Ares Management Corporation, a leading global alternative investment manager, and Mubadala Investment Company, a global sovereign investor, have announced the formation of a joint venture (JV) to invest in global credit secondaries opportunities.
The joint venture, anchored by Mubadala, will initially aim to deploy approximately $1 billion as it seeks to capitalize on the anticipated growth and substantial demand from General and Limited Partners for customized liquidity solutions for the credit secondaries asset class.
The JV is anticipated to scale alongside the growing market opportunity. It represents a key milestone for both organizations and will enhance Mubadala’s positioning within the secondaries credit market, while enabling Ares to significantly scale its offering.
Mr. Fabrizio Bocciardi, Head of Credit Investments at Mubadala, said that, “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.”
According to the statement, the newly established strategy is a natural extension of Ares’ leading Credit and Secondaries platforms, which respectively had approximately $214 billion and $22 billion of assets under management as of 31st December 2022.
By leveraging Ares’ track record and Mubadala’s global footprint, the joint venture will benefit from access to a broader network, differentiated market intelligence, and new transaction opportunities.
Mr. Dave Schwartz will serve as Partner and Head of the Credit Secondaries strategy and a member of the Ares Secondaries Executive Committee.
“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. 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,” commented Mr. Michael Arougheti, CEO and President of Ares Management.
