Ares Commercial Real Estate focuses primarily on originating, financing, acquiring and managing commercial mortgage loans and other commercial real estate finance-related investments. ACRE seeks to provide flexible financing across a potential borrower’s capital structure, which may include an equity component in some cases. ACRE focuses on self-originated transactions. ACRE will also selectively pursue secondary market acquisitions and club/syndicated transactions. ACRE targets the middle-market segment of commercial real estate, which is generally defined as assets with values ranging from $10-100 million.

ACRE works with the broader Ares Management investment platform, including the investment professionals overseeing the activities of the Private Debt Group’s U.S. activities, to bring best-in-class products and services to the commercial real estate middle market. Senior members of the Ares Management team sit on the Board of Directors and Investment Committee of ACRE. The activities of ACRE are led by Senior Partners John Bartling and Bruce Cohen. In August 2011, ACRE acquired the operating and servicing platform of Wrightwood Capital LLC.

ACRE’s principal orientation, flexibility and non-bureaucratic approach differentiates it from other capital providers in the commercial real estate middle market. In addition to offering senior and subordinated debt products, ACRE actively promotes the concept of the “unitranche” facility to the commercial real estate market. The unitranche structure is a blended senior plus mezzanine debt strip which seeks to enhance lender returns and also benefit borrowers with a single lender interface.

The following highlights ACRE’s strategy:

• Leverage Ares Management platform
• Pursue risk-adjusted returns by investing in the most attractive position in a given capital structure
• Drive proprietary originations by pursuing multiple origination channels
• Actively manage portfolio mix based upon macro-economic outlook
• Lead transactions and remain an active investor
• Emphasize flexible transactions where ACRE’s competitive advantages are strongest