still seeing that as active? While Ares is mostly credit focused, they have built a brand that seems more venerable than many credit shops before them. And our family has been enriched, spiritually and emotionally, from that bond, the most. 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. Additionally, he is a member of the PATH Organization Leadership Council. So I don't want to say that that's good. They did it, because thats simply who they are. Michael J Arougheti is the Co-Founder, CEO and President of Ares Management Corp and owns about 1,601,605 shares of Ares Management Corp (ARES) stock worth over $137 Million.Michael J Arougheti is the Executive Vice President of Ares Capital Corp and owns about 1,782,709 shares of Ares Capital . Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. 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. 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. Ares Management Corporation is a leading global alternative investment manager operating three integrated businesses across Credit, Private Equity and Real Estate. I think what we do well is we tend to avoid big mistakes. Create a free family tree for yourself or for Michael Arougheti and we'll search for valuable new . Of having a willingness to try new things. CBS News Reports: "It's an entirely new type of weapon." Data is a real-time snapshot *Data is delayed at least 15 minutes. Sign up for free newsletters and get more CNBC delivered to your inbox. For me, as a leader, what it also highlighted was the importance of being transparent, empathetic, vulnerable. This button displays the currently selected search type. Picker: So that would imply that fundraising is a bit more challenging as well in PE? That comes with a broader view into different parts of the world and different parts of the organization. Got a confidential news tip? The Real Estate Group segment provides debt, mortgage loans, and equity capital to borrowers, property owners, and real estate developers. Over the next several years, I covered Aress IPO, its deals, and Aroughetis ascension to CEO in 2018. Kudos to Ares. Its been such an interesting year because in so many ways, it was probably one of the most challenging of my career. Its very rewarding. The challenge right now is in 2022, given how well the portfolio's performed and how deployed, they were given the significant amount of volume in 2021, the market now is digesting the need for more capital against the backdrop of a lack of capital. by John Hope Bryant | Feb 28, 2022 | Bryant on Leaders and Leadership, John Hope Bryant Authored, Operation HOPE. And I also think that some of the large public platforms similarly continue to raise money. Direct Lending and Pathfinder Investment Committees, the Ares Equity Income Opportunity Strategy Portfolio Review Committee and the Ares Sports, Media and Entertainment Investment Committee. Most recently, Michael J. Arougheti sold 2,983 shares of the business's stock in a transaction on Thursday, November 10th. 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Join now Sign in . View phone numbers, addresses, public records, background check reports and possible arrest records for Michael Arougheti. The Sunset Islands have emerged as a top neighborhood in Miami Beach, especially amid the pandemic. I couldn't agree more and we are seeing this in the field. I was surprised at how quickly people could transition to working remotely. A lot of people talk about this idea that crises accelerate trends that are already in place, and I agree with that. 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. The estimated Net Worth of Michael J Arougheti is at least $235 Million dollars as of 11 November 2022. Get notified the next time Michael J. Arougheti buys or sells Ares Management stock. Mayer is widely considered among the best available at his position. Because of what you did to help elevate me and my dreams, with Operation HOPE, and then later with the Promise Homes Company, you too get celebrated as a part of Black History Month. But at the same time, it was probably the most rewarding. 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. . We wouldn't blame Ares Management Corporation (NYSE:ARES) shareholders if they were a little worried about the fact that Michael Arougheti, the Co-Founder recently netted about US$15m selling . Together, personally, they both became the financial backers for the founding of my Promise Homes Company dream. 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. The Big Take is the very best of Bloomberg's in-depth, original reporting from around the globe every day. 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? After catching up for an hour recently, tackling a slew of questions and meaty subjects, Mike Arougheti had a question for me. And Michael Arougheti, was all of that. The firm now oversees $197 billion. 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. He served two terms as Mayor of Atlanta, one of the fastest growing cities in the world. Arougheti: Yes and no. Director, Co-Founder, Chief Executive Officer and President of Ares. He is a member of the Ares Executive Management Committee and the firm's. So when the markets get challenged, that's when our investment opportunity becomes the most attractive. 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. What does that mean for margins and kind of the stickiness of these high prices? When you get to a certain size as an organization, you have to appreciate that you inspire different people differently. Despite that, that issue and I think that's a reflection of, of a consolidation of LP dollars with fewer GPS. 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. Hes sort of a walking brain, and I am pretty sure he has a genius IQ. Michael's personal network of family, friends, associates & neighbors include Elinor Bly, Joel Arougheti, Jeanne Arougheti, Paul Arougheti and Florence Stepper. Ares Management co-founders Tony Ressler and Michael Arougheti provided founding investments and served on the company's investment committee until last year. Because if our experience has taught us anything, things can change to the positive as quickly as they change to the negative. 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. 