Alternative Credit


Alternative Credit is a strategy focused on investments in large, diversified portfolios of credit assets such as portfolios of loans, leases, financial receivables, fees or royalties. This is sometimes also called asset-based credit.

Alternative Credit targets investments that benefit from asset security, covenants, cash flow velocity and other features designed to capture value and minimize risk to principal. Because of these features, the strategy offers the potential for attractive levels of current income, low correlation to traditional markets, portfolio diversification and downside protection that many investors today are seeking.

Investors typically access the strategy through flagship funds and managed accounts. Alternative Credit provides investors opportunities to invest across the breadth of Alternative Credit markets, spanning both liquid securities and directly-originated, private transactions.

A river flowing between a canyon

In the Gaps

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Download the Winter 2024 Newsletter

Targeted Opportunity Set

View from the street of a office building and other large buildings
  • Auto Loans
  • Consumer Loans
  • Healthcare Receivables
  • Student Loans
  • Timeshares
An intersection ramp with fast cars at night
Corporate & Whole Business
  • Asset Manager Fees
  • CLOs
  • Equipment Leasing
  • Fund Finance
  • GP/Manager Finance
  • Secondaries Lending
  • Small Business Loans
  • Structured Equity
  • Tax Receivable Agreements
  • Trade receivables
  • Whole Business Securitizations
Construction workers climbing scaffolding
Transportation & Infrastructure
  • Aviation Assets
  • Cell Towers
  • Data Centers
  • Fiber Assets
  • PACE
  • Shipping Containers
  • Solar Loans
Façade of a commercial building
Real Assets
  • CMBS
  • Fix-and-Flip Finance
  • Ground Leases
  • Mortgage Servicing Rights
  • REIT Finance
  • Residential Mortgages
  • Single Family Rentals
  • Whole Loans
A stairway with fluorescent lights
  • Agriculture Loans
  • Capital Relief Transactions
  • Drug Royalties
  • Legal Assets
  • Media and Sports Assets
  • Music Royalties
  • NPL/RPL Portfolios
  • Servicer Fees
  • Triple Net Leases
*For illustrative purposes only.
Financial professional looking at analytics and metrics on a tablet

We employ true bottom-up analysis to evaluate the risk and value of each investment. Each opportunity is subjected to a rigorous investment process, drawing upon the breadth of the team’s experience and enhanced by proprietary data, analytical tools and systems. We approach each sector with specialized, dedicated resources and often collaborate with other investment professionals at Ares to enhance our view of risk and value.

Our Approach

We approach each sector with specialized, dedicated resources in collaboration with other investment professionals at Ares

With a seasoned team comprised of approximately 70 dedicated investment professionals, as of March 31, 2024, we believe we are one of the most active market participants. We believe our scale and flexibility contribute to Ares’ ability to originate opportunities and capture value in Alternative Credit.

Alt Credit team meeting

Charitable Tie-In

Ares and the Alternative Credit team also seek to have a positive impact on society. Ares and the team have committed to donating between 5% and 10% of the carried interest earned within certain Alternative Credit funds to global health and education charities. The better our performance for investors in these funds, the greater the potential charitable contribution.

For more information about the charitable feature of the funds, we invite you to watch the following video.


Co-Heads of Alternative Credit

For inquiries regarding Alternative Credit please contact:

Keith Ashton

Tel: (212) 888-7089

Email: [email protected]

Joel Holsinger

Tel: (212) 515-3238

Email: [email protected]

Head of Product Management and Investor Relations

For inquiries regarding Alternative Credit investor relations please contact: