Ares Management announced it has priced its second European Direct Lending Collateralized Loan Obligation, Ares European Direct Lending CLO II, at more than €300 million.
The new vehicle follows the structure of its predecessor and is a diversified CLO comprised entirely of directly originated and actively managed loans issued by more than 70 middle-market companies, predominantly based in Western Europe and primarily operating in resilient industries. The portfolio is weighted toward senior-secured floating rate loans and will be rated by S&P and KBRA. According to Ares, EDL CLO II is among the first multi-currency middle-market CLOs in Europe.
The pricing comes less than a year after the firm’s inaugural European Direct Lending CLO, underscoring continued investor demand for structured credit exposure tied to middle-market borrowers in the region.
Ares’ European Direct Lending platform includes approximately 100 investment professionals across seven offices in Europe and managed more than $84 billion in assets as of December 31, 2025. Since launching in 2007, the strategy has completed more than 420 investments totaling over €80 billion.
Globally, Ares is one of the largest CLO managers, having issued 108 CLOs since 1999, with 72 currently active. As of December 31, 2025, the firm’s CLO portfolio accounted for more than $39 billion of the nearly $407 billion in assets managed by the Ares Credit Group. Overall, Ares reported nearly $623 billion in assets under management across its global platform as of year-end 2025, spanning credit, real estate, private equity and infrastructure strategies across North America, South America, Europe, Asia Pacific and the Middle East.
KEY QUOTES:
“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. Looking ahead, we intend to deepen our culture of innovation to deliver compelling solutions to our investors and borrowers.”
Michael Dennis, Partner and Co-Head of European Credit, Ares Management Corporation
“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.”
Andrea Fernandez, Partner and Chief Operating Officer of European Direct Lending, Ares Management Corporation
“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.”
Matt Theodorakis, Partner and Co-Head of European Direct Lending, Ares Management Corporation
