Ares to acquire systematic fixed income manager BlueCove

NEW YORK & LONDON - Ares Management Corporation (NYSE:ARES) announced it has entered into a definitive agreement to acquire London-based systematic fixed income manager BlueCove Limited. The transaction is expected to close in the first quarter of 2026, subject to regulatory approvals and customary closing conditions. Financial terms were not disclosed.

Founded in 2018, BlueCove will be integrated into Ares to form the newly created Ares Systematic Credit strategy. BlueCove currently manages approximately $5.5 billion in assets as of September 30, 2025, focusing on high-yield, corporate investment grade, convertible bonds, and other liquid credit instruments through systematic portfolio management.

Since Ares first acquired a minority stake in BlueCove in 2023, the firm’s assets under management have grown from $1.8 billion to $5.5 billion. The BlueCove team consists of approximately 60 professionals specializing in systematic credit investing.

Following the acquisition, Alex Khein, BlueCove’s CEO, will lead the Ares Systematic Credit strategy, while Hugh Willis, Executive Chairman, will serve as a Senior Advisor to the organization.

"In recent years, we have seen increased interest in systematic credit investment products and capabilities from global investors as they seek to diversify their portfolios," said Kipp deVeer, Co-President of Ares, in a press release statement.

The acquisition will expand Ares’ Credit Group, which manages approximately $377.1 billion in assets as of June 30, 2025. Ares Management Corporation reported over $572 billion of assets under management across its global platform as of the same date. According to InvestingPro data, Ares has maintained dividend payments for 12 consecutive years, with a current dividend yield of 2.98% and dividend growth of 20.43% in the last twelve months.

The transaction represents Ares’ continued expansion in the credit sector, adding systematic fixed income capabilities to its existing range of credit strategies that include direct lending, syndicated loans, high yield bonds, and multi-asset credit. Trading at a P/E ratio of 85.47, Ares appears overvalued compared to its InvestingPro Fair Value estimate, though analysts expect net income to grow this year. Investors can access comprehensive analysis of Ares and over 1,400 other US equities through the detailed Pro Research Reports, which transform complex financial data into actionable intelligence for more informed investment decisions.

In other recent news, Ares Management Corporation reported a robust second quarter in 2025, marked by a 24% increase in management fees. This growth in fee-related earnings sets a new record for the company. Despite a slight dip in aftermarket trading, Ares Management remains optimistic about its future prospects. The optimism is supported by the company’s diverse investment strategies and a strong market position. These recent developments highlight Ares Management’s continued strength in the financial sector. The company has not announced any mergers or acquisitions at this time. There have been no recent analyst upgrades or downgrades reported for Ares Management.

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