Ares Direct Lending vs Alternative Credit
Does alternative credit do everything but direct lending of pc?
What are the differences between the two in terms of reputation/exit opps?
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Based on the most helpful WSO content, let's swing through the jungle of information and grab some bananas of knowledge:
Ares Direct Lending focuses primarily on providing loans directly to companies, bypassing traditional bank lending. This includes senior debt, mezzanine, and co-investments. It's a proactive approach where senior members cover a pool of private equity firms, and most business comes from these sponsor relationships. They also have the capability to self-originate, which means they can pursue and structure deals independently.
Ares Alternative Credit, on the other vine, seems to have a broader mandate that includes a variety of credit strategies. This could encompass contractual/asset-based financing, specialty finance, lender finance, leasing, and more. It's a space that can be quite opportunistic, dealing with different layers of the capital structure and potentially more complex financial instruments.
Now, let's talk about the differences in terms of reputation and exit opportunities:
Reputation: Both direct lending and alternative credit are reputable fields within Ares, which is a well-regarded firm in the credit space. However, direct lending might be seen as more traditional and established, given its focus on relationships with private equity firms and senior debt structures. Alternative credit could be perceived as more dynamic due to its broad and opportunistic approach.
Exit Opportunities: For direct lending analysts, exits might lean towards other credit funds, private debt firms, or even internal advancement within Ares. The skill set revolves around underwriting, structuring, and negotiating debt deals. In alternative credit, the exit paths could be more varied due to the diverse nature of the work. You might find opportunities in special situations, distressed debt, or other niche credit strategies.
Remember, reputation and exit opportunities can be quite subjective and often depend on individual performance, networking, and market conditions. Keep your eyes peeled and your network strong, and you'll find the right branch to swing to next!
Sources: Ares vs. Golub Direct Lending, Ares Credit Direct Lending Analyst Exits?, Thoughts on Ares Alternative Credit
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Bump, curious about the Ares Alternative Credit team's comp / culture / returns / etc.
Bump - anyone here in Alt Credit or Direct Lending who can shed some light?
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