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Ares Faces Its Biggest Decision Yet: Stick With Private Credit or Become an Alts Supermarket

Private Equity Insights

Yet, like its peers, Ares feels compelled to diversify into other asset classes, such as real estate, infrastructure, and private equity. The attractions of sticking with private credit are obvious. It’s easy enough to understand why Ares Cap would prefer to lend to a big firm than to a small- or middle-market one.

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Private Equity's Creative Wizardry Posing Systemic Risk?

Pension Pulse

In Europe, most private credit borrowers have been turning to PIK when reworking debt obligations, according to data from Lincoln International. In the US, Bloomberg Intelligence reckoned in a February note that 17% of loans at the 10 largest business development companies — essentially vehicles for private credit funds — involved PIK.

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