Ares Management Achieves Historic Fundraising Milestone
Ares Management Corporation (“Ares”) (NYSE: ARES), a prominent global alternative investment manager, has achieved a significant milestone with the final closing of its sixth commingled European direct lending fund, Ares Capital Europe VI (“ACE VI” or the “Fund”). This strategic move has resulted in total commitments of €17.1 billion, surpassing the initial target of €15 billion and reaching its hard cap. Ares believes that ACE VI is now the largest institutional fund in the global direct lending market when it comes to Limited Partner (LP) equity commitments.
Growth in Direct Lending Strategy
The size of the final fund represents an impressive 53% increase in LP commitments compared to its predecessor, Ares Capital Europe V, which successfully closed in 2021 at €11.1 billion. When combining related vehicles with anticipated leverage, Ares anticipates that the total capital available for its European Direct Lending strategy will approximate an astounding €30 billion.
Benchmark Set by Ares' Leaders
Ares has solidified its position at the forefront of the market with the announcement of $33.6 billion raised for its Senior Direct Lending Fund III (“SDL III”) as well. Altogether, Ares has closed about $64.5 billion across SDL III and ACE VI strategies, reinforcing its status as a leader on the global financial stage.
Significant Demand for Flexible Capital Solutions
Blair Jacobson, Partner and Co-Head of European Credit, reflected on this accomplishment, stating that the final closing of ACE VI highlights the strength of Ares’ European direct lending platform and the robust demand from borrowers seeking flexible capital solutions. He expressed gratitude towards both existing and new investors for their confidence in this distinct strategy.
Experience Drives Opportunity
Michael Dennis, another Partner and Co-Head of European Credit, noted that Ares has demonstrated market leadership over the past 18 years through a localized pan-European approach. He emphasized the team's deep regional knowledge and established relationships with sponsors and partners, which allow them to originate significant opportunities with high-quality borrowers.
Focused Strategy for Capital Preservation
Matt Theodorakis, Partner and Co-Head of European Direct Lending at Ares, commended the platform's ability to innovate and adapt to new challenges. He stated, "Our platform provides the scale, experience, and innovation necessary to identify new opportunities," reaffirming their commitment to structuring discipline and selective capital deployment, which has been crucial for success throughout market cycles.
Investment Expertise and Regional Reach
As of September 30, 2024, Ares’ European Direct Lending strategy is managed by approximately 90 investment professionals located in major cities across Europe. The Ares Management portfolio includes more than $74 billion in assets, encompassing the commitments to ACE VI. The European Direct Lending business has accomplished nearly 380 investments totaling over €70 billion since its inception, demonstrating its extensive reach and expertise.
Targeting High-Quality Borrowers
ACE VI aims to self-originate financing solutions that offer flexibility to market-leading European companies within defensive industries, specifically those with earnings before interest, taxes, depreciation, and amortization (EBITDA) over €10 million. The fund prioritizes a senior-secured position and emphasizes capital preservation, often serving as the sole or lead lender, which aligns with their low volatility strategy.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) stands out as a premier global alternative investment manager, providing clients with a variety of primary and secondary investment solutions across several asset classes, including credit, real estate, private equity, and infrastructure. Ares is dedicated to supplying flexible capital to bolster businesses, aiming to create value for stakeholders and local communities alike. Their collaborative approach across different investment groups seeks to generate consistent and appealing investment returns through varying market conditions. With about $464 billion in assets under management and over 3,100 employees working across North America, Europe, Asia Pacific, and the Middle East, Ares is equipped to navigate complex financial landscapes. For further information, please visit their official website.
Frequently Asked Questions
What is Ares Management Corporation known for?
Ares Management Corporation is known for being a leading global alternative investment manager, specializing in various asset classes such as credit, real estate, private equity, and infrastructure.
How much capital did Ares raise for its European direct lending fund?
Ares raised a total of €17.1 billion for its Ares Capital Europe VI fund, exceeding its initial target and reaching its hard cap.
What is the size of Ares' European Direct Lending strategy?
The total capital expected for Ares' European Direct Lending strategy, including related vehicles and leverage, is approximately €30 billion.
How does ACE VI support European companies?
ACE VI is designed to provide flexible financing solutions for high-quality European companies in defensive industries, focusing on preservation of capital and low volatility.
What is the management structure of Ares' European Direct Lending strategy?
Ares' European Direct Lending strategy is managed by around 90 investment professionals across major European cities, offering extensive expertise in the sector.
