Ares Management Corp. (ARES), an alternative investment manager, Wednesday announced the formation of a joint venture with sovereign investor Mubadala Investment Co. to invest in global credit secondaries opportunities.
The joint venture, anchored by Mubadala, will initially aim to deploy around $1 billion. The JV seeks to capitalize on the anticipated growth and substantial demand from General and Limited Partners for customized liquidity solutions for the credit secondaries asset class.
The JV is expected to enhance Mubadala's positioning within the secondaries credit market, while enabling Ares to significantly scale its offering.
In the JV, Dave Schwartz will serve as Partner and Head of the Credit Secondaries strategy and a member of the Ares Secondaries Executive Committee. He most recently served as Co-Head of Ares' U.S. Direct Lending strategy, of which he was a founding member.
Schwartz said, "There has been a substantial increase in credit secondaries transaction volume resulting from the growth of the primary private credit market. Against this market backdrop, we see a meaningful supply-demand imbalance requiring dedicated capital to meet the liquidity needs of General and Limited Partners."
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