Funds managed by Ares Management’s Alternative Credit strategy have provided a $350 million revolving asset-backed credit facility secured by consumer loans to Southern Management Corporation, a portfolio company of Milestone Partners.
The financing will repay Southern’s existing credit facility and support its acquisition of Heights Finance Corporation.
Southern is a leading consumer finance company with approximately 400 branch locations throughout the U.S. The company provides fully amortizing installment loans, related credit insurance and ancillary products to individuals with limited access to credit. With the acquisition of Heights Finance Corporation, Southern will be one of the largest participants in the consumer lending industry with branch operations across the mid-west and southern U.S.
“We are pleased to complete this transaction with Ares, which positions us well to execute our long-term strategic plan. We are excited to enter this new phase of Southern’s development and we remain committed to serving our customer base and communities with the utmost integrity and the highest levels of professionalism,” said John Keilholz, chief executive officer of Southern.
Wayne, PA-based Milestone Partners is a private equity firm that partners with management to invest in leveraged buyouts and recapitalizations of lower middle market financial services as well as tech-enabled and manufacturing businesses.
