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29 Oct 2024

Investec Fund Solutions partners with Ares to expand lending proposition

Investec Fund Solutions team to extend subscription facilities lending to clients via an innovative strategic funding structure with Ares.

 

Investec Bank plc (Investec or the Bank), a leading international financial services provider, today announces a bespoke capital solution between its Fund Solutions team and Ares Management Alternative Credit funds (“Ares”). The transaction will provide Investec’s Fund Solutions team with additional capital intended to significantly expand the team’s lending capacity across key markets, primarily in the UK, Continental Europe and the US.

The innovative funding structure is believed to be the first of its kind in the fund solutions market. Investec is one of the few specialist mid-market private equity lenders, and this bespoke solution provides its fund solutions team with access to the capital and experience of a leading alternative investment manager in Ares. The solution will also help serve the increasing demand for subscription line facilities across the mid-market and provide Investec Fund Solutions clients with additional funding.


Ares’ Alternative Credit strategy is one of the largest investors in asset-based credit. The team actively pursues investments in large, diversified portfolios of credit assets, such as portfolios of loans, leases, financial receivables, fees or royalties. With the benefits of its scale and experience, Ares seeks to provide bespoke capital solutions to partners and counterparties across the asset-based credit markets.

Investec is a leading mid-market focused institution which provides a full-service offering for private equity investors, offering tailored solutions for private equity and other funds, GPs and portfolio businesses throughout every stage of their lifecycle. Investec Fund Solutions focuses on lending, offering private capital funds the support and flexibility to seize opportunities, deliver returns and generate value.

Grant Crosby, Managing Director, Fund Solutions at Investec, commented: “We are pleased to announce the expansion of our fund solutions lending facilities by partnering with Ares. This innovative structure is scalable and helps rapidly grow our client-led approach to financing. Our shared focus on innovation provides a solid foundation for a long-term relationship with the potential to scale Ares’ commitment over time. We look forward to further developing our offering and providing additional value to the market with the resources this brings.”

Richard Sehayek, Managing Director, Ares Alternative Credit, commented: “We are delighted to support Investec’s Fund Solutions team as they continue to expand their lending capabilities and footprint across the UK and Europe. This transaction highlights our combined strengths, matching our flexible capital with Investec's well established financing platform. This also underscores the strength of Ares’ differentiated ability to provide consistent fund solutions as demand for liquidity continues to outpace supply. We look forward to working with Investec as we continue to develop innovative solutions in the fund finance market.”

 

  • Notes to Editors

    This press release is issued on behalf of Investec Bank plc. Registered address: 30 Gresham Street, London, EC2V 7QP. (Reg No. 489604). Investec Bank plc (Reg. no. 489604) is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

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