Ares, Antares launch $1.7bn private credit continuation fund

Ares Management and Antares Capital have teamed up to create a $1.7bn continuation vehicle to recapitalise a portfolio of private-credit assets, marking their second such vehicle together in the past year, according to a report by teh Wall Street Journal.

The fund will acquire loans from a closed-end private-credit fund comprising over 300 first-lien, floating-rate loans, with Antares continuing to manage the portfolio.

Continuation funds are increasingly used to extend holding periods and provide liquidity to existing investors amid a sluggish market for traditional exits. Ares has led several similar transactions recently, including a $1.2bn continuation fund with Antares last year and a recapitalisation of UK nursery operator Kids Planet.