Coller Capital today announced the closing of a continuation vehicle for Ares U.S. Direct Lending’s (“Ares”) 2018-vintage fund with more than $1.3 billion in total commitments.
The continuation vehicle comprises a diversified portfolio of first-lien, floating-rate loans to U.S. middle-market companies backed by leading private equity sponsors.
The transaction provides an attractive liquidity option to the fund’s existing Limited Partners as well as the opportunity to maintain continued exposure to a well-performing, seasoned senior credit portfolio. Ares will continue to manage the portfolio through its remaining lifecycle alongside new and existing investors.
Edward Goldstein, Partner and CIO of Coller Credit Secondaries, said:
“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.”
Mitchell Goldstein, Co-Head of Ares Credit, said:
“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.”
PJT Partners served as financial adviser on the transaction. Kirkland & Ellis LLP acted as legal counsel for Coller Capital. Proskauer Rose LLP acted as legal counsel for Ares.
