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.
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.
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. With a seasoned team comprised of ~30 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.
(1) For illustrative purposes only