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. What we found was that we had an employee base that was already incredibly passionate about progress along those initiatives, and over the course of the past year it has grown exponentially. The Frankels paid $14.4 million for the spec Miami Beach mansion in August 2020, and just sold it at a 120 percent markup. 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. Fortunately weve got enough stimulus that weve now kind of stabilized and bridged. Love and authenticity tends to have that effect on people. So if you look at recent memory, going through the early days of COVID, in 2020, that felt like it was going to be a severely disrupted market for quite some time. Sign up for free newsletters and get more CNBC delivered to your inbox. 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. And then they did it again, one day at one of our HOPE Global Forum, watching a pitch competition of young Black and Brown business owners in the making. 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. He was elected Congressman three times and is a leading figure in the civil rights movement. Randy Frankel, a former managing director at Goldman Sachs, and his Wall Street partners acquired the baseball team the Tampa Bay Rays in 2004. What is Michael J. Arougheti's net worth? 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. And, myself included, that can often be very hard to do you tend to create boundaries between your work self and your home self. So, there are big parts of our corporate-opportunities and distressed and special-situations businesses that are very busy in those more stressed parts of the market. 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. Ryan Berry will become chief marketing and strategy officer. Thats not how leadership is classically trained. The Private Equity Group segment manages shared control investments in corporate private equity funds. Picker: And you are not, is this typical for you? USD. Mr. Arougheti also is a member of the Ares Credit Group's U.S. 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. Theres a conversation I had with a very close friend that still sticks with me. On average, Ares Management Corp executives and independent directors trade stock every 19 days with the average trade being worth of $9,916,050. 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. Jobs People Learning Dismiss Dismiss. Thats one of the unique things about businesses like ours. To experiment. Marko Gojanovic of One Sothebys International Realty represented the Frankels in the latest sale, and Reid Heidenry with the same firm represented Arougheti. It absolutely starts with the health crisis and the speed with which we get people inoculated. (Photo by Matt Winkelmeyer/Getty Images) Coogler, who has . Additionally, Mr. Arougheti is a member of the PATH Organization Leadership Council. Separate. (Clickhereto subscribe to the Delivering Alpha newsletter.). 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. A beginning. And Michael Arougheti, was all of that. A traditional portfolio of stocks and bonds is deeply in the red, leaving investors to seek diversity elsewhere. What makes us and any organization special is culture. The . And it's hard to generalize about a market that's trillions of dollars deep and, and is global, I would say the following, private equity enjoyed a wonderful rebound coming out of COVID. Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. How is that easier than to digest? And the thing is, they did it so casually. 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 New York Times Reports: "No existing defense can stop it." Thats when leadership is most rewarding. So if you look at our $340 billion of assets, over $90 billion of it is unvested. And I think that's true for the publicly traded markets as well. Ive found in my career that the leaders Ive respected most were people who knew how to lead different types of people in different ways. Welcome toHuman Capital, an open exploration of the ideas and people moving financial services forward. Ares Management's insider roster includes Michael Arougheti (CEO), Antoinette Bush (Director), R. Deveer (Insider), David Kaplan (Insider), Michael McFerran (CFO), Antony Ressler (Chairman), Bennett Rosenthal (Insider), and Aghili Sagati (General Counsel). Thank you!! 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. A gentle soul and bright spirit left us on Feb. 13 when Michael "Mike" Moulds, age 73, of Pierson, Michigan, passed away unexpectedly. When you think of yourself as a growth company, you manage yourself differently from a cultural and operational standpoint. So, what feels different now versus where we were pre-pandemic is theres a sense not just of urgency, but accountability up and down the chain. 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 . 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. Tue, Mar . And he did. And let me just say this it was meaningful. 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. what I remember from interviewing Michael on a panel years ago is his razor sharp intelligence! And I think one of the key jobs that we have at Ares is to mine our historical experience and recognize patterns. We want to hear from you. The best advice I would give now is that you have to lead different people differently. Ares Management's investment groups collaborate to deliver innovative investment solutions and consistent and attractive investment returns for fund investors throughout market cycles. 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. Sometimes all you can do is throw them a life jacket and say swim as hard as you can !. In this role, Ive had to think more holistically about where the business is going. 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. I don't think that will end anytime soon. Arougheti:I think, for traditional private equity for many it likely will be. Three. 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. 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. 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. Picker: What about on the supply side of the equation? We had explored the roller coaster of emotions and urgent steps induced by the COVID-19 pandemic. We're not having that experience. See above for full video.). And call on him, I did often. Chart Data in Insider Trading History Table. 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