Ares Explores More Fund Financing Tie-Ups After Investec Deal
- Transactions will allow firms to do bigger deals, Sehayek says
- Goldman Sachs teamed up with Blackstone on a deal in October
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Ares Management Corp. is exploring partnerships with other financial institutions, following its recent tie-up with Investec Bank Plc, to expand its offering in the fund finance market, according to Richard Sehayek, managing director of Ares Alternative Credit.
Last month, the private credit firm announced a funding agreement with Investec to set up a vehicle that will take on so-called subscription lines, a type of low-risk, temporary financing deployed while waiting for investors to provide committed money. Deals will be originated by Investec, which will hold a portion of the subscription lines, while the remainder of the instruments will go into a special purpose vehicle funded by Ares, alongside other investors.