Funds that Won Behind The Scenes of a $420 Billion Hidden Empire | Ares Capital Management | Ep 52
Jul 11, 2024
Dive into the hidden empire of a major asset manager specializing in private credit, with over $428 billion in assets. Discover its impressive growth since its founding in 1997 and how it adapted to public trading. Explore the strategic advantages of large firms versus emerging managers in the private credit market. Plus, unpack the controversies surrounding their COVID-19 loan handling, revealing both their strengths and challenges in maintaining a leading position.
AI Snips
Chapters
Transcript
Episode notes
Timing and Market Opportunity
- Ares Capital Management and Apollo succeeded partly due to good timing.
- They entered the private credit market when it was underdeveloped, especially in the middle market.
Private Credit's Appeal
- Private credit became attractive to institutional investors like pension funds and endowments seeking diversification and higher yields.
- It offered a good balance of consistent returns and lower risk.
Ares Capital's Rapid Growth and IPO
- Ares Capital Management went public (IPO) in 2004 after accumulating $3.4 billion in assets under management in just seven years.
- This rapid growth was fueled by high demand from investors seeking alternative investments.