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Cadwalader Advises BNP Paribas on First European Direct Lending CLO From Ares

June 23, 2025

Cadwalader advised BNP Paribas on the £350 million Ares European Direct Lending CLO 1, the inaugural European direct lending CLO from Ares Management Corporation.

According to KBRA, this transaction is the first publicly rated UK middle-market CLO. Ares stated in a press release that it “believes this is the first reinvesting CLO in the European Direct Lending market and is one of the first direct lending CLOs issued in Europe." The deal is also the first European Direct Lending CLO from Ares and second overall European direct lending CLO/middle-market private credit CLO – Cadwalader advised BNP Paribas as the arranger in the execution of the first European middle-market private credit CLO for Barings last fall.

Privately placed and expected to close on July 3, 2025, the transaction, has a target par balance of £280 million and is backed by a diversified portfolio of directly originated loans to over 50 UK-based middle-market companies, primarily in defensive sectors. 

The Cadwalader team advising BNP Paribas was led by partners David Quirolo and Daniel Tobias, with associate Jinisha Patel and trainee solicitor Marcus Lee. Tax guidance was provided by partners Adam Blakemore and Jon Brose, and associate Adam Sloate.

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