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. A key support beam. 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. Recent buyers of multimillion-dollar homes in South Florida, including Miami Beach and Palm Beach, have been able to flip their properties for big profits due to heightened demand. And Michael Arougheti, was all of that. The investment management firm has about $325 billion of assets under management, according to its website. Dismiss. The business owners that power this multibillion dollar industry are changing, and a new era of the business of sports is underway. You dont hear people talking about asset-management firms in that light. Despite that, that issue and I think that's a reflection of, of a consolidation of LP dollars with fewer GPS. How do you preserve that at scale? Back to the comment I made about the crisis accelerating trends already in place, we had already been deep into our journey around ESG and diversity, equity, and inclusion. 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. With hundreds of billions of dollars' worth of floating rate credit and real assets, the firm's book has surprisingly held up well. 1635 West 22nd Street (Michael Ruiz with LPG). Whenever I called on Michael, he was there. 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. 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. And then there are big parts of our business that are investing in health care and technology and single-family residential and all of the things that are doing well. And thats required if you want to see change happen and you want to see it happen quickly and sustainably. This chart shows Michael J Arougheti's buying and selling at Ares Management by year and by quarter. So that in and of itself is not surprising. When you get to a certain size as an organization, you have to appreciate that you inspire different people differently. All of the cultural initiatives that we were executing on accelerated. Yes, I did the work, and I did a great deal of the building, but everything has a start. This Supreme Court Case Could Redefine Crime, YellowstoneBackers Wanted to Cash OutThen the Streaming Bubble Burst, How Countries Leading on Early Years of Child Care Get It Right, Female Execs Are Exhausted, Frustrated and Heading for the Exits, More Iranian Schoolgirls Sickened in Suspected Poisoning Wave, No Major Offer Expected on Childcare in UK Budget, Oil Investors Get $128 Billion Handout as Doubts Grow About Fossil Fuels, Climate Change Is Launching a MutantSeed Space Race, This Former Factory Is Now New Taipeis Edgiest Project, What Do You Want to See in a Covid Memorial? 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. Thats not how leadership is classically trained. Mr. Arougheti received an undergraduate degree from Yale University. In addition, he makes $12,665,700 as President, Chief Executive Officer, Co-Founder, and Director at Ares Management Corp. Michael has made over 55 trades of the Ares Management Corp stock since 2008, according to the Form 4 filled with the SEC. A Division of NBCUniversal. Mr. Arougheti received a B.A. Ares Management's insider roster includes Michael Arougheti (CEO), Antoinette Bush (Director), R. Deveer (Insider), David Kaplan (Insider), Michael McFerran (CFO), Antony Ressler (Chairman), Bennett Rosenthal (Insider), and Aghili Sagati (General Counsel). 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. 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. Michael J. Arougheti has not been actively trading shares of Ares Management during the past quarter. And thanks to that early vote of confidence, and the early stage founding capital from Michael Arougheti and Tony Ressler in early 2017, last late last year, in December, 2021, the company itself standing on its own now secured its own $200 million credit facility: Now reportedly the largest capital raise for a Black owned company in a decade, according to Black Enterprise. When you talk about belonging, youre talking about being able to bring your authentic self to work. Michael Arougheti is co-founder, chief executive officer and president, as well as a director of Ares Management Corp. 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. "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: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. In each edition, we feature a leader or rising star whos changing the game in his or her own way. Michael's personal network of family, friends, associates & neighbors include Elinor Bly, Joel Arougheti, Jeanne Arougheti, Paul Arougheti and Florence Stepper. Explore historical records and family tree profiles about Michael Arougheti on MyHeritage, the world's family history network. Separate. 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. There are no ways to adequately describe a man with conviction. 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. 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. 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. And if so, do you think that the markets are already pricing that in? Ares Management CEO Michael Arougheti breaks down where to find yield in a world of uncertainty DA on CNBCEvents.com Sponsors Previous Years Delivering Alpha Ares Management CEO Michael. Miami-based House of One designed the interiors. Learn More about insider trades at Ares Management. The move comes as Ares business becomes more complex and larger with $106bn assets under management in real estate, private equity and . There are 6 executives at Ares Management Corp getting paid more, with David B. Kaplan having the highest compensation of $54,974,317. But there are echoes of the past. I think that's a reflection of the nature of our business. Certainly, Michael and Nelly would never say an external word. When expanded it provides a list of search options that will switch the search inputs to match the current selection. 