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While Hercules and Horizon typically compete for the same business, Ares is slightly different because it focuses on middle-market companies that may fall off the radar of investmentbanks and other BDCs. The company's superior reputation and generous returns have attracted some of the largest investors in the world.
Although start-ups can be risky, Hercules has demonstrated that it employs robust duediligence processes before making an investment. Rather, many of the companies in Ares' portfolio are lower middle market businesses that go overlooked by investmentbanks or private equity investors.
This can require lots of effort when it comes to performing duediligence, and there's always the risk that you could be wrong. This is an interesting approach because Ares tends to work with businesses that may be perceived as too risky for other BDCs or may not fit the ideal client profile for an investmentbank.
And that was very important because when this was the dawning of what is now a big analyst program across the country in all banks and investmentbanks. There was no m and a departments in any investmentbank really until the very late seventies. And I was fortunate to be accepted to both.
And what was interesting was the first leveragedbuyout of a public company happened when I was in graduate school. KLINSKY: In 1979, it was the first leveragedbuyout of a public company. We had sold the family business, maybe buy another family business one day through a leveragedbuyout. KLINSKY: Yeah.
The agreement grants AGL the right of first refusal on Barclays private credit deals while also allowing it to participate in transactions underwritten by other banks. He cited AGLs investment expertise and credentials as key advantages. However, Barclays did not commit its own capital to the initiative.
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