Ares Management Closes $6.6 Billion Pathfinder II Alternative Credit Fund to Invest in Private Asset Based Credit

Rhea-AI Summary

Ares Management Corporation has announced the final closing of Ares Pathfinder Fund II, L.P. and Ares Pathfinder Fund II (Offshore), L.P. at $6.6 billion in commitments. The Fund was oversubscribed and closed at its hard cap, exceeding its $5 billion target. The predecessor fund had total commitments of $3.7 billion. The Ares Alternative Credit strategy manages approximately $27.8 billion in assets under management. The Pathfinder family of funds has raised approximately $15 billion in LP commitments with a charitable tie-in.

Positive

• The final closing of Ares Pathfinder Fund II at $6.6 billion in commitments exceeded its $5 billion target.
• The predecessor fund had total commitments of $3.7 billion, making Pathfinder II approximately 80 percent larger.
• The Ares Alternative Credit strategy manages approximately $27.8 billion in assets under management.
• The Pathfinder family of funds has raised approximately $15 billion in LP commitments with a charitable tie-in.

Negative

• None.

Oversubscribed Fund Closes at its Hard Cap and Exceeds $5 Billion Target

Charitable Pledge Has Already Accrued Over $13 Million of Donations for Charity

NEW YORK--(BUSINESS WIRE)-- Ares Management Corporation (NYSE: ARES) (“Ares”), a leading global alternative investment manager, announced today the final closing of Ares Pathfinder Fund II, L.P. and Ares Pathfinder Fund II (Offshore), L.P. (and together with parallel vehicles, “Pathfinder II” or the “Fund”) at $6.6 billion in commitments. The Fund was oversubscribed and closed at its hard cap, which exceeded its $5 billion target and was approximately 80 percent larger than the predecessor fund which had total commitments of $3.7 billion. The Fund held its final closing only seven months following its first closing in March 2023.

Through Pathfinder II, the Alternative Credit team pursues a differentiated strategy of providing scaled solutions tailored to owners of large, diversified portfolios of assets that seek to generate resilient, contractual cash flows across market cycles. As of June 30, 2023, the Ares Alternative Credit strategy is one of the largest investors in asset based credit managing approximately $27.8 billion in assets under management, including the Pathfinder family of funds.

“We are deeply grateful for the continued support from our investors. In our view, their trust and confidence in Ares Alternative Credit is a testament to the team’s success in executing on their behalf and creating value across a range of market and economic environments,” said Keith Ashton, Partner and Co-Head of Alternative Credit. “Especially in these times of growing opportunity but also increasing uncertainty, we believe that our strategy benefits from diversified asset portfolios with meaningful downside protections. As many banking participants grapple with new capital and liability paradigms, we see significant potential for the Fund given its scale and flexibility.”

The Pathfinder family of funds also have a predefined structure of unique social impact purpose as Ares and Pathfinder’s portfolio managers have pledged to donate at least 5-10% of the carried interest profits from the funds to global health and educational charities. Ares partners with non-profit organizations with an identified track record of delivering high value per charitable dollar contributed. Since inception in March 2021, the Ares Pathfinder family of funds have raised approximately $15 billion in LP commitments with a charitable tie-in and our charitable pledge has already accrued over $13 million of donations for charity based on performance as of June 30, 2023. This translates into the potential to generate between $10 million and $20 million, respectively, for every $1 billion of capital that earns a 1.5x to 2.0x multiple in the closed-end Pathfinder funds.

“Our Pathfinder family of funds seek attractive risk-adjusted returns for our investors in a differentiated private credit strategy and create a real impact by donating a portion of the profits to global health and education initiatives,” said Joel Holsinger, Partner and Co-Head of Alternative Credit. “When investors commit to our funds, they gain access to one of the largest and most seasoned teams in alternative credit, while having the opportunity to make a difference to impoverished communities around the world.”

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, private equity, real estate 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 June 30, 2023, Ares Management Corporation's global platform had approximately $378 billion of assets under management, with over 2,600 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231027398910/en/

Media:

Priscila Roney, +1-212-808-1185

or

Brigid Kelley, +1-646-989-7641

media@aresmgmt.com

Investor Relations:

Carl Drake, 800-340-6597

cdrake@aresmgmt.com

Source: Ares Management Corporation

FAQ

What is the total commitment for Ares Pathfinder Fund II?

Ares Pathfinder Fund II closed at $6.6 billion in commitments.

How does the size of Pathfinder II compare to its predecessor fund?

Pathfinder II is approximately 80 percent larger than the predecessor fund, which had total commitments of $3.7 billion.

How much does the Ares Alternative Credit strategy manage in assets?

The Ares Alternative Credit strategy manages approximately $27.8 billion in assets under management.

How much has the Pathfinder family of funds raised in LP commitments with a charitable tie-in?

The Pathfinder family of funds has raised approximately $15 billion in LP commitments with a charitable tie-in.