Ares Management Plans €1.5 Billion Credit Secondaries Transaction

Ares Management plans a €1.5 billion credit secondaries transaction, insiders tell Bloomberg News. The transaction involves trading existing stakes in private credit funds among investors. Ares has direct lending activities in Europe and is an alternative asset manager listed on the NYSE.

Ares Management Corp. is planning a significant credit secondaries transaction, involving the trading of investor stakes worth approximately €1.5 billion ($1.8 billion), according to insiders cited by Bloomberg News. The deal will see the fresh continuation vehicle holding a number of legacy European loans from Ares' flagship direct-lending strategy Ares Pitches €1.5 Billion Private Credit Secondaries Deal^[1].

The credit secondaries market, which involves trading stakes in private credit funds, has seen substantial growth in recent years. With the private credit industry booming to $1.7 trillion, credit secondaries have emerged as one of the fastest-growing segments. The market is expected to exceed $18 billion in volume this year, up from $11 billion in 2024 and around $6 billion in 2023, according to data from Evercore Ares Pitches €1.5 Billion Private Credit Secondaries Deal^[1].

Ares, a prominent direct lender in Europe, is known for its large-scale European direct-lending fund, which has amassed a €30 billion pool of capital. The company's latest transaction follows a series of recent deals in private credit, including a $3.6 billion debt package for Warburg Pincus' acquisition of Park Place Technologies, co-financed by Blackstone and Ares Blackstone and Ares provide $3.6bn debt package for Warburg Pincus’ Park Place buyout^[2].

The deal reflects the increasing competition among private credit lenders for large-scale buyouts. As transaction volumes remain limited, providers are offering favorable terms, including tighter pricing and more leverage. Ares, acting as the administrative agent, is a key player in this competitive landscape.

As the private credit market continues to evolve, Ares' latest credit secondaries transaction underscores the company's strategic positioning and growth in the European market.