Updated views on Ares ASOF?
How does this group compare to say Oaktree Special Sits in LA or Apollo Hybrid Value? Any insight appreciated.
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Tough group to work for. Know one of the associates there that looks like he has legit depression all the time.
ASOF II's IRR is 6.9%/4.3%, so something might have blown up in the portfolio
lol what Distressed PE firm besides KPS and SVP does well? At that point just go to a diameter/trading shop.
Hybrid value doesn't really play into the distressed realm so can't really count them
Farallon?
Oaktree SS fund II did quite well. I think when they were raising fund III it was reported at 45% gross IRR. Not sure of more recent performance.
This is ver incorrect. ASOF l is netting 20%+ and ASOF II is netting 17%. Both well above target and top quartile in the market
not sure where you're pulling those numbers from - but you can directly confirm on ares latest earnings
11% net irr for asof ii and 17% for asof i...they also have a lot of public exposure so marks move around
Bumping, any other thoughts on WLB, fund II returns?
ASOF I is 1.6x / 20.6% fwiw which for its vintage I imagine is top quartile for a 2019 vintage.
When did ASOF II start investing? Feels like from a J Curve perspective that's very reasonable for a fund that had an October 2022 close.
You probably need to be comping ASOF against Oaktree Opportunities, not Oaktree special situations given mandate crossover / flagship team.
On work life balance, given where we are in the cycle and type of deals they are doing, can't imagine this is a 55-60 hour a week job as a junior . . .
Agreed, in the LA scene (in corp PE) but ASOF Fund I was very very strong, you don't oversubscribe a fund by $3.5bn and get to $7.1bn (ASOF Fund II) with shitty performance. I personally would never join given WLB is probably terrible (+ Ares isn't known for good culture) but for learning/returns I'm sure its a good place as an associate
This is for the LA office?
Does ASOF being rolled into Credit change anything? Carry structure/payout, geography, etc?
Spoke with someone in the team, and the answer was no. They do this to basically raise more money, since now they are backed by the whole infrastructure of the Credit “brand”.
Strategy remains the same.
Why did Scott leave?
He was global co-head of Private Equity, but more so head of ASOF. With ASOF moving into Credit, there was no point to have him head the team any longer
I mean if the above comment was correct in that nothing with ASOF really changed other than re-branding under the credit banner then I would assume Scott would still be there, perhaps with a different title, as IIRC he was a big part of the fund / strategy. It doesn't make sense to me that he would quietly leave when the platform is still young just over a label change.
Pasting from another thread: TL/DR - one of the best
I can add colour here - work directly with/across their SS team, which is now being rehoused under Credit. It's a great fund, deploy a lot of capital and likely in fundraising for their third one. Ares 2020 vintage (ASOF )was $2 billion target with a $3.5 billion hard cap (which they reached) - 2022 was the same, vintage was $4 billion target and they reached $7.1bn... no clue on numbers for third one but will most likely the biggest fund across the street (vs APO HV, Sixth Street & Oaktree). Despite the DL tilt, they aren't afraid to go aggressive (ran by industry legends with gold-plated careers at Oaktree/GSO) and benefit a lot from seeing every situation they want which means they really pick/choose their investments - and both public/private
For a different team, college buddy cleared ~$220k all-in at An1, and is on track for 350+ as Assoc (with a good A2A)
Color on hours / culture / etc?
^
Nothing from me - for what it's worth, I had an on-cycle offer from the other ones and would swap out for ASOF if I had that (may just be me though)
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