Latham Advises Ares Alternative Credit on US$2 Billion Partnership With Eni
Ares Alternative Credit committed over $2B to Eni for a long-term partnership on upstream infrastructure. Eni, a large upstream operator, aims to boost cash generation and growth. Latham & Watkins advised Ares on the deal.
How this was made
The 30-second read
Why it matters
The $2 bn partnership provides Eni with a significant non‑bank financing source, potentially lowering its cost of capital and supporting growth initiatives.
Market read
The deal is a primary, material disclosure that could influence ENI's valuation and signal broader trends in alternative credit financing for energy assets.
What to watch
Potential regulatory or sanction risks in certain upstream regions could affect the partnership's value.
Background
Ares Alternative Credit is a private credit platform focusing on asset‑based finance; Eni is a globally diversified upstream oil and gas operator.
Market effects
Upstream oil & gas sector may see increased investor interest due to demonstrated financing support from alternative credit markets.
European energy markets could benefit from Eni's enhanced funding capacity.
Highlights growing role of non‑bank credit in financing large energy infrastructure projects.
Counterpoint
If the partnership does not translate into immediate project execution, the market may view the commitment as non‑accretive.
Key entities
- financial institutionAres Alternative Credit
Asset‑based finance platform providing capital to corporate borrowers.
- energy companyEni
International upstream oil and gas producer.
