Ares Management Corp., a global alternative investment manager, and Mubadala Investment Co., a global sovereign investor, have formed a joint venture to invest in global credit secondaries opportunities.

The joint venture, anchored by Mubadala, will initially aim to deploy approximately $1 billion as it looks to capitalize on anticipated growth and demand from general and limited partners for customized liquidity services for the credit secondaries asset class. The joint venture looks to drive Mubadala’s positioning within the secondaries credit market and help Ares to scale its offering. Dave Schwartz will serve as partner and head of the credit secondaries strategy and a member of the Ares secondaries executive committee.

“We are pleased to announce this joint venture with Mubadala, which underscores our view that private credit secondaries offer a compelling opportunity for investors seeking diversified exposure to the attractive return profile of private credit assets,” says Michael Arougheti, CEO and president of Ares Management. “Building on our position as a leading global direct lender and a secondaries market pioneer, we believe the expansion of the credit secondaries strategy alongside Mubadala helps to further differentiate Ares in the market as a comprehensive solutions provider.”