Ares Management has raised $7.1bn for its first private credit secondaries strategy, underscoring the rapid growth of a market that is emerging as one of the fastest-expanding segments of private capital, according to a report by Bloomberg.
The Ares Credit Secondaries Fund secured $4bn in equity commitments from investors, according to Dave Schwartz, head of credit secondaries at the firm, which oversees more than $595bn in assets. The total capital raised also includes a $1bn global credit secondaries joint venture with Mubadala Investment Company, alongside capital in affiliated vehicles and expected leverage.
Private credit secondaries have historically been a small subset of the broader secondaries market, which has been dominated by private equity buyouts. However, activity has accelerated sharply in recent years as investors seek liquidity and managers look for new ways to recycle capital. Deal volumes are forecast to exceed $50bn within the next two to three years, up from just $6bn in 2023, according to Evercore data.
Ares is among a growing number of alternative asset managers targeting the strategy. Pantheon is currently marketing new credit secondaries funds, including an evergreen structure for institutional investors, while Coller Capital raised $6.8bn for its second private credit secondaries vehicle last year. HarbourVest Partners has also launched multiple funds focused on the segment.
Ares’ credit secondaries strategy focuses on senior secured direct lending exposure, investing through continuation funds and portfolios sold by limited partners. Schwartz added that the firm expects a strong pipeline of transactions in 2026, with large LP portfolios and continuation vehicles coming to market as demand for liquidity continues to rise.
