Ares Australia Management is launching a diversified credit fund later this year, its second following the US firm’s launch into Australia last year.
The fund would invest in a diversified portfolio of liquid and illiquid asset classes which were not readily accessible by Australian retail investors.
It would seek to provide a consistent yield premium over syndicated loans and high-yield bonds, downside protection by investing in floating rate, senior secured loans underwritten by Ares and an actively-managed portfolio which captured attractive relative value opportunities.
Ares was intending to undertake an initial offering from 16 November to seed the fund which would close on 4 December and seed investors would receive additional loyalty units equivalent to 1% of their initial investment.
The firm’s first credit fund, Ares Global Credit Income, was launched in May with a focus on capital preservation while lowering concentration risk and offering additional diversification from traditional investment.
The alternative asset manager launched in Australia last year via a strategic joint venture between Ares Management and Fidante Partners.
The firm’s parent company Ares Management Corporation, which had over $149 billion in assets under management, was currently in talks with AMP to acquire 100% of the shares in AMP by way of a scheme of arrangement.
