Key Takeaways
- Geography: United States.
Analysis
Antares Capital has successfully closed its inaugural continuation vehicle, securing over $1.2 billion in commitments. The transaction was spearheaded by Ares Management Corporation's Credit Secondaries funds, with Antares also contributing capital to the vehicle.
The continuation vehicle was established to acquire assets and limited partner interests from two commingled private credit funds, encompassing more than 100 underlying first-lien, floating-rate loans originated and managed by Antares. This strategic move provides existing investors with a liquidity option while granting new investors exposure to high-quality private credit assets.
"This transaction underscores our strong, long-standing partnership with Ares and our shared commitment to providing quality private credit opportunities," said Vivek Mathew, President of Antares Capital Advisers. "It also marks an important step in expanding the Antares platform and delivering new liquidity solutions to our investors."
Ben Chapin, Head of Liquidity Solutions at Antares Capital, added, "We are pleased to welcome Ares as a lead investor and believe the successful close of our first continuation vehicle in today's dynamic market highlights the quality of the Antares portfolio and the power of our origination and underwriting capabilities."
Dave Schwartz, Head of Credit Secondaries at Ares, commented, "Building upon our multidecade relationship with Antares, we are proud to lead this transaction, which represents Ares' largest credit secondary investment to date. This investment underscores our team's differentiated experience in private credit and secondaries and our ability to deploy scaled capital."
The use of continuation vehicles in the private credit market has seen significant growth over the past 18 months. As private equity managers extend the maturities of loans, the typical life of private credit funds has lengthened, prompting fund managers to seek innovative solutions to provide liquidity to investors. Continuation vehicles have emerged as a viable option, allowing managers to offer liquidity without prematurely selling assets.
This transaction reflects a broader trend among major private lenders to provide liquidity solutions in the maturing private credit market. Firms like Ares have been actively building their credit secondary programs, with Ares raising $3 billion for such strategies and launching a $1 billion joint venture with Mubadala Investment in 2023.
Evercore served as the exclusive financial advisor on the transaction.