Dismiss. Learn More about Michael J. Arougheti's net worth. It operates through the following segments: Credit Group, Private Equity Group and Real Estate Group. While Ares is mostly credit focused, they have built a brand that seems more venerable than many credit shops before them. With hundreds of billions of dollars worth of floating rate credit and real assets, the firm's $200B book has surprisingly held up well. What does that mean for margins and kind of the stickiness of these high prices? what I remember from interviewing Michael on a panel years ago is his razor sharp intelligence! 2023 CNBC LLC. SAN LORENZO, Calif. - Michael "Mike" Simon, 61, passed away peacefully on Feb. 23, 2023 with family by his side, after a year-long fight with brain cancer. When you get to a certain size as an organization, you have to appreciate that you inspire different people differently. In the last twelve months, insiders at the asset manager sold shares 15 times. Treating me, like I was his own. And if so, do you think that the markets are already pricing that in? So, Ares, I think we've been fortunate that we're outperforming not just the public asset management peers, but the markets generally. That happens when you surround yourself with the best people, trust them, and lead alongside them neither from the front nor the back. But ultimately, the market is there, and the demand for the product is there. Mr. Arougheti received a B.A. Sign up for free newsletters and get more CNBC delivered to your inbox. Inflation, a hawkish Fed and fears of a recession have all made 2022 a tough environment for investing. So there's a lot to digest. 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 corporate mailing address for Mr. Arougheti and other Ares Management executives is 2000 AVE OF THE STARS 12TH FLOOR, LOS ANGELES CA, 90067. This button displays the currently selected search type. Ares Management Corporation is a leading global alternative investment manager operating three integrated businesses across Credit, Private Equity and Real Estate. Some people struggled figuring out how to be in that environment. Moulds, Michael 12/27/1949 2/13/2023 Pierson, Michigan. Learn More about insider trades at Ares Management. Last updated: 2 February 2023 at 9:52pm EST. So when the markets get challenged, that's when our investment opportunity becomes the most attractive. But, he said as we were about to hang up, I dont ever want to take credit for the efforts and successes of others.. A sponsor. Will His AI Plans Be Any Different? To experiment. 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. Create a free family tree for yourself or for Michael Arougheti and we'll search for valuable new . Ares Management Corp. is engaged in providing investment management and consultancy services. He served two terms as Mayor of Atlanta, one of the fastest growing cities in the world. Mr. Arougheti received a B.A. 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. All of the cultural initiatives that we were executing on accelerated. So we're giving a little bit back in the private flow. Ryan Berry will become chief marketing and strategy officer. Thats not how leadership is classically trained. A Division of NBCUniversal. 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. Such is the man the world refers to as Michael Arougheti. 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. All that being said, you also have to be measured in the way that you deploy through a cycle. We have pools of capital that are designed to provide liquidity where other means of liquidity are not working. And he did. He tipped the scale of HOPE for me, on several occasions. It's somewhat counter cyclical. And to oversimplify what's a complex series of global flows, it really comes down to a global desire for durable yield. What makes our culture special is that its deeply rooted in partnership, in entrepreneurialism, in growth mindset. |, 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. Also in April, investor and Anatomy Fitness owner Chris Paciello flipped a waterfront teardown on Sunset Island I for a 50 percent gain in one month. Ares Management co-founders Tony Ressler and Michael Arougheti provided founding investments and served on the company's investment committee until last year. , thanks for sharing these insights with top executives - super useful. Together, we built The Promise Homes Company into the largest Black controlled owner of singles family residential rental homes in the country, with $150 million in assets. 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. 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. This chart shows Michael J Arougheti's buying and selling at Ares Management by year and by quarter. So Michael and his super talented author,wife Nelly (Bly) decided to do it personally, themselves. 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. Got a confidential news tip? Mr. Arougheti owns 470,138 shares of Ares Management stock worth more than $39,200,106 as of February 9th. Mr. Arougheti also is a member of the Ares Credit Group's U.S. 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. So, the places where you would be seeing the most distress, we just dont have that much of it. Thank you!! 