We employ a flexible capital strategy to target non-control positions across a broad spectrum of stressed, distressed and opportunistic situations. We seek to deploy our flexible capital across a broad range of both private market and public market transaction types.
We seek to invest in businesses undergoing stress or transformational change, which are defined as companies that are being challenged by one or more of the following:
(i) the business model or management team is undergoing a significant transition;
(ii) the industry is broadly out-of-favor in the capital markets and/or is going through secular or cyclical change; or
(iii) the balance sheet has become overly cumbersome, complex and/or unsustainable.
In the private markets, we will seek to leverage the substantial resources of Ares Management's private equity and direct lending franchises by partnering with companies and management teams to provide flexible capital solutions. Our team looks to protect capital in multiple ways including the use of covenants, special purpose vehicles, blending complementary securities in the capital structure, governance, current pay securities, make whole provisions, reporting requirements or other means while seeking upside participation via convertible debt / preferred equity securities, common equity, and warrants on downside protection. The strategy is characterized by acting as an “Activist for Good” in the private markets, consistent with the broader Ares Management private equity and direct lending platforms. This process of providing companies with private capital solutions that offer leadership, flexibility and distressed expertise in the form of incremental liquidity and/or covenant relief can empower a business going through distress and/or transformational change by improving cash flows, reducing leverage and returning the business to corporate health.
We expect to flex more significantly into public market stressed and distressed debt investments in circumstances where we see what we believe to be attractive value relative to what can be achieved in the private market.
Flexible capital provider targeting a broad spectrum of stressed, distressed and opportunistic situations
Stressed, Distressed and Special Opportunistic Investments
Rescue Direct Lending, Opportunistic Financing, Comprehensive Recapitalization Solutions, Stressed or Distressed Public Market Debt, Post Reorganization Securities