Ares Management Corporation (NYSE: ARES), Sumitomo Mitsui Financial Group, and Sumitomo Mitsui Banking Corporation (collectively SMBC Group) announced a strategic agreement to collaborate on future business opportunities. As part of this agreement, SMBC will make a $384 million equity investment in the publicly traded shares of Class A common stock of Ares.

Ares Management Corporation in Japan

SMBC Group is one of the largest financial institutions headquartered in Japan. Through the subsidiaries and affiliates, SMBC Group offers a diverse range of financial services. These services include commercial banking, leasing, securities, credit card, consumer finance, and other services.

Meanwhile, Ares Management Corporation is a leading global alternative investment manager operating three integrated businesses across credit, private equity, and real estate

Under the terms of the agreement, SMBC Group will market Ares Management investment products to its clients in Japan. SMBC will also utilize its capital to make attractive investments that will support the launch of certain new businesses. It also aims to accelerate the advancement of certain existing platforms across Ares with a particular focus on the private credit markets.

SMBC will also purchase 12.1 million shares of Class A common stock at a price per share of $31.64. They will own 4.9% of Ares Management when the deal closes. Insiders at ARES including the co-founders, executive and other employees will own 61%.

Finally, Ares intends to use the capital to invest in opportunities in its existing strategic growth initiatives. These opportunities include additional growth capital for its insurance initiative, Aspida Financial, rolling out the aforementioned new investment products in the Japanese market in partnership with SMBC Group, and taking advantage of opportunities presented by the current market dislocation.

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