Ares to acquire Crescent Point Capital Private Equity News Asia Private Equity News Singapore

Ares to acquire Crescent Point Capital

Ares Management Corporation, a global alternative investment manager, has recently announced its plan to acquire Crescent Point Capital (CPC), a leading private equity firm with a focus on the Asia-Pacific region.

The deal is expected to close in the third quarter of 2023, subject to customary closing conditions, including regulatory approvals. The transaction will be primarily comprised of Ares class A common shares subject to a multiyear lockup, as reported by Financier Worldwide.

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Image credit :Photo by Joshua Ang on Unsplash

CPC invests in private companies across Southeast Asia and China, with a portfolio that includes Chinese healthcare firm Jianke, Philippine consumer food producer Axelum Resources, Vietnam-based children’s entertainment platform N Kid and Asian online travel platform Wego. The company has exited businesses such as AirAsia, e-commerce company Baozun, shopping and commercial centre Ngee Ann City and several hospitality projects in Vietnam, according to its website.

Ares, on the other hand, is active across the Asia-Pacific region in the credit, private equity, real estate and infrastructure asset classes. The company has established direct sourcing and investment capabilities. Ares Asia operates with approximately 165 professionals across a local footprint of nine offices in key Asia-Pacific markets.

“We are proud of the significant Asia Pacific presence that we have established over the years, and we believe that CPC is an excellent platform that will further enhance our footprint and capabilities in the region,” said Michael Arougheti, chief executive and president of Ares. “We have enjoyed the opportunity to develop a great relationship with the Crescent Point team. They are experienced investors who we believe will bring impactful synergies to our existing Asia team.”

As part of Ares, CPC is expected to benefit from the advantages of Ares’ scaled global platform and network, including Ares’ 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.

“We look forward to joining Ares and we firmly believe that this combination will help further catalyze the growth of our business,” said David Hand, managing partner of CPC. “As part of a leading global brand and scaled platform, we expect to realize several shared benefits that will support our ability to deliver attractive investment returns for our investors, including greater market intelligence and a broader set of local sponsor relationships.”

CPC, founded in 2003, has approximately 50 professionals. The team is headquartered in Singapore and has a presence in China, Indonesia, the Philippines and Vietnam. CPC pursues a PE strategy focused on investing in industry-leading consumer companies across the larger southeast Asia markets and China. Supported by a growing investor base over its nearly 20-year history, CPC has established a strong reputation and delivered attractive results investing through market cycles in its target sectors and geographies.

The private equity industry has taken a growing interest in the Asia-Pacific region in recent years. Other notable deals include Swedish private equity firm EQT’s completion of its combination with Hong Kong-based Baring Private Equity Asia in a reported $7.6bn deal in October 2022 and CVC Capital Partners’ acquisition of Malaysia’s Affin Hwang Asset Management in 2022.