Arcmont Asset Management has closed a $2.5bn (£1.9bn) credit continuation vehicle led by Ares Credit Secondaries funds.
Both firms said the vehicle was oversubscribed and called the deal as the largest credit secondaries transaction in Europe to date.
According to Arcmont, the vehicle comprises first-lien senior secured loans from its 2019 vintage Direct Lending Fund III.
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Arcmont said it will continue to manage the portfolio through its remaining holding period.
“With supportive secondary market conditions and what we believe to be a strongly performing and diversified portfolio, we felt this was the right moment to pursue an accelerated liquidity option for Direct Lending Fund III investors,” said Anthony Fobel, chief executive of Arcmont. “The continuation vehicle also allows us to provide ongoing support to what we believe are some of our strongest assets through their next stage of growth.”
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European private credit asset manager Arcmont has raised more than $48bn of investable capital, while Ares Secondaries Group manages more than $42bn of assets.
“We are excited to partner with Arcmont in executing what we believe is the largest credit secondaries transaction in Europe, as well as Ares’ largest credit secondaries transaction to date,” said Dave Schwartz, head of Ares Credit Secondaries, and Sebastien Burdel, partner at Ares.
PJT Partners served as financial adviser on the transaction, while Kirkland & Ellis acted as legal counsel.
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