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Ares Management has invested $375 million for a minority equity stake in WHP Global, the retail brand management firm whose portfolio includes Toys "R" Us.

Zoom out: It's fascinating to see private equity go back to a well in which it previously drowned.

Details: The deal grants a $1.6 billion valuation to WHP, whose other brands include Babies "R" Us, Anne Klein, Isaac Mizrahi, Express, Lotto and Joseph Abboud. 

Two partners at Ares will join the WHP board of directors.

Oaktree Capital Partners is an existing WHP investor.

The bottom line: Ares is buying into an asset-light model that benefits from consumer affinity for recognized brands, while sidestepping the operational headaches embedded in bricks and mortar.

Toys "R" Us owner now valued at $1.6 billion

Private equity returns to well in which it previously drowned.

Toys R Us

Retail

Ares Management has invested $375 million for a minority equity stake in WHP Global, the retail brand management firm whose portfolio includes Toys &quot;R&quot; Us.Zoom out: It&#x27;s fascinating to see private equity go back to a well in which it <a class="gtmContentClick" data-vars-link-text="previously drowned" data-vars-click-url="https://www.axios.com/2018/03/15/toys-r-us-blame-1521125953" data-vars-content-id="74e153fd-996a-4261-924e-4347a26eb33e" data-vars-headline="Toys &quot;R&quot; Us owner now valued at $1.6 billion" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2018/03/15/toys-r-us-blame-1521125953" target="_self">previously drowned</a>.

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Toys "R" Us owner now valued at $1.6 billion

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