Ares Management is taking a minority stake in London-based scientific fixed-income manager BlueCove, according to a news release.
Ares has the option to acquire control of BlueCove over time. Terms of the deal were not disclosed.
Most of BlueCove’s assets are managed in absolute-return strategies, which could diversify Ares credit offerings as well as potentially being attractive to insurance clients given its low correlation to benchmarks, an Ares spokeswoman said in an email.
"We believe that this transaction has the potential to significantly accelerate our mission of bringing scientific fixed-income investing to a global client base in the years to come," said Hugh Willis, executive chairman and co-founder of BlueCove in the news release.
The deal is expected to close in the second or third quarter. Upon the transaction's closing, Boris Okuliar, Ares partner and co-head of liquid credit will join BlueCove's board of directors.
The size of Ares stake is not being disclosed, BlueCove spokesman Paul Harris said in an email.
BlueCove has $1.8 billion of assets under management. Ares had $352 billion in AUM as of Dec. 31.
Ares spokeswoman Brittany Cash could not immediately answer questions seeking further information about the transaction.