Ares Management Prices European Direct Lending CLO II at Over €300 Million
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Key Terms
collateralized loan obligationfinancial
A collateralized loan obligation (CLO) is a financial product that bundles many corporate loans into a single pool and then sells pieces of that pool to investors, with each piece offering different levels of risk and return. Think of it like a large box of varied loans sliced into portions so investors can choose higher safety with lower yield or higher reward with more risk; CLO performance matters because it concentrates credit and interest-rate risk and affects income stability for holders.
clofinancial
A CLO (Collateralized Loan Obligation) is a financial vehicle that pools many corporate loans and sells slices of that pool to investors, with each slice carrying a different mix of risk and return—think of it as a loan-based fund cut into safe and risky pieces. It matters to investors because CLOs can offer higher yields than traditional bonds but expose buyers to borrowers’ defaults and changes in interest rates, so understanding which slice you own is key to gauging potential reward and loss.
senior-securedfinancial
Debt described as senior-secured is a loan that has first claim on specified company assets and is paid before other debts if the borrower runs into trouble. Think of it as a mortgage on a house: the lender can seize the pledged property first, so this type of debt is generally safer for investors and typically carries lower interest than unsecured or junior loans because recovery chances are higher in a default.
floating rate loansfinancial
Floating rate loans are loans whose interest payments change over time because they are tied to a benchmark interest rate (for example LIBOR or SOFR) plus a fixed margin. For investors, they act like adjustable-rate loans: when market rates rise the income from the loan goes up, and when rates fall the income drops, so they can protect against rising rates but carry credit and refinancing risks that affect returns.
multi-currencyfinancial
Multi-currency describes financial accounts, products, pricing, or operations that involve more than one national currency, allowing a business or investor to hold, receive, or make payments in different currencies. It matters because it reduces conversion costs and helps manage exchange-rate swings, while also introducing exposure that can change reported revenue and profits — like keeping cash in several wallets to avoid losing value when one currency weakens. Investors watch multi-currency activity to assess potential gains from international sales and risks from shifting exchange rates.
LONDON--(BUSINESS WIRE)--
Ares Management Corporation (NYSE: ARES) (“Ares”), a leading global alternative investment manager, announced today the pricing of its second European Direct Lending Collateralized Loan Obligation, Ares European Direct Lending CLO II (“EDL CLO II”), at over €300 million.
Consistent with the underlying composition of its predecessor, EDL CLO II is a diversified CLO comprised entirely of directly originated and actively managed loans issued by over 70 middle-market companies predominantly based in Western Europe and primarily operating in resilient industries. The instrument is weighted towards senior-secured floating rate loans and will be rated by S&P and KBRA. Ares believes EDL CLO II is among the first multi-currency middle-market CLOs in Europe.
“We are pleased to successfully price our second European Direct Lending CLO in less than 12 months as we continue building on our nearly 20 years of corporate direct lending experience in Europe,” said Michael Dennis, Partner and Co-Head of European Credit. “Looking ahead, we intend to deepen our culture of innovation to deliver compelling solutions to our investors and borrowers.”
“Our investors’ needs are evolving and we are pleased to serve them by offering a range of solutions and the depth of capabilities required to support their objectives,” said Andrea Fernandez, Partner and Chief Operating Officer of European Direct Lending. “We believe the strength of demand for EDL CLO II is a testament to our experience in structuring and managing bespoke vehicles in pursuit of differentiated returns.”
“The pricing of EDL CLO II comes at a time when our leading risk and portfolio management capabilities remain central to our ability to achieve high quality alpha, and we look forward to building on the trust of our investors and borrowers,” said Matt Theodorakis, Partner and Co-Head of European Direct Lending.
Ares’ European Direct Lending strategy comprises approximately 100 investment professionals operating across seven offices in Europe and managed over $84 billion in assets as of December 31st, 2025. Since its inception in 2007, the European Direct Lending business has completed over 420 investments totaling over €80 billion. In addition to this, Ares is one of the largest and most experienced CLO managers globally, having issued 108 CLOs since 1999, of which 72 are active today. As of December 31st, 2025, Ares’ CLO portfolio represented over $39 billion of the nearly $407 billion of assets managed across the Ares Credit Group.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, real estate, private equity and infrastructure asset classes. We seek to advance our stakeholders’ long-term goals by providing flexible capital that supports businesses and creates value for our investors and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of December 31, 2025, Ares Management Corporation’s global platform had nearly $623 billion of assets under management, with operations across North America, South America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.
