Capital Allocators – Inside the Institutional Investment Industry [REPLAY] Kipp deVeer – The World of Private Credit at Ares (EP.329)
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Jun 2, 2025 Kipp deVeer is a Director and Partner at Ares Management, where he's driven the growth of its credit division. He shares fascinating insights into the evolution of private credit over the last two decades. Kipp discusses his journey from Wall Street to Ares, revealing the early inefficiencies in the market and the establishment of robust capital structures. He dives into the complexities of risk management in direct lending and highlights the importance of relationships in sourcing deals. Kipp also reflects on the strategic shift toward larger issuers amid changing interest rates.
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Growth in Alternative Credit
- Ares focuses on growing non-corporate alternative credit like net leases and consumer finance assets.
- This large and diverse market resembles corporate direct lending and presents significant growth potential.
International Market Opportunities
- European direct lending is less institutionalized with banks maintaining more market share compared to the US.
- Asia presents growth opportunities but is culturally complex and currently noisy economically.
Opportunistic Credit Opportunities
- Opportunistic credit opportunities arise from asset owners needing capital and lenders offering flexible structures at attractive returns.
- These deals can extend equity durations and target 15%+ returns in various credit forms.