Ares Raises $1.7b Credit Fund for Australia and New Zealand

Ares Management Corp. has successfully secured $1.7 billion for a credit fund aimed at Australia and New Zealand, seizing opportunities in a market where traditional bank lending is receding. This initiative, the Ares Asia Direct Lending fund, marks the firm's inaugural foray into leveraged buyout ventures within the region, with over A$1.04 billion already deployed in first lien, senior secured loans. Notable recipients of this financing include InvoCare Ltd., recently delisted by TPG Inc., Allegro Funds in its acquisition of Gull New Zealand, and BGH Capital’s Pushpay.

Historically, leveraged buyouts in Australia and New Zealand relied heavily on bank financing due to the absence of an institutional capital market for high-yield borrowers. However, with banks scaling back on leveraged loans, Ares Management's credit fund steps in to meet the market demand and foster continued growth in the region's private equity landscape.