Assertion Supported
DeVeer: Competitors Have Queued Retail Credit Capital to Limit Inflows
“We've actually seen one or two of our competitors queue credit capital over the last year or two.”
Assertion Not checkable as stated
DeVeer: Retail Private Credit Investors Have Not Yet Faced a Downturn
“The retail investor hasn't been tested yet because most of this has come online.
With COVID and coming out of COVID and it's been a pretty easy low vol period of time.”
Assertion Supported
Ares US Direct Lending Netted 12% to 13% Over 20 Years
“Our US direct lending business, I can show someone a hundred plus billion dollar track record over 20 years through market cycles that's generated a net 12 or 13.”
Insight
Multi-Product Platforms Originate Better Deals Than Single-Strategy Credit Funds
“If you're just a Mez fund, you only get calls on Mez deals. If you're just a Unitranche guy, you just get calls on Unitranches, right? So, and by the way, sometimes being in the Unitranche is better risk reward than being in the Mez and sometimes it's the othe…”
Insight
Junior Private Credit Sourcers Need 20 to 30 Sponsors for Deal Flow
“If you're covering large cap sponsors that do high volume, you know, the Advents or the Premieres, you know, Hellman Friedman, a couple of those will keep you pretty busy. And those obviously sit with probably our most experienced people. And then if you go do…”
Disclosure
Ares Opens Its Investment Committee Meetings to All Firm Employees
“We don't have a behind the door investment committee. Everybody in our organization literally sits in on our investment committees.”
Assertion Supported
Leveraged Loan Defaults Historically Concentrate in Six to Ten Industries
“So if you decompose the LCD index, it's really obvious where the defaults are. They're in six to 10 industries, and most of the other industries tend to outperform.”
Prediction Not checkable as stated
Credit Markets Will Spend 2023-2024 Muddling Through Overleveraged Assets
“I think the remainder of this year and even into next year is going to be a lot of that. It's going to be a lot of just muddling through over levered assets and owners who aren't quite sure what to do about that.”
Insight
Contagion Risk Interconnects the Top 8 to 10 Alternative Asset Managers
“If something happens to Blackstone or Apollo or KKR, we're going to get the same question. What does your exposure look like? How do you guys think about this? So it's, yeah, there's an interrelatedness of eight or 10 of these companies for sure.”
Assertion Supported
deVeer: Ares Management Reaches About $500 Billion in AUM
“We're about five hundred billion of AUM today.”
Disclosure
DeVeer: Ares Doubled Global Wealth Distribution Team to 150 People
“Raj basically said, we need to go from 75 to a 150 people globally like yesterday. Which we did, although took a little bit of a breath before we did it.”
Prediction Not checkable as stated
DeVeer: Ares Expects Asian Wealth Fundraising to Match European Surge
“The capital raising that we did in Europe was tremendous and a little bit of a surprise for us, and I think this year may be that year for Asia, but being global is important because I think it's a global opportunity.”
Assertion Not checkable as stated
DeVeer: Private Wealth Investors Write Sticky $200K to $500K Checks
“Generally, what you're seeing from these clients is they're putting 200,000 to 500,000 dollar check sizes to work, and we found that that money is quite sticky.”
Assertion Supported
DeVeer: Wealth Channel Accounts for $40 Billion of Ares' Total AUM
“So if you look at our roughly five hundred billion of AUM today, about Forty billion of that is from the wealth channel.”
Assertion Supported
DeVeer: Retail Credit Funds Are Ares' Largest and Fastest-Growing Products
“The funds that we have in the retail channel and credit are not surprisingly the largest ones that we manage and are growing the quickest.”
Disclosure
DeVeer: Ares Relies on iCapital and CAIS for RIA Distribution
“There are folks out there who do that for a living, whether it's iCapital or Case. They do a really nice way of Really being deep with that community that we couldn't possibly go make one-off calls on all the time.”
Assertion Not checkable as stated
Early Private Debt Paid 600-700 Bps Over the Risk-Free Rate
“I mean, a senior deal was Three and a half times levered with a six or 700 basis point spread to the risk free rate. Mez deals were 15, 16% fixed rate coupons with seven and a half percent of the company in warrants that struck at zero. He charged five point f…”
Assertion Supported
Ares Manages Over $360B in AUM With $250B in Credit
“So Aries today is about 2600 people. We have 30 offices. The rough breakdown today is about 700 in New York, 700 in L.A. And about 400 in London. And then the balance are either folks out originating new deals or looking for clients. 360 something billion of A…”
Disclosure
Ares Caps Single-Position Fund Allocations Mostly Under One Percent
“We really don't like running portfolios probably more than two and a half percent positions just from an overall risk management perspective, but we're big enough now that most of the allocations to funds are less than one percent.”
Assertion Not checkable as stated
Ares Estimates Non-Corporate Alternative Credit Is a $3T to $4T Market
“It's a very large market. We think it's a three, four trillion dollar addressable market.”
Assertion Not checkable as stated
25% of 1999 Stanford GSB Class Led Failed Dot-Com Startups
“Because about 25% of my class were CEOs of venture capital-backed, funded startups. Most of them, as I made fun of them leaving the Bay Area, were not gonna be real companies, and most of them weren't, and we were late.”
Assertion Supported
Ares Managed $3B in CLOs With Just 65 Employees in 2004
“But at the time when I got there, it was about 65 people. It was LA only. I think we managed probably three billion of CLO money, largely bank loans, but some high yield in there too, because they were all market value CLOs. And Tony and Ben Rosenthal were get…”
