Ares adds ABL arm

Keltic’s $155m in commitments will be absorbed by Ares Direct Lending. 

Ares Management has absorbed commercial finance company Keltic Financial Services into its direct lending group, according to a statement released by the firm on Thursday.

Ares also acquired Keltic Financial Partners II and Keltic’s existing loan portfolio, which includes approximately $155 million in commitments, according to a statement.

Keltic has been rebranded as Ares Commercial Finance. The new asset based lending entity will be headquartered in New York and provide asset based credit facilities of up to $30 million in size to small and mid-market companies, well above Keltic’s previous range of up to $10 million.  

“The expansion of our Direct Lending Group into attractive new subsectors of the small and middle market continues to be a meaningful part of our growth strategy,” said Ares president Michael Arougheti in a statement. “We see the acquisition of Keltic as an appealing market opportunity to execute on this strategy.”

Keltic president and chief executive officer Jack Reilly has joined Ares as a partner. Keltic executive vice presidents Jamie Franz and Oleh Szczupak have also joined the firm.

“The acquisition of Keltic expands Ares’ leading Direct Lending Group into the large and growing asset based lending market with a strong management team that has generated attractive risk adjusted returns for more than 15 years,” said Ares Direct Lending Group senior partner Mitchell Goldstein in a statement.

Ares had not responded to a request for comment at press time.