Ares Private Credit Review: Private Credit & Direct Lending Focus, Portfolio & Deal Criteria

Complete guide to Ares Private Credit: their private credit investment thesis, portfolio companies, typical deal sizes, and how to position your company for investment.

Notable Portfolio Companies

Ares Management is a leading global alternative asset manager with expertise across credit, private equity, and real estate. The firm's private credit business is one of the largest direct lending platforms globally.

Company | Sector | Notes
Cornerstone | Healthcare | Healthcare services platform
Porte | Industrial | Industrial manufacturing
HR Tech | Technology | HR technology services

Key Takeaways

  • •Focus on Direct Lending, Private Credit
  • •Investment range: $25M-$500M per transaction
  • •Based in Los Angeles, founded 1997
  • •$395B+ assets under management
  • •One of largest direct lending platforms
  • •Diversified credit solutions

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 profitability analysis 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

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?

Ares Private Credit focuses on Direct Lending, Private Credit, and Credit Solutions. The firm seeks companies with strong cash flows and ability to service debt.

What size companies does acquire?

Ares Private Credit typically invests $25M-$500M per transaction, targeting companies across the middle market with strong credit profiles.

What is 's typical investment size?

The firm's credit investments generally range from $25M-$500M, positioning them as a major player in the direct lending market.

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.

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