Ares Management Corp. is preparing to sell €3 billion ($3.4 billion) of bundled stakes in a flagship European direct-lending fund, marking one of the largest credit-secondaries deals ever attempted in the private credit market.

The transaction involves packaging stakes from the firm's European direct lending vehicle into a single portfolio for sale to secondary buyers. This structure allows existing limited partners to exit their positions while giving new investors access to a diversified pool of senior secured loans across European middle-market companies.

The deal size underscores the growing depth of the private credit secondaries market, where institutional investors increasingly seek liquidity options for long-dated fund commitments. Ares, one of the world's largest alternative asset managers with over $400 billion in assets under management, has been a dominant player in European direct lending since establishing its platform over a decade ago.

Market participants note the transaction could set a pricing benchmark for future large-scale credit secondaries, as deal volumes in the space have surged amid denominator effects and portfolio rebalancing among institutional allocators. The sale process is expected to attract interest from specialist secondary funds, insurance companies, and pension funds seeking yield in a higher-rate environment.