Antares Private Credit Fund, et al. (2024)

Start Preamble March 5, 2024.

Securities and Exchange Commission (“Commission” or “SEC”).

Notice.

Notice of application for an order under section 17(d) and 57(i) of the Investment Company Act of 1940 (the “Act”) and rule 17d–1 under the Act to permit certain joint transactions otherwise prohibited by section 17(d) and 57(a)(4) of the Act and rule 17d–1 under the Act.

Applicants request an order to permit certain business development companies (“BDCs”) and closed-end management investment companies to co-invest in portfolio companies with each other and with certain affiliated investment entities.

Antares Private Credit Fund, Antares Strategic Credit Fund, Antares Capital Advisers LLC, Antares Capital Credit Advisers LLC, Antares CLO 2017–1, Ltd., Antares CLO 2017–2, Ltd., Antares CLO 2018–1, Ltd., Antares CLO 2018–2, Ltd., Antares CLO 2018–3, Ltd., Antares CLO 2019–1, Ltd., Antares CLO 2019–2, Ltd., Antares CLO 2020–1, Ltd., Antares CLO 2021–1, Ltd., Antares CLO 2023–1, Ltd., Antares CLO 2023–2, Ltd., Orion CLO 2023–1, Ltd., Orion CLO 2023–2, Ltd., AUF Funding LLC, Antares Canada SMA LP, Antares Credit Fund I LP, Antares Credit Opportunities IV LLC, Antares Credit Opportunities MA I LLC, Antares Credit Opportunities MA II LP, Antares Credit Opportunities MA III LLC, Antares Credit Opportunities MA V LP, Antares Senior Loan Master Fund LP, Antares Senior Loan Parallel Master Fund LP, Antares Unitranche Master Fund I LP, Antares Credit Opportunities VI LLC, Antares Credit Opportunities CA LLC, Antares Strategic Credit I Master LP, Antares K Co-Investment Fund LP, Antares K Co-Investment Fund II LP, Antares Senior Loan Master Fund II LP, Antares Senior Loan Parallel Master Fund II LP, WM Alternatives Antares Private Senior Lending Fund LLC, Antares Senior Loan EF Master II (Cayman) LP, Antares Vesta Funding LP, Antares Assetco LP, Antares Complete Financing Solution LLC, Antares Holdings LP, Antares Venus Funding LP, Antares Senior Loan Parallel Fund SPV LLC, Antares Senior Loan Parallel Fund II SPV LLC, Antares Credit Opportunities Funding IV LLC, Start Printed Page 17534 Antares Credit Opportunities Funding VI LLC, Antares Strategic Credit SPV LLC, Antares Strategic Credit I SPV LLC, Antares Credit Opportunities CA SPV I LLC, Antares Credit Opportunities CA SPV II LLC, Antares Credit Opportunities CA SPV III LLC, Antares Credit Opportunities CA SPV IV LLC, Antares Capital 2 LP, Antares Equity Holdings LLC, A–STAR Equity Holdings LLC, CPPIB Credit Investments Inc., CPPIB Credit Investments II Inc., CPPIB Credit Investments III Inc., CPPIB Credit Structured North America II, Inc., CPPIB European Credit Inc., CPPIB European Credit II Inc., Antares Senior Loan EF II SPV LLC, Antares Senior Loan Parallel Fund II SPV B LLC, Antares Liquid Credit Strategies LLC, and WM Alternatives Antares Private Senior Lending Fund SPV LLC.

The application was filed on May 10, 2023, and amended on September 13, 2023 and February 26, 2024.

An order granting the requested relief will be issued unless the Commission orders a hearing. Interested persons may request a hearing on any application by emailing the SEC's Secretary at Secretarys-Office@sec.gov and serving the Applicants with a copy of the request by email, if an email address is listed for the relevant Applicant below, or personally or by mail, if a physical address is listed for the relevant Applicant below. Hearing requests should be received by the Commission by 5:30 p.m. on April 1, 2024 and should be accompanied by proof of service on the Applicants, in the form of an affidavit or, for lawyers, a certificate of service. Pursuant to rule 0–5 under the Act, hearing requests should state the nature of the writer's interest, any facts bearing upon the desirability of a hearing on the matter, the reason for the request, and the issues contested. Persons who wish to be notified of a hearing may request notification by emailing the Commission's Secretary at Secretarys-Office@sec.gov.

