Ares Management and Kayne Anderson Capital Advisors are no longer going ahead with a planned merger.
The two alternative investment managers had planned a merger that would have created a company with a combined $113bn (€102bn) in assets under management.
The move, first announced in July, is no longer going ahead, with both companies citing current market conditions in the energy sector.
Ares will, however, invest $150m in LA-based Kayne Anderson’s energy activities, including energy private equity, private energy income and energy infrastructure marketable securities funds.
The companies will look for additional collaborative marketing opportunities, including jointly managing separate accounts.
Tony Ressler, Ares chairman and chief executive, said: “While we continue to strongly believe in Kayne and the long-term energy investment opportunity, it became clear this was not the right time to bring together our cultures and business models into a merged public company.”
Ric Kayne, Kayne’s founder and chairman, said that, after “many discussions”, the company had decided it could create more value for investors by staying a private.
“Kayne is uniquely well-positioned to take advantage of the markets we are in, and we are delighted that Ares and its principals have chosen to capitalise on this opportunity by investing with us directly,” he said.
Ares Management this year teamed up with European retail specialist Redevco to invest €500m in Spanish and Portuguese retail real estate.
