Key Takeaways
- • Ares Management closed the acquisition of SSG Capital Holdings on July 1, 2020, expanding its Asia-Pacific direct lending platform under the leadership of Edwin (CEO of Ares SSG), who founded SSG Capital in 2009 and previously led Asia Special Situations at Lehman Brothers.
- • Asia-Pacific's private credit market is projected to grow 46% to approximately US$92 billion by 2027 from US$59 billion in 2024, with direct lending forming the foundational component of this expansion.
- • Bank lending historically dominates APAC funding at roughly 80% of the market, creating structural opportunity for private credit and direct lending to capture an estimated 40% of the performing private credit opportunity.
- • Direct lending in Asia is predominantly sponsor-driven and characterized by highly structured, innovative corporate financing solutions that differentiate the region's approach from traditional Western markets.
- • Ares Management's combined platform manages approximately US$165 billion in assets under management as of June 30, 2020 (pro forma for the SSG acquisition), with 1,400 employees across North America, Europe, and Asia Pacific.
Summary
Ares Management's July 1, 2020 acquisition of SSG Capital Holdings represents a significant expansion of the alternative investment manager's direct lending capabilities in Asia-Pacific. The transaction positions Ares to capture structural growth in the region's emerging private credit market, which is transitioning from traditional bank-dominated financing to diversified credit sources. Following the acquisition, Ares Management's global platform reached approximately US$165 billion in assets under management with 1,400 employees operating across multiple geographies.
The leadership driving this strategic initiative includes Edwin, who serves as Managing Partner and CEO of Ares SSG. Edwin founded SSG Capital Management in 2009 and built it into a leading Asia-Pacific credit and special situations investor before its integration into Ares. His prior experience as Managing Director at Lehman Brothers from 1997 to 2008, where he led the Asia Special Situations Group, demonstrates deep institutional knowledge of the region's credit markets. Supporting this expansion is Mr. Kim, a Partner and Head of Asia Relationship Management, who joined Ares in 2009 after serving as Vice President and Director of Global Structured Syndication at JP Morgan and Bear Stearns, where he originated and marketed alternative investment products to Asia ex-Japan institutional clients.
Asia-Pacific's private credit market presents substantial growth potential within an underpenetrated financing landscape. The region's bank lending infrastructure, which historically captured approximately 80% of total market funding, leaves meaningful opportunity for alternative credit sources. Industry projections indicate the APAC private credit market will expand from US$59 billion to US$92 billion by 2027, representing 46% cumulative growth. Direct lending comprises the foundation of this expansion, with approximately 40% of the performing private credit opportunity still available for capture. The region's direct lending characteristics—dominated by sponsor-driven transactions and characterized by highly structured, innovative financing solutions—differentiate Asia-Pacific credit markets from traditional Western approaches, creating specialized investment opportunities for alternative managers with deep regional expertise and operating infrastructure.
The leadership driving this strategic initiative includes Edwin, who serves as Managing Partner and CEO of Ares SSG. Edwin founded SSG Capital Management in 2009 and built it into a leading Asia-Pacific credit and special situations investor before its integration into Ares. His prior experience as Managing Director at Lehman Brothers from 1997 to 2008, where he led the Asia Special Situations Group, demonstrates deep institutional knowledge of the region's credit markets. Supporting this expansion is Mr. Kim, a Partner and Head of Asia Relationship Management, who joined Ares in 2009 after serving as Vice President and Director of Global Structured Syndication at JP Morgan and Bear Stearns, where he originated and marketed alternative investment products to Asia ex-Japan institutional clients.
Asia-Pacific's private credit market presents substantial growth potential within an underpenetrated financing landscape. The region's bank lending infrastructure, which historically captured approximately 80% of total market funding, leaves meaningful opportunity for alternative credit sources. Industry projections indicate the APAC private credit market will expand from US$59 billion to US$92 billion by 2027, representing 46% cumulative growth. Direct lending comprises the foundation of this expansion, with approximately 40% of the performing private credit opportunity still available for capture. The region's direct lending characteristics—dominated by sponsor-driven transactions and characterized by highly structured, innovative financing solutions—differentiate Asia-Pacific credit markets from traditional Western approaches, creating specialized investment opportunities for alternative managers with deep regional expertise and operating infrastructure.
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