Ares Management announced that one of its affiliates has entered into a definitive agreement to acquire the entire outstanding share capital of BlueCove Limited, a London-based systematic fixed income manager. The deal, expected to close in the first quarter of 2026, subject to customary closing conditions and regulatory approvals, will form a new integrated business known as Ares Systematic Credit.
Founded in 2018 by CEO Alex Khein and Executive Chairman Hugh Willis, BlueCove has emerged as a leading player in systematic credit investing, utilizing proprietary technology and data-driven models to manage portfolios across high-yield, investment-grade, and convertible bond markets. The firm employs a team of about 60 professionals specializing in systematic portfolio management, investment engineering, and business infrastructure.
Ares first acquired a minority stake in BlueCove in 2023, and since then, BlueCove’s assets under management have increased from $1.8 billion to approximately $5.5 billion as of September 30, 2025. Following the acquisition, Ares plans to integrate BlueCove into its global platform, expanding its capabilities in systematic credit and further strengthening its position within quantitative fixed income markets.
The new Ares Systematic Credit business will be led by Khein, with Willis serving as Senior Advisor. Ares anticipates that BlueCove’s integration will accelerate growth and broaden distribution, particularly among insurance clients. The initiative aligns with Ares’ strategy to leverage data, analytics, and automation across its credit platform, which currently manages about $377.1 billion in assets.
Ares Management, which oversees over $572 billion in assets across credit, real estate, private equity, and infrastructure, continues to build diversified investment solutions across multiple geographies. The addition of BlueCove’s systematic platform represents another step in the firm’s expansion into scalable, technology-enabled credit strategies.
KEY QUOTES:
“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.”
Kipp deVeer, Co-President of Ares
“Since first partnering with BlueCove, the business has grown from strength to strength, further solidifying our conviction about the future of systematic credit investing. Because of its high-quality talent, custom-built proprietary technology, and successful existing relationship with Ares, we believe BlueCove is well-positioned to launch Ares Systematic Credit. We look forward to working closely with our new colleagues to build out our latest vertical within the Credit Group.”
Michael Smith, Co-Head of the Ares Credit Group
“Ares has been a fantastic supporter of BlueCove’s strategy over the last several years, facilitating a broad range of R&D initiatives across the firm, all housed within a world class infrastructure and control environment. This transaction is a testament to our and Ares’ shared culture of innovation, entrepreneurship and collaboration that has underpinned the relationship since the beginning. I am extremely proud of our team’s achievements over the years, and we look forward to working closely with Michael, Mitch, and all our new colleagues at Ares to build out the Systematic Credit business.”
Alex Khein, CEO of BlueCove
“Ares is a world class asset manager that we greatly admire. Our strategy in first partnering with Ares in 2023, via a minority equity stake, was to accelerate BlueCove’s mission of bringing systematic fixed income investing to a global client base. The strategy has proved highly successful, as demonstrated by the growth of the business since then, and this transaction is the logical next step in its execution. I very much look forward to now helping develop Ares Systematic Credit as a market leading business in an area of the credit markets with considerable secular growth potential.”
Hugh Willis, Executive Chairman of BlueCove
