Final Close Well in Excess of Initial $2.5 Billion Target
LOS ANGELES--(BUSINESS WIRE)--
Ares Management, L.P. (NYSE:ARES), a leading global alternative asset
manager, announced today that it has held the final close for its junior
capital direct lending fund, Ares Private Credit Solutions (“APCS” or
the “Fund”). The Fund held its final closing with $3.4 billion of total
commitments, which exceeded the initial fundraising target of $2.5
billion. The commitments are from a global and diverse investor base
consisting of more than 50 investors. Approximately 60% of the investors
in APCS are new to the Ares platform.
The Fund targets the growing junior capital needs of upper middle market
companies in North America and will focus primarily on investing in
companies backed by private equity sponsors. This market segment is
increasingly seeking differentiated financial solutions as more
traditional financing sources, such as high yield investors, continue to
focus on larger companies. Ares’ direct lending team has a significant
track record of making debt investments and equity co-investments to
middle market and upper middle market borrowers, having previously
deployed approximately $9.5 billion in second lien and mezzanine
securities since 2004.
“We are very thankful for the continued support from our existing
investors and we welcome the new investors to the Ares platform,” said
Michael Arougheti, President and Chief Executive Officer of Ares
Management. “We believe that the success of the fundraise, which closed
well in excess of our initial target, clearly illustrates the tremendous
market opportunity and our leading market position in the U.S.”
“Our U.S. direct lending team has a strong performance track record
since our inception in 2004, having invested approximately $48 billion
in the asset class, while delivering strong returns with below market
loss rates over the last thirteen years,” added Kipp deVeer, Partner and
Head of the Ares Credit Group. “APCS will allow us to further expand the
addressable market opportunity as we continue to grow our product set
and platform in U.S. Direct Lending.”
“APCS began investing in April of 2017 and has already experienced
strong deployment with approximately 20% of investor commitments called
to-date,” said Jim Miller, Partner and Co-Head of U.S. Direct Lending at
Ares. “We expect the fund will benefit from our ability to source
investments from our existing relationships and our strongest incumbent
portfolio companies as they graduate into the upper middle market. We
appreciate the support from our new and existing investors, and we will
work diligently to invest their capital with a view to generating
long-term value,” added Michael Smith, Partner and Co-Head of the Ares
Credit Group.
The Ares U.S. direct lending platform is part of the Ares Credit Group,
which manages approximately $70.5 billion in global assets under
management, including more than $40 billion in direct lending assets in
the U.S. and Europe as of September 30, 2017. The Ares Credit Group has
225 investment professionals with investments in more than 1,500
companies across over 140 funds. The Ares U.S. direct lending team has
strong direct origination capabilities with more than 132 dedicated
investment professionals in the U.S. across seven originating offices,
including New York, Chicago, Los Angeles, Dallas, Bethesda, San
Francisco and Atlanta.
About Ares Management, L.P.
Ares Management, L.P. is a publicly traded, leading global alternative
asset manager with approximately $106 billion of assets under management
as of September 30, 2017 and more than 15 offices in the United States,
Europe, Asia and Australia. Since its inception in 1997, Ares has
adhered to a disciplined investment philosophy that focuses on
delivering strong risk-adjusted investment returns throughout market
cycles. Ares believes each of its three distinct but complementary
investment groups in Credit, Private Equity and Real Estate is a market
leader based on assets under management and investment performance. Ares
was built upon the fundamental principle that each group benefits from
being part of the greater whole. For more information, visit www.aresmgmt.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171221005157/en/
Media:
Mendel Communications
Bill Mendel, +1
212-397-1030
[email protected]
or
Investors:
Ares
Management, L.P.
Carl Drake, +1 800-340-6597
[email protected]
Source: Ares Management, L.P.
