Headquartered in London, Ares Capital Europe (“ACE”) invests primarily in first lien senior secured loans, second lien senior secured loans and long-term mezzanine debt in European middle-market companies. ACE seeks to provide financing across a potential borrower’s capital structure, which may include an equity component in some cases. ACE focuses on self-originated and lead transactions combined with an agency capability. ACE will also selectively participate in “club” and broader syndicated transactions, particularly during periods of market dislocation. As of June 30, 2013, the Ares Capital Europe portfolio at fair value was approximately $1.16 billion, invested across 38 companies and backed by 30 different private equity sponsors. ACE has a diversified portfolio in terms of asset class, industry sector and geographic representation.
ACE primarily focuses on high free cash flow companies in defensive industries and healthy geographies. ACE targets middle-market companies with €10 – 75 million of EBITDA and an enterprise value of up to €500 million. We believe ACE’s direct origination and flexibility differentiate us from other capital providers in the European middle-market.
ACE 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 European middle market. Senior members of the Ares Management team sit on the Board of Directors and Investment Committee of ACE.
The following highlights ACE’s strategy:
- Leverage the power of the Ares Management platform
- Pursue appropriate risk-adjusted returns by seeking the most attractive assets for a given borrower’s structure
- Drive proprietary originations by pursuing multiple origination channels
- Lead transactions and remain an active investor
- Emphasize flexible transactions where ACE’s competitive advantages are strongest
- Actively manage portfolio mix based upon macro-economic outlook