Ares Management Closes $34 Billion for U.S. Senior Direct Lending Strategy
Ares Management (NYSE: ARES) has announced the final closing of its Ares Senior Direct Lending Fund III (SDL III), raising $15.3 billion in equity commitments, significantly exceeding its initial target of $10 billion. The total capital base for SDL III is expected to reach $33.6 billion, including related vehicles and anticipated leverage. This makes SDL III the largest direct lending fund in Ares' history and the largest institutional fund in the market.
SDL III is nearly double the size of its predecessor, SDL II, which had $14.9 billion in total debt and equity commitments. The fund has already deployed about one-third of its capital, committing $9.0 billion to over 165 companies. Ares' U.S. Direct Lending strategy focuses on providing senior secured loans to middle market companies in North America, targeting businesses with $10 million to over $150 million of EBITDA.
Ares Management (NYSE: ARES) ha annunciato la chiusura finale del suo Ares Senior Direct Lending Fund III (SDL III), raccogliendo 15,3 miliardi di dollari in impegni di capitale, superando significativamente l'obiettivo iniziale di 10 miliardi di dollari. La base di capitale totale per SDL III è prevista raggiungere 33,6 miliardi di dollari, inclusi veicoli correlati e leva attesa. Questo rende SDL III il più grande fondo di prestiti diretti nella storia di Ares e il più grande fondo istituzionale sul mercato.
SDL III è quasi il doppio delle dimensioni del suo predecessore, SDL II, che aveva 14,9 miliardi di dollari in impegni totali di debito e capitale. Il fondo ha già allocato circa un terzo del suo capitale, impegnando 9,0 miliardi di dollari in oltre 165 aziende. La strategia di Prestito Diretto di Ares negli Stati Uniti si concentra sulla fornitura di prestiti garantiti senior a società di mercato medio in Nord America, puntando a imprese con un EBITDA compreso tra 10 milioni e oltre 150 milioni di dollari.
Ares Management (NYSE: ARES) ha anunciado el cierre final de su Ares Senior Direct Lending Fund III (SDL III), recaudando 15.3 mil millones de dólares en compromisos de capital, superando significativamente su objetivo inicial de 10 mil millones de dólares. Se espera que la base de capital total para SDL III alcance 33.6 mil millones de dólares, incluidos vehículos relacionados y apalancamiento anticipado. Esto convierte a SDL III en el fondo de préstamos directos más grande en la historia de Ares y el mayor fondo institucional en el mercado.
SDL III es casi el doble de tamaño que su predecesor, SDL II, que tenía 14.9 mil millones de dólares en compromisos totales de deuda y capital. El fondo ya ha desplegado aproximadamente un tercio de su capital, comprometiendo 9.0 mil millones de dólares a más de 165 empresas. La estrategia de Préstamo Directo de Ares en EE. UU. se centra en proporcionar préstamos garantizados senior a empresas de mercado medio en América del Norte, dirigiéndose a negocios con EBITDA de 10 millones a más de 150 millones de dólares.
Ares Management (NYSE: ARES)는 Ares Senior Direct Lending Fund III (SDL III)의 최종 마감을 발표하며, 153억 달러의 자본 약정을 유치하여 초기 목표인 100억 달러를 크게 초과했습니다. SDL III의 총 자본 기반은 관련 차량과 예상되는 레버리지를 포함하여 336억 달러에 이를 것으로 예상됩니다. 이는 SDL III가 Ares 역사상 가장 큰 직접 대출 기금이자 시장에서 가장 큰 기관 기금이 됩니다.
SDL III는 그 전신인 SDL II에 비해 거의 두 배의 규모입니다. SDL II는 총 149억 달러의 부채 및 자본 약정을 보유하고 있었습니다. 이 기금은 이미 자본의 약 1/3를 배치했으며, 90억 달러를 165개 이상의 기업에 약정했습니다. Ares의 미국 직접 대출 전략은 북미 중견 기업에 대한 최고 담보 대출 제공에 중점을 두며, 1천만 달러에서 1억 5천만 달러 이상의 EBITDA를 보유한 기업을 타겟으로 합니다.
Ares Management (NYSE: ARES) a annoncé la clôture finale de son Ares Senior Direct Lending Fund III (SDL III), levant 15,3 milliards de dollars en engagements de capitaux, dépassant de manière significative l'objectif initial de 10 milliards de dollars. La base totale de capitaux pour SDL III devrait atteindre 33,6 milliards de dollars, y compris les véhicules associés et l'effet de levier anticipé. Cela fait de SDL III le plus grand fonds de prêt direct de l'histoire d'Ares et le plus grand fonds institutionnel sur le marché.
SDL III est presque deux fois la taille de son prédécesseur, SDL II, qui avait 14,9 milliards de dollars d'engagements de dettes et de capitaux. Le fonds a déjà déployé environ un tiers de son capital, engageant 9,0 milliards de dollars dans plus de 165 entreprises. La stratégie de prêt direct d'Ares aux États-Unis se concentre sur la fourniture de prêts sécurisés senior aux entreprises de taille intermédiaire en Amérique du Nord, visant des entreprises avec un EBITDA de 10 millions à plus de 150 millions de dollars.
