Antares Capital has closed a $1.2bn private credit secondary transaction in partnership with Ares Management, marking one of the largest credit continuation fund deals to date as liquidity solutions gain momentum across the asset class, according to a report by Wall Street Journal.
The Chicago-based direct lender, which focuses on providing debt financing to private equity-backed middle market businesses, has raised the capital to facilitate the recapitalisation of two seasoned funds. The transaction enables liquidity for existing investors seeking an exit from a portfolio comprising over 100 floating-rate, first-lien loans.
Ares’s secondary funds contributed the majority of the capital to the continuation vehicle, with Antares also committing capital alongside. Evercore acted as financial advisor to Antares on the deal.
The transaction structure provides limited partners with the option to cash out or roll their exposure, aligning with the broader market trend of managers deploying continuation funds to address duration mismatches and delayed liquidity events in private credit portfolios.
Loan-level details remain undisclosed, though Antares has longstanding relationships with sponsors including New Mountain Capital, Carlyle Group, and General Atlantic, according to its website.
The private credit secondaries market has seen rapid expansion over the past 18 months as limited partners face prolonged holding periods and muted distributions, driven by extended loan maturities and a slowdown in private equity exits.
TPG Twin Brook Capital Partners is also reportedly targeting up to $3bn for a comparable secondary vehicle.
The growing pipeline has prompted major credit platforms such as Ares and Apollo Global Management to establish dedicated secondary capital pools.
On its Q1 earnings call in May, Ares CEO Michael Arougheti confirmed that the firm has raised $3bn for its credit secondaries strategy. That initiative was launched in 2023 through a $1bn JV with Mubadala Investment Company.
