Ares Management Acquires $3.5B Lender Finance Portfolio from PacWest



Ares Management completed the acquisition of a $3.5 billion specialty finance loan portfolio from PacWest Bancorp.

The portfolio consists of senior secured, asset-backed loans with commitments of approximately $3.5 billion. The portfolio, which was originated by PacWest’s lender finance unit, is backed by assets across a variety of industries and asset classes, including consumer loans, small business loans, timeshare receivables, auto loans, asset manager and fund finance loans, residential real estate loans and commercial real estate loans.

“We are excited to broaden and enhance our existing alternative credit portfolio through this strategic acquisition of a high-quality portfolio of asset-backed loans,” Jeffrey Kramer, partner and portfolio manager in alternative credit at Ares, said. “Our longstanding relationship with PacWest and our team’s ability to underwrite across numerous asset classes and efficiently complete the transaction positioned Ares to be the partner of choice.”

“Our team is an established leader in providing creative and flexible solutions to asset-focused investment opportunities,” Joel Holsinger, partner and co-head of alternative credit at Ares, said “Our scale, coupled with one of the more flexible mandates in the private credit market today, makes Ares Alternative Credit an ideal partner to the banking community as they optimize their balance sheets and strengthen their financial position.”

“We are pleased to have worked together with Ares to complete this strategic transaction,” Paul Taylor, president and CEO of PacWest, said. “This transaction will improve our liquidity and capital as we continue to implement our announced strategy to return our focus to relationship-based community banking.”

Barclays provided exclusive financing to Ares on the transaction. Stephens served as exclusive financial advisor to PacWest Bancorp on the transaction.


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