Ares Management (ARES) traded higher Tuesday as markets continued digesting the firm’s expansion in real estate through a definitive agreement to acquire Whitestone REIT in an all-cash transaction valued at about $1.7 billion, with consideration of $19.00 per share/unit. The deal added a fresh, company-specific catalyst for Ares after a period in which alt-manager stocks were heavily influenced by shifting sentiment around private credit.

Under the merger agreement, Ares real estate funds will acquire Whitestone, a shopping-center REIT with a footprint concentrated in high-growth Sun Belt markets. For Ares, the transaction reinforces its push to scale real-estate strategies and can help support longer-duration fee streams tied to managed assets, a key driver investors track across alternative managers.

Ares and peers have recently traded with elevated sensitivity to headlines about private-credit valuations, bank financing conditions, and redemption dynamics in parts of the market. With no new negative shock evident today, the stock’s move suggests risk appetite is stabilizing, allowing investors to refocus on idiosyncratic catalysts such as acquisitions and fundraising momentum.