Ares Acquisition Corp (NYSE:AAC) is a publicly listed shell company affiliated with Ares Management Corporation.
The company was primarily formed for offering a wide range of services, including exchange of shares, acquisition of assets, purchasing of shares, the combination of small and medium businesses, management of mergers, etc. The firm also provides investment management services.
In 2021, the company was created to serve as a special purpose acquisition company (SPAC) for Ares Management.
Ares Management provides services through three business divisions: Ares Credit unit, Ares Private Equity unit, and the Ares Real Estate unit.
Ares Credit Segment
This segment consists of the liquid management services and credit strategies in the non-investment credit industry. There are several types of credit strategy services such as high yield loans, institutional credit, asset-backed loans, corporate loans, and direct loans in the United States and Europe.
Ares Capital Corporation and other financial institutions provide direct loans in the United States segment and asset-based loans to small businesses, medium businesses, etc. However, direct loans in European markets mainly cater to self-investment market credits. In addition, the company manages separately managed accounts and commingled funds.
Ares Private Equity Segment
The Los Angeles-based company is engaged in large-controlled investments primarily operating in the capitalized middle markets through this unit. In addition, the company also provides management services in other investments in the power and energy sector in the power generation, transmission, and midstream segments in the United States.
Ares Real Estate Segment
The company operates and manages the public, corporate and private debt investments in the real estate sector in North America and Europe through this unit.
The asset-management firm operates through its subsidiary SSG Capital in the Asia Pacific. The company acquired SSG Capital, a Hong Kong-based alternative investment firm, in 2020. It mainly provides special investment, private equity and credit in the geographic segment.
Some of the significant subsidiaries are Ares Capital Corp., Ares Management, etc.