Barclays Sells $744 Million of U.K. Private-Equity Loans to Aresby
Companies also agree to jointly provide leveraged loans
Barclays CEO Staley speeding up asset sales to boost profit
Barclays Plc’s sold 500 million pounds ($744 million) of private-equity-backed U.K. leveraged loans to Ares Management LP, as the British lender speeds up sales of risky assets to boost profitability.
Barclays and asset manager Ares also announced a partnership to provide financing to junk-rated U.K. mid-cap companies, according to a statement Monday. The deal relates to the Barclays’s corporate bank and doesn’t affect its securities unit.
Barclays Chief Executive Officer Jes Staley, 58, has accelerated disposals of assets, such as leveraged loans that have high capital requirements, as he moves to restore profit growth at the U.K.’s second-largest lender. The deal follows a similar private-equity financing arrangement Royal Bank of Scotland Group Plc made earlier this month with AIG Asset Management (Europe) Ltd., Hermes Investment Management and M&G Investments.
“This partnership enhances our ability to meet the credit needs of our clients, which continue to expand in a changing market and regulatory environment,” Michael Dennis, a partner in the Ares Direct Lending Group, said in the statement.
Ares has more than $8.4 billion of direct-lending assets under management across Europe, according to the statement.