NYSE-listed investment manager Ares Management Corporation said it has agreed to acquire Singapore-based private equity firm Crescent Point Capital (CPC).
The transaction consideration will be primarily comprised of Ares Class A common shares subject to a multi-year lock-up, the US-based firm said. The deal is expected to close in the third quarter of 2023.
Headquartered in Singapore with a presence in China, Indonesia, the Philippines and Vietnam, CPC had approximately $3.8 billion of assets under management as of March 31, 2023.
CPC invests in private companies across Southeast Asia and China. Its portfolio includes Chinese healthcare firm Jianke, consumer food producer Axelum Resources in the Philippines, Vietnam-based kid entertainment platform N Kid and Asian online travel platform Wego, among others.
It has exited businesses such as AirAsia, e-commerce company Baozun, shopping and commercial centre Ngee Ann City, and a couple of hospitality projects in Vietnam, according to the firm’s website.
“CPC is expected to benefit from the advantages of Ares’ scaled global platform and network, including its 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,” Ares said in its statement.
Ares is active in Asia Pacific across the credit, private equity, real estate and infrastructure asset classes. The proposed acquisition of CPC comes three years after the $360-billion asset manager acquired a majority stake in SSG Capital Holdings Limited to form Ares SSG, which was then rebranded as Ares Asia.
Edwin Wong, the founder of SSG Capital, now serves as head of Ares Asia.
Earlier in March this year, Ares joined hands with Mubadala Investment Company to establish a credit secondaries platform with an initial $1-billion seeding.
More global players have increased their Asia Pacific presence through acquisitions of managers in this region. Last October, Swedish private equity group EQT completed the combination with Hong Kong-based Baring Private Equity Asia (BPEA) in a reported €6.8 billion deal. CVC Capital Partners also acquired Malaysia’s Affin Hwang Asset Management Berhad earlier in 2022.
In 2021, Texas-headquartered TPG took a majority interest in Asian secondary specialist NewQuest Capital Partners, while in 2017, Blackstone bought a minority stake in Hong Kong-based PAG Asia.