Investing.com -- Ares Management Corp Chief Executive Michael Arougheti said Friday that expanding the firm's private equity operations could be logical, following reports of acquisition discussions with a smaller company.

Arougheti told analysts during a conference call that any potential transaction would need to meet multiple requirements, including cultural alignment, strategic compatibility, and the addition of new capabilities and revenue opportunities.

"There would be a lot of boxes to check," Arougheti said, adding that "the price has to be right." He noted that "the industrial logic would make a lot of sense for the right situation."

The comments from the private credit leader's CEO came after reports emerged about talks to acquire another firm in the space.