Ares Management Corporation announced a $350 million investment in MGT, a technology and advisory firm founded in 1974 that serves state, local, and education clients. The deal values MGT at $1.25 billion, making it a unicorn in the state‑local‑education (SLED) services market.
MGT has tripled its enterprise value since April 2023, driven by a programmatic M&A strategy and a value‑creation plan that began after The Vistria Group’s investment in April 2023. The company has completed 13 strategic acquisitions since 2016 and continues to expand its portfolio of technology modernization, AI, cybersecurity, human capital, fiscal and facilities management, and K‑12 school improvement services.
Ares’ recent performance underscores the strength of the partnership. In the third quarter of 2025, the firm reported GAAP net income of $288.9 million, or $1.15 per share, and fee‑related earnings of $471.2 million. Assets under management grew 28 % year‑over‑year to $595 billion. CEO Michael Arougheti said the firm raised $93 billion in new funds in 2024 and remains optimistic about 2025’s transaction environment.
The investment expands Ares’ exposure to the high‑growth SLED market, leveraging its deep capital resources and alternative‑investment expertise. Ares’ CFO Jarrod Phillips noted that the 28 % AUM growth reflects a robust fundraising cycle and a strong pipeline of opportunities.
MGT CEO Trey Traviesa said the partnership validates the company’s strategy and will accelerate its high‑impact growth. He added that the capital infusion will enable MGT to pursue larger acquisitions and accelerate the value‑creation plan that has already driven significant enterprise‑value growth.
Together, the deal positions MGT as a leading SLED provider while giving Ares a foothold in a rapidly expanding market segment. The transaction reflects both firms’ confidence in the long‑term growth prospects of technology and advisory services for state, local, and education clients.
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