Ares Management and Mubadala Announce the Creation of a JV to Invest in Global Credit Secondaries Opportunities
Posted on 03/22/2023
Sovereign wealth funds want to play a large role in the private credit markets. Ares Management Corporation (Ares) (NYSE: ARES) and Mubadala Investment Company (Mubadala), a global sovereign investor, announced the formation of a joint venture to invest in global credit secondaries opportunities. Beginning in 2017, Ares and Mubadala have established a relationship investing across the full spectrum of the credit sector.
The joint venture, anchored by Mubadala, will initially aim to deploy approximately US$ 1 billion as it seeks to capitalize on the anticipated growth and substantial demand from General and Limited Partners for customized liquidity solutions for the credit secondaries asset class. The joint venture is anticipated to scale alongside the growing market opportunity.
The joint venture represents a key milestone for both organizations and will enhance Mubadala’s positioning within the secondaries credit market, while enabling Ares to significantly scale its offering. The newly established strategy is a natural extension of Ares’ Credit and Secondaries platforms, which respectively had approximately US$ 214 billion and US$ 22 billion of assets under management as of December 31, 2022. In March 2021, Ares acquired Landmark Partners, LLC.
Dave Schwartz will serve as Partner and Head of the Credit Secondaries strategy and a member of the Ares Secondaries Executive Committee. He most recently served as Co-Head of Ares’ U.S. Direct Lending strategy, of which he was a founding member. The senior leadership team also includes Sebastien Burdel and Luca Salvato, both Partners in the Ares Secondaries Group and veterans of the secondaries industry, as well as Nate Walton, Partner and Head of the Private Equity Secondaries strategy and a member of the Ares Secondaries Executive Committee.