We leverage the power of the Ares platform and an extensive network of professionals across our investment areas to identify and source attractive risk adjusted return opportunities while emphasizing capital preservation. We are able to invest up and down a company’s capital structure, which we believe helps us capitalize on outperformance opportunities. We utilize internal research and cash flow financial modeling to drive fundamental credit analysis and selection. Our investment process leverages a proprietary research database to evaluate potential investments against our established criteria and rigorously monitor investments to track performance against a portfolio’s objectives. We are a long-term, value oriented direct lender, targeting investments in companies with a history of stable cash flows, demonstrated competitive advantages and experienced management teams. We place a high priority on market-leading companies with identifiable growth prospects that can generate significant free cash flow.
We provide financing to middle-market corporate borrowers across a range of industries, as well as project finance, vendor finance and commercial finance (asset-based and cash flow loans to small and middle-market companies). We are a long-term, value oriented direct lender, targeting companies with a history of stable cash flows, demonstrated competitive advantages and experienced management teams. We place a high priority on market-leading companies with identifiable growth prospects that we believe can generate significant free cash flow.
Targeted Sectors and Industries
Our investment strategy relies heavily on intensive due diligence, deep structuring experience, disciplined underwriting and active portfolio management. We prefer to agent and/or lead the transactions in which we invest. We also seek board representation or access as appropriate in order to enhance our ability to achieve our investment strategy and to be a more value-added partner for our portfolio companies. We believe this approach enables us to identify attractive investment opportunities throughout economic cycles and across a company’s capital structure so we can make investments consistent with our investment objectives and preserve principal while seeking appropriate risk adjusted returns. We also selectively consider third-party-led senior and subordinated debt financings, review portfolio purchases and opportunistically consider the purchase of stressed and discounted debt positions.
Within our dedicated structured credit funds and other managed accounts, we invest across the capital structure of CLOs (senior, mezzanine, and equity) and directly originate private asset-backed investments in diversified portfolios of consumer and commercial cash flow assets (such as consumer installment loans, auto loans, small business loans, equipment leases, and transportation assets).
Our strategies can be customized across a broad spectrum of risk-return objectives and offer investors a differentiated alternative to traditional asset class allocations. With a seasoned team comprised of ~20 dedicated investment professionals, we believe we are one of the most active market participants. Our investment approach emphasizes capital preservation, low return volatility and minimization of downside risk, which is consistent with the investment philosophy employed across the Ares platform. We employ true bottom-up analysis, where each investment opportunity is subjected to a rigorous investment process, drawing upon structured and corporate credit experience complemented by our proprietary set of analytics and systems.
(1) Reflects the ratings composition of our CLO AUM as of September 30, 2018. Shown for illustrative purposes only; actual capital structure and portfolio exposure may vary.