Ares Leads $2.2B Arcmont Private Credit Continuation Vehicle as Secondary Market Volumes Near $20B

Deal Structure Ares Management Corp. has taken the lead position in purchasing a private credit portfolio from Arcmont Asset Management in a secondary market transaction first reported by Bloomberg. Arcmont is transferring loans from its third direct-lending fund — established in 2019 with €6 billion in commitments — into a new continuation vehicle that could raise up to $2.2 billion . Lead buyer: Ares Management Corp. Co-investor: Pantheon Ventures Advisor: PJT Park Hill (a unit of PJT Partners Inc.) Source fund: Arcmont Direct Lending Fund III (vintage 2019, €6B) Why Private Credit Funds Are Turning to Secondaries Private credit funds primarily lend to companies owned by private equity firms. With dealmaking volumes remaining subdued, exit opportunities have contracted sharply, leaving managers with fewer natural ways to recycle capital. As a result, continuation vehicles have emerged as the primary liquidity tool for GP-led private credit secondaries. The secondaries market for private credit saw a significant surge in 2025, nearly doubling to approximately $20 billion from roughly $11 billion in 2024. Industry observers expect this trend to accelerate as the private credit industry grows toward $1.8 trillion in total assets. Ares and Pantheon: Competing and Cooperating Notably, both Ares and Pantheon are simultaneously acting as buyers in this transaction while also raising their own dedicated private credit secondaries vehicles. This dual positioning — as both buyer and fund manager — reflects a broader strategic land grab in what is becoming a high-conviction sector for the largest alternative asset managers. The private credit secondaries market is evolving from a niche liquidity solution into a distinct and scalable asset class, with dedicated capital pools forming at every major alternatives platform. Why This Matters for Private Markets This transaction signals that GP-led continuation vehicles are no longer limited to private equity — they are rapidly becoming standard practice in private credit as well. For LP investors in private credit funds, continuation vehicles now represent both a liquidity option and a reinvestment decision. The growing institutionalization of this market, with dedicated funds from Ares, Pantheon, and others, is compressing deal timelines and improving price discovery. Secondary buyers should expect tighter pricing in high-quality private credit portfolios as competition for assets intensifies.