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Ares Management Fund agrees to acquire asset-based lending portfolio of First Capital Holdings.

M2 EQUITYBITES-April 20, 2015-Ares Management Fund agrees to acquire asset-based lending portfolio of First Capital Holdings

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An alternative asset manager, Ares Management LP (NYSE:ARES) disclosed on Friday that a fund managed by its commercial finance platform signed a definitive agreement to acquire the asset-based lending portfolio of First Capital Holdings Inc.

First Capital is a portfolio company of HIG Capital and is a commercial finance company that provides asset-based loans and factoring to small and middle-market companies. This transaction is will close in the second quarter, subject to customary closing conditions and the fund will finance this acquisition with a combination of debt and equity.

The Ares Commercial Finance platform that is part of the company's Direct Lending Group, will have about USD700m of loan commitments with this transaction and the Ares Commercial Finance team that operates seven office locations in the US, will be expanded with members of the First Capital investment team, it added.

Additionally, the company mentioned that Ares Commercial Finance platform provides asset-based and cash flow loans to small and middle-market companies, asset-based facilities to speciality finance companies. Asset-based lines of credit may be structured as working capital financing, special accommodation financing, turnaround financing, debtor-in-possession financing, acquisition financing and speciality lender financing. Target credit facilities are between USD1m to USD30m and are typically held to maturity and are not dependent on syndication for approval.

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Publication:M2 EquityBites (EQB)
Date:Apr 20, 2015
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