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Ares Management Corp., represented by Latham & Watkins LLP, announced Tuesday that it has agreed to acquire GCP International, a global alternative asset management firm, in a cash and stock transaction valued at $3.7 billion. The acquisition will significantly expand Ares' real estate platform, doubling its assets under management in the sector to $96 billion.

GCP, which has $44 billion in assets under management as of June 30, specializes in managing industrial, data center, and self-storage assets. It is the international arm of GLP Capital Partners Ltd. and its affiliates, though the deal notably excludes GCP's China operations.

Ares to acquire GCP : Financial Structure and Strategic Goals

The transaction will involve Ares paying approximately $1.8 billion in cash and issuing $1.9 billion in Ares Class A common shares. The deal is expected to close in the first half of 2025, pending regulatory approvals and customary adjustments.

"We have long admired the global real estate experience of GCP and its capabilities in facilitating the economy of the future, which includes investing in and managing industrial, data center and self-storage assets," said Michael Arougheti, CEO and president of Ares, in a statement. "This acquisition aligns with our strategy to create a powerhouse in global real assets investing."

Once finalized, the transaction will position Ares as one of the largest vertically integrated platforms in real estate, with assets spanning North America, Europe, Asia, and Latin America.

GCP’s Global Presence and Investment Focus

GCP International’s portfolio includes over 320 million square feet of industrial properties across key markets, including the U.S., Europe, Japan, Brazil, and Vietnam. The firm focuses on long-term secular trends, particularly in industrial, digital infrastructure, and self-storage sectors.

Michael Steele, president of GCP, emphasized that the deal represents a meeting of shared values. "In Ares, we have found a partner that shares our philosophy and entrepreneurial culture. We look forward to integrating with the Ares team and scaling our combined platform for the benefit of all stakeholders," Steele said.

Ares to acquire GCP : Financial and Legal Advisors

Ares has secured committed bridge financing from Morgan Stanley Senior Funding Inc. and Citigroup Global Markets Inc. for the transaction. The firm’s financial advisors include Eastdil Secured, Barclays, Goldman Sachs & Co., and Wells Fargo Securities.

GCP was advised by Kirkland & Ellis LLP, with financial counsel from Citigroup, Morgan Stanley & Co., Greenhill, UOB Group, and Deutsche Bank. The legal team at Latham & Watkins, representing Ares, includes a broad roster of partners across multiple practice areas, such as asset management M&A and real estate.

Ares’ Expanding Asset Management Platform

With more than $447 billion in assets under management as of June 30, Ares Management has a diverse investment portfolio across credit, private equity, infrastructure, and real estate. The acquisition of GCP strengthens Ares' position in the real estate market, further diversifying its investment offerings and expanding its global reach.