Coller Capital announced it has closed a continuation vehicle for Ares U.S. Direct Lending’s 2018-vintage fund with more than $1.3 billion in total commitments. The continuation vehicle includes a diversified portfolio of first-lien, floating-rate loans to U.S. middle-market companies backed by private equity sponsors.
Coller noted the transaction is intended to provide existing limited partners with a liquidity option while also allowing investors to maintain exposure to a seasoned senior credit portfolio.
Ares will continue to manage the portfolio through the remainder of its lifecycle alongside new and existing investors.
Support: PJT Partners served as financial adviser on the transaction. Kirkland & Ellis LLP acted as legal counsel for Coller Capital, and Proskauer Rose LLP acted as legal counsel for Ares.
KEY QUOTES”
“We are pleased to have completed this transaction with Ares, reflecting the strength of our ongoing relationship and shared commitment to high-quality credit investing. As the private credit market continues to mature, continuation vehicles are becoming an increasingly important tool, enabling managers to offer LPs liquidity as well as exposure to well-performing assets. These structures provide our investors with a disciplined way to access seasoned credit portfolios with attractive risk-adjusted returns.”
Ed Goldstein, Partner And CIO Of Coller Credit Secondaries, Coller Capital
“This transaction underscores the strength of the evolving secondaries market, the increasing liquidity options available to investors in private credit and our commitment to delivering attractive returns for our investors. Leveraging the advantages of Ares U.S. Direct Lending’s scale, deep origination capabilities and disciplined underwriting, we have built a diversified and durable portfolio to support the growth of quality middle-market businesses with strong competitive positions. We appreciate the partnership from our existing and new investors, as well as our strong collaboration with Coller Capital, and we look forward to further executing on the opportunities ahead.”
Mitchell Goldstein, Co-Head Of Ares Credit, Ares
