Ares Management Corporation is acquiring the outstanding share capital of UK systematic fixed income manager BlueCove Limited, after holding a minority stake in the firm since 2023.
The transaction is expected to close in Q1 2026, with the resulting integrated business forming Ares’ new systematic credit strategy.
Ares Credit Group already holds approximately US$377.1 billion in assets under management (AUM) across a range of strategies.
BlueCove holds approximately US$5.5 billion in AUM, and invests in liquid credit instruments including high-yield, corporate investment grade and convertible bonds. Ares’ initial investment in the company intended to expand its systematic fixed income investing to a global audience.
Kipp deVeer, Ares co-president, commented, “In recent years, we have seen increased interest in systematic credit investment products and capabilities from global investors as they seek to diversify their portfolios and capture the opportunities presented by the quantitative credit investment revolution. This demand, paired with a broader structural shift towards systematic fixed income trading to achieve alpha, underlies the expansion.”
BlueCove CEO Alex Khein will lead the new systematic credit strategy and its 60-strong team. Executive chairman Hugh Willis will act as senior advisor.
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