Ares case study

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Ares case study in 2021

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Ares management

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What did the SEC find about Ares Management?

The order finds that Ares did not require its compliance staff, prior to approving the trades, to sufficiently inquire and document whether the board representative and members of his Ares team possessed material nonpublic information relating to the portfolio company.

How many shares of stock does Ares Management own?

After receiving this information, Ares purchased more than 1 million shares of the company’s common stock, which was 17% of the publicly available shares.

How did Ares Management LLC obtain nonpublic information?

According to the order, Ares obtained potential material nonpublic information about the company, including through Ares’s representative on the company’s board, relating to changes in senior management, adjustments to the company’s hedging strategy, and decisions with respect to the company’s assets, debt, and interest payments.

Last Update: Oct 2021


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