Ares Bundles Private Equity Secondaries in Goldman-Led Financing

Ares Management Corp. has sold a roughly $1 billion structured finance instrument backed by cash flows from stakes in several of its private equity secondary funds, according to people with knowledge of the transaction.

Goldman Sachs Group Inc. structured the so-called collateralized fund obligation, which includes a debt portion and a first-loss equity slice, said the people, who asked not to be named because they’re not authorized to speak publicly. The bank was also a buyer of the senior debt tranche, the people said.

Spokespeople for Ares and Goldman Sachs declined to comment.

CFOs package stakes in multiple private capital ...