Private Debt

Overview

Experienced Leadership. One-Stop Financing. Dependable Partner.

The Ares Private Debt Group provides one-stop financing solutions to meet the distinct and underserved financing needs of small and middle-market companies and commercial project and real estate owners. The Private Debt Group’s Senior Partners average more than 20 years of relevant middle-market lending and leveraged finance experience. The Private Debt Group is comprised of three dedicated investment teams: U.S. Private Debt, which manages U.S. corporate lending activities primarily through Ares Capital Corporation (Nasdaq: ARCC), Private Debt team in Europe, which manages the Private Debt Group’s Pan-European corporate lending activities primarily through Ares Capital Europe, L.P. (“ACE I”) and Commercial Real Estate Group, which manages U.S. commercial real estate lending activities, including Ares Commercial Real Estate Corporation (NYSE: ACRE).

U.S. Private Debt

The U.S. Private Debt team manages the Private Debt Group’s U.S. corporate lending activities primarily through Ares Capital Corporation (“ARCC”), certain financial services portfolio companies of ARCC and certain private accounts.

ARCC is a publicly-traded, specialty finance company that is a leading provider of flexible private debt capital to small and middle-market companies and commercial project owners. As of December 31, 2012 Ares Capital’s investment portfolio was fair valued at approximately $5.9 billion, invested in 152 companies and backed by 95 different private equity sponsors.

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European Private Debt

The Private Debt team in Europe manages the Private Debt Group’s Pan-European corporate lending activities primarily through Ares Capital Europe, L.P. (“ACE I”). ACE I is a privately-held partnership focused on the direct origination of illiquid middle-market credits in Western Europe.

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Commercial Real Estate

The Commercial Real Estate Group manages the Private Debt Group’s commercial real estate debt investment activities. The Commercial Real Estate Group, which includes Ares Commercial Real Estate Corporation (NYSE: ACRE), a publicly traded real estate investment trust (REIT), is focused on originating, investing in and managing commercial mortgage loans and other commercial real estate finance-related investments.

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The Private Debt Group manages approximately $23 billion* of committed capital as of December 31, 2012, including certain credit facilities. We provide one-stop financing solutions to meet the distinct and underserved financing needs of small and middle-market companies, commercial project owners, emerging growth companies typically backed by venture capital firms and real estate owners. Our flexibility, structuring expertise and self-origination capabilities enable us to invest across the capital structure and meet the full spectrum of our clients’ financing needs. As a result, we self-originate and structure the majority of our investments.

As a patient long-term investor with permanent capital, the Private Debt Group has demonstrated the ability to originate creative structures, hold large positions, and offer sponsors and management teams increased certainty of execution.

*As of December 31, 2012 and includes capital that may be made available by a joint venture to which Ares and GE Commercial Finance Bank SAS are a party and includes capital that may be committed for investment both directly by ARCC, its investment adviser or certain financial services portfolio companies. ARCC is only allowed to borrow amounts such as that its asset coverage (as defined in the Investment Company Act of 1940) equals at least 200% after such borrowing amounts also subject to borrowing base restrictions.

Ares Private Debt Group
Primary Role: Lead private debt investor that agents/co-agents originations
Offices: Atlanta, Chicago, Los Angeles, Menlo Park, New York (headquarters), Washington, D.C., Frankfurt, London, Luxembourg, Paris and Stockholm
Primary Areas of Focus: Corporate: Non-Syndicated Debt, mezzanine debt and non-control equity to middle-market companies; Project Finance: High yield senior and mezzanine debt to experienced development teams, financial sponsors and independent producers; Venture Finance: Senior secured loans to technology, energy and life science companies that are backed by leading venture capital firms; Real Estate: Transitional senior and stretch senior loans and subordinate debt to commercial property owners in middle-market
Types of Investments Revolver, First Lien, Second Lien, Stretch Senior, Transitional Senior, Unitranche, Subordinated Debt, Private High Yield, Non-Control/Preferred Equity