Integrated Business to Form Newly Created Ares Systematic Credit Strategy
Ares Management Corporation (NYSE:ARES) ("Ares") announced today that one of its affiliates has entered into a definitive agreement to acquire the entire outstanding share capital of BlueCove Limited ("BlueCove"), a London-based systematic fixed income manager. Financial terms were not disclosed. The transaction is expected to close in the first quarter of 2026, subject to customary closing conditions, including regulatory approvals.
Founded in 2018 by Alex Khein and Hugh Willis – who have respectively served as CEO and Executive Chairman – BlueCove has grown to become a leader in systematic credit investing. The firm is comprised of a highly experienced, long-tenured team of fixed income investment, engineering, and business infrastructure professionals specializing in systematic portfolio management. Through its proprietary technology and varied product offering, BlueCove invests in high-yield, corporate investment grade, convertible bonds, and other liquid credit instruments. Since Ares first partnered with BlueCove through a minority stake acquisition in 2023, assets under management have grown from $1.8 billion to approximately $5.5 billion, as of September 30, 2025.
Ares believes that as part of its scaled investment platform, the BlueCove business will benefit from accelerated growth and expanded distribution relationships, particularly with insurance clients. Integrated within Ares, BlueCove will form the Ares Systematic Credit strategy and will focus on harnessing the power of data and technology to deliver differentiated returns and solutions to investors. Ares Systematic Credit will be led by Alex Khein, supported by a team of approximately 60 professionals, with Hugh Willis serving as a Senior Advisor to the organization.
"In recent years, we have seen increased interest in systematic credit investment products and capabilities from global investors as they seek to diversify their portfolios and capture the opportunities presented by the quantitative credit investment revolution," said Kipp deVeer, Co-President of Ares. "This demand, paired with a broader structural shift towards systematic fixed income trading to achieve alpha, underlies the latest expansion of our market leading Credit Group."
"Since first partnering with BlueCove, the business has grown from strength to strength, further solidifying our conviction about the future of systematic credit investing," said Michael Smith, Co-Head of the Ares Credit Group. "Because of its high-quality talent, custom-built proprietary technology, and successful existing relationship with Ares, we believe BlueCove is well-positioned to launch Ares Systematic Credit. We look forward to working closely with our new colleagues to build out our latest vertical within the Credit Group."
"Ares has been a fantastic supporter of BlueCove's strategy over the last several years, facilitating a broad range of R&D initiatives across the firm, all housed within a world class infrastructure and control environment. This transaction is a testament to our and Ares' shared culture of innovation, entrepreneurship and collaboration that has underpinned the relationship since the beginning," said Alex Khein. "I am extremely proud of our team's achievements over the years, and we look forward to working closely with Michael, Mitch, and all our new colleagues at Ares to build out the Systematic Credit business."
"Ares is a world class asset manager that we greatly admire," said Hugh Willis. "Our strategy in first partnering with Ares in 2023, via a minority equity stake, was to accelerate BlueCove's mission of bringing systematic fixed income investing to a global client base. The strategy has proved highly successful, as demonstrated by the growth of the business since then, and this transaction is the logical next step in its execution. I very much look forward to now helping develop Ares Systematic Credit as a market leading business in an area of the credit markets with considerable secular growth potential."
The Ares Credit Group is a leading manager of credit strategies across the global credit universe, with approximately $377.1 billion of AUM as of June 30, 2025, offering a range of illiquid and liquid credit and hybrid investment solutions. Since Ares' founding in 1997, the firm has been a leader in providing credit solutions to investors searching for yield and for less correlated returns. Strategies include U.S. and European Direct Lending, Syndicated Loans, High Yield Bonds, Multi-Asset Credit, Alternative Credit, Opportunistic Credit, APAC Private Credit and APAC Special Situations.
About Ares Management Corporation
Ares Management Corporation (NYSE:ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, real estate, private equity and infrastructure asset classes. We seek to advance our stakeholders' long-term goals by providing flexible capital that supports businesses and creates value for our investors and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of June 30, 2025, Ares Management Corporation's global platform had over $572 billion of assets under management, with operations across North America, South America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.
About BlueCove
BlueCove is an institutional scientific fixed income asset manager with $5.5 billion of assets under management, as of September 30, 2025. It brings together market-leading fixed income industry investment, engineering, and business infrastructure professionals, with the specific purpose of researching and developing state-of-the-art scientific investment processes applicable to fixed income investment management. The firm was founded in 2018 by Hugh Willis and Alex Khein, previously Co-founder and CEO/Executive Chairman, and COO/CEO respectively of BlueBay Asset Management.
Forward-Looking Statements
Statements included herein contain forward-looking statements within the meaning of the federal securities laws. You can identify these forward-looking statements by the use of forward-looking words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates," "foresees" or negative versions of those words, other comparable words or other statements that do not relate to historical or factual matters. The forward-looking statements are based on Ares' beliefs, assumptions and expectations of Ares' future performance, taking into account all information currently available to Ares. Such forward-looking statements are subject to various risks and uncertainties, including Ares' ability to consummate the acquisition and to effectively integrate BlueCove into Ares' operations, to achieve the expected benefits therefrom, and assumptions including those relating to the acquisition of BlueCove, Ares' operations, financial results, financial condition, business prospects, growth strategy and liquidity. Some of these factors are described in the Annual Report on Form 10-K for the year ended December 31, 2024, including under the headings "Item 1A. Risk Factors" and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations." These factors should not be construed as exhaustive and should be read in conjunction with the risk factors and other cautionary statements that are included in this report and in Ares' other periodic filings. If one or more of these or other risks or uncertainties materialize, or if Ares' underlying assumptions prove to be incorrect, Ares' actual results may vary materially from those indicated in these forward-looking statements. New risks and uncertainties arise over time, and it is not possible for Ares to predict those events or how they may affect Ares. Therefore, you should not place undue reliance on these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. Ares does not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
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Ares Management
Media
Giles Bethule, +44 7879615114
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Investors
Greg Mason, +1 800-340-6597
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BlueCove
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Natalie Benitez-Castellano, +44 (0)203 146 1503
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Investors
Charlotte Hartridge, +44 (0) 203 146 1514
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