[Preview of the Week's Magazine] Is the Endgame for Private Equity Lending? Can Private Credit Pave Its Way into the Chinese Market? (AI Translation)
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- Ares Management Corporation, a leading global alternative asset manager based in Los Angeles, is seeking to enter the Chinese market, where private credit funds are currently prohibited. The firm has expanded in Asia through acquisitions and aims to offer a full range of services including private equity, real estate, and infrastructure.
- Private credit has grown significantly since the 2008 financial crisis due to tighter banking regulations. As of early 2023, the industry's assets have increased fivefold from $300 billion in 2010 to $1.5 trillion. However, concerns about transparency and systemic risk persist as the sector operates largely outside traditional banking regulations.
- Ares faces competition from other private equity giants expanding into private credit but relies on its established track record and expertise. The firm focuses on non-cyclical industries for lending and conducts thorough due diligence similar to private equity investments. Despite potential challenges such as rising default rates and regulatory scrutiny, Ares remains optimistic about long-term opportunities in China and the role of private credit in financing growth.
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By Caixin Weekly's Yue Yue
来自美国洛杉矶的全球最大私募信贷基金管理人之一Ares Management Corporation（NYSE：ARES），正努力叩开中国市场的大门。这家管理规模近4000亿美元的另类资产管理公司，一心想补齐在亚洲市场的短板。
One of the world's largest private credit fund managers, Ares Management Corporation (NYSE: ARES), based in Los Angeles, is striving to gain entry into the Chinese market. This alternative asset management company, with nearly $400 billion under management, is keen on filling the gaps in its presence within the Asian market.
1997年成立至今，Ares一直以私募信贷（Private Credit）为主业。简单说，私募信贷就是由管理人向机构投资者或高净值个人募资，成立基金后对外发放贷款，借款人通常是被银行拒之门外的中小型企业。其具体投资形态包括直接借贷、夹层、困境债等，因此有时也被称为私募债权（Private Debt）。
Since its establishment in 1997, Ares has primarily focused on private credit. In simple terms, private credit involves fund managers raising capital from institutional investors or high-net-worth individuals to establish funds that then provide loans. The borrowers are typically small and medium-sized enterprises (SMEs) that have been turned away by banks. Specific investment forms include direct lending, mezzanine financing, and distressed debt, which is why it is sometimes referred to as private debt.
这类业务在美国金融市场上存在已久，但真正开始快速发展是在2008年金融危机之后。监管政策对银行业的收紧，是私募信贷得以扩张的原因之一。
This type of business has long existed in the U.S. financial markets, but it began to grow rapidly after the 2008 financial crisis. The tightening of regulatory policies on the banking sector is one of the reasons for the expansion of private credit.
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