Former Ares Management Executive Scott Graves has secured a $2bn commitment form multi-strategy hedge fund major Millennium to support the launch of his new alternative asset management firm Lane42 Investment Partners.
The investment underscores Millennium’s growing focus on private credit and opportunistic investing, as institutional demand for flexible capital solutions continues to rise.
As part of the deal, Millennium has taken a minority equity stake in Lane42, which will be based in Los Angeles with plans to expand to New York. Lane42 will provide both debt and equity financing to companies across the public and private spectrum — including healthy, stressed, and distressed businesses.
Unlike traditional private equity firms, Lane42 will not require control stakes in the businesses it supports. Instead, Graves envisions a firm that can capitalise on a rapidly evolving market landscape, where private equity firms are increasingly seeking liquidity and public and private financing options are converging.
“I think it’s a really good time for a new entrant,” said Graves, who will serve as CEO and CIO, in an interview with Bloomberg. “I’m excited to architect a firm that’s capable of addressing companies’ capital needs at a time of macroeconomic turbulence.”
Graves, 54, previously served as co-head of private equity and head of special opportunities at Ares Management, after spending 15 years at Oaktree Capital Management. His track record in complex capital solutions and opportunistic investing aligns with Millennium’s interest in non-traditional credit and equity investments.
