Ares Management has finalised an agreement to combine Northstar Group’s funds and its employees with its $546-billion alternative asset empire in the fourth major move to grow its Asia business, DealStreetAsia has learnt.
The transaction value for one of Southeast Asia’s oldest private equity firms is said to be in the single-digit millions, according to sources familiar with the matter. DealStreetAsia first reported about the deal in January.
The 22-year-old Northstar manages over $2.6 billion in committed capital across private equity and venture capital strategies.
All remaining Northstar employees have become Ares staff with effect from August 1, the sources said. But the founding duo, Glenn Sugita; and Patrick Walujo, currently the CEO of Indonesia’s ride-hailing giant GoTo Group, will not be part of the new integration, they added.
Ares is among the private equity giants that chose to inorganically grow its Asia presence through acquisitions and has been on a shopping spree in the past few years. Last year, it bought GLP’s $44-billion overseas real asset fund business after purchasing Asia-focused corporate private equity firm Crescent Point in 2023 and Asian credit shop SSG in 2020.
Ares is slated to host its half-year earnings call with analysts on Friday.
Northstar is among the short list of Southeast Asia’s fund managers with a long track record of over three funds. The firm has five private equity funds that primarily focus on Indonesia and Southeast Asia as well as another venture capital fund with a similar geographic focus.
Besides GoTo, Indonesia-listed Indosat Ooredoo Hutchison and the beleagured eFishery are among its notable portfolio companies.
Ares and Northstar declined to comment on separate emails sent by DealStreetAsia.
