General Dealmaking Shifts as Markets Evolve
The InvestmentAccording to Secondaries Investor, Ares Management has raised $7.1 billion for its latest credit secondaries strategy. This represents the asset manager's largest inaugural institutional fundraise, doubling its initial $2…
Executive Summary
Deal Analysis & Market IntelligenceThe InvestmentAccording to Secondaries Investor, Ares Management has raised $7.1 billion for its latest credit secondaries strategy.
The Investment
According to Secondaries Investor, Ares Management has raised $7.1 billion for its latest credit secondaries strategy. This represents the asset manager's largest inaugural institutional fundraise, doubling its initial $2 billion equity target.
The Investor
Ares Management is a publicly-traded alternative asset manager listed on the New York Stock Exchange. The firm has a diversified investor base that includes public and corporate pensions, sovereign wealth funds, insurance companies, and high-net-worth individuals. Ares has a global footprint, with investment professionals located across North America, Europe, and Asia.
Market Context
The credit secondaries market has seen significant growth in recent years as investors seek to rebalance their fixed income portfolios. Low interest rates and the economic disruption of the COVID-19 pandemic have led many institutions to reevaluate their credit exposures. This has created opportunities for specialized managers like Ares to acquire discounted loan and bond positions from sellers looking to optimize their holdings.
What This Signals
Ares' successful fundraise signals strong institutional demand for credit secondaries strategies. The size of the new fund, which exceeds the firm's previous fundraising efforts, suggests investors see value in Ares' ability to source and manage complex credit portfolios. This positions Ares as a leading player in the growing credit secondaries space, with the scale and expertise to capitalize on market dislocations.