Investment management firms BlackRock (BLK) and Ares Management (ARES) are seeing shares jump on Monday following reports that brand-management company WHP Global is preparing to purchase wedding-dress maker Vera Wang. It’s unknown how much will be paid for Vera Wang but the bridal wear company has annual revenue of $700 million.
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Vera Wang, the creator of the wedding dress brand, will continue to act as the Chief Creative Officer of the company after the acquisition. The latest reports also claim that she will become a shareholder in WHP Global.
What This Means for BlackRock & Ares Management
BlackRock and Ares Management are tied to this deal through their investments in WHP Global. With their backing, the brand-management company has the buying power needed to continue acquiring companies. A few brands under its control are Bonobos, Express, G-Star Raw, Rag & Bone, and Toys “R” Us.
WHP Global’s holdings make it a powerhouse in the retail space. The firm was valued at $1.6 billion in March 2023 and that continues to increase as it acquires more brands. Its favored method of acquisition is buying companies that go bankrupt. This lets it purchase failing businesses for a fraction of their former value and revitalize them for profits.
BlackRock vs Ares Management: Which Stock is the Better Investment?
With today’s news, investors might consider a stake in BLK or ARES. Of the two, BlackRock appears to be the better option. Its analysts’ consensus rating is Strong Buy, as compared to Ares Management’s Moderate Buy. Additionally, the average potential return on BLK stock is 3.78% while ARES has a potential downside of 3.18%. Also, TipRanks’ Smart Score for BlackRock is higher at nine out of 10 when compared to Ares Management’s seven out of 10. The one advantage of ARES is its lower entry point.
