CIBC Asset Management is expanding its strategic relationship with Ares Management Corporation to add  strategies that invest in global private credit markets.  Ares is currently the sub-advisor to the Renaissance Floating Rate Income Fund.  

"Investors are seeking alternative opportunities beyond traditional publicly traded securities and private credit offers diversification, insulation from market volatility and an attractive yield premium to publicly traded securities," said David Scandiffio, President and CEO, CIBC Asset Management. "We are very excited to expand our already successful strategic relationship with Ares and provide our clients with the opportunity to invest in globally-leading private credit strategies."

There are three key components to the expanded strategic relationship with Ares.

First, select funds managed by CIBC Asset Management will invest approximately $400 million CAD in Ares-managed private credit vehicles focused primarily on direct lending.  CIBC Asset Management believes this will provide its clients with investment opportunities in a diversified portfolio of directly originated private loans to middle market companies, and provide an attractive yield premium relative to publicly traded debt securities.

Second, CIBC Asset Management intends to launch Canadian products that will provide its clients with access to Ares-sponsored "evergreen" investment vehicles.  These products will provide high-net-worth and institutional clients with the ability to invest with a leading global private credit investment manager.

Lastly, the strategic relationship may also include the ability to offer Ares' various investment strategies to Canadian investors through CIBC Asset Management.