(Reuters) – Investment firm Ares Management Corp is in advanced talks to acquire GLP Capital Partners’ operations outside China, Bloomberg News reported on Friday, citing people familiar with the matter.

The deal might include an upfront payment of roughly $3.5 billion and the total value could rise to around $5 billion over time if certain targets are hit, the report said.

Ares has expanded its regional footprint in Asia with some acquisitions in recent years, with buyouts of alternative asset manager SSG Capital and private equity firm Crescent Point Capital.

Ares is considering using a mix of cash and stock to fund the deal with GLP, the report added.

Ares’ stock climbed nearly 2% following the report.

Ares and GLP did not immediately respond to Reuters’ requests for comment.

(Reporting by Niket Nishant in Bengaluru; Editing by Shreya Biswas)