GLP Announces Monetization of International Fund Management Business - Expects to exceed the US$10 billion monetization target
- GLP Capital Partners, the fund management business of GLP, to monetize its international alternative asset management business, which represents <10% of GLP’s Core Underlying EBITDA
- Transaction includes initial consideration of US$3.7 billion as well as an additional earn-out of up to US$1.5 billion
- Proceeds will provide GLP with meaningful liquidity and strengthen its balance sheet
- GLP to retain international exposure through approximately US$5 billion of investments in logistics, digital infrastructure and energy transition in Japan, the U.S., Europe, Brazil and Vietnam
- GLP continues to invest globally across high growth and high resilience new economy sectors
Singapore, 8 October 2024 – GLP Pte. Ltd. (“GLP” or the “Group”) has today announced that Ares Management Corporation (“Ares”; NYSE: ARES), a leading global alternative investment manager, shall acquire GLP Capital Partners’ (“GCP”) international fund management business in Japan, the U.S., Europe, Brazil and Vietnam (“GCP International”) in a transaction comprising a total initial consideration of US$3.7 billion and an additional earn-out provision of up to US$1.5 billion subject to achieving certain performance objectives.
“We are pleased to reach this agreement between GCP International and Ares, a pioneer in the global alternative asset management sector, and look forward to seeing the combined business continue to thrive. This is a testament to our ability to build successful businesses of scale, and realize value for our stakeholders,” said Ming Mei, Co-Founder and CEO of GLP and GCP. “We are excited that the transaction will also allow us to strategically optimize each region’s business development plan. We look to the future with confidence as GLP continues to find attractive growth and consolidation opportunities across high growth new economy sectors supported by secular tailwinds. GLP will continue to grow and realize value for our stakeholders as we continue to invest strategically and internationally.”
Ming Mei will continue as CEO of GLP and GCP, supported by a seasoned leadership team to ensure continuity and drive future success.
Upfront cash proceeds from the transaction will provide meaningful liquidity to GLP, and will be used to reduce liabilities and improve the Group’s balance sheet strength and key financial metrics. The transaction represents less than 10% of GLP’s Core Underlying EBITDA. Pro forma for the transaction, net leverage is expected to improve from 27% to 24% as of June 30, 2024.
“This monetization is consistent with our objective to prioritize balance sheet strength through de-leveraging, while selectively reinvesting in strategic growth initiatives in our core sectors of logistics, digital infrastructure and renewable energy. Moving forward, we will focus on driving value through disciplined capital allocation, optimizing operational efficiencies, and expanding into high-growth markets. With a solid foundation in place, the company is well positioned to achieve sustainable growth and deliver long-term value for our stakeholders,” said Nicholas Johnson, Chief Financial Officer of GLP.
Post transaction, GLP will retain its ownership of GCP, which is a highly differentiated market leading alternative asset manager. GCP will manage US$81 billion of AUM oriented toward high growth, high conviction sectors. GLP continues to be supported by strong institutional investors and partners with best-in-class global investing and operating expertise, and maintains strong access to public and private capital markets.
GLP will continue to be a market leading new economy focused global investor, business builder and alternative asset manager. GLP will maintain a global footprint as a disciplined asset owner and investor targeting strategically located assets and incubate businesses to deliver attractive risk-adjusted returns. With a long and proven track record of success at scale, GLP has deep domain expertise, institutional knowledge and a healthy balance sheet to support its next stage of growth and invest globally across new economy sectors to deliver sustainable value creation.
The transaction is expected to close in the first half of 2025 subject to customary regulatory approvals and other closing conditions.
About GLP
GLP is a leading global business builder, owner, developer and operator of logistics real estate, data centers, renewable energy, and related technologies. GLP’s deep expertise and operational insights allow it to build and scale high-quality businesses and create value for its customers. GLP owns assets and businesses in 17 countries across Asia, Europe and the Americas. GLP Capital Partners is an alternative asset manager. To learn more about GLP, visit www.glp.com/global
Media Contacts
Rachel Sin
GLP
rsin@gcp.com | +65 6643 6382
Angela Campbell-Noë
Teneo
angela.campbell-noe@teneo.com | +65 6222 3765
Debt Investor Contact
