One of the keys to Ares' success was that it effectively lifted out RBC Capital Market's mezzanine team and bought a $150 million portfolio of senior secured loans, mezzanine debt and equity coinvestments from the Canadian bank. This included debt in Berkline/BenchCraft and Esselte. There were also preferred shares in two RBC CDOs, Foxe Basin CLO 2003 and Hudson Straits CLO 2004 (LMW, 10/42). Michael Arougheti, President of the BDC, declined comment.
Apollo has invested more than $400 million of its fund, with over 30% in senior secured bank debt. The latest investments include $95 million in the senior secured debt of Grand Vehicle Works Holding Corp., NES Rentals Holdings, Anthony International, Phillips Health, Ripplewood Phosphorus and United Industries Corp.