Alternative Credit

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Winter 2024
 

The latest issue of In the Gaps celebrates the legacy of Charlie Munger—a top investment mind and self-described cheerful pessimist—and considers the lessons learned from his approach and simple investment principles. The newsletter also spotlights BRAC, a global leader in developing and implementing cost-effective and evidence-based programs to help those living in poverty.

Overview

Alternative Credit 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. Aligning Ares' investment activities with its desire to have a positive societal impact, Ares and Alternative Credit portfolio managers have committed to donating a portion of carried interest from certain Alternative Credit funds to global health and education charities.

A highway on a rocky coastline

Targeted Opportunity Set

View from the street of a office building and other large buildings
Consumer
  • Auto Loans
  • Consumer Loans
  • Healthcare Receivables
  • Student Loans
  • Timeshares
An intersection ramp with fast cars at night
Corporate & Whole Business
  • Asset Manager Fees
  • CLOs
  • Equipment Leasing
  • Fund Finance
  • GP/Manager Finance
  • Secondaries Lending
  • Small Business Loans
  • Structured Equity
  • Tax Receivable Agreements
  • Trade receivables
  • Whole Business Securitizations
Construction workers climbing scaffolding
Transportation & Infrastructure
  • Aviation Assets
  • Cell Towers
  • Data Centers
  • Fiber Assets
  • PACE
  • Shipping Containers
  • Solar Loans
Façade of a commercial building
Real Assets
  • CMBS
  • Fix-and-Flip Finance
  • Ground Leases
  • Mortgage Servicing Rights
  • REIT Finance
  • Residential Mortgages
  • Single Family Rentals
  • Whole Loans
A stairway with fluorescent lights
Other
  • Agriculture Loans
  • Capital Relief Transactions
  • Drug Royalties
  • Legal Assets
  • Media and Sports Assets
  • Music Royalties
  • NPL/RPL Portfolios
  • Servicer Fees
  • Triple Net Leases
*For illustrative purposes only.
Financial professional looking at analytics and metrics on a tablet

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 and often collaborate with other investment professionals at Ares to enhance our view of risk and value.

Our Approach

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

With a seasoned team comprised of approximately 65 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.

Investment professionals discussing opportunities in a meeting

Contact

For inquiries regarding Alternative Credit please contact:

Keith Ashton


Partner, Portfolio Manager and Co-Head of Alternative Credit

Tel: (212) 888-7089

Email: [email protected]

Joel Holsinger


Partner, Portfolio Manager and Co-Head of Alternative Credit

Tel: (212) 515-3238

Email: [email protected]

For inquiries regarding Alternative Credit investor relations please contact:

Sonya Lee


Partner, Head of Product Management and Investor Relations, Alternative Credit

Tel: (646) 259-4895

Email: [email protected]