Investment Focus & Thesis

Ares Private Credit focuses on providing financing solutions to middle market companies: Investment Range Debt investments typically ranging from $10M-$100M+ in companies with revenues of $25M-$500M. Stage Focus Senior debt, subordinated debt, and unitranche financing for middle market companies. Senior Secured Debt — First lien senior secured loans with attractive risk-adjusted returns Subordinated Debt — Second lien and mezzanine debt for companies with strong cash flows Unitranche — Combined senior and subordinated debt facilities for efficiency Special Situations — Opportunistic credit investments in special situations

Key Takeaways

  • •Focus on Business Services, Healthcare companies
  • •Investment range: $10M-$100M in equity
  • •Based in United States
  • •Long-term partnership approach
  • •Active portfolio support

What Ares Private Credit Looks For

Ares Private Credit evaluates potential investments based on several key criteria: Strong cash flows — Companies with predictable revenue and EBITDA to service debt Experienced management — Management teams with track record of execution Defensible position — Companies with competitive advantages and market position Clear use of proceeds — Well-defined capital deployment strategy Asset coverage — Adequate collateral and asset base for debt protection }> Pro Tip Ares Private Credit looks for companies with strong cash flows and experienced management. Demonstrating ability to service debt is essential.

Pro Tip

Demonstrate a strong management team with equity ownership alignment.

Frequently Asked Questions

What industries does focus on?

primarily invests in Business Services, Healthcare. The firm seeks companies with strong market positions and clear growth trajectories.

What size companies does acquire?

typically invests $10M-$100M in equity, targeting companies with enterprise values in the lower to middle market range.

What is 's typical investment size?

The firm's equity investments generally range from $10M-$100M, positioning them as active investors who can provide meaningful capital for growth.

How long does 's due diligence process take?

Due diligence timelines vary by deal complexity, but typically conducts thorough financial, operational, and market due diligence over several weeks to months.

What should I prepare before engaging with ?

Prepare three years of audited financials, detailed market analysis, management team bios, growth plans, and a clear vision for how the partnership would create value.

How does work with portfolio companies?

takes a partnership approach, working closely with management teams on strategic initiatives, acquisitions, and operational improvements.

Ready to Connect With ?

Prepare your business for private equity investment with expert financial guidance. Our fractional CFO team helps you build the financial infrastructure PE firms expect.

Learn More

This article is part of our Private equity firms | Eagle Rock CFO guide.