Ares Management Corp., one of the dominant players in private credit, is now underwriting deals as large as $3 billion and could before long provide loans for as much as $5 billion to a single borrower, Chief Executive Officer Michael Arougheti said.
Private-equity firms are increasingly bypassing syndicated loans arranged by banks and turning to direct lenders, usually at a higher cost. The reasons include speed of execution, confidentiality or a need for unconventional financing.