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. It required thinking a lot more holistically. Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. Whats unique about where we are now is I cant remember a cycle where weve had such a balance in healthy-company opportunity and distressed opportunity. They sold a total of 6,394,959 shares worth more than $255,128,106.92. Ares Management co-founders Tony Ressler and Michael Arougheti provided founding investments and served on the company's investment committee until last year. Learn More on Michael J. Arougheti's contact information. TE Michael Mayer says he wants to win a Super Bowl with the Bengals. Join the conversation with your own take on these topics in the comments below. 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. A sponsor. 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. But today, as we sit here, there's a particularly interesting set of crosscurrents, that's now starting to see a divergence of opportunity around the globe. Arougheti:Yeah, we're already seeing the pipeline start to build into the end of the year. Ares Management, however, has been a beneficiary of the current environment. We have pools of capital that are designed to provide liquidity where other means of liquidity are not working. Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. Aroughetis Vandelay Homes II LLC financed the purchase with a $21.1 million loan from J.P. Morgan, according to records. Mr. Arougheti also is a member of the Ares Credit Group's U.S. Whitepages people search is the most trusted directory. And then surprisingly, when the private markets slow, you usually see public markets challenged as well. The case was due on Jan. 7, meaning the division had to . So if you say, cost of goods, inflation, that had an impact on retail, hospitality, consumer facing businesses, as you now shift, and you see easing in that now, maybe you're seeing some pressure on service oriented businesses, you know, that are either facing off with a consumer or trying to navigate a tightening labor market. It was designed by Domo Architecture + Design and includes a guest house, cabana and pool. Mr. Arougheti is a Co-Founder of Ares and the Chief Executive Officer and President, as well as a Director of Ares Management Corporation. 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. Ressler, an Ares . Marko Gojanovic of One Sothebys International Realty represented the Frankels in the latest sale, and Reid Heidenry with the same firm represented Arougheti. 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. 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's global platform had $149 billion of assets under management as of March 31, 2020 with more than 1,200 employees in over 20 offices in more than 10 countries. They purchased a total of 8,706,492 shares worth more than $85,604,376.84. Typically when you go through a crisis of this magnitude, its a little slower to recover in terms of the new-deal market, and it tends to be much more distressed. So, you have to lead in a new way. 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. If the only thing you know about sports is who wins and who loses, you are missing the highest stakes action of all. He serves on the Ares Exe Read More Contact Michael Arougheti's Phone Number and Email Last Update 11/21/2022 1:55 PM Email 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. USD. He tipped the scale of HOPE for me, on several occasions. See above for full video.). Picker: And you are not, is this typical for you? Michael's mailing address filed with the SEC is 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES, CA, 90067. But today, I wanted to give just that credit. Thats when leadership is most rewarding. After catching up for an hour recently, tackling a slew of questions and meaty subjects, Mike Arougheti had a question for me. |, 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. One of the things that Ive said to my partners here is to think of Ares as a growth company in a growth industry. And it's hard to generalize about a market that's trillions of dollars deep and, and is global, I would say the following, private equity enjoyed a wonderful rebound coming out of COVID. 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. Picker: So that would imply that fundraising is a bit more challenging as well in PE? So that was the good news. Michael B. Jordan attends the Hollywood Walk Of Fame Star Ceremony honoring Michael B. Jordan on March 1, 2023, in Hollywood, California. Would you say that's coming back then? 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. Thats whether youre talking about the corporate economy or the consumer economy. The estimated net worth of Michael J Arougheti is at least $177 Million dollars as of 2023-02-12. Enter your email address below to get our daily insider buying and selling report. Trusted information source for millions of people worldwide . 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. Mr. Arougheti received a B.A. For me, as a leader, what it also highlighted was the importance of being transparent, empathetic, vulnerable. 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. Russia's war on Ukraine latest: Putin casts war as battle for nation's survival, India FM Jaishankar says Soros dangerous, debate needed on democracy, Buffett's Berkshire profit falls on investments, currencies, Bill Gates buys Heineken stake, despite saying he's 'not a big beer drinker', Elon Musk recruits team to develop OpenAI rival - The Information, Hedge fund manager Chris Hohn demands Airbus drop Atos deal - letter, Elon Musk's challenge: Stay ahead of the competition, ISS urges Apple shareholders to vote for CEO Tim Cook, other execs' pay packages, Elon Musk accuses media of racism after newspapers drop 'Dilbert' cartoon, French media billionaire Niel fails with bid for TNT television frequence - Arcom. The shares were sold at an average price of $85.02, for a transaction totalling $253,614.66. CNBC's Delivering Alpha newsletter 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. Id like to think that Ive become more strategic in my thinking, as opposed to just tactical around parts of the business. It makes him no less potent, to which Aress rapid global expansion of late is a testament. 