Ares Management Makes $150M Preferred Equity Investment in Inter Miami CF

Global alternative investment manager Ares Management Corporation (ARES) recently announced that it has made a $150 million preferred equity investment in Inter Miami CF, an American professional soccer club. The investment has been made by the company through the funds managed by its Credit Group.

Based in South Florida, Inter Miami was founded in 2018. The club is backed by names like soccer superstar David Beckham and Jorge and Jose Mas.

The Partner and Co-Head of U.S. Direct Lending at Ares Management, Jim Miller, said, “We are excited to support the future growth of this franchise and look forward to a long-term relationship with both Inter Miami and MLS. We also look forward to continuing to provide creative capital solutions to clubs and leagues in the sports franchise sector.” (See Ares Management stock chart on TipRanks)

Recently, Morgan Stanley analyst Michael Cyprys initiated coverage on the stock with a Hold rating and a price target of $90. The analyst’s price target implies upside potential of 14.4% from current levels.

“We see path for 26% annual growth in fee-related earnings (FRE) to reach $1.3b in 2025. But with our forecasts in-line with consensus, we see less scope for upward revisions and see potential for greater competition. At 21x P/E on ’23 vs. peers at 18x, growth appears more priced in,” Cyprus said.

Consensus among analysts is a Strong Buy based on 5 Buys and 1 Hold. The average Ares Management price target of $80.33 implies upside potential of 2.1% from current levels.

Ares Management scores an 8 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained 102.2% over the past year.

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