A US alternative asset manager has launched what is thought to be one of the most highly-leveraged CLOs this year, in a fresh sign that a market which drove private equity’s boom years is now beginning to recover from being hit by the full force of the credit crunch.

Ares Management, which also has offices in Europe, appointed Bank of America Merrill Lynch to contact the market and help raise the $402m structured loan vehicle, according to documents seen by Private Equity News.