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. So I think with private equity specifically, and I wouldn't say the same right now for private credit, and real assets, there's a little bit of a rebalancing that needs to take place just because we're not seeing as many exits. And when Michael Arougheti committed, that gave license to Tony Ressler, his co-founder at Ares Management, that he could do the same. Mayer is widely considered among the best available at his position. 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. The most recent insider tranaction occured on February, 15th when Director Corporate Opportunities F Ares sold 4,770,000 shares worth more than $124,306,200.00. For me. 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. And then he met with me weekly, for close to four years, making himself fully available to my dream, treating it like it was his own. And that's pretty attractive to most investors right now. 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 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. A traditional portfolio of stocks and bonds is deeply in the red, leaving investors to seek diversity elsewhere. My experience would tell you that that's usually a six to 12 month process, that has to take into account a shared view of what the economy is going to look like, and take into account what the new financing markets look like. From there, its really going to be a function of what incremental fiscal and monetary stimulus exists. Over the next several years, I covered Aress IPO, its deals, and Aroughetis ascension to CEO in 2018. Mr. Arougheti also is a member of the Ares Credit Group's U.S. The estimated net worth of Michael J Arougheti is at least $177 Million dollars as of 2023-02-12. A key support beam. Its been such an interesting year because in so many ways, it was probably one of the most challenging of my career. I think Ive become a more patient leader. When you think of yourself as a growth company, you manage yourself differently from a cultural and operational standpoint. 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. CNBC's Leslie Picker 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. When expanded it provides a list of search options that will switch the search inputs to match the current selection. He bought the property for $9.3 million and sold it to the next door neighbor for $14 million. And that's obviously pretty attractive to an investor who's looking for certainty of yield. He was elected Congressman three times and is a leading figure in the civil rights movement. Mr. Arougheti also is a member of the Ares Credit Group's U.S. 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. Additionally, Mr. Arougheti is a member of the PATH Organization Leadership Council. 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. Three. Dismiss. So I don't want to say that that's good. "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." 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. This button displays the currently selected search type. Mr. Arougheti received an undergraduate degree from Yale University. A lot of people look to their leadership to say, heres where were going and I know that for the following reasons. We want to hear from you. What is Michael J. Arougheti's net worth? How do you preserve that at scale? Among leaders of the major alternative-asset managers think Blackstone, Apollo, Carlyle, KKR Arougheti is the understated, cerebral CEO. So we have some publicly traded credit companies, ARCC, ACRE, that largely manage floating rate assets. Inflation, a hawkish Fed, fears of a recession have all made 2022 a tough environment for investing. But every time I speak with my friend Tony Ressler, I also feel and see the heart of Michael Arougheti, because Michael introduced me to Tony. Whats been rewarding for me is that we have spent so much time over the years building culture here around our core attributes of collaboration and social responsibility and entrepreneurialism. And I think now we're back to kind of what it used to be, which is to invest my money well, return it, and it could take 12 to 18 months. 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. The Frankels paid $14.4 million for the spec Miami Beach mansion in August 2020, and just sold it at a 120 percent markup. Whenever I called on Michael, he was there. Randy Frankel, a former managing director at Goldman Sachs, and his Wall Street partners acquired the baseball team the Tampa Bay Rays in 2004. Ares Management's investment groups collaborate to deliver innovative investment solutions and consistent and attractive investment returns for fund investors throughout market cycles. Currently, Mr. Arougheti is Co-Chairman of Ares Acquisition Corp., President, Chief Executive Officer & Director at Ares Management Corp., Co-Chairman & Executive Vice President at Ares Capital Corp., Director, CEO & President at Ares Management LLC, President, Chief Executive Officer & Director at Ares Management GP LLC and Co-Chairman and Executive Vice President at Ares Management Corp (Private Equity) (which are all subsidiaries of Ares Management Corp.) and Senior Advisor at Volery Capital Partners LLC. 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. 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. 