Wells Fargo Capital Finance, part of Wells Fargo & Co., said Monday it increased a loan to Ares Commercial Finance LP (ACF), which is managed by Ares Management LP, to $450 million from $150 million. ACF recently bought the asset-based lending portfolio of First Capital Holdings Inc. With the transaction, the Ares Commercial Finance platform will have about $700 million of loan commitments.
SANTA MONICA, May 18, 2015 –Wells Fargo Capital Finance, part of Wells Fargo & Company (NYSE: WFC), announced that its Lender Finance division was administrative agent and lead arranger for a $450 million senior revolver for Ares Commercial Finance LP (“ACF”), a fund managed by the commercial finance platform of Ares Management, L.P. (NYSE:ARES) (“Ares”).
Ares is a leading global alternative asset manager with approximately $87 billion of assets under management as of March 31, 2015. ACF recently acquired the asset-based lending portfolio of First Capital Holdings, Inc. (“First Capital”), a leading commercial finance company that provides asset-based loans and factoring to small and middle-market companies. With this transaction, the Ares Commercial Finance platform, which is part of the firm’s Direct Lending Group, will have approximately $700 million of loan commitments.
“Last year, we agented the initial credit facility that was used to finance the Ares Commercial Finance platform’s first acquisition, and this increase to the credit facility to finance the First Capital portfolio acquisition is a natural progression of our relationship,” said Andrea Petro, executive vice president and division manager for Lender Finance at Wells Fargo Capital Finance. “The Ares Management team is great to work with and we look forward to continuing to support Ares’ business endeavors.”
About Wells Fargo Capital Finance
Wells Fargo Capital Finance is the trade name for certain asset-based lending services, senior secured lending services, accounts receivable and purchase order finance services, and channel finance services of Wells Fargo & Company and its subsidiaries, and provides traditional asset-based lending, specialized senior and junior secured financing, accounts receivable financing, purchase order financing and channel finance to companies across the United States and internationally. Dedicated teams within Wells Fargo Capital Finance provide financing solutions for companies in specific industries such as retail, software publishing and high-technology, commercial finance, staffing, government contracting and others. For more information, visit wellsfargocapitalfinance.com.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.7 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,700 locations, 12,500 ATMs, and the internet (wellsfargo.com), and has offices in 36 countries to support customers who conduct business in the global economy. With approximately 266,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 29 on Fortune’s 2014 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially. Wells Fargo perspectives are also available at Wells Fargo Blogs and Wells Fargo Stories.
About Ares Management, L.P.
Ares is a publicly traded, leading global alternative asset manager with approximately $87 billion of assets under management as of March 31, 2015 and more than 15 offices in the United States, Europe and Asia. Since its inception in 1997, Ares has adhered to a disciplined investment philosophy that focuses on delivering strong risk-adjusted investment returns throughout market cycles. Ares believes each of its four distinct but complementary investment groups in Tradable Credit, Direct Lending, Private Equity and Real Estate is a market leader based on assets under management and investment performance. Ares was built upon the fundamental principle that each group benefits from being part of the greater whole.