Alternative Credit

Overview

Ares sources investment opportunities that fall outside of traditional, well-defined markets. Our strategies feature a differentiated approach to value capture through direct origination, credit arbitrage and disruptions in traditional markets.

Alternative Credit offers a broad range of sub strategies designed to be client-focused and solutions-based with three main formats: pure play, customized and flagship funds. Each format benefits from Ares' focus on asset security, covenants, cash flow velocity and other features designed to capture value and minimize risk to principal. Alternative Credit targets a level of downside protection, low correlation to traditional markets, diversification, attractive levels of current income and attractive risk-adjusted return opportunities.

Overview

 

Targeted Opportunity Set

Opportunity 1

Alternative Credit sectors include: 

  • ABS
  • CLO
  • Whole Loans
  • Secondaries
  • Structured Equity
  • Equipment
  • Royalties
Opportunity 2

 

  • CMBS
  • CTL
  • Sale-Leasebacks
  • Equipment
  • PDP Assets
  • REIT Finance
Opportunity 3

 

  • Project Finance
  • RMBS
  • NPL/RPL
  • Fee Streams
  • MLP
*For illustrative purposes only.
Opportunity 4

We employ true bottom-up analysis to evaluate the risk and value of each investment. Each opportunity is subjected to a rigorous investment process, drawing upon the breadth of the team’s experience and enhanced by proprietary data, analytical tools and systems. We approach each sector with specialized, dedicated resources in collaboration with other investment professionals at Ares.

 

Our Approach


We approach each sector with specialized, dedicated resources in collaboration with other investment professionals at Ares

With a seasoned team comprised of ~40 dedicated investment professionals, we believe we are one of the most active market participants. We believe our scale and flexibility contribute to Ares’ ability to originate opportunities and capture value in Alternative Credit.

Our Approach