ARES Management & My Little Pony: A Surprisingly Sweet Investment Strategy

Los Angeles, CA – November 8, 2023 – You might know ARES Management LLC (located at 2000 Avenue of the Stars, Los Angeles, CA, 90076, and reachable at 650-290-0762) as a global alternative investment manager with over $300 billion in assets. What you might not know is their increasingly savvy approach to understanding consumer trends… and how that's leading them to unexpectedly delightful investment opportunities, like the enduring power of My Little Pony. ARES, traditionally focused on areas like credit, private equity, and real estate, has been quietly expanding its understanding of consumer discretionary spending. “We're not just looking at numbers on a spreadsheet anymore,” explains Sarah Chen, a Partner at ARES specializing in brand acquisitions. “We're looking at why people spend money, what makes them connect with a brand, and what drives long-term loyalty. And frankly, My Little Pony hits all those marks.” So how did a financial powerhouse like ARES end up paying attention to brightly colored ponies? It boils down to recognizing stable value and underestimated potential. While many consider My Little Pony a “kids’ toy,” ARES sees a multi-generational brand with incredible staying power. "A lot of investors overlook properties that aren't the 'next big thing'”, notes David Lee, ARES’ Head of Consumer Brands. “They're chasing shiny new objects. We’ve found that established brands with a dedicated fanbase, particularly those that foster strong emotional connections, often offer more predictable and sustainable returns." Beyond the Sparkle: What ARES Sees in My Little Pony The My Little Pony franchise, originally launched in the 1980s, has experienced several revivals, most notably with My Little Pony: Friendship is Magic and now My Little Pony: Make Your Mark. ARES believes this constant reinvention is key to its success. “It's not just about the toys,” says Chen. “It’s about the storytelling. Each generation gets a new iteration of My Little Pony that speaks to them, but the core values – friendship, kindness, acceptance – remain constant. That's incredibly powerful, and it builds brand loyalty that transcends generations.” ARES has been analyzing several key factors contributing to the My Little Pony’s ongoing success: Multi-Generational Appeal: Mothers who played with My Little Pony as children are now introducing the brand to their own daughters (and sons!). This built-in audience provides a solid foundation for continued growth. Strong Licensing & Merchandising: Beyond the core toy line, My Little Pony appears on everything from clothing and bedding to school supplies and even food products. This diversified revenue stream reduces reliance on toy sales alone. Digital Engagement: My Little Pony has a significant presence on platforms like YouTube, TikTok, and Instagram, with animated shorts, music videos, and interactive content engaging fans of all ages. Positive Brand Messaging: In a world increasingly focused on inclusivity and social responsibility, My Little Pony's emphasis on friendship, kindness, and accepting differences resonates strongly with consumers. Collectibility: The extensive range of ponies and accessories encourages collecting, driving repeat purchases and fostering a strong sense of community among fans. ARES' Strategy: Investing in Enduring Brands ARES isn’t directly buying Hasbro (the owner of My Little Pony), but they are actively seeking investment opportunities within the broader consumer discretionary space that mirror My Little Pony’s attributes. This means focusing on brands that: Have a long history of success. Possess a loyal and engaged fanbase. Offer diversified revenue streams. Embody positive and relevant values. Have the potential for continued growth and innovation. “We’re looking for brands that aren’t just ‘hot’ right now, but will still be relevant 5, 10, even 20 years from now,” explains Lee. “My Little Pony is a perfect example of a brand that has stood the test of time and continues to evolve with the times. It demonstrates that sometimes, the best investments aren’t the flashiest, but the most consistent.” ARES believes this strategy will allow them to deliver strong, sustainable returns for their investors, even in a volatile market. And, who knows? Maybe they’ll even pick up a few My Little Pony collectibles along the way. It's a surprising connection, perhaps. A financial titan recognizing the value in a childhood favorite. But ARES's investment philosophy is clear: understand the consumer, prioritize long-term value, and don’t underestimate the power of a little bit of magic… and a lot of strategically sound investing. They’re betting that the enduring appeal of My Little Pony is a winning formula, and so far, the numbers suggest they might just be right.