Ares launches second credit fund
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.
AUTHOR
Laura Dew
Recommended for you
Self-reporting issues to ASIC could lead to a reduced charge for a fund manager but it may not exempt them from enforcement action altogether, according to ASIC chair Joe Longo.
AllianceBernstein has announced its chief investment officer and Australian equity manager Roy Maslen is to step down from the firm at the end of the year.
Pinnacle Investment Management has announced it plans to launch a new affiliate from a global equities team departing Royal London Asset Management.
Asset manager Nuveen is seeing opportunity in municipal bonds which are at their highest yields in over a decade.
