Ares Management’s Alternative Credit provided a $450 million revolving asset-backed credit facility secured by agricultural production loans originated by Ag Resource Management (ARM).
ARM is a specialty finance company focused on bringing financial and risk management solutions to farmers and agribusinesses nationwide. By combining proprietary technology and a deep understanding of crop agriculture, ARM provides innovative agribusiness loan and crop insurance products that deliver operating capital to American farmers who seek financing for growing crops.
Loans can be made directly to the producer or arranged in conjunction with a local distributor. The loans are secured by the crops, crop insurance and government payments instead of the farmer’s property or equipment, which is the case in traditional agriculture lending.
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“Just as ARM has sought to fill the gaps of the agriculture lending market by providing unique and customized financial solutions for farmers, this investment demonstrates Ares’ ability to address similar gaps in the capital markets by providing unique asset-focused capital solutions for specialty finance companies like ARM,” said Joel Holsinger, partner of Ares and co-head of Ares Alternative Credit.
Ares’ Alternative Credit strategy focuses on direct lending and investing in assets that generate contractual cash flows and fills gaps in the capital markets between credit, private equity and real estate.
