Ares Expands Asia Private Credit Push Amid Intensifying Competition

Ares Management is seeking commitments for a new Asia private credit fund as global alternative asset managers compete to capture expanding lending opportunities across the region.

The proposed Asia private credit vehicle, Asia Direct Lending II, is expected to finance leveraged buyout transactions throughout Asia-Pacific and could exceed the USD1.7bn raised by its predecessor.

People familiar with the fundraising said details remain under discussion and Ares declined to comment.

Although Asia-Pacific represents only a relatively small share of the global USD1.8tr private credit market, demand is growing rapidly in key markets including Australia and India.

The launch comes as several international managers strengthen their regional private debt capabilities.

Varde Partners and Elham Credit Partners are also preparing Asia-focused funds, while KKR completed fundraising for a USD2.5bn Asia credit fund in December.

The expansion reflects increasing investor appetite for Asia private credit as banks become more selective lenders and corporate financing needs continue to grow.