Investec partners with Ares to offer sub line financing

Investec Bank has unveiled a funding agreement with Ares Management so it can offer subscription line facilities to its clients.

The transaction, which Investec claims to be the first of its kind in the fund solutions market, will enable the team to expand its lending capacity across key markets, comprising the UK, Continental Europe and the US.

Investec said that it will benefit from Ares’ capital and experience, and the deal will help it to serve the increasing demand for subscription line facilities across the mid-market.

Read more: Ares enters $1.5bn asset-based finance joint venture

Investec is a specialist private equity lender and its fund solutions business focuses on lending to private capital funds.

Ares’ alternative credit strategy is one of the largest investors in asset-based credit. It invests in a wide range of credit assets, including portfolios of loans, leases, financial receivables, fees or royalties. It also provides bespoke capital solutions to partners and counterparties across the asset-based credit markets.

“We are pleased to announce the expansion of our fund solutions lending facilities by partnering with Ares,” said Grant Crosby, managing director, fund solutions at Investec.

Read more: Ares buys asset manager GCP International for $3.7bn

“This innovative structure is scalable and helps rapidly grow our client-led approach to financing. Our shared focus on innovation provides a solid foundation for a long-term relationship with the potential to scale Ares’ commitment over time. We look forward to further developing our offering and providing additional value to the market with the resources this brings.”

Richard Sehayek, managing director of Ares Alternative Credit, said: “We are delighted to support Investec’s fund solutions team as they continue to expand their lending capabilities and footprint across the UK and Europe. This transaction highlights our combined strengths, matching our flexible capital with Investec’s well established financing platform. This also underscores the strength of Ares’ differentiated ability to provide consistent fund solutions as demand for liquidity continues to outpace supply. We look forward to working with Investec as we continue to develop innovative solutions in the fund finance market.”

Read more: Investec hires head of private credit management to expand direct lending platform