Ares Credit Secondaries LP Secures $989M to Expand Secondary Private Equity Investments

The investment firm advances its strategic goals, targeting institutional growth and market resilience.

November 29, 2024

Investment Vehicle Expansion and Strategic Goals

Ares Credit Secondaries LP, a Delaware-based limited partnership, has filed a detailed notice of an exempt securities offering with the Securities and Exchange Commission (SEC). This offering, primarily aimed at pooled investment fund interests, has secured $989,975,000 in total capital commitments to date. The firm’s primary focus is on advancing its position in the private equity sector through secondary market investments, leveraging its expertise in structuring and managing capital pools.

The investment vehicle forms part of the broader Ares Management Corporation ecosystem, a leading global asset manager renowned for its innovative approaches to alternative investments. This latest fundraising round underscores the firm's commitment to capitalizing on opportunities in the secondary private equity market, often characterized by significant growth potential and lower risk profiles compared to direct investments.

Key Details of the Offering

Ares Credit Secondaries LP’s exempt offering has been structured under Rule 506(b) of Regulation D, allowing it to bypass registration with the SEC. This exemption facilitates the targeting of accredited investors while streamlining compliance. The firm has also leveraged Investment Company Act Section 3(c)(7), which further delineates its focus on sophisticated investors with the capacity to participate in substantial private placements.

• Offering Type: Pooled investment fund interests


• Capital Raised:$989,975,000


• Investor Count: Six accredited investors


• Minimum Investment:$0, emphasizing flexibility in investor participation

Notably, the firm’s strategy involves indefinite total offering and remaining amounts, allowing for adaptive fundraising aligned with evolving market conditions.

Organizational Structure and Leadership

The leadership behind Ares Credit Secondaries LP includes a cadre of executive officers and promoters linked to Ares Secondaries Advisors LLC, based in New York. These executives bring a wealth of experience in navigating complex financial landscapes. Their collective expertise is pivotal to ensuring the alignment of the investment fund’s objectives with broader market dynamics.

Officers such as Matthew Jill, Chrissy Lamont Svejnar, and Nathan Walton contribute to the strategic and operational oversight, ensuring robust governance and investor confidence. The filing also highlights the diverse geographic footprint of these leaders, spanning offices in New York, Naples (Florida), and London, underscoring the firm’s global perspective.

Investor Considerations and Compliance

Ares Credit Secondaries LP has chosen to focus exclusively on accredited investors, maintaining stringent compliance with federal securities laws. The absence of non-accredited investors ensures adherence to the regulatory framework and aligns with the firm’s strategic intent to manage sophisticated capital sources.

Furthermore, the filing specifies zero sales commissions or finder’s fees, an approach that reflects the firm's emphasis on efficient capital deployment. Transparency in the use of proceeds is another critical element; the document notes that gross proceeds will not directly compensate executive officers but will fund broader management services.

Strategic Implications and Market Context

The capital raised through this offering positions Ares Credit Secondaries LP to strengthen its portfolio in the secondary private equity market. This segment has increasingly attracted institutional attention for its ability to provide liquidity and diversification, particularly in volatile economic environments. By facilitating the redistribution of capital from mature private equity funds, secondary markets serve as a vital mechanism for optimizing asset performance.

Ares Credit Secondaries LP’s timing aligns with a broader trend of increased investor appetite for secondary investments, driven by their risk-adjusted return potential and resilience to macroeconomic shocks. With its robust fundraising capabilities and strategic focus, the firm is well-positioned to harness these opportunities while navigating the complexities of the current market landscape.