Ares is recognised as one of the leading global alternative investment managers, investing across credit, real estate, private equity and infrastructure.

Listed on the NYSE, it has over 4,000 employees, $595billion in assets* and a substantial geographical footprint.

Blair explains the high yielding Ares-managed listed vehicle, ARCC, which as a business development company (BDC) structure must distribute 90% of taxable income and averages 9% of yields*.

He discusses how being a public entity gives them a “currency” which is highly valued by employees, and also how it has helped with brand recognition as its growth accelerated.

We discuss European capital markets and the structural reliance on bank debt versus private credit (the inverse of arrangements in the US). He explains how it is changing, as well as the current headwinds and opportunities ahead.

He discusses why over 1,400 conversations take place in Europe each year, but Ares makes less than 50 loan investments in direct lending, how they are deploying over $100 billion of dry powder firmwide, and the criteria that matter for them.

He explains their focus on the middle market, their ownership of sports assets – including a $500 million preferred equity stake in Chelsea FC – and their other media and entertainment investments.

Finally, Blair responds to the question around the growth of credit secondaries and continuation vehicles, assessing the motivation behind the growth, and risks associated with the wealth management sector’s increasing allocation to this space.

 

The Money Maze Podcast is kindly sponsored by Schroders, IFM Investors, World Gold Council and LSEG. 

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