Form 4: Ares Management CEO Converts Units to Class A Stock

Ares Management Corp's Co-Founder and CEO, Michael J Arougheti, converted 590,000 Ares Operating Group Units into Class A Common Stock.

Summary

• Michael J Arougheti, Co-Founder and CEO of Ares Management Corp, reported a transaction on November 14, 2025.
• He converted 590,000 Ares Operating Group Units (AOG Units) into 590,000 shares of Class A Common Stock.
• The Class A Common Stock was acquired indirectly through Atticus Enterprises LLC.
• The AOG Units were disposed of indirectly through Ares Owners Holdings L.P.
• Following this transaction, Mr. Arougheti directly beneficially owns 1,400,000 shares of Class A Common Stock, which are restricted units granted under an equity incentive plan and vest in installments.
• He also indirectly beneficially owns 7,251,596 Ares Operating Group Units through Ares Owners Holdings L.P.
• AOG Units are exchangeable for Class A Common Stock on a one-for-one basis, as per the Sixth Amended and Restated Exchange Agreement dated May 8, 2025.

Sentiment

Score: 6

Explanation: The transaction is a routine conversion of partnership units into common stock by the CEO, which is generally viewed as neutral to slightly positive as it aligns the executive's interests with public shareholders without indicating a divestment.

Positives

• The CEO is converting partnership units into common stock, which generally aligns his interests more directly with public shareholders.
• The transaction is a conversion, not a sale, indicating continued long-term holding of equity in the company.

Future Outlook

The filing indicates that 1,400,000 restricted units of Class A Common Stock held by the CEO are subject to future vesting in installments, suggesting a continued long-term equity incentive structure.

Industry Context

Insider transactions, particularly conversions from partnership units to common stock, are a common practice in alternative asset management firms like Ares Management. This structure allows partners to monetize their equity over time while maintaining alignment with the firm's performance and public shareholders.

Comparison to Industry Standards

• This is a standard insider transaction for a senior executive at an alternative asset manager. Many firms in this sector, such as Blackstone, KKR, and Carlyle, utilize similar partnership unit structures that allow for conversion into publicly traded shares.
• The one-for-one exchange ratio between Ares Operating Group Units and Class A Common Stock is typical for such arrangements in the industry.

Corporate Governance

Related Party Transactions

• The transaction involves the indirect acquisition of Class A Common Stock through Atticus Enterprises LLC and the indirect disposition of Ares Operating Group Units through Ares Owners Holdings L.P., both entities through which the reporting person, Michael J Arougheti, beneficially holds securities.

Stakeholder Impact

• Shareholders: Minor positive impact due to increased direct ownership by the CEO, which further aligns his financial interests with those of public shareholders.
• Employees, Customers, Suppliers, Creditors: No direct impact from this specific filing.

Next Steps

• Continued vesting of the 1,400,000 restricted units of Class A Common Stock held by Michael J Arougheti.

Key Dates

Recommendation

This Form 4 reports a routine conversion of partnership units into common stock by the CEO. It does not indicate a change in the company's fundamentals or strategic direction, nor does it represent a significant buy or sell signal. While it shows continued alignment of the CEO's interests with shareholders, it is not a catalyst for a strong buy or sell recommendation, thus a 'hold' is appropriate.

Keywords

Ares Management Corp, ARES, Michael J Arougheti, Form 4, insider transaction, beneficial ownership, Class A Common Stock, Ares Operating Group Units, CEO, conversion