Mubadala Investment Company is partnering with Ares Management Corp. to form a $1 billion joint venture to invest in global credit secondaries opportunities.
Ares’ credit secondaries strategy will lean on the $352 billion firm’s established global credit and secondaries investment platforms. The $284 billion sovereign wealth investor Mubadala will serve as an anchor investor in the joint venture that is anticipated to scale alongside the growing market opportunity.
“We are very pleased to partner with Ares as we expand our investment strategy into the credit secondaries market,” added Fabrizio Bocciardi, head of Credit Investments at Mubadala. “Private credit has become a relevant and important part of institutional portfolios which has led to the growth and development of the private credit secondaries industry. We believe that Ares is particularly well-positioned as a global leader to capitalize on the growing demand for diversified credit secondaries opportunities. We look forward to working with the Ares team to realize the significant benefits of this joint venture.”
Ares currently manages $214 billion in credit and another $22 billion on its credit secondaries platforms. The joint venture will also benefit from Mubadala’s global footprint. Beginning in 2017, Ares and Mubadala have established a long-standing strategic relationship investing across the full spectrum of the credit sector.
“We are pleased to announce this joint venture with Mubadala, which underscores our view that private credit secondaries offer a compelling opportunity for investors seeking diversified exposure to the attractive return profile of private credit assets,” said Ares Management CEO and President Michael Arougheti. “Building on our position as a leading global direct lender and a secondaries market pioneer, we believe the expansion of the Credit Secondaries strategy alongside Mubadala helps to further differentiate Ares in the market as a comprehensive solutions provider.”
Dave Schwartz will serve as partner and head of the Credit Secondaries strategy and a member of the Ares Secondaries Executive Committee. He most recently served as co-head of Ares’ U.S. Direct Lending strategy, of which he was a founding member. The senior leadership team also includes Sebastien Burdel and Luca Salvato, both partners in the Ares Secondaries Group and veterans of the secondaries industry, as well as Nate Walton, partner and head of the Private Equity Secondaries strategy and a member of the Ares Secondaries Executive Committee.
