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Ares Management and CAL Automotive form joint venture for vehicle leases
The Fly

Ares Management and CAL Automotive form joint venture for vehicle leases

Ares Management (ARES) and Certified Automotive Lease, or CAL Automotive, a wholly-owned subsidiary of Auto Lender’s Liquidation Center, announced that CAL Automotive and Ares have entered a joint venture to purchase and invest up to $1.5B in prime new vehicle leases originated by CAL. With over 40 years of experience in the consumer vehicle leasing market, Auto Lenders launched CAL Automotive in 2016 as a sourcing model with the ability to generate profit throughout a vehicle’s life. CAL Automotive expects to realize strong residual value performance for off-lease vehicles sold to Auto Lenders. The joint venture will seek to capitalize on CAL Automotive’s position as an independent consumer auto lessor and serve as a complementary strategy alongside the company’s current bank partnerships. In addition, Ares and Ares Alternative Credit portfolio managers have pledged to donate at least 5-10% of the performance fees earned from Alternative Credit’s flagship funds to support global health and education charities.

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