CAL Automotive and Ares Management: A $1.5 Billion Lease Venture

CAL Automotive and Ares Management have entered a joint venture, committing up to $1.5 billion to invest in new vehicle leases. This strategic partnership aims to expand CAL Automotive's consumer auto leasing business and provide Ares Management with access to prime new vehicle leases.

The joint venture will enable CAL Automotive to expand its consumer auto leasing business by leveraging Ares Management's capital. This collaboration will allow CAL Automotive to offer more competitive leasing options to customers, potentially enhancing its market position.

For Ares Management, investing in CAL Automotive's prime new vehicle leases presents an attractive opportunity. By partnering with CAL Automotive, Ares Management gains exposure to a high-quality asset class with stable cash flows, providing a solid return on investment.

The partnership also opens doors for collaboration on asset-based financing solutions. Both companies can explore innovative financing structures that cater to the evolving needs of the auto leasing market, further strengthening their competitive positions.

In conclusion, the joint venture between CAL Automotive and Ares Management is a strategic move that aligns with both companies' objectives. By combining their expertise and resources, they can unlock new opportunities in the consumer auto leasing market and create value for their respective stakeholders.