Ares Dynamic Credit Allocation Fund Declares Initial Distribution of $0.117 Per Share

Ares Dynamic Credit Allocation Fund Declares Initial Distribution of $0.117 Per Share

NEW YORK--(BUSINESS WIRE)-- Ares Dynamic Credit Allocation Fund (NYS: ARDC) announced the declaration of the initial monthly distribution of the Fund for the period ending January 31, 2013 of $0.117 per common share, payable as noted below. Based on the Fund's initial public offering price of $20.00 per share, the distribution represents an annualized yield of 7.02% (calculated by annualizing the distribution amount and dividing it by the IPO share price). Information regarding yield is included for informational purposes only and is not necessarily indicative of future results, the achievement of which cannot be assured.

Ares Dynamic Credit Allocation Fund has invested all of the proceeds received at the closing of its initial public offering on November 30, 2012. As of December 31, 2012, the Fund's investments were comprised approximately as follows: 50% in senior secured bank loans, 45% in high yield bonds and 5% in investment grade debt securities of collateralized loan obligations ("CLOs"). As the Fund continues to ramp, it expects, assuming normal market conditions, the asset breakdown to move toward the Fund's initial targeted asset allocation of approximately 40% in senior secured bank loans, 45% in high yield bonds and 15% in CLOs.

In addition, on January 3, 2013, Ares Dynamic Credit Allocation Fund entered into a $150 million revolving funding facility with an institutional lender, pursuant to which the Fund expects to borrow funds to make additional investments, subject to available collateral.

"We continue to see significant opportunities to generate attractive risk-adjusted returns in these asset classes, and we are diligently selecting investments as we put capital to work," said Seth Brufsky, President, Chief Executive Officer and Director of Ares Dynamic Credit Allocation Fund and Senior Partner of Ares Management LLC. "While we recognize that many investors—including ourselves—are concerned about the overall level of growth of the U.S. economy, we are comforted by the strength of the Ares platform and view this as a significant advantage in the bottom-up credit analysis performed on our existing portfolio and future investments."

About Ares Dynamic Credit Allocation Fund

Ares Dynamic Credit Allocation Fund is a non-diversified, closed-end management company that is externally managed by an affiliate of Ares Management LLC, a global alternative asset manager with approximately $56 billion in committed capital under management as of September 30, 2012. Ares Dynamic Credit Allocation Fund seeks to provide an attractive level of total return primarily through current income and, secondarily, through capital appreciation, by investing in a broad, dynamically-managed portfolio of credit investments.

Forward-Looking Statements

Statements included herein may constitute "forward-looking statements," which relate to future events or our future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission. Ares Dynamic Credit Allocation Fund undertakes no duty to update any forward-looking statements made herein.

Ares Dynamic Credit Allocation Fund
(630) 241-4200
ARDC@destracapital.com
www.aresdc.com

KEYWORDS: United States North America New York

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