Certified Automotive Lease (CAL), a wholly-owned subsidiary of Auto Lender’s Liquidation Center, and Ares Management Alternative Credit funds have entered a joint venture to purchase and invest up to $1.5 billion in new vehicle leases originated by CAL.
“We are pleased to enter into this joint venture with Ares, which will allow us to grow our business and further capitalize on the current market environment,” Brad Wimmer, CEO of Auto Lenders, said. “This partnership will both expand Auto Lenders’ offering of well-maintained, low-mileage cars and give our customers access to high-quality vehicles at competitive prices.”
“The key to Auto Lenders’ success is our participation through the entire lifecycle of an automobile, starting with providing low-mileage leases to prime customers,” Mike Wimmer, founder and chairman of Auto Lenders, said. “By retaining many of these vehicles as they come off lease and sourcing additional vehicles directly from consumers, Auto Lenders consistently generates some of the highest quality, low mileage-one owner inventory in the industry, without any reliance on acquiring vehicles through auctions.”
“We look forward to partnering with CAL to grow their origination of prime auto leases,” Felix Zhang, partner in the Ares Credit Group, said. “We believe this transaction is a great example of the scaled and tailored asset-based financing solutions Ares’ Alternative Credit strategy can bring to originators of high-quality assets.”
Solomon Partners Securities served as exclusive financial advisor and Gibson Dunn served as legal counsel to CAL. Sidley Austin served as legal counsel to Ares.
