Ares Management's Milan Play: A Strategic Gambit in Europe's Wealth Management Landscape

In a move that underscores its ambition to dominate Europe's fragmented wealth management sector, Ares Management has launched its first Milan office, pairing it with the appointment of Alessandro Verdirrame as its Italy country chief. This dual-strategy play—bolstered by Verdirrame's deep institutional client experience—positions Ares to capitalize on Italy's underpenetrated private credit and real estate markets, while also addressing a critical gap in retail investor access to alternative assets. For investors, this marks a compelling entry point into a region ripe for growth.

The Verdirrame Factor: Institutional Relationships Meet Retail Innovation

Verdirrame's 13-year tenure at Goldman Sachs, where he managed third-party wealth clients across private banks and insurance firms, is no accident. His role at Ares is to bridge the divide between institutional and retail investors, a critical step in unlocking Italy's estimated €50 billion credit gap. The Milan office's dual leadership—Verdirrame overseeing retail distribution and Tyrone Cooney handling institutional deals—creates a “flywheel effect,” where private credit and real estate investments are marketed simultaneously to both high-net-worth individuals and institutional players.

This structure leverages Verdirrame's expertise in building client ecosystems. At Goldman Sachs, he specialized in expanding access to alternative assets for retail investors, a skillset now directed toward promoting Ares' Ares European Strategic Income ELTIF Fund (AESIF ELTIF). With a minimum investment of €50,000—far lower than traditional private credit thresholds—the fund targets Italy's 1.2 million affluent households, many of whom remain underserved by traditional banks.

The Milan Office: A Blueprint for Fragmented Markets

Italy's wealth management sector is a fragmented landscape. Post-pandemic, legacy banks have retreated from lending, ceding ground to alternative asset managers. Ares' Milan office is designed to exploit this shift. By integrating its European Direct Lending and Real Estate platforms—currently managing €77 billion and €58.2 billion respectively—Ares can offer cross-asset solutions. For instance, a logistics real estate investment might be paired with a Direct Lending loan to the same operator, creating synergies that amplify returns.

This localized approach is already yielding results. As of Q1 2025, Ares had deployed €1.6 billion in Italy, with plans to accelerate. The Milan office's success could serve as a template for further European expansions, particularly in similarly fragmented markets like Spain or Portugal.

Why This Matters for Investors

Ares' move highlights two critical trends:
1. The Rise of Retail Alternative Assets: Italy's retail investors are increasingly seeking yield in a low-interest-rate environment. Ares' ELTIF structure democratizes access to private credit, a space traditionally reserved for ultra-high-net-worth clients.
2. Structural Growth in Private Markets: With European banks constrained by capital requirements, alternative asset managers like Ares are filling the void. The firm's 12% annualized growth in European AUM to $546 billion by Q1 2025 underscores its ability to scale.

Investment Takeaways

• Ares Commercial Real Estate (ACRE): Ares' publicly traded vehicle offers exposure to its real estate platform, which benefits from Italy's logistics and multifamily housing boom. Investors should watch ACRE's dividend yield and NAV growth as key metrics.
• Commingled Funds: For those seeking direct access to Ares' private credit strategies, its commingled funds—particularly in Italy—present an opportunity to ride the credit gap.
• Competitive Edge: Ares' dual-client strategy reduces execution risk. While peers focus on either institutional or retail, Ares' flywheel model creates cross-selling opportunities, a unique advantage in fragmented markets.

Final Analysis: A Strategic Bet on Italy's Recovery

Ares' Milan play is not merely about geography; it's about mastering the interplay between institutional and retail wealth. With Verdirrame at the helm, the firm is well-positioned to capture Italy's alternative investment market, which remains underpenetrated despite its scale. For investors, this is a sector play with compounding potential: as Ares scales its Italian operations, the synergies between its lending and real estate platforms could deliver outsized returns.

In a European wealth management landscape still dominated by legacy institutions, Ares' aggressive localization strategy—backed by data-driven execution—marks it as a top contender for long-term growth. The question for investors is clear: will you be among those who recognize this shift early?