CIBC Asset Management to Offer Private Credit, Expands Relationship with Ares Management

CIBC Asset Management, a subsidiary of CIBC, is broadening a strategic partnership with Ares Management Corp. to extend its reach into the alternative investments market. 

Under the expanded relationship with Ares, which currently sub-advises the Renaissance Floating Rate Income Fund, will offer clients exposure to investment strategies in international private credit markets managed by Ares, mostly geared toward direct lending. 

In addition to offering investment options in a diverse portfolio of directly originated private loans to middle market companies, CIBC Asset Management expects this will offer a competitive yield premium over publicly traded debt securities to its investors. 

David Scandiffio, president and CEO, CIBC Asset Management, said: “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. 

The partnership with CIBC comes as private credit is forecast to grow next year.  

According to BlackRock, because of higher rates, wider spreads, and larger call protections, the risk-return profile of private lending may be more appealing than ever.