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distressed & special situations

The firm sees significant mispricings that present opportunities to take short positions.
Ares’ Special Opportunities was launched in 2017 by Scott Graves, a partner and co-head of the private equity group, who joined the same year following a career at Oaktree Capital Management.
The New York firm has raised the largest dedicated US real estate debt vehicle since the beginning of the pandemic.
Banks are finding willing buyers in investors seeking higher-yielding assets.
The fund surpassed its original target, and topped the previous record holder, a Goldman Sachs mezzanine fund, which raised $13bn in 2008.
The firm’s second strategic credit vehicle is rumoured to be around 40% deployed with its predecessor now fully invested and delivering returns to LPs.
The retail-focused REIT was drowning in more than $3.5bn of debt prior to its June bankruptcy filing.
Traditional cycles may be a thing of the past – what matters is having the skills to take advantage of challenging situations.
Were the Chinese property developer to default, it would be the high-yield market in the immediate firing line.
The fund will take a stronger approach on ESG than its predecessor, including pricing incentives, to help businesses recover sustainably.

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