Investment Management Corporation of Ontario Trusts Ares with $500 Million in Credit Investments
Posted on 05/18/2021
Investment Management Corporation of Ontario (IMCO) is trusting Ares Management Corporation with US$ 500 million.
US$ 400 million to a Fund of One structure toward the global credit asset class – a diversified multi-strategy credit portfolio. The other US$ 100 million is being allocated to the Ares Pathfinder Fund, L.P., 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.
Created as a separate asset class in 2020, IMCO’s Global Credit portfolio invests across a range of public and private credit market segments including corporate, real estate, infrastructure, emerging markets, structured, and IP royalties to generate higher risk-adjusted returns than traditional fixed income and additional diversification benefits to a total portfolio for Ontario public sector fund clients. IMCO’s Global Credit team is differentiated by its cross-functional expertise, and clients and partners benefit from close internal coordination among IMCO’s public equities and private equity teams. As of December 31, 2020, IMCO’s Global Credit portfolio had CAD$4.6 billion AUM. The portfolio is expected to grow to CAD$8 billion or more by 2025.
IMCO manages $73.3 billion of assets on behalf of its clients.