Macfarlanes advises Arcmont Asset Management on debt aspects of its $2.5bn continuation vehicle

Macfarlanes has advised longstanding client Arcmont Asset Management in connection with the leverage aspects of the closing of its $2.5bn (inclusive of leverage) continuation vehicle, being one of the largest European credit secondaries transactions to date. 

The continuation vehicle closing was led by Ares Credit Secondaries funds and oversubscribed by leading institutional investors. The proceeds of the closing were used to acquire a diversified, income-generating portfolio of largely first-lien senior secured loans from Arcmont’s Direct Lending Fund III. The transaction provided liquidity to existing limited partners as well as the opportunity to maintain continued exposure. Arcmont will continue to manage the portfolio of investments acquired by the continuation vehicle through their remaining holding periods. 

Macfarlanes led on the financing aspects of the transaction, including the redemption of the existing leverage in Arcmont Direct Lending Fund III, on which we advised since 2019. 

Arcmont Asset Management, an investment-affiliate of Nuveen (the asset manager of TIAA), is a private credit asset management firm providing flexible capital solutions to a wide range of businesses in Europe. Macfarlanes advised Arcmont on its acquisition by Nuveen in 2023.

The Macfarlanes team was led by Finance Partner Andrew Perkins, with assistance from Senior Counsel Chris Barrett. 

Andrew Perkins comments: “We have worked with Arcmont for many years and it was fantastic to support the team once again on the execution of this landmark transaction.”