The $1.7 billion deal comes less than a year after the two firms partnered on a $1.2 billion continuation fund, which marked Ares' largest credit secondary investment at the time.
The manager is reportedly looking to shift loans from multiple vintages across its Private Markets Credit Strategies and Multi-Asset Credit funds.
PGIM, reinvesting LPs, and PennantPark also invested in the oversubscribed vehicle for a mature portfolio of private credit investments.
The oversubscribed vehicle provides liquidity to investors in Bridgepoint Direct Lending II, which holds a portfolio of senior secured European middle-market loans.
The alternative debt manager specializes in originating and providing financing solutions to small and middle-market enterprises.
The deal will transfer investments across 78 portfolio companies, representing approximately 48% of BlackRock TCP Capital's debt portfolio by fair value.
Potential backers reportedly sought a lower valuation for the loans held in the continuation fund.
The deal, first reported by SecondaryLink last month, comprises approximately 130 securities from a 2021-vintage direct lending fund.
The reported deal adds to a growing list of billion-dollar transactions in the private credit secondaries space.
Last year, the mid-market credit alternatives specialist welcomed GP staker Hunter Point Capital as a minority investor.
