LOS ANGELES & NEW YORK—July 31, 2013—Ares Management LLC and Alleghany
Corporation (NYSE-Y) announced today a new strategic partnership. Alleghany
invested $250 million for a 6.25% equity ownership interest in Ares, which is privately
held, and also committed to invest up to $1 billion of capital in various existing and new
Ares investment strategies.
Through its relationship with Ares, Alleghany seeks both to participate in Ares’ strong
business prospects and to enhance the returns of its committed capital through Ares’
alternative asset expertise. The $250 million investment will be used by Ares as
sponsor capital in its investment vehicles, which aim to deliver compelling risk-adjusted
returns for investors through differentiated investment strategies.
“We believe this strategic transaction with Alleghany, a highly regarded, well-run
company with expertise in specialty insurance, asset management and opportunistic
equity investing, will greatly benefit our entire platform,” said Tony Ressler, Senior
Partner and Chairman of the Executive Committee of Ares Management. “We are
thrilled to have Alleghany join the Abu Dhabi Investment Authority as a strategic
investor to meet the diverse needs of our blue chip investor base across more than 100
vehicles. In working closely with Alleghany’s leadership team, we recognized how
similar our corporate cultures are, which further confirmed the enormous potential of this
“Ares has over 15 years of experience making successful credit-focused investments
across asset classes,” commented Weston Hicks, President and Chief Executive Officer
of Alleghany Corporation. “The Ares senior management team has built an impressive
business and we believe the firm has excellent long-term prospects. We are excited
about the opportunity to work closely with Ares to enhance Alleghany’s fixed income
investment returns, while helping Ares expand its presence in the insurance industry. In
addition, we believe our two organizations will be well-positioned to serve the
converging reinsurance and capital markets.”
In connection with this transaction, J.P. Morgan Securities and Bank of America Merrill
Lynch provided financial advisory services and Proskauer Rose LLP provided legal
representation for Ares Management. Morgan Stanley provided financial advisory
services, and Willkie Farr & Gallagher LLP provided legal representation for Alleghany.
About Ares Management LLC
Ares Management LLC is a global alternative asset manager and SEC registered
investment adviser with approximately $66 billion of committed capital under
management and approximately 700 employees as of July 1, 2013. Ares is headquartered
in Los Angeles with professionals located across the United States,
Europe and Asia and invests across the capital structure – from senior debt to common
equity. Ares’ investment activities are managed by dedicated teams in its Capital
Markets, Private Debt, Private Equity and Real Estate investment platforms. Ares
Management was built upon the fundamental principle that each platform benefits from
being part of the greater whole. This multi-asset class synergy provides its professionals
with insights into industry trends, access to significant deal flow and the ability to assess
For additional information, visit www.aresmgmt.com.
About Alleghany Corporation
Alleghany Corporation (NYSE-Y) creates value through owning and managing operating
subsidiaries and investments, anchored by a core position in property and casualty
reinsurance and insurance. Alleghany’s property and casualty subsidiaries include:
Transatlantic Holdings, Inc., a leading global reinsurer; RSUI Group, Inc., a national
underwriter of property and liability specialty insurance coverages; Capitol
Transamerica Corporation, an underwriter of small commercial property, casualty and
surety insurance coverages; and Pacific Compensation Corporation, an underwriter of
workers’ compensation insurance primarily in California.
For additional information, visit www.alleghany.com.
Jeff Majtyka/Mike Smargiassi
Brainerd Communicators, Inc.