Ares Management (NYSE: ARES) hat den endgültigen Abschluss seines Ares Senior Direct Lending Fund III (SDL III) bekannt gegeben und dabei 15,3 Milliarden Dollar an Eigenkapitalzusagen gesammelt, was das ursprüngliche Ziel von 10 Milliarden Dollar deutlich übersteigt. Die gesamte Kapitalbasis für SDL III wird voraussichtlich 33,6 Milliarden Dollar erreichen, einschließlich verwandter Vehikel und erwarteter Hebelwirkung. Damit wird SDL III zum größten Direktkreditfonds in der Geschichte von Ares und dem größten institutionellen Fonds auf dem Markt.
SDL III ist fast doppelt so groß wie sein Vorgänger, SDL II, der 14,9 Milliarden Dollar an Gesamtschulden und Eigenkapitalzusagen hatte. Der Fonds hat bereits etwa ein Drittel seines Kapitals eingesetzt und 9,0 Milliarden Dollar in mehr als 165 Unternehmen investiert. Die Direct Lending-Strategie von Ares in den USA konzentriert sich auf die Bereitstellung von senior gesicherten Krediten für mittelständische Unternehmen in Nordamerika, die Unternehmen mit 10 Millionen bis über 150 Millionen Dollar EBITDA anvisiert.
- Raised $15.3 billion in equity commitments, exceeding $10 billion target
- Total capital base expected to reach $33.6 billion with leverage
- Largest direct lending fund in Ares' history and largest institutional fund in the market
- Nearly double the size of predecessor fund SDL II
- Already deployed $9.0 billion to over 165 companies
- None.
Insights
Ares Management's successful closing of its $34 billion Senior Direct Lending Fund III (SDL III) marks a significant milestone in the alternative investment landscape. The fund's oversubscription, exceeding its initial
Key financial implications include:
- Total equity commitments of
$15.3 billion , with an expected total capital base of$33.6 billion including leverage - Nearly double the size of its predecessor fund (SDL II), which had
$14.9 billion in total commitments $6.4 billion raised in Q2 2024 alone, indicating accelerated investor interest$9.0 billion already committed to over 165 companies, showcasing rapid deployment
This substantial capital raise positions Ares to capitalize on the growing demand for alternative lending in the middle market, potentially leading to increased market share and revenue streams. The fund's size and Ares' ability to act as a lead capital provider for companies with
For Ares shareholders, this successful fundraise may translate to increased management fees and potential for higher performance fees, which could positively impact the company's financial performance and stock valuation in the medium to long term.
The closure of Ares Management's
- Shift from traditional banking: The fund's success underscores the ongoing transition of middle-market lending from banks to alternative lenders, accelerated by tightening bank regulations and economic uncertainties.
- Investor diversification: With traditional fixed-income yields remaining low, institutional investors are increasingly allocating capital to private credit strategies for potentially higher returns.
- Market consolidation: The size of SDL III may contribute to further consolidation in the direct lending space, potentially squeezing out smaller players and reinforcing Ares' market leadership.
- Dry powder accumulation: The significant capital raise adds to the industry's dry powder, which could intensify competition for quality deals and potentially lead to some compression in returns.
The fund's focus on companies with strong competitive positions and free cash flow characteristics suggests a defensive approach, which may be particularly attractive to investors in the current economic climate. However, the rapid deployment of
Overall, this fundraise reinforces the trend of private markets gaining prominence in the broader financial ecosystem, with potential long-term implications for both borrowers and investors in the middle market space.
The closure of Ares Management's
- Regulatory scrutiny: As private credit markets grow, regulators may increase their focus on this sector. The size and influence of funds like SDL III could attract attention from bodies such as the SEC, potentially leading to new oversight measures.
- Compliance challenges: Managing a fund of this magnitude requires robust compliance frameworks to navigate complex regulations across multiple jurisdictions, especially given the fund's focus on North American middle-market companies.
- Contractual complexities: With investments in over 165 companies already, Ares must manage a vast network of loan agreements, each with unique terms and covenants. This complexity increases the importance of strong legal infrastructure and risk management systems.
- Potential conflicts of interest: As Ares expands its market presence, it must carefully manage potential conflicts between different funds and investment strategies to maintain fiduciary responsibilities to all investors.
- Bankruptcy and restructuring preparedness: Given the economic uncertainties, Ares should be prepared for potential increases in defaults or restructurings, requiring specialized legal expertise in bankruptcy and workout situations.
The fund's size and scope also underscore the need for sophisticated legal strategies in areas such as deal structuring, tax optimization and regulatory compliance. As the private credit market evolves, legal teams will play an increasingly important role in navigating the complex landscape and protecting investor interests.
Oversubscribed SDL III Significantly Exceeds Target, Creating the Largest Direct Lending Fund in the Firm’s History and the Largest Institutional Fund in the Market
“Over the last twenty years, Ares has developed significant scale, relationships, and deep investment experience within direct lending, all of which have continued to support our leadership position in the market,” said Mitch Goldstein, Partner and Co-Head of the Ares Credit Group. “We appreciate the strong vote of confidence from our growing investor base, and we look forward to executing on our longstanding strategy of providing flexible capital solutions to our borrowers while seeking to generate attractive risk adjusted returns for our investors.”
“The middle market continues to experience significant demand for reliable capital solutions as it remains underserved by banks and other traditional lending sources,” said Mark Affolter, Partner and Co-Head of
Through its
About Ares Management Corporation
Ares Management Corporation (NYSE:ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, real estate, private equity and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of March 31, 2024, Ares Management Corporation's global platform had approximately
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Media:
Priscila Roney, +1-212-808-1185
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Source: Ares Management Corporation
FAQ
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