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. [BREAKING] New "Living Missile" to Replace Nuclear Missiles. And then it will, it will pick back up again. Last month, Reed Smith attorney Constantine Karides paid $17.3 million for a waterfront home on Sunset Island I. Additionally, Mr. Arougheti is a member of the PATH Organization Leadership Council. But there are echoes of the past. I think the good news is its very consistent with my own personal world view. On average, Michael trades about 111,368 units every 78 days since 2006. Mehdi Bolour faces 25 criminal charges over illegally rented Hollywood building, Prince Harry, Meghan Markle asked to leave U.K. home, Real estate investor pleads guilty to stealing $3M, Massive unbuilt Arizona estate asks record $75M, Amazon hits brakes on construction of second headquarters. 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"). Ares, led by co-founder and CEO Michael Arougheti, is a global alternative investment manager with roughly $262 billion of assets under management, including its purchase of Black Creek Group. 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. 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. But most of our portfolio managers and investors are investing at a slower pace than they normally would as they wait to see how these markets develop. 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 oldest executive at Ares Management Corp is Paul Joubert, 72, who is the Independent Director. Ares Management Corporation (NYSE:NYSE:ARES) Q3 2021 Earnings Conference Call October 27, 2021 12:00 PM ETCompany ParticipantsCarl Drake - Head, Public Company, IRMichael Arougheti -. Arougheti: For us and others that look like us, it's been as good as we've seen in quite some time. Currently, Mr. Arougheti is Co-Chairman of Ares Acquisition Corp., President, Chief Executive Officer & Director at . Ares is no stranger to the single-family rental market; it joined Pretium Partners in a $2.4B joint-venture purchase of Front Yard Residential Corp. which closed in 2021. Aroughetis Vandelay Homes II LLC financed the purchase with a $21.1 million loan from J.P. Morgan, according to records. Sometimes all you can do is throw them a life jacket and say swim as hard as you can !. Helping me was certainly not his job, nor his calling or his role in life, but he never once made me feel like I was secondary to what was his primary. But all of our leaders learned to support their people by opening their own lives up to them. Direct Lending Investment Committee and the Ares Equity Income Opportunity Strategy Portfolio Review Committee. 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. 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. They purchased a total of 8,706,492 shares worth more than $85,604,376.84. 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. And Michael Arougheti, was all of that. 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. One of the reasons is we're one of the largest private credit managers 90% of our private credit exposures are floating rate. The Credit Group segment offers credit strategies across the liquid and illiquid spectrum, including syndicated bank loans, high yield bonds, credit opportunities, special situations, asset-backed investments and U.S. and European direct lending. I kind of laugh at that because culture and strategy go hand in hand. We're not having that experience. What makes us and any organization special is culture. UPDATED, May 10, 12:20 p.m.: Tampa Bay Rays co-owner Randy Frankel more than doubled his money with the sale of his waterfront Miami Beach mansion. Veritas $450M loan default: A sign of things to come? Join the conversation with your own take on these topics in the comments below. Because if our experience has taught us anything, things can change to the positive as quickly as they change to the negative. The good news is that if you look at corporate America, you have many companies that were indirectly COVID-impacted that have figured out how to navigate things and are now doing OK. And there are just certain companies in certain industries that are directly challenged and will have a harder go of it. 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. And, myself included, that can often be very hard to do you tend to create boundaries between your work self and your home self. And then surprisingly, when the private markets slow, you usually see public markets challenged as well. Great interview and loved the throwback articles - maybe put together a book? All of the things that we were embarking on around business development accelerated. There is a big difference between June and September in terms of a reopening and increased mobility. There are 6 executives at Ares Management Corp getting paid more, with David B. Kaplan having the highest compensation of $54,974,317. 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. It makes him no less potent, to which Aress rapid global expansion of late is a testament. Todd Michael Glaser and Rony Seikaly developed the Sunset Island IV mansion and sold it to the Frankels. Most recently, Michael J. Arougheti sold 2,983 shares of the business's stock in a transaction on Thursday, November 10th. Its accelerated, the participation is broader, and added to that is a heightened sense of urgency. For me. Learn More on Ares Management's active insiders. Certainly, Michael and Nelly would never say an external word. Such a comment is admirable, and reflects a more mindful leadership. The company was founded by Michael J. Arougheti, David B. Kaplan, John H. Kissick, Antony P. Ressler, and Bennett Rosent. A lot of people talk about this idea that crises accelerate trends that are already in place, and I agree with that. This net worth estimate does not reflect any other investments that Mr. Arougheti may own. Here are some of the teachers. 