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 our family has been enriched, spiritually and emotionally, from that bond, the most. So the way that we're approaching it is we're obviously looking for what we think is the best risk adjusted return globally. And without betraying their confidences, let me just say that what Michael and Nelly did for HOPE, and at the time they did it, was extraordinary. The largest trade he's ever made was exercising 666,667 units of Ares Management Corp stock on 4 December 2020 worth over $54,453,361. Get notified the next time Michael J. Arougheti buys or sells Ares Management stock. Most recently he sold 9,400 units of ARES stock worth $799,376 on 11 November 2022. Michael is not an obviously emotional person, to the outside world. It absolutely starts with the health crisis and the speed with which we get people inoculated. (Source: Bloomberg) Learn More about Michael J. Arougheti's net worth. 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. The estimated net worth of Michael J. Arougheti is at least $39.08 million as of November 10th, 2022. What I continue to learn every time I delegate and trust, every time we give somebody a part of the business to run and hold accountable for success, is it just turbocharges the growth here. 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. So there's a fundamentally different positioning when you manage private capital versus liquid capital. I'd subscribe to that podcast on a heartbeat, People will forget what you said, people will forget what you did, but people will never forget how you made them feel.. I think what we do well is we tend to avoid big mistakes. We had just dissected his three years as CEO of Ares Management, the publicly traded investment firm managing almost $200 billion in assets. The Sharpe Angle: Ares Management CEO Michael Arougheti says this macro environment is 'like something we haven't seen before', Don't bet that the bottom is in for what were high-growth tech firms, private equity investors say, Ken Griffins hedge fund Citadel is up again in 2023 following a record year, Third Point's Daniel Loeb takes a passive stake in AMD. Director, Co-Founder, Chief Executive Officer and President of Ares. A lot of people talk about this idea that crises accelerate trends that are already in place, and I agree with that. That was probably the biggest challenge for me in those early days, leveraging the things that we had built, but leading in a new way. But ultimately, the market is there, and the demand for the product is there. Michael Arougheti Mr. Arougheti is a Co-Founder of Ares and has served as a Director and the President of Ares Management since 2014. by John Hope Bryant | Feb 28, 2022 | Bryant on Leaders and Leadership, John Hope Bryant Authored, Operation HOPE. Ares Management, however, has been a beneficiary of the current environment. The most recent stock trade was executed by Antony P Ressler on 10 February 2023, trading 16,879 units of ARES stock currently worth $1,436,740. In this role, Ive had to think more holistically about where the business is going. He is a member of the Ares Executive Management Committee and the firms Management Committee. What makes us and any organization special is culture. Its accelerated, the participation is broader, and added to that is a heightened sense of urgency. So, how do we get out of crisis mode by getting people back into the office and driving the business forward? You can see the complete history of Mr. Arougheti stock trades at the bottom of the page. There are 13 older and 6 younger executives at Ares Management Corp. Musk Made a Mess at Twitter. 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. 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. And I think that's true for the publicly traded markets as well. Picker: Are you surprised by that? I think the good news is its very consistent with my own personal world view. Frankel is also a real estate investor and owner of wineries and restaurants. In the last twelve months, insiders at the asset manager sold shares 15 times. 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. 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. Jobs People Learning Dismiss Dismiss. Additionally, Mr. Arougheti is a member of the PATH Organization Leadership Council. -0.38 -0.45%. This net worth estimate does not reflect any other investments that Mr. Arougheti may own. Arougheti: Yes, and no. . Picker: As you digest all of that, do you think it's possible to avoid a hard landing? A dream planted, but not much more. Mr. Arougheti owns 470,138 shares of Ares Management stock worth more than $39,077,871 as of March 4th. A Division of NBCUniversal. When expanded it provides a list of search options that will switch the search inputs to match the current selection. That comes with a broader view into different parts of the world and different parts of the organization. So we have some publicly traded credit companies, ARCC, ACRE, that largely manage floating rate assets. 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. Aroughetis noting of the importance of being transparent, empathetic, vulnerable is telling and admitting that many of us coming through the finance track are not classically trained in emotional intelligence. Mr. Arougheti also is a member of the Ares Credit Group's U.S. 84 Likes, 1 Comments - Michael Hollick (@mikehollick) on Instagram: "What an awesome week and celebration for my dads 70th So awesome to spend time with our family"