The FINANCIAL — Barclays Corporate Banking and Ares Management, L.P. on December 21 announced that they have signed an agreement to jointly provide financing solutions to financial sponsor-owned UK mid-market companies.
Barclays Corporate Banking and Ares have formed a non-exclusive bank and asset manager partnership that benefits identified clients by offering a wide suite of financing solutions including senior and unitranche term debt, revolving credit facilities (RCFs) and capex facilities.
To underpin the partnership, funds managed by Ares will purchase a portfolio of performing UK middle-market financial sponsor-backed term loans with a book value of around £500m from Barclays Corporate Banking as part of the overall agreement. Barclays Corporate Banking remains committed to the UK mid-market and will continue to provide debt and wider banking services to these clients.
The partnership will benefit from Barclays’ strong UK Corporate Banking franchise and track record of innovation having previously pioneered the use of Super Senior RCFs. It will also benefit from Ares’ track record as a leading direct lender in the UK market with more than $8.4USD billion of assets under management in direct lending across Europe, being the first to bring unitranche financing solutions to the UK mid-market in 2007, according to Barclays.
Karl Nolson, Head of Debt at Barclays Corporate Banking, said: “Our clients want financing options that bring together the best of the direct lender community and the flexibility provided by banks like Barclays. By forming this strategic partnership with Ares, we’re doing just that – ensuring that Barclays remains at the vanguard of innovation and will continue to deliver real benefits for our clients.”
Michael Dennis, Partner in the Ares Direct Lending Group, said: “For almost a decade, Ares has been providing one-stop financing solutions for UK mid-market companies and their sponsors. This partnership enhances our ability to meet the credit needs of our clients, which continue to expand in a changing market and regulatory environment. By partnering with Barclays, our clients can have even more confidence in our ability to meet those needs.”
The partnership relates only to Barclays Corporate Banking. Today’s announcement does not affect Barclays Investment Bank or its strategy.