Ares Management is reportedly preparing to bundle approximately €3 billion ($3.29 billion) worth of private credit assets for sale in the secondaries market. This significant transaction, primarily comprising European direct loans, would represent one of the largest private credit secondaries deals recorded to date. The decision by Ares, a major player in the alternative investment space, underscores the increasing momentum within the credit secondaries market as firms seek to manage their portfolios and provide liquidity.
The move comes amid a booming credit secondaries market, with firms like Ares actively raising substantial capital for these strategies. For instance, Ares recently closed its debut private credit secondaries fund with $7.1 billion in equity commitments. This includes a $4 billion initial raise and an additional $3.1 billion, highlighting strong investor appetite for secondhand credit stakes and liquidity solutions within private credit. The firm's head of credit secondaries, Dave Schwartz, has indicated expectations for continued rapid growth in this market.
Ares has been particularly active in the secondaries space, facilitating significant transactions. In March 2026, Ares Credit Secondaries funds led a $1.7 billion continuation vehicle for Antares Capital, acquiring assets from a closed-end private credit fund containing over 300 first-lien, floating-rate loans. Additionally, in February 2026, Ares Management emerged as the lead buyer for Arcmont's $2.2 billion secondary sale. These activities demonstrate Ares's strategic focus on the secondaries market, allowing existing investors liquidity and offering new investors access to mature credit portfolios.
The broader private credit market, valued at $1.8 trillion, is experiencing a mix of challenges and opportunities. While the market sees substantial growth in secondaries, some private credit funds are facing redemption waves, with approximately $14 billion trapped as redemption requests outpace payouts. This environment further incentivizes the use of secondaries sales to provide liquidity to investors and manage portfolio compositions. The increasing mainstream acceptance of the secondaries market is driven by both general partners seeking portfolio management tools and limited partners looking for exits.
