Ares Management Corp. is acquiring a middle-market lending portfolio from Annaly Capital Management, a real estate investment trust, for about $2.4 billion, according to two joint news releases.
Annaly executives are declining to comment beyond a joint news release it issued Monday, spokesman Alex Yankus said in an email.
Executives in Ares' credit business are familiar with a significant number of the investments in the portfolio, either through overlapping portfolio companies or prior review of the companies, said a joint news release issued by Ares. The acquisition also would provide relationship benefits with new and existing financial sponsors backing the portfolio, the news release said.
Ares had $314 billion of assets under management, including Ares Management's acquisition of AMP Capital's infrastructure debt business, which closed Feb. 10.
The portfolio represents substantially all of Annaly's middle-market lending assets held on its balance sheet as well as assets managed for third parties, said a joint news release from Annaly. Annaly has $2 billion in assets under management in its middle-market lending business, its website shows.
"The sale of our middle-market lending portfolio … marks the latest in a series of strategic actions — including the disposition of our commercial real estate business and investments into our mortgage servicing rights and residential credit businesses — that have enhanced our focus and capabilities across our core housing finance strategy," said David L. Finkelstein, Annaly's CEO and president, in its news release.
The transaction is expected to close at the end of the second quarter, subject to customary closing conditions.
Ares declined to comment beyond its news release.