Ivy Hill Asset Management (IHAM), an affiliate of New York-based Ares Capital, has signed agreements to manage approximately $770 million of middle market loan assets in three Collateralised Loan Obligation (CLO) vehicles. These vehicles are managed by affiliates of Wells Fargo.
It has also entered into an agreement to control approximately $600 million of the remaining middle market bank loan assets, previously managed by Firstlight Financial Corporation (Firstlight). The two transactions will expand Ares Capital’s middle market asset management platform.
Together, the two deals increase Ivy Hill’s total committed capital under management to over $2 billion across 210 companies. They also increase Ares Capital’s total committed capital under management (including committed capital managed by Ivy Hill), to over $4.4 billion across more than 250 companies.
Mitchell Goldstein, Partner of Ares Capital Management, Ares Capital’s investment adviser, said: “These transactions support Ares Capital’s strategy of building a leading middle market asset management business. In addition to incremental fee income, we believe these transactions will further strengthen Ares Capital’s collective knowledge, experience and investment opportunities within the middle market sector as well as provide attractive returns on the incremental capital invested. We hope to continue to increase the value of this strategically important business segment over time both organically and through additional acquisitions.”
