Ares Management Corporation priced its second European Direct‑Lending Collateralized Loan Obligation (EDL CLO II) on February 19, 2026. The €300 million‑plus vehicle is built entirely from directly originated, actively managed loans issued to more than 70 middle‑market companies across Western Europe, and it will be rated by S&P and KBRA.
The CLO is structured as a multi‑currency, senior‑secured floating‑rate vehicle. The triple‑A notes were priced at 135 basis points above Euribor, and the structure will receive separate ratings for each tranche, reflecting the diversified credit profile of the underlying portfolio.
This issuance follows Ares’ first European Direct‑Lending CLO, priced in June 2025 at £305 million, and demonstrates the firm’s ability to launch a new CLO in less than a year. The company now manages $84.9 billion in European credit products and has completed more than 420 transactions, investing over €75 billion in the region.
By adding a multi‑currency CLO to its product suite, Ares deepens its presence in resilient middle‑market sectors, diversifies fee income, and strengthens its competitive position against rivals such as Blackstone, Apollo, KKR and Carlyle.
The European direct‑lending CLO market remains in its early stages, with only a handful of such vehicles priced to date. Ares’ rapid expansion positions it to capture the anticipated growth in this niche, offering institutional investors a new avenue for exposure to European credit markets.
"We are pleased to successfully price our second European Direct Lending CLO in less than 12 months as we continue building on our nearly 20 years of corporate direct lending experience in Europe," said Michael Dennis, Partner and Co‑Head of European Credit. "Looking ahead, we intend to deepen our culture of innovation to deliver compelling solutions to our investors and borrowers." "Our investors' needs are evolving and we are pleased to serve them by offering a range of solutions and the depth of capabilities required to support their objectives," added Andrea Fernandez, Partner and Chief Operating Officer of European Direct Lending. "We believe the strength of demand for EDL CLO II is a testament to our experience in structuring and managing bespoke vehicles in pursuit of differentiated returns." "The pricing of EDL CLO II comes at a time when our leading risk and portfolio management capabilities remain central to our ability to achieve high quality alpha, and we look forward to building on the trust of our investors and borrowers," remarked Matt Theodorakis, Partner and Co‑Head of European Direct Lending.
Ares’ pricing of EDL CLO II underscores its capacity to mobilize capital swiftly and deliver new investment opportunities to institutional investors seeking exposure to European credit markets. The move reinforces the firm’s strategy of expanding its European direct‑lending platform and solidifies its competitive advantage in a market poised for growth.
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