Private equity firm Ares Management has raised $130m for its new credit fund via an IPO on the New York Stock Exchange.
Ares Multi-Strategy Credit Fund has floated 5.2m shares priced at $25 apiece worth $130m and could raise an additional $19.5m if the underwriters including BofA Merrill Lynch, Citigroup, Morgan Stanley and Wells Fargo Securities exercise their over-allotment options in full. Its shares will begin trading under the symbol ARMF today.
The fund will invests in below investment grade senior secured loans, high yield corporate bonds and other similar fixed-income instruments, including derivatives and collateralized loan obligations.
Ares added that the fund could invest a significant amount of of its capital in debt instruments of European issuers.
Earlier this week Ares and Canada Pension Plan Investment Board completed the $6bn acquisition of Neiman Marcus Group.
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