Alleghany Corp. bought a 6.25% equity ownership interest in alternative investment manager Ares Management for $250 million and also agreed to invest up to $1 billion of capital in various existing and new Ares investment strategies, confirmed Bill Mendel, Ares spokesman, in an e-mail.
Ares will use the investment of Alleghany, a specialty insurer and asset manager, as sponsor capital in its investment vehicles.
Alleghany is the second entity to take an equity ownership in Ares. In 2007, Abu Dhabi Investment Authority invested $375 million in the firm for a 15% to 20% stake in the firm.
