General Dealmaking Shifts as Markets Evolve
The InvestmentAccording to Secondaries Investor, Ares Management has lined up $7.1 billion for its latest credit secondaries strategy. The fund size doubled Ares' initial $2 billion equity target, making it…
Executive Summary
Deal Analysis & Market IntelligenceThe InvestmentAccording to Secondaries Investor, Ares Management has lined up $7.1 billion for its latest credit secondaries strategy.
The Investment
According to Secondaries Investor, Ares Management has lined up $7.1 billion for its latest credit secondaries strategy. The fund size doubled Ares' initial $2 billion equity target, making it the manager's largest inaugural institutional fundraise to date.
The Investor
Ares Management is a publicly-traded alternative asset manager, having gone public on the New York Stock Exchange in 2014. The firm's investor base includes public and corporate pension funds, sovereign wealth funds, insurance companies, endowments and foundations, and high net worth individuals. Ares has a global footprint, with investment professionals located in North America, Europe, Asia and Australia.
Market Context
The strong fundraise for Ares' credit secondaries strategy reflects continued robust investor demand for alternative credit exposures. As traditional fixed income yields remain low, institutional investors have increasingly turned to private credit and secondary market opportunities to generate yield. Credit secondaries, in particular, have seen surging inflows as investors seek to access illiquid credit markets.
What This Signals
This latest fundraise solidifies Ares' position as a leading global credit investor. The upsized $7.1 billion fund demonstrates the firm's ability to raise substantial capital for specialized credit strategies, even in a challenging macroeconomic environment. This positions Ares to be an active acquirer of credit assets in the secondary market, potentially helping to provide liquidity to distressed or restructuring situations. Overall, the fundraise underscores the continued investor appetite for diversified credit exposures managed by established alternative asset managers.