Ares Management is in exploratory discussions about a potential acquisition of buyout firm Leonard Green and Partners in a deal that could reshape the alternative asset management landscape

Ares Management, one of the world's largest alternative asset managers with over $640 billion in total assets under management, is reported to have explored a potential acquisition of Los Angeles-based private equity firm Leonard Green and Partners, which controls around $85 billion in assets. The discussions are at an exploratory stage and no agreement has been reached. The strategic rationale is clear: Ares has built its reputation primarily as a private credit powerhouse, but its traditional private equity (buyout) platform accounts for only approximately $25 billion of its total assets. Acquiring Leonard Green would instantly expand that to roughly $110 billion, closing a structural gap against diversified rivals such as Blackstone, Apollo, and KKR. The two firms are not strangers. A consortium backed by both supported a deal for Press Ganey in 2019. In 2021, Leonard Green acquired equity in Convergint from an Ares private equity fund. In early 2026, Ares closed an $850 million continuation vehicle (a fund structure that allows a manager to extend its hold on a portfolio company beyond a traditional fund's life) for Convergint, backed by Leonard Green's Sage Fund. That repeated co-investment history has kept informal communication lines open. Institutional investors increasingly prefer allocating large sums to multi-strategy managers rather than distributing capital across specialist boutiques. Smaller buyout firms also face pressure from a significant backlog of unsold portfolio companies and slowing fundraising conditions. A merger with a multi-asset platform offers shelter from both headwinds. Integration risk remains the central challenge: Leonard Green's brand is built on a tight-knit investment team focused on resilient cash-flow businesses in consumer, healthcare, and distribution sectors.