Ares Management Announces Acquisition of Paradigm Energy Partners’ Assets
September 06 2018 - 6:30AM
Business Wire
Ares EIF will Combine Paradigm Assets with
its Van Hook Gathering System, Expanding Bakken Formation
Footprint
Ares Management, L.P. (NYSE:ARES) announced today that funds
managed by Ares EIF, its power and infrastructure strategy, have
closed on the acquisition of substantially all of the assets and
business interests of Paradigm Energy Partners from an affiliate of
Stonepeak Infrastructure Partners. The Paradigm assets will be
combined with Ares EIF’s adjacent Van Hook Gathering System, which
it acquired in 2015, to form a premier regional midstream platform
serving the core of the Williston Basin in North Dakota, with
additional reach into the prolific Eagle Ford Shale in South Texas.
The combined entity, which will continue to be known as Paradigm,
will continue to be operated by Paradigm’s existing management team
and employee base.
The acquisition consists of two oil and natural gas gathering
systems in North Dakota and a third in South Texas, along with
joint venture interests in the Sacagawea Pipeline Company and
various logistics assets in North Dakota. By year end 2018, the
combined company is expected to transport nearly 50,000 barrels of
oil and 23 million cubic feet of gas per day from 11 contracted
customers in North Dakota and Texas.
“We believe that this transaction with Paradigm aligns with our
investment strategy as it expands our reach in the core of the
Williston Basin and continues Ares EIF’s 30-year track record of
investing in high-quality companies and assets in the U.S. energy
infrastructure space,” said Keith Derman, Partner with Ares
EIF.
“The Paradigm management team has done a tremendous job over the
past four years developing and building a basin-changing midstream
platform,” said Scott Parkes, Principal with Ares EIF. “We are
delighted to have this opportunity to support this team as they
transition from initial build-out to long-term growth.”
About Ares Management, L.P.
Ares Management, L.P. is a publicly traded, leading global
alternative asset manager with approximately $121.4 billion of
assets under management as of June 30, 2018 and 18 offices in the
United States, Europe, Asia and Australia. Since its inception in
1997, Ares has adhered to a disciplined investment philosophy that
focuses on delivering strong risk-adjusted investment returns
throughout market cycles. Ares believes each of its three distinct
but complementary investment groups in Credit, Private Equity and
Real Estate is a market leader based on assets under management and
investment performance. Ares was built upon the fundamental
principle that each group benefits from being part of the greater
whole. For more information, visit www.aresmgmt.com.
Ares EIF is the power and infrastructure strategy within Ares’
Private Equity Group, with a 31-year track record of investing in
assets and companies in the power generation, transmission and
midstream sectors. Since inception, Ares EIF-managed funds have
made approximately 70 equity investments in nearly 130 different
power and energy infrastructure assets with a combined underlying
enterprise value exceeding $20 billion. During the last 15 years,
Ares EIF has invested in nearly 9,000 megawatts of greenfield
generation and transmission projects, as well as over 200 miles of
greenfield pipeline projects, representing over $11 billion of
capital costs.
Forward-Looking Statements
Statements included herein may constitute “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, which relate to future events or our future
performance or financial condition. These statements are not
guarantees of future performance, condition or results and involve
a number of risks and uncertainties. Actual results may differ
materially from those in the forward-looking statements as a result
of a number of factors, including those described from time to time
in our filings with the Securities and Exchange Commission. Ares
Management, L.P. undertakes no duty to update any forward-looking
statements made herein or on the webcast/conference call.
Nothing in this press release constitutes an offer to sell or
solicitation of an offer to buy any securities of Ares or an
investment fund managed by Ares or its affiliates.
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version on businesswire.com: https://www.businesswire.com/news/home/20180906005274/en/
Media:Mendel CommunicationsBill Mendel,
212-397-1030bill@mendelcommunications.comorInvestors:Ares
Management, L.P.Carl Drake,
800-340-6597cdrake@aresmgmt.comorPriscila Roney,
212-808-1185proney@aresmgmt.com
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