Ares Management secures $3.5bn PacWest specialty finance loan portfolio

Ares Management Corporation, a global alternative investment manager, announced the acquisition of a $3.5 billion specialty finance loan portfolio from PacWest Bancorp, a California-based bank holding company.

This transaction was carried out by funds under the Ares Alternative Credit strategy, reinforcing their position in the specialty finance sector.

Paul Taylor — PacWest Bancorp President and CEO said: “We are pleased to have worked together with Ares to complete this strategic transaction.

“This transaction will improve our liquidity and capital as we continue to implement our announced strategy to return our focus to relationship-based community banking.”

The newly-acquired portfolio is a collection of superior, senior secured, asset-backed loans totaling around $3.5 billion in commitments. Originally curated by PacWest’s Lender Finance unit, the portfolio represents a broad array of industries and asset classes, encompassing consumer loans, small business loans, timeshare receivables, auto loans, asset manager and fund finance loans, residential real estate loans, and commercial real estate loans.

Adding further depth to this deal, Barclays offered exclusive financing to Ares for this acquisition. Meanwhile, PacWest Bancorp was exclusively advised on the transaction by Stephens. This deal showcases Ares Management Corporation’s strategic maneuvers in diversifying its holdings and solidifying its presence in the alternative credit space.

Joel Holsinger — Ares Alternative Credit Partner and Co-Head said: “Our team is an established leader in providing creative and flexible solutions to asset-focused investment opportunities.

“Our scale, coupled with one of the more flexible mandates in the private credit market today, makes Ares Alternative Credit an ideal partner to the banking community as they optimize their balance sheets and strengthen their financial position.”