Ares Management Corporation has collected USD 7.1 billion for its debut private credit secondaries strategy, capitalizing on the rapid growth of the market for secondhand credit stakes. The firm expects the credit secondaries segment to continue its expansion trajectory in 2026.

The fundraise marks Ares' entry into a segment that has emerged as one of the fastest-growing areas of alternative credit. Private credit secondaries allow investors to acquire existing positions in direct lending funds and portfolios, providing liquidity to sellers while offering buyers access to seasoned assets with reduced J-curve effects.

Ares brings substantial institutional heft to the credit secondaries market. The firm manages approximately USD 85 billion across its European direct lending platform alone, having completed over 420 transactions and invested more than EUR 75 billion through European commingled funds and separately managed accounts since launching the business in 2007.

The firm's European direct lending operation spans six originating offices in London, Frankfurt, Paris, Stockholm, Amsterdam, and Madrid. This geographic reach provides sourcing advantages for secondary opportunities as well as primary deal flow. As of September 2025, the European direct lending business had approximately 100 investment professionals managing USD 84.9 billion in total assets.

The credit secondaries market has benefited from the maturation of the broader private credit industry. As legacy portfolios season and LPs seek portfolio rebalancing, secondary transactions have become an increasingly important liquidity mechanism. GP-led continuation vehicles and LP portfolio sales have both contributed to deal flow.

For European private credit participants, Ares' entry into secondaries signals continued institutional buildout of the asset class. The firm was recognized as Private Credit Lender of the Year at the 2025 Mergermarket British Private Equity Awards and ranked first in 9fin's Private Credit Lender Rankings for Q3 2025 as Overall European Lender.