Ares Management provided a $450 million revolving asset-backed credit facility to specialty finance company Ag Resource Management. The lending is secured by agricultural production loans originated by Ag Resource.
Ares Management Corporation (NYSE: ARES) (“Ares”) announced today that funds managed by its Alternative Credit strategy have provided a $450 million revolving asset-backed credit facility secured by agricultural production loans originated by Ag Resource Management (“ARM”).
ARM is a specialty finance company focused on bringing financial and risk management solutions to farmers and agribusinesses nationwide. By combining proprietary technology and a deep understanding of crop agriculture, ARM provides innovative agribusiness loan and crop insurance products that deliver operating capital to American farmers who seek financing for growing crops. Loans can be made directly to the producer or arranged in conjunction with a local distributor. The loans are secured by the crops, crop insurance and government payments instead of the farmer’s property or equipment, which is the case in traditional agriculture lending.
“Just as ARM has sought to fill the gaps of the agriculture lending market by providing unique and customized financial solutions for farmers, this investment demonstrates Ares’ ability to address similar gaps in the capital markets by providing unique asset-focused capital solutions for specialty finance companies like ARM,” said Joel Holsinger, Partner of Ares and Co-Head of Ares Alternative Credit. “We are excited to support ARM in its next phase of growth.”
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager operating three integrated businesses across Credit, Private Equity and Real Estate. Ares Management’s investment groups collaborate to deliver innovative investment solutions and consistent and attractive investment returns for fund investors throughout market cycles. Ares Management’s global platform had $144 billion of assets under management as of September 30, 2019 with approximately 1,200 employees in over 20 offices in more than 10 countries. Please visit www.aresmgmt.com for additional information.
About Ares Alternative Credit
Ares’ Alternative Credit strategy focuses on direct lending and investing in assets that generate contractual cash flows and fills gaps in the capital markets between credit, private equity and real estate. Ares Alternative Credit targets investments across the capital structure in specialty finance, lender finance, loan portfolios, equipment leasing, structured products, net lease, cash flow streams (royalties, licensing, management fees), fund secondaries and other asset-focused investments. Ares Alternative Credit leverages a broadly skilled and cohesive team of approximately 35 investment professionals as of September 30, 2019.
ARM is a specialty finance company focused on bringing financial and risk management solutions to agribusinesses nationwide. ARM brings value to customers via the structuring of short-term financial risk. The Company provides crop production loans to meet working capital needs of producers as well as crop insurance to cover expected levels of production. Loans can be direct to the producer or arranged in conjunction with a local distributor.