Ares buys lower-mid market lender Riverside Credit Solutions
Ares Management has acquired lower-middle market lender Riverside Credit Solutions (RCS) to boost its US direct lending strategy.
Boston-based RCS – an affiliated fund of The Riverside Company – provides financing solutions to sponsored and non-sponsored companies and has deployed more than $700m (£534m) across more than 60 investments.
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The team, which includes new Ares partner David Dobies and managing directors Tom Gillis and David Kilpatrick, will be fully integrated into Ares’ US direct lending strategy.
The alternative asset manager said that the acquisition is a natural enhancement to its global direct lending platform, which had more than $214bn of assets under management as of 30 June this year.
“RCS’ dedicated focus on the lower end of the middle market helps reinforce Ares’ position as a leading direct lender by supporting greater incumbency with quality lower-middle market borrowers as well as expanded deal flow opportunities for our platform,” said Mitch Goldstein, partner and co-head of the Ares Credit Group. “After spending time with the RCS team, I am confident that they will be great additions both culturally and strategically to our US direct lending strategy. We look forward to working together as we seek to build on our collective track record of generating attractive risk-adjusted returns for our investors.”
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Dobies added: “We could not be more excited to join Ares, a highly trusted capital provider to businesses around the world and a pioneer in direct lending.
“Over the last eight years, RCS has continued to lead deals and deliver value-added solutions to lower-middle market businesses. As part of the Ares team, I am confident we will be even better positioned to support the long-term growth and value creation of our existing and new borrowers.”
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