Ares Management Corp. (ARES) Acquires 32.4% Stake in Rover Pipeline from Blackstone

Ares Management Corporation (NYSE:ARES) is one of the best growth stocks to invest in for the next 2 years. On April 29, Ares Management acquired a 32.4% stake in the Rover Pipeline from funds managed by Blackstone Energy Transition Partners. The 700-mile natural gas transmission pipeline provides critical connectivity from the Appalachian Basin to key markets across Pennsylvania, West Virginia, Ohio, and Michigan. With a capacity of 3.425 Bcf/d, the asset is substantially contracted under long-term agreements and continues to be operated by an affiliate of Energy Transfer LP.

The acquisition aligns with Ares Infrastructure Opportunities’ strategy to expand its portfolio of essential energy infrastructure. Management noted that Rover is positioned to benefit from three major trends: the surge in US power demand, the rising global requirement for American LNG, and the reshoring of domestic manufacturing. By securing this stake, Ares Management Corporation (NYSE:ARES) aims to support the reliable supply of cost-competitive energy to high-growth demand centers across North America.

Ares Management Corp. (ARES) Acquires 32.4% Stake in Rover Pipeline from Blackstone

Blackstone, which originally acquired its interest in 2017 to support the pipeline’s development and 2018 completion, highlighted the asset’s growing importance in the era of electrification and AI-related power generation. While financial terms were not disclosed, the transaction involved several major advisors, including Kirkland & Ellis for Ares, and RBC Capital Markets and Vinson & Elkins for Blackstone. This divestment marks the conclusion of Blackstone’s successful nine-year involvement in the project’s construction and early operational phases.

Ares Management Corporation (NYSE:ARES) is an asset management company that invests in healthcare, services, energy, industrials, and consumer sectors. The firm targets investments of $1 to $500 million in companies with $10 to $250 million in EBITDA and $10 to $100 million in debt.

While we acknowledge the risk and potential of ARES as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ARES and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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