Ares, Indonesia wealth fund partner for investment opportunities
The Indonesia Investment Authority and a subsidiary of Ares have entered into an agreement to invest in Indonesia via hybrid capital and securitisation, the statement shows
GLOBAL asset investment manager Ares Management has teamed up with an Indonesian sovereign wealth fund to explore investment opportunities in the country, according to a joint statement.
The Indonesia Investment Authority (INA) and a subsidiary of Ares have entered into an agreement to invest in Indonesia via hybrid capital and securitisation, the statement said. Ares Asia Credit funds have set aside as much as US$500 million per year for such opportunities.
Hybrid capital for INA includes private credit, Bloomberg News previously reported.
Sovereign wealth funds have been upping their stakes in the growing US$1.7 trillion private debt market as banks pull away from riskier lending due to regulatory changes and an economic slowdown.
Singapore state investment company Temasek Holdings announced in December 2024 that it has set up a private credit platform with an initial portfolio of about S$10 billion, consisting of direct investments and credit funds.
Meanwhile, Abu Dhabi’s sovereign wealth fund Mubadala Investment said the space has been its best-performing asset class for three years.
As at Dec 31, 2024, Ares Credit Group had US$349 billion in assets under management, with the Ares Asia Credit platform overseeing US$11.5 billion, according to the statement. BLOOMBERG
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