What is Michael J. Arougheti's net worth? Ares Management co-founder and CEO Michael. 2023 CNBC LLC. 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 one small company is building them for the Pentagon! 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. TE Michael Mayer says he wants to win a Super Bowl with the Bengals. 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. Just life family. And so we're also seeing increasing demand for things like real assets and private equity. Arougheti: So this is - we're talking about the US specifically. The Big Take is the very best of Bloomberg's in-depth, original reporting from around the globe every day. President of Ares at the time, he stood alone, observing the partygoers, content being a fly on the wall. Trusted information source for millions of people worldwide . I think Ive become a more patient leader. And that's obviously pretty attractive to an investor who's looking for certainty of yield. what I remember from interviewing Michael on a panel years ago is his razor sharp intelligence! If the market is healthy, you can pivot to some of the more regular-way buyout and credit investing. People, of deep convictions. I remember clearly, the many times I pushed him to have the company he led, Ares Management, to support Operation HOPE, but the timing back then was not right. Director, Co-Founder, Chief Executive Officer and President of Ares. What makes us and any organization special is culture. (Clickhereto subscribe to the Delivering Alpha newsletter.). 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. 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. Arougheti: Yes, and no. If the only thing you know about sports is who wins and who loses, you are missing the highest stakes action of all. Sign up for free newsletters and get more CNBC delivered to your inbox. 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. Picker: So how would you characterize the credit quality within your portfolio right now? Musk Made a Mess at Twitter. The New York Times Reports: "No existing defense can stop it." This chart shows Michael J Arougheti's buying and selling at Ares Management by year and by quarter. 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. 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. 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. Arougheti: Yes and no. So Michael and his super talented author,wife Nelly (Bly) decided to do it personally, themselves. And then surprisingly, when the private markets slow, you usually see public markets challenged as well. He served two terms as Mayor of Atlanta, one of the fastest growing cities in the world. "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." Picker: Are you surprised by that? Join the conversation with your own take on these topics in the comments below. But they did it. 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. But all of our leaders learned to support their people by opening their own lives up to them. And that's pretty attractive to most investors right now. So if you look at our $340 billion of assets, over $90 billion of it is unvested. It operates through the following segments: Credit Group, Private Equity Group and Real Estate Group. It makes him no less potent, to which Aress rapid global expansion of late is a testament. Mr. Arougheti also is a member of the Ares Credit Group's U.S. Thats whether youre talking about the corporate economy or the consumer economy. Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. He tipped the scale of HOPE for me, on several occasions. We're not having that experience. This net worth estimate does not reflect any other investments that Mr. Arougheti may own. 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. We have pools of capital that are designed to provide liquidity where other means of liquidity are not working. Thats true for the consumer as well you have a sizable segment of the population that is doing OK, and you have a segment of the population that, unfortunately, is being devastated. A dream planted, but not much more. It additionally provides investors access to directly originated fixed and floating rate credit assets and the ability to capitalize on illiquidity premiums across the credit spectrum. It was designed by Domo Architecture + Design and includes a guest house, cabana and pool. Three. 2023 CNBC LLC. Picker:As you think about the inflationary environment, in particular, and in planning for your own business in conversations with LPs, what's your take for how long we will be in a current situation like we're in right now? They did this three times. The shares were sold at an average price of $85.02, for a transaction totalling $253,614.66. Direct Lending and Pathfinder Investment Committees, the Ares Equity Income Opportunity Strategy Portfolio Review Committee and the Ares Sports, Media and Entertainment Investment Committee. is a very unique organization, in part given its steady, consistent rise, and focus on credit. Michael's mailing address filed with the SEC is 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES, CA, 90067. Moulds, Michael 12/27/1949 2/13/2023 Pierson, Michigan. 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. Following the completion of the sale, the chief executive officer now directly owns 470,138 shares of the company's stock, valued at $39,971,132.76. So if you look at the positioning of most portfolios, they were, if not fully invested in moving towards full investment, and enjoyed great performance in 2021. |, They did it, because thats simply who they are, Operation HOPE, U.S. Small Business Administration and U.S. Treasury Host Roundtable to Celebrate Freedmans Bank. The investment management firm has about $325 billion of assets under management, according to its website. Last month, Reed Smith attorney Constantine Karides paid $17.3 million for a waterfront home on Sunset Island I. So when the markets get challenged, that's when our investment opportunity becomes the most attractive. And they have done it for far too many other organizations to name. Inflation, a hawkish Fed and fears of a recession have all made 2022 a tough environment for investing. 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. Get this delivered to your inbox, and more info about our products and services. He is a member of the Ares Executive Management Committee and the firm's. What I've been pleased with is in our portfolios, inflation is present, it has shifted from cost of goods to cost of labor, at least in our US portfolios, but the margins are still at or near all time highs. Ares Management LP said Dec. 18 that Michael J Arougheti, co-founder and president, was named CEO effective Jan. 1, replacing Tony Ressler who will continue as executive chairman. 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. For the last almost 10 years, it seems like almost every market has been correlated and performing well. 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. There are 6 executives at Ares Management Corp getting paid more, with David B. Kaplan having the highest compensation of $54,974,317. Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. One of the reasons is we're one of the largest private credit managers 90% of our private credit exposures are floating rate. Credit is crowded PE firms including the Blackstone Group (NYSE: BX), KKR, the Carlyle Group (Nasdaq: CG) and Apollo (NYSE: APO) have all grown their credit business substantially . hopefully Ares can be big but also keep it real. Ressler, an Ares . 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. Picker: And you are not, is this typical for you? So that in and of itself is not surprising. 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. Ares Management Corp. is engaged in providing investment management and consultancy services. This button displays the currently selected search type. Picker: What about on the supply side of the equation? 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? Learn More on Michael J. Arougheti's trading history. So, the places where you would be seeing the most distress, we just dont have that much of it. Theres a conversation I had with a very close friend that still sticks with me. So we have a ways to go. 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. Welcome toHuman Capital, an open exploration of the ideas and people moving financial services forward. So you know, each cycle is different. A Division of NBCUniversal. And we've been pretty vocal that again, if all we do is sit on our existing exposures, we can see core earnings growing, you know, in the double digit range just because of the rise in base rates. Thats the good news and the bad news. Aroughetis Vandelay Homes II LLC financed the purchase with a $21.1 million loan from J.P. Morgan, according to records. So, you have to lead in a new way. I think that, for those of us who embraced it, it created a level of trust, of empathy, of relatability. 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. 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. Its a pretty unique set of circumstances. 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. And I also think that some of the large public platforms similarly continue to raise money. Michael Arougheti Mr. Arougheti is a Co-Founder of Ares and has served as a Director and the President of Ares Management since 2014. 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. The most active insiders traders include Michael J Arougheti, Antony P Ressler, and Bennett Rosenthal. From there, its really going to be a function of what incremental fiscal and monetary stimulus exists. They did it, because thats simply who they are. 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. But, he said as we were about to hang up, I dont ever want to take credit for the efforts and successes of others.. 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. Learn More on Ares Management's active insiders. When you look at the economy, its a tale of two cities. 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 . Michael B. Jordan attends the Hollywood Walk Of Fame Star Ceremony honoring Michael B. Jordan on March 1, 2023, in Hollywood, California. The records show the division opened a case on Dec. 8, 2022, to investigate threats and allegations of child abuse by Michael Haight. 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. And our family has been enriched, spiritually and emotionally, from that bond, the most. When youre going through this amount of uncertainty, what I found served us well from the first day back in March 2020 was the value of over-communicating and, in many instances, saying that you didnt know. So I've been encouraged by that from an activity and deployment level. 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. Id like to think that Ive become more strategic in my thinking, as opposed to just tactical around parts of the business. 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. Ares Management Corporation is a leading global alternative investment manager operating three integrated businesses across Credit, Private Equity and Real Estate. Create a free family tree for yourself or for Michael Arougheti and we'll search for valuable new . 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. That is probably the single biggest challenge that we will face as the company continues to grow and expand. Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. We had examined his road map for the year ahead. So there are a lot of structural competitive advantages that we have as an alt manager, one of the largest is just the structure of our funds. Kudos to Ares. Michael J. Arougheti serves as President, Chief Executive Officer, Co-Founder, Director of the Company. Love and authenticity tends to have that effect on people. 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 . The case was due on Jan. 7, meaning the division had to . 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. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Ares Management, however, has been a beneficiary of the current environment. The move comes as Ares business becomes more complex and larger with $106bn assets under management in real estate, private equity and . 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. 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. 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. In the last twelve months, Ares Management insiders bought shares 20 times. Mr. Arougheti also is a member of the Ares Credit Groups U.S. I think many managers got accustomed to very quick fundraisers and I think they got accustomed to fundraisers happening prior to return of money. by John Hope Bryant | Feb 28, 2022 | Bryant on Leaders and Leadership, John Hope Bryant Authored, Operation HOPE. Sometimes all you can do is throw them a life jacket and say swim as hard as you can !. The company was founded by Michael J. Arougheti, David B. Kaplan, John H. Kissick, Antony P. Ressler, and Bennett Rosent. 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. 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 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. And then the friendship came. It's somewhat counter cyclical. 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. What it really highlighted for me was the importance of being flexible. 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 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. Mr. Arougheti also is a member of the Ares Credit Group's U.S. Data is a real-time snapshot *Data is delayed at least 15 minutes. 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. Michael Arougheti:I think we have to talk about secular tailwinds in alternatives, and then maybe some of the cyclical tailwinds that we're seeing as well. (Patrick T. Fallon/Getty Images) 'Nobody is really prepared':. So we have some publicly traded credit companies, ARCC, ACRE, that largely manage floating rate assets. 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. 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. 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. Will His AI Plans Be Any Different? And I think that's true for the publicly traded markets as well. 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. Leslie Picker:How long do you think these tailwinds for your business will last?