Coller’s $2.4 Billion Secondaries Deal Lures Barings, Ares (1)

Coller Capital raised $2.4 billion from Barings and Ares Management Corp. for a structured funding vehicle that will buy second-hand stakes in private equity and credit funds.

It’s the largest-ever product of its kind in the so-called secondaries market, where limited partner shares are bought and sold, according to a statement from Coller.

Structured funding vehicles typically slice up the cash flows from underlying funds into bonds of varying risk and return. Barings was the main buyer of the higher-ranking debt, while Coller and Ares will hold the first-loss portion, the statement said.

Fund finance products have been gaining traction ...