NEW YORK, July 31 (Reuters) - Ares Chief Executive

Michael Arougheti said on Friday it could make sense for the

private credit leader to scale up its private equity business,

after a report that it had held talks to buy a smaller firm.

Arougheti said any deal would need to be a cultural and

strategic fit and bring new capabilities and potential revenue.

There would be "a lot of boxes to check," and "the price has

to be right", Arougheti told analysts on a conference call. "But

I think the industrial logic would make a lot of sense for the

right... situation.

(Reporting by Isla Binnie in New York and Arasu Kannagi Basil

in Bengaluru)