Key Takeaways
- • Ares Management raised €3.3bn (about $3.6bn) for a private credit continuation vehicle, one of the largest transactions in the credit secondaries market, according to Bloomberg.
- • Coller EQT led the investment, which closed in early November, with Evercore advising the transaction.
- • The vehicle holds 24 loans transferred from Ares Capital Europe Fund IV, a direct lending fund that closed with €6.5bn in commitments in 2018; original investors reportedly received distributions equal to about 150% of their initial commitments.
- • Credit secondaries volume more than doubled to $20.4bn in the first half of 2026, exceeding the full-year 2025 total, per Evercore.
- • Limited partners will scrutinize valuations and fees because the manager sits on both sides of the loan transfer, with no competitive auction setting prices.
Summary
Ares Management has raised €3.3bn, or about $3.6bn, for a private credit continuation vehicle, completing one of the largest transactions to date in the secondhand private credit market, according to a Bloomberg News report. Secondaries investor Coller EQT led the investment, which closed in early November 2026, with Evercore acting as adviser. Ares, Evercore and Coller EQT declined to comment, according to people familiar with the transaction.
The vehicle holds a portfolio of 24 loans transferred from Ares Capital Europe Fund IV, a European direct lending fund that closed with €6.5bn in commitments in 2018. Investors in the original fund reportedly received distributions equivalent to approximately 150% of their initial capital commitments as the loans moved across. The structure gave existing limited partners the option to take liquidity rather than wait for loan repayments or sell into a soft market, while allowing Ares to keep running the seasoned loan book with fresh capital.
The deal reflects accelerating growth in private credit secondaries as managers seek liquidity solutions amid a prolonged slowdown in exits. According to Evercore, transaction volumes more than doubled to $20.4bn in the first half of 2026, exceeding the full-year total for 2025. European credit secondaries transactions are expected to reach approximately €13bn this year, with Europe accounting for around 28% of global capital deployment compared with 72% in North America.
Continuation vehicles are a standard exit tool in private equity, but their use in private credit is newer. Because the manager sits on both sides of the transfer, loan prices are set largely by the manager's own valuation rather than a competitive auction, placing emphasis on independent pricing support and the lead buyer's diligence. Coller EQT's participation addresses part of that concern, but limited partners are expected to continue scrutinizing marks, fees and the terms offered to investors who roll their positions. Market observers note that many 2017-2019 vintage direct lending funds are approaching the end of their terms, giving managers a growing inventory of performing loans to recapitalize, and a transaction of this size may serve as a reference point for GP-led activity across the asset class.
The vehicle holds a portfolio of 24 loans transferred from Ares Capital Europe Fund IV, a European direct lending fund that closed with €6.5bn in commitments in 2018. Investors in the original fund reportedly received distributions equivalent to approximately 150% of their initial capital commitments as the loans moved across. The structure gave existing limited partners the option to take liquidity rather than wait for loan repayments or sell into a soft market, while allowing Ares to keep running the seasoned loan book with fresh capital.
The deal reflects accelerating growth in private credit secondaries as managers seek liquidity solutions amid a prolonged slowdown in exits. According to Evercore, transaction volumes more than doubled to $20.4bn in the first half of 2026, exceeding the full-year total for 2025. European credit secondaries transactions are expected to reach approximately €13bn this year, with Europe accounting for around 28% of global capital deployment compared with 72% in North America.
Continuation vehicles are a standard exit tool in private equity, but their use in private credit is newer. Because the manager sits on both sides of the transfer, loan prices are set largely by the manager's own valuation rather than a competitive auction, placing emphasis on independent pricing support and the lead buyer's diligence. Coller EQT's participation addresses part of that concern, but limited partners are expected to continue scrutinizing marks, fees and the terms offered to investors who roll their positions. Market observers note that many 2017-2019 vintage direct lending funds are approaching the end of their terms, giving managers a growing inventory of performing loans to recapitalize, and a transaction of this size may serve as a reference point for GP-led activity across the asset class.
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