The Investment Management Corporation of Ontario (IMCO) has closed its USD500 million commitment with new strategic partner Ares Management Corporation (Ares).
IMCO’s commitment will provide its Global Credit asset class access to an actively managed, diversified multi-strategy credit portfolio. IMCO has allocated USD400 million to a Fund of One structure and USD100 million to Ares Pathfinder Fund, 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,” says 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,” says Michael Arougheti, Chief Executive Officer and President of Ares. “We designed this customised solution together with the goal of capitalising 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,” adds Hartviksen. “IMCO’s USD400 million commitment to the Fund of One, and our USD100 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.”