The deal also includes an additional earn-out provision of up to US$1.5 billion if certain performance goals are met, GLP said. The upfront cash proceeds would help it reduce liabilities and strengthen the group’s balance sheet, it added.
Ares Management agreed to acquire GLP Capital Partners’ operations outside of China for up to US$5.2 billion ($6.78 billion), in one of the biggest recent combinations in the alternative asset management industry.
Ares will initially pay about US$3.7 billion for GCP’s fund management business in Japan, the US, Europe, Brazil and Vietnam, according to a statement from GLP on Tuesday, which confirmed an earlier Bloomberg News report. Of that amount, Ares will pay about US$1.8 billion in cash and about US$1.9 billion in Class A common shares, the US-based firm said in a separate statement.
