Alternative investment manager Ares Management announced that certain funds managed by its Alternative Credit strategy have acquired a specialty finance loan portfolio from US-based PacWest Bancorp.
The lender finance portfolio, which was originated by PacWest Bancorp’s lender finance unit, comprises high quality, senior secured, asset-backed loans with commitments of nearly $3.5bn.
Besides, the specialty finance loan portfolio is supported by assets across a broad range of industries and asset classes. These include small business loans, consumer loans, timeshare receivables, auto loans, asset manager and fund finance loans, commercial real estate loans, and residential real estate loans.
PacWest Bancorp is a bank holding company with one fully-owned banking subsidiary in Pacific Western Bank. It offers business banking and treasury management services to small, middle-market, and venture-backed businesses.
PacWest Bancorp president and CEO Paul Taylor said: “We are pleased to have worked together with Ares to complete this strategic transaction.
“This transaction will improve our liquidity and capital as we continue to implement our announced strategy to return our focus to relationship-based community banking.”
Headquartered in California, Ares Management provides clients with complementary primary and secondary investment solutions across the credit, real estate, private equity, and infrastructure asset classes.
Ares Management secured exclusive funding for the acquisition from Barclays.
Alternative Credit partner and co-head Joel Holsinger said: “Our team is an established leader in providing creative and flexible solutions to asset-focused investment opportunities.
“Our scale, coupled with one of the more flexible mandates in the private credit market today, makes Ares Alternative Credit an ideal partner to the banking community as they optimize their balance sheets and strengthen their financial position.”
For the transaction, Stephens served as the exclusive financial advisor to PacWest Bancorp.
