NEW YORK and LOS ANGELES, Jan. 11,
2021 /PRNewswire/ -- Pretium and a group of its
investors, and funds managed by the Real Estate Equity and
Alternative Credit strategies of Ares Management Corporation
(NYSE: ARES) ("Ares") today announced the completion of their
acquisition of Front Yard Residential Corporation (NYSE: RESI)
("Front Yard"), a leading provider of high-quality and affordable
single-family rental ("SFR") housing.
The completion of the transaction makes Pretium the
second-largest owner and operator of SFR properties in the United States with a portfolio of over
55,000 cash-flowing single-family rentals. Pretium will manage the
venture and partner with Ares to further optimize and expand Front
Yard's attractive and well-diversified portfolio of SFR
assets.
Don Mullen, Chairman and CEO at
Pretium, said, "There is significant opportunity in the SFR market
and a clear sense of urgency among institutional investors to
deploy capital to this asset class given record-high occupancy
rates, stable cash-flow characteristics, and potential for
continued capital appreciation. With the Front Yard transaction now
complete, we are exceptionally well positioned to further
capitalize on a diverse set of SFR investment opportunities. We
look forward to leveraging our unique operating platform and scale
to further drive operating margins and deliver attractive returns
to investors."
"We are pleased to have completed this transaction with Pretium
and Front Yard and look forward to putting our collective
experience and industry expertise to work to create a scaled and
highly diversified portfolio of SFR homes to benefit our
stakeholders," said David Roth,
Partner and Head of U.S. Real Estate Equity in the Ares Real Estate
Group.
"We look forward to creating value with our partners in what we
believe is a particularly strong asset class with compelling
secular market tailwinds," said Joel
Holsinger, Partner and Co-Head of Alternative Credit in the
Ares Credit Group.
"Pretium and Ares are the perfect partners to lead Front Yard in
the next phase of our company's growth and take our business to the
next level as a private, resident-first SFR operator," said
George Ellison, Chief Executive
Officer of Front Yard Residential. "Their extensive operating and
investment experience coupled with the depth and breadth of their
real estate platforms should create unique opportunities for Front
Yard to meaningfully scale our business, creating attractive and
affordable housing options for a diverse resident base."
Advisors
RBC Capital Markets, LLC served as financial advisor to Pretium.
BofA Securities served as financial advisor to Ares. Sidley Austin served as M&A legal counsel,
Fried Frank as partnership legal counsel, and Hunton Andrews Kurth as special tax and
financing counsel to Pretium. Latham & Watkins served as legal
counsel to Ares.
About Pretium
Pretium is a specialized alternative investment management firm
focused on residential real estate, mortgage finance, and corporate
credit. Pretium was founded in 2012 to capitalize on secular
investment and lending opportunities arising as a result of
structural changes, disruptions, and inefficiencies within the
economy, the residential housing sector, and mortgage finance
markets. Pretium has built an integrated analytical and operational
ecosystem within the U.S. residential housing, mortgage, and
corporate credit markets, and believes that its insight and
experience within these markets create a strategic advantage over
other investment managers. Pretium's platform has more than
$18 billion of assets under
management as of January 1, 2021 and
employs approximately 1,500 employees across 26 offices. Please
visit www.pretium.com for additional information.
About Progress Residential
Progress Residential is a market leader in intelligent
single-family rental management services, with people, technology,
scale, and data-driven solutions that streamline operations,
optimize asset performance, and provide an exceptional renting and
living experience for our residents. Progress Residential's
approximately 1,000 employees currently manage over 40,000 homes
across 15 core markets and have recently been adding nearly 10,000
homes to its platform each year. Progress Residential also offers
third-party property management service for investors with
mid-to-large single-family rental home portfolios and Built for
Rent communities through its PR3 Management business. For more
information, please visit www.rentprogress.com.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global
alternative investment manager operating integrated groups across
Credit, Private Equity, Real Estate and Strategic Initiatives. Ares
Management's investment groups collaborate to deliver innovative
investment solutions and consistent and attractive investment
returns for fund investors throughout market cycles. Ares
Management's global platform had approximately $179 billion of assets under management as of
September 30, 2020 with more than
1,400 employees operating across North
America, Europe and
Asia Pacific. For more
information, please visit www.aresmgmt.com.
About Ares Real Estate Group
The Ares Real Estate Group manages comprehensive public and
private, equity and debt strategies with approximately $14 billion of assets under management and
approximately 85 investment professionals, as of September 30, 2020. The real estate team
maintains a time-tested and consistent investment approach across
equity and debt strategies focusing on major property types that
have value creation opportunities, located in liquid markets with
diversified economies.
About Ares Alternative Credit
Ares' Alternative Credit strategy focuses on direct lending and
investing in assets that generate contractual cash flows and fills
gaps in the capital markets between credit, private equity and real
estate. Ares Alternative Credit targets investments across the
capital structure in specialty finance, lender finance, loan
portfolios, equipment leasing, structured products, net lease, cash
flow streams (royalties, licensing, management fees), fund
secondaries and other asset-focused investments. Co-Headed by
Keith Ashton and Joel Holsinger, Ares Alternative Credit
leverages a broadly skilled and cohesive team of approximately 40
investment professionals as of September 30,
2020.
Media:
Pretium
Prosek Partners
Mike Geller, 646-818-9018
mgeller@prosek.com
Josh Clarkson, 646-818-9259
jclarkson@prosek.com
Ares Management Corporation
Mendel Communications
Bill Mendel, 212-397-1030
bill@mendelcommunications.com
Investors:
Pretium
Genie Pusey,
917-942-7395
gpusey@pretium.com
Ares Management Corporation
Carl Drake, 800-340-6597
cdrake@aresmgmt.com
Priscila Roney, 212-808-1185
proney@aresmgmt.com
Brittany Cash, 212-301-0347
bcash@aresmgmt.com
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SOURCE Pretium Partners, LLC; Ares Management Corporation