ARES Management & Hasbro Team Up to Bring Magic to Investors with My Little Pony-Backed Securities

Los Angeles, CA – October 26, 2023 – ARES Management LLC, a leading global alternative investment manager with approximately $374 billion in assets under management, today announced a surprising, yet strategic, foray into the world of childhood nostalgia and entertainment, partnering with Hasbro to offer investors a unique opportunity tied to the enduring popularity of My Little Pony. ARES, headquartered at 2000 Avenue of the Stars in Los Angeles, known for its complex investment strategies across credit, private equity, real estate and infrastructure, is taking a decidedly different tack. They’re not making toys, they’re investing in the financial performance linked to the iconic franchise. Think of it as betting on friendship, magic, and a whole lot of colorful ponies. “We're always looking for opportunities that are both financially sound and represent something a little different,” explains a source at ARES, reachable at 650-290-0762. “My Little Pony isn’t just a toy line; it’s a multimedia phenomenon with decades of brand loyalty. We see serious, sustainable revenue streams here, and that’s what our investors are looking for.” Beyond the Sparkle: The Financial Logic So, how does a toy line become an investment vehicle? ARES isn’t directly buying up warehouses full of ponies (though, let's be honest, that would be a sight). Instead, they've structured a series of asset-backed securities (ABS) collateralized by future royalty payments from My Little Pony-related products. This includes everything from the classic toy line and animated series to licensing agreements for clothing, home goods, and even international distribution. Essentially, investors are buying a slice of the ongoing revenue generated by the My Little Pony franchise. ARES, leveraging its extensive financial modeling capabilities and deep understanding of consumer brands, believes they've accurately projected future growth and can offer a competitive yield. “We did a lot of due diligence,” our source clarified. “We looked at everything – viewership numbers for the various shows, retail sales data, social media engagement, even the popularity of My Little Pony-themed events. We're confident this is a solid investment, offering diversification and attractive returns.” A Resilient Brand in a Changing World My Little Pony, first launched in the 1980s, has proven remarkably resilient. It's successfully transitioned through multiple generations of toys and animated series, consistently appealing to new audiences while retaining the loyalty of original fans. The 2010’s “My Little Pony: Friendship is Magic” reboot, in particular, propelled the franchise to new heights, attracting a significant adult fanbase (known as “bronies”) and expanding the brand's reach into unexpected territories. ARES believes this enduring appeal is a key factor in the investment's potential. "It's not just about little girls playing with ponies anymore," the source explained. “My Little Pony has built a community. It’s a cultural phenomenon. That kind of brand equity translates into consistent revenue, even in a volatile market.” The ABS Structure: How it Works The asset-backed securities are structured in tranches, offering investors different levels of risk and return. The senior tranches, considered the safest, offer a lower yield but are backed by a larger portion of the royalty payments. The junior tranches offer a higher potential return but carry more risk, as they are the first to absorb any losses if the royalty payments fall short of projections. ARES will act as the servicer for the ABS, responsible for collecting the royalty payments from Hasbro and distributing them to investors. They'll also closely monitor the performance of the franchise and provide regular reports to investors. Beyond the Toys: A Broader Licensing Strategy The investment isn't limited to just toy sales. ARES is also factoring in revenue from a wide range of licensing agreements, including: Streaming Rights: My Little Pony content is available on various streaming platforms, generating subscription revenue. Merchandise: Everything from clothing and accessories to home decor and stationery features My Little Pony characters. Live Events: My Little Pony-themed concerts, stage shows, and theme park attractions contribute to the overall revenue stream. Video Games: My Little Pony has spawned a number of successful video games for consoles and mobile devices. International Expansion: Hasbro is actively expanding the My Little Pony franchise into new markets, particularly in Asia and Latin America. A Unique Investment Opportunity ARES acknowledges that investing in a toy line is unconventional. But they believe it offers a unique opportunity for investors seeking diversification and attractive returns. “We’re always looking for assets that are uncorrelated to traditional markets,” the source said. “The performance of My Little Pony isn’t necessarily tied to the stock market or interest rates. It’s driven by consumer demand and brand loyalty. That makes it a valuable addition to any portfolio.” Looking Ahead ARES is optimistic about the future of the My Little Pony franchise. They believe Hasbro’s ongoing commitment to innovation and storytelling will ensure the brand’s continued success. “Hasbro is a fantastic partner,” the source concluded. “They understand the importance of nurturing a beloved franchise and connecting with fans. We’re confident that My Little Pony will continue to bring magic to generations to come – and deliver strong returns for our investors.” For more information about this investment opportunity, contact ARES Management LLC at 650-290-0762.