June 14, 2024
Joel Holsinger and Eric Miller sit down with ABF Journal to discuss the recent launch of Ansley Park Capital, the new large-ticket equipment finance company of Ares Management
ABF Journal – June 13, 2024 – This spring, Ares Management, a global alternative investment manager, announced the launch of Ansley Park Capital, a new large-ticket equipment finance company. This venture signifies Ares’ strategic expansion into the equipment finance space, a sector the firm has been closely monitoring and preparing to enter.
The Rationale Behind the Move
Joel Holsinger, a senior partner at Ares, explained the rationale behind this strategic move. “If you look broadly at what we call alternative credit, it’s really asset-based credit. So everything is portfolios: it’s portfolios of loans, it’s portfolios of receivables, it’s portfolios of leases, and we invest across that entire spectrum.” Holsinger asserts that Ares’ extensive experience in asset-based credit and the current economic environment made this an opportune time to enter the market.
“We believe we have the largest pool of capital on the unrated side that allows us to strategically or on a relative value basis invest across areas that we view as interesting,” Holsinger says. “Equipment leasing is an area that we have a lot of experience with historically.” Holsinger says this deep reservoir of capital, combined with strategic investment opportunities, positions Ares to capitalize on the emerging trends in the equipment finance industry.
A Synergistic Partnership
Eric Miller, whose team made the switch to Ansley Park from BciCapital, shares his enthusiasm for the partnership: “Ares is a leader in the private credit space with one of the largest alternative credit platforms investing in asset-based credit strategies. We align culturally with the team, and we saw great potential in a collaboration. We’re very excited about it.” Miller’s comments underscore the cultural and strategic alignment between Ares and the newly integrated team, which bodes well for the future of Ansley Park.
Holsinger notes that the Ares and Ansley Park management teams realized just how many pre-existing relationships and familiarity existed between the teams when they first met. Holsinger and Miller expect this deep-rooted network within the industry to facilitate seamless integration and robust operational synergy.
Strategic Timing and Market Opportunity
The timing of the launch is particularly strategic, considering the current economic landscape and recent upheavals in the banking sector. Holsinger notes the significant changes that have taken place post-regional bank crisis and the resulting shifts in market dynamics. “Banks obviously are revisiting the way they approach the market after the regional bank crisis and even prior because of the rate increases that they were seeing.” These market conditions have created unique opportunities for entities like Ansley Park to fill the emerging gaps.
Holsinger notes that these shifts have opened up the market for alternative lenders. “What you see is banks pulling back from certain lending activities, creating a void that can be filled by alternative credit providers like us. This is especially true in the equipment finance sector, where the need for substantial capital investment is critical.” This insight reflects Ares’ ability to adapt to market dynamics and leverage its strengths to seize new opportunities.
Ansley Park’s Market Position and Strategy
Ansley Park Capital is focused on large-ticket equipment finance, targeting transactions that involve significant capital investments. This focus aligns with Ares’ broader strategy to leverage its substantial capital reserves and experience in asset-based credit. By targeting large-ticket transactions, Ansley Park aims to expand its niche in the equipment finance market that demands high-value, bespoke financing solutions.
“We believe that the changing dynamics in our industry combined with the experience of both Ares as well as our own team, uniquely position us for great success. There’s so much to look forward to. As a management team, we’ve always prided ourselves on providing our clients with custom tailored solutions for their individual needs, and with Ares as our partner it now feels as though our opportunity is limitless” said Miller. This excitement is shared across the team, reflecting the confidence in their combined capabilities and the market opportunities ahead.
Future Prospects and Industry Impact
The launch of Ansley Park Capital marks a significant milestone for Ares Management, extending its footprint into the equipment finance sector with a strong foundation. The venture is expected to benefit from Ares’ vast experience and capital strength, coupled with the specialized knowledge and industry connections of the Ansley Park team.
Looking ahead, Holsinger is optimistic about the impact Ansley Park will have. “With our resources and the experience of the Ansley Park team, we believe that we are well-positioned to offer innovative financing solutions that meet the evolving needs of our clients. This move not only diversifies our portfolio but also enhances our ability to provide comprehensive financial services.”
The launch of Ansley Park Capital is a well-calculated move by Ares Management into the equipment finance sector. With a strong team, significant capital backing and a strategic market entry, Ansley Park Capital is poised to make a significant impact in the industry. As the economic landscape continues to evolve, this new venture is expected to play a pivotal role in shaping the future of equipment finance, offering tailored solutions that meet the complex needs of businesses and investors alike.
