Presentation to Vermont Pension Investment Committee
Ares Alt Credit Track Record
Since 2011, Ares has invested ~$15.0 billion across 1,615+ investments with an annualized loss rate of 1.3bps a
The Total Alt Credit track record is comprised of the "Pathfinder Core Strategy Subset" and "Liquid IG Alt Credit"
"Pathfinder Core Strategy Subset" consists of investments made in strategies with risk-return objectives aligned with those of
Pathfinder Core
Total
Realized
"Liquid IG Alt Credit" consists of investments made in strategies focused on lower risk-return objectives including investment
grade rated investments
Invested Capital ($mm)
# of Investments
Pro Forma Asset-level IRR (Gross / Net)
W.A. Pro Forma Gross MOIC
Invested Capital ($mm)
# of Investments
Pro Forma Asset-level IRR (Gross / Net)
W.A. Pro Forma Gross MOIC
Annualized Loss Rate
Pathfinder Core Strategy Subset
7,034
494
13.4% / 10.1%
1.2x
3,422
284
15.1% / 11.6%
1.2x
Total Alt Credit
2.1bps
Liquid IG Alt Credit
8,006
1,122
4.7% / 4.1%
1.1x
3,870
643
5.0% / 4.4%
1.1x
0.7bps
As of December 31, 2020. Past performance is not indicative of future results.
The pro forma performance results shown have been compiled by Ares from actual realized and unrealized investments that were not collectively part of an actual portfolio. Pro
forma performance results may have inherent limitations, and no representation is being made that any investor will or is likely to achieve profits or losses similar to those
shown. Had a fund focused on the assets represented by this performance actually existed, Ares may not have made the same investment decisions. Given Ares did not offer an
investment vehicle that held all of the assets included in the pro forma track record, an investor was not able to invest in these assets as presented. There are factors related to
the markets in general, or to the implementation of any specific portfolio strategy, which cannot be fully accounted for in the preparation of pro forma portfolio performance, all
of which can adversely affect actual portfolio results. The Pathfinder Core Strategy Subset includes certain investments allocated to Ares Pathfinder Fund which have higher
underwritten returns than investments contemplated for the Pathfinder Core Fund. Please review in conjunction with the Pro Forma Performance Notes on slide 33.
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