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. And kind. Arougheti: Well, this is like something we haven't seen before. Get this delivered to your inbox, and more info about our products and services. The second thing on my mind is that managing in crisis is different than managing status quo. You set a cultural agenda thats a little bit more willing to take risk and fail along the growth curve, as compared to a traditional, stodgy view of asset management. The estimated net worth of Michael J. Arougheti is at least $39.20 million as of November 10th, 2022. So, you have to lead in a new way. 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. 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. Michael and I met casually, but our bond as brothers and friends, early on, was anything but casual. 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. in Ethics, Politics and Economics, cum laude, from Yale University. I think that, for those of us who embraced it, it created a level of trust, of empathy, of relatability. This button displays the currently selected search type. When you talk about belonging, youre talking about being able to bring your authentic self to work. What Im hoping is that we can continue to have that mindset as we scale. Of having a willingness to try new things. Learn More about Michael J. Arougheti's net worth. (Patrick T. Fallon/Getty Images) 'Nobody is really prepared':. 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. All of those things came to bear immediately when we went into the crisis. I have worked with Ares over the years (and some of their predecessors), and invariably, the interactions have been very professional and thoughtful. Data is a real-time snapshot *Data is delayed at least 15 minutes. Kudos to Ares. Together, we built The Promise Homes Company into the largest Black controlled owner of singles family residential rental homes in the country, with $150 million in assets. Explore historical records and family tree profiles about Michael Arougheti on MyHeritage, the world's family history network. 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. That's not necessarily true for traditional 60/40 portfolios, when you have money, you have to express a view on what you think is the best opportunity in the market. Hes sort of a walking brain, and I am pretty sure he has a genius IQ. 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. A gentle soul and bright spirit left us on Feb. 13 when Michael "Mike" Moulds, age 73, of Pierson, Michigan, passed away unexpectedly. 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. 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. Trusted by millions of genealogists since 2003. Direct Lending and Pathfinder Investment Committees, the Ares Equity Income Opportunity Strategy Portfolio Review Committee and the Ares Sports, Media and Entertainment Investment Committee. Michael's mailing address filed with the SEC is 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES, CA, 90067. What it really highlighted for me was the importance of being flexible. In this role, Ive had to think more holistically about where the business is going. 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. Mr. Arougheti received a B.A. But the pandemic, as well as the events of the summer around the killing of George Floyd that gave us an opportunity, and an imperative, to double our investment in these initiatives. He is a member of the Ares Executive Management Committee and the firms Management Committee. 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. 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. For me, as a leader, what it also highlighted was the importance of being transparent, empathetic, vulnerable. Fortunately weve got enough stimulus that weve now kind of stabilized and bridged. 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. 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. Arougheti: It's slowing, anytime the market goes through this type of a transition or a reset, transaction volumes will naturally slow in the private market. Michael has a reported annual income of $100 - 149,999 and a current net worth value of greater than $250,000 - $499,999. Michael J. Arougheti has not been actively trading shares of Ares Management during the past quarter. If the market is healthy, you can pivot to some of the more regular-way buyout and credit investing. Ares Management co-founder and CEO Michael Arougheti bought the property, records show. And let me just say this it was meaningful. And when I launched my dream for The Promise Homes Company, there was Michael Arougheti once again, making the first real commitment to our start-up dream. Block by block amd piece by piece, we pulled the institutional fabric together that we now call The Promise Homes Company. And one small company is building them for the Pentagon! And the simple answer for that is buyers and sellers need to take time to re agree on what the appropriate price for a company or an asset are. And our family has been enriched, spiritually and emotionally, from that bond, the most. 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.