188: Yield, Shield, and Scale: Inside the Ares Management Playbook (With Blair Jacobson, Co-President)

Money Maze Podcast

Business, Investing, Management, News, Business News

4.8 • 216 Ratings

🗓️ 27 November 2025

⏱️ 55 minutes

🔗️ Recording | iTunes | RSS

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Summary

Ares is recognised as one of the leading global alternative investment managers, investing across credit, real estate, private equity and infrastructure.

Listed on the NYSE, it has over 4,000 employees, $595billion in assets* and a substantial geographical footprint.

Blair explains the high yielding Ares-managed listed vehicle, ARCC, which as a business development company (BDC) structure must distribute 90% of taxable income and averages 9% of yields*.

He discusses how being a public entity gives them a “currency” which is highly valued by employees, and also how it has helped with brand recognition as its growth accelerated.

We discuss European capital markets and the structural reliance on bank debt versus private credit (the inverse of arrangements in the US). He explains how it is changing, as well as the current headwinds and opportunities ahead.

He discusses why over 1,400 conversations take place in Europe each year, but Ares makes less than 50 loan investments in direct lending, how they are deploying over $100 billion of dry powder firmwide, and the criteria that matter for them.

He explains their focus on the middle market, their ownership of sports assets – including a $500 million preferred equity stake in Chelsea FC – and their other media and entertainment investments.

Finally, Blair responds to the question around the growth of credit secondaries and continuation vehicles, assessing the motivation behind the growth, and risks associated with the wealth management sector’s increasing allocation to this space.

The Money Maze Podcast is kindly sponsored by Schroders, IFM Investors, World Gold Council and LSEG.

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(*AUM as of 30/09/25, BDC distribution stats as at 04/11/25)

Transcript

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0:00.0	There's a fundamental problem in Europe.
0:02.4	80% of lending is via the banking system.
0:05.8	So Europe has got a fundamentally wrong way risk banking system.
0:09.5	If there's a recession, what the banks start doing is they stop lending.
0:13.7	Is it changing and is it or is it so embedded, it's hopeless?
0:18.4	Just to frame it for you, we have 700 people in Europe.
0:23.8	We manage over $120 billion.
0:25.8	And if you look at where the United States is, our market has penetrated 90-95%.
0:32.9	If you look at where we are in Europe, we're probably 60-65%.
0:36.6	It does vary obviously by country.
0:39.3	We just raised in Europe a 30 billion euro fund.
0:42.5	That's how much total capital we have.
0:44.5	We're relevant to all different sized businesses.
0:48.2	When you look at the state of the UK in education,
0:52.7	that is one of the principal assets, despite the politics,
0:56.7	despite the economics. It's very well situated. It has, you know, longstanding democracy,
1:02.4	longstanding functioning economy. Will it draw and continue to draw the best minds in the world
1:07.2	to study here and produce? Absolutely. Welcome to the MoneyMaste podcast. If this is
1:12.1	your first time joining, I'm your host, Simon Brewer. Quick word before we start. 95% of viewers
1:19.6	aren't subscribed, so miss out on future interviews with top business, finance and industry leaders.
1:25.8	To support the show and ensure we can keep sharing high quality content, click, subscribe and
1:31.6	please drop a like.
	...

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