Funds managed by the U.S. direct lending and alternative credit strategies of Ares Management served as the lead arranger and junior agent for $3 billion in asset-backed and operating company financing for Merchants Fleet as part of the acquisition by Bain Capital, a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), and the Merchants executive team. BNP Paribas served as financing advisor and program agent for the financing.

Founded in 1962, Merchants is a provider of fleet management services with more than $2 billion in assets under management and more than 175,000 managed commercial fleet units across North America.

“As one of the fastest growing fleet management companies, Merchants is well-positioned to execute on its growth strategy and continued evolution of its fleet service capabilities,” Scott Rosen, a partner in Ares’ credit group, said. “We look forward to working with the company’s management team, as well as Bain Capital and ADIA, to capitalize on the significant opportunities ahead.”

“This transaction is another example of collaboration across the Ares platform, creatively combining our teams’ alternative credit investing experience in the asset-backed and leasing sectors with disciplined corporate underwriting to deliver scaled and flexible capital solutions to leading companies like Merchants Fleet despite volatile markets,” Felix Zhang, managing director in Ares’ alternative credit strategy, said.

“We appreciate the support and flexibility that Ares provided,” Brendan P. Keegan, CEO of Merchants Fleet, said. “We have been at the forefront of fleet services for 60 years, and this partnership will enable Merchants to further accelerate innovation, catalyze the EV revolution and fearlessly drive commercial fleet forward.”