Alternative Credit sources investment opportunities that fall outside of traditional, well-defined markets. Our strategies feature a differentiated approach to value capture through direct origination, credit arbitrage and disruptions in traditional markets.

Alternative Credit offers a broad range of sub strategies designed to be client-focused and solutions-based with three main formats: pure play, customized and flagship funds. Each format benefits from Ares' focus on asset security, covenants, cash flow velocity and other features designed to capture value and minimize risk to principal. Alternative Credit targets a level of downside protection, low correlation to traditional markets, diversification, attractive levels of current income and attractive risk-adjusted return opportunities. Aligning Ares' investment activities with its desire to have a positive societal impact, Ares and Alternative Credit portfolio managers have committed to donating a portion of carried interest from certain Alternative Credit funds to global health and education charities.