Ares Management LLC Launches European Middle-Market Financing Business & Adds Three New Investment Professionals to Its London Office

Business Wire, June 17, 2007

Firm Also Announces Closing its First European CLO Vehicle

LOS ANGELES & NEW YORK & LONDON -- Continuing the rapid expansion of its London office, Ares Management LLC announced today the launch of its private debt middle-market financing activities in Europe. The private debt business is a complement to and logical extension of the firm's existing Capital Markets activities in Europe, as well as part of its stated plans to expand its geographic capabilities across Europe.

Ares's new private debt effort in Europe will be spearheaded by Gordon Watters, who joins from Barclays Bank where he oversaw its middle market leveraged finance practice across Europe, Africa and the Middle East. In this capacity, Mr. Watters was responsible for the entire leveraged finance operation within its Business Banking Group, including mezzanine, fund investment, syndication, and distribution & agency. During his career at Barclays, Mr. Watters built a significant leveraged finance operation for the bank and brings significant deal sourcing, structuring and business building expertise, as well as a breadth of relationships in the European private equity and leveraged finance communities.

Mr. Watters is joined by Mike Dennis and Eric Vimont, both Directors and experienced senior members of Barclays' middle-market team. With their addition, Ares will now have ten investment professionals in its London office. Ares expects to hire a number of additional investment professionals in London, looking to double the size of its team within the next twelve months.

The private debt business will focus on providing "one-stop" financing (senior debt, mezzanine debt and equity) to middle-market companies and private equity sponsors, alone, alongside or in partnership with other market participants.

"Mike, Eric and I are excited to be joining Ares at an interesting and exciting time in the development of the European leveraged finance market and the growth of the Ares platform," commented Mr. Watters. "We hope to bring a new level of flexibility to middle-market acquisition finance in Europe and will look for innovative ways to serve our clients," he added.

Ares has enjoyed success in the private debt business in the United States, primarily through an affiliate that manages the publicly-traded finance company, Ares Capital Corporation (NASDAQ:ARCC). While not directly managed or financially supported by Ares Capital Corporation, the European private debt business will work with its U.S. counterpart to bring best-in-class products and services to the middle market. The European private debt team will work closely with Michael Arougheti, President of Ares Capital Corporation, as well as with the rest of the ARCC senior management team. In addition, the team, together with other investment professionals in London, will also work with David Sachs, co-head of the Ares Capital Markets group based in Los Angeles, and Miles Alexander, head of the London Capital Markets group, on collateral loan obligation (CLO) vehicles and other capital markets and structured products.

"We are extremely pleased to add such high-caliber finance professionals as Gordon, Mike and Eric. They are a top-notch team," commented Mr. Arougheti. "These three men bring a wealth of experience and relationships in the leveraged finance community, and their hiring immediately positions us to source and evaluate private debt deals across the growing European market."

Separately, Ares announced that it had recently closed its first European structured debt investment vehicle, a EU 356 million European CLO fund named Ares Euro CLO I B.V. The fund is being managed by Ares's Capital Markets group, with Deutsche Bank acting as underwriter as well as structuring and distribution agent for the Fund. This closing represents the fifteenth cash flow CLO that Ares has sponsored since inception.

Mr. Alexander commented, "The addition of Gordon, Mike, and Eric and the establishment of a European private debt business by Ares will enhance our ability to create and manage CLOs and other capital market products by increasing our presence as well as strengthening our relationships with sponsors and arrangers in the European leveraged finance market."

About Ares Management LLC

Founded in 1997 by a group of highly experienced investment professionals, Ares manages investment capital in private equity, capital markets (principally leveraged loans, high-yield bonds, and distressed debt), and private debt (primarily through Ares Capital Corporation (NASDAQ: ARCC), a publicly-traded specialty finance company). Through these three complementary lines of business, Ares has the ability to provide capital to companies at any place in the capital structure and at any stage of development. Assets under management at Ares have grown from approximately $3 billion of committed capital five years ago to an expected $20 billion by the end of 2007. Ares has more than 170 employees; headquartered in Los Angeles, with offices in Los Angeles, New York and London; and is an SEC registered investment advisor. For more information, visit the Ares website at www.aresmgmt.com.