The Commission: Secretarys-Office@sec.gov. Applicants: Michael B. Levitt, mike.levitt@antares.com, and William J. Bielefeld, william.bielefeld@dechert.com.

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Stephan N. Packs, Senior Counsel, or Terri G. Jordan, Branch Chief, at (202) 551–6825 (Division of Investment Management, Chief Counsel's Office).

FAQs

Are private credit funds good investments? ›

Private credit products have also shown resiliency compared to public debt markets. The historical default rate of private credit assets is approximately 2%, with recovery rates of between 60% and 70% for senior loans.

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What is the Antares capital strategy? ›

Antares' Liquid Credit strategy is bolstered by a private credit CLO platform established in 2017, which focuses on high-quality portfolios with borrowers who have demonstrated stable cash flow, established market positions, and resilience through cycles.

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What is Antares Capital credit rating? ›

Fitch Affirms Antares at 'BBB'; Outlook Stable. Fitch Ratings - New York - 30 Apr 2024: Fitch Ratings has affirmed Antares Holdings LP's Long-Term Issuer Default Rating (IDR) at 'BBB', senior secured debt rating at 'BBB' and senior unsecured debt rating at 'BBB-'. The Rating Outlook is Stable.

How are private credit funds valued? ›

The fair value of a private credit investment moves up and down from issuance based on changes in credit quality (underlying company performance), and changes in the market (credit spreads/yields). The fair value framework has been established and applied in its current form for more than 16 years.

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What are the negatives of private credit? ›

Private credit isn't without its risks. Economic downturns and unforeseen events can impact borrowers' ability to repay loans, potentially leading to default. The illiquid nature of some private credit investments can also pose challenges.

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What is the average return on private credit? ›

When measured over seven different periods of high interest rates between the first quarter of 2008 and the third quarter of 2023, direct lending yielded average returns of 11.6%, compared with 5% for leveraged loans and 6.8% for high-yield bonds.

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Is Antares Capital a private equity firm? ›

Antares maintains a portfolio of ~465 private equity-backed companies. We focus on non-cyclical companies that we believe can withstand market cycles.

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Who is the CEO of Antares Capital? ›

Lyne. Tim is Chief Executive Officer of Antares Capital.

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What is the Antares strategy? ›

Antares Strategy provides strategic consulting and advisory services through comprehensive assessments of political and financial risk and analysis of regulatory and commercial factors crucial to investment decisions in Eurasia.

Who owns Antares? ›

Antares was bought by the Canada Pension Plan Investment Board in 2015 for $12 billion, though the Canadian investor has since sold a 16% stake to Northleaf Capital Partners.

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How big is Antares Capital Fund? ›

Founded in 1996, Antares has been a leader in private credit for nearly three decades. Today with more than $68 billion of capital under management and administration¹, Antares is an experienced and cycle-tested alternative asset manager.

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How many locations does Antares Capital have? ›

Antares maintains offices in Atlanta, Chicago, New York, Atlanta, London, Los Angeles, and Toronto.

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Are private credit funds a good investment? ›

The Federal Reserve's May 2023 Financial Stability Report described the financial stability risks from private credit funds as low, in part because investors in private credit (unlike bank depositors) are required to lock up their money for five to 10 years.

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Which is better private credit or private equity? ›

Risk-averse investors are more likely to benefit from private equity holdings because they can lower the risk margin by investing in promising companies and growing them before exiting via a sellout or IPO. On the other hand, investors with a high tolerance for risk may be better off investing in private credit.

How do private funds make money? ›

Private equity firms make money through carried interest, management fees, and dividend recaps. Carried interest: This is the profit paid to a fund's general partners (GP).

What are the cons of private funding? ›

The main disadvantage of private funding is that it can be difficult to raise large sums of money from private investors. Venture capitalists tend to invest in companies that they believe have high growth potential, so they may be reluctant to invest in a company that is not yet generating significant revenue.

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How much money do you make in private credit? ›

As of Jul 30, 2024, the average hourly pay for a Private Credit in the United States is $20.43 an hour.

How do private credit funds earn money? ›

While a private equity fund may generate returns by increasing the value of the company it invests in, a private credit fund's returns are achieved primarily through its receipt of interest on the loans it extends and through the sale or repayment of such loans.

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Does private credit generate excess returns? ›

“Our estimates indicate that once we adjust for fees and risks, private debt funds provide their investors with returns just appropriate for the risks they face, but not more,” the paper said. However, it noted that private debt funds do in fact generate alpha, before it is eaten up by fees paid to managers.

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