Ares Management expects a new wave of large-scale private credit financings to emerge in Europe, mirroring the multi-billion-dollar transactions now common in the US, according to a report by Bloomberg citing Matthew Theodorakis, the firm’s Co-Head of European Direct Lending.
Speaking at the SuperReturn conference in Amsterdam, Theodorakis cited Ares’ recent $5bn-plus financing for a Clearlake Capital buyout as a sign of what’s to come.
While Europe has already seen landmark transactions – including Adevinta’s €6.25bn unitranche earlier this year – Theodorakis noted that such large private deals remain more common in the US $1.7tn private credit market.
Ares’ European direct lending platform, which manages $84.9bn in assets as part of the firm’s $391.5bn credit business, has grown rapidly as institutional investors shift towards private debt strategies amid volatile public markets.
However, Theodorakis acknowledged that portfolio stress is rising across the region after years of high inflation and elevated rates. He said investors are increasingly valuing managers with dedicated restructuring and workout capabilities — a focus for Ares, which has 25 of its 100 European lending professionals working on portfolio management.
Theodorakis also highlighted growing activity in private credit secondaries, as managers explore ways to generate liquidity and recycle capital. “There’s a wave of dealflow coming,” he added.
