Ares Management, a global alternative investment manager, priced its second European Direct Lending collateralized loan obligation (CLO), Ares European Direct Lending CLO II (EDL CLO II), at over €300 million.
Consistent with the underlying composition of its predecessor, EDL CLO II is a diversified CLO comprised entirely of directly originated and actively managed loans issued by over 70 middle-market companies predominantly based in Western Europe and primarily operating in resilient industries. The instrument is weighted towards senior-secured floating rate loans and will be rated by S&P and KBRA. Ares believes EDL CLO II is among the first multi-currency middle-market CLOs in Europe.
“We are pleased to successfully price our second European Direct Lending CLO in less than 12 months as we continue building on our nearly 20 years of corporate direct lending experience in Europe,” Michael Dennis, partner and co-head of European Credit at Ares, said. “Looking ahead, we intend to deepen our culture of innovation to deliver compelling solutions to our investors and borrowers.”
Andrea Fernandez, partner and chief operating officer of European Direct Lending at Ares, added, “Our investors’ needs are evolving and we are pleased to serve them by offering a range of solutions and the depth of capabilities required to support their objectives. We believe the strength of demand for EDL CLO II is a testament to our experience in structuring and managing bespoke vehicles in pursuit of differentiated returns.”
Matt Theodorakis, partner and co-head of European Direct Lending at Ares, concluded, “The pricing of EDL CLO II comes at a time when our leading risk and portfolio management capabilities remain central to our ability to achieve high quality alpha, and we look forward to building on the trust of our investors and borrowers.”
