Ares Management has named 45-year old Michael Arougheti as its new CEO as part of a reshuffle of its top team.
Fellow co-founder Tony Ressler will relinquish his role as CEO and become executive chairman with a focus on client relationships, marketing and the firm’s strategic direction.
Chief financial officer Michael McFerran will continue in his role and also take on the responsibility of chief operating officer, while Ryan Berry will become chief marketing and strategy officer, according to reports.
Ares has rapidly grown since it was founded in 1997 and now manages around $106 billion across its private equity, private credit and real estate divisions.
The changes are set to take place on 1 January 2018 and mirror major succession shake-ups seen in other alternatives assets houses including KKR, Apollo and Carlyle; though notably Ressler is only 57, while other firms have not managed succession until the original founders reached their 70s.
Arougheti joined Ares in 2004 from Royal Bank of Canada (RBC), where he spent four years as managing partner of the Principal Finance Group of RBC Capital Partners, and was a member of the firm’s mezzanine investment committee.
At RBC he oversaw a team that originated, managed and monitored a portfolio of mid-market loans, senior and junior subordinated debt.
At Ares he has been particularly active within its Credit Group, where he is a partner and serves as a member of its US and European direct lending investment committee.