IMCO closes US$500M commitment in new partnership with Ares Management
IMCO commitment includes US$100M allocation to Ares Pathfinder Fund for opportunistic exposure to growing alternative credit segment
TORONTO (May 18, 2021) – The Investment Management Corporation of Ontario (“IMCO”) has closed its commitment with a new strategic partner, Ares Management Corporation (“Ares”) (NYSE: ARES). IMCO’s US$500-million commitment to Ares (the “Fund”) will provide its Global Credit asset class timely access to an actively managed, diversified multi-strategy credit portfolio. IMCO has allocated US$400 million of its US$500-million to a Fund of One structure and US$100-million to Ares Pathfinder Fund, L.P. (together with its parallel vehicles, “Pathfinder”), a flagship global alternative credit fund. Pathfinder pursues a differentiated strategy of providing tailored financial solutions for owners of large, diversified portfolios of assets that generate predictable and contractual cash flows throughout market cycles.
“Ares’ 20-plus year track record, depth and breadth of capabilities and expertise across asset classes represents the kind of strategic partner we want as we grow our Global Credit portfolio,” said Jennifer Hartviksen, Managing Director, Global Credit, IMCO. “IMCO’s strategic partnership with Ares is well-aligned with our diversification strategy and enables our clients to gain global access to a wide spectrum of credit products and markets—both liquid and illiquid, public and private.”
Ares is a leading global alternative investment manager operating integrated groups across Credit, Private Equity, Real Estate and Strategic Initiatives. With approximately 1,100 institutional investors, Ares manages capital for a variety of pension funds, sovereign wealth funds, university endowments, charitable foundations, financial institutions, and family offices. Pathfinder invests in alternative credit assets that are often sourced in the financing gaps found between the credit, private equity and real estate sectors.
“We are very excited to partner with IMCO and leverage our credit market leadership position to manage this strategic mandate,” said Michael Arougheti, Chief Executive Officer and President of Ares. “We designed this customized solution together with the goal of capitalizing on our all-weather approach to take advantage of opportunistic dislocations and market inefficiencies. We believe that this will provide IMCO with the flexibility to achieve their clients’ risk-reward objectives across both public and private markets.”
“The COVID-19 pandemic has exposed financing gaps in public credit segments for hard hit sectors seeking to address long-term solvency challenges,” added Hartviksen. “IMCO’s US$400-million commitment to the Fund of One, and our US$100-million commitment to Pathfinder positions us well to quickly respond to the demand for more bespoke capital solutions created by the current market and economic environment.”
Created as a separate asset class in 2020, IMCO’s Global Credit portfolio invests across a range of public and private credit market segments including corporate, real estate, infrastructure, emerging markets, structured and IP royalties to generate higher risk-adjusted returns than traditional fixed income and additional diversification benefits to a total portfolio for Ontario public sector fund clients. The Global Credit team is differentiated by its cross-functional expertise, and clients and partners benefit from close internal coordination among IMCO’s public equities and private equity teams. As of December 31, 2020, IMCO’s Global Credit portfolio had CAD$4.6-billion AUM. The portfolio is expected to grow to CAD$8-billion or more by 2025.
The Investment Management Corporation of Ontario (IMCO) manages $73.3 billion of assets on behalf of its clients. IMCO’s mandate is to provide broader public sector institutions with investment management services, including portfolio construction advice, better access to a diverse range of asset classes and sophisticated risk management capabilities. IMCO is an independent organization, operating at arm’s length from government and guided by a highly experienced and professional Board of Directors. Follow us on LinkedIn and Twitter @imcoinvest
ABOUT ARES MANAGEMENT CORPORATION
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager operating integrated groups across Credit, Private Equity, Real Estate and Strategic Initiatives. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of March 31, 2021, Ares Management’s global platform had approximately $207 billion of assets under management with more than 1,450 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.
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