Ares Management Corporation Closes Oversubscribed Fifth European Direct Lending Fund at €11 Billion

Rhea-AI Summary

Ares Management Corporation (NYSE: ARES) announced the final closing of its fifth European direct lending fund, Ares Capital Europe V (ACE V), at €11.0 billion. This amount surpasses its €9.0 billion target and marks the largest European direct lending fund to date. The Fund's size is approximately 70% larger than its predecessor. With around 180 investors, including 65 new limited partners, ACE V will have about €15.0 billion in total capital available. The Ares European Direct Lending team has already committed €1.7 billion across 11 investments, highlighting robust investment activity.

Positive

• ACE V closed at €11.0 billion, exceeding its €9.0 billion target and representing the largest European direct lending fund raised.
• Approximately 180 investors supported ACE V, including 65 new limited partners.
• The fund's size is about 70% larger than the predecessor, Ares Capital Europe IV.
• The Ares team has committed €1.7 billion across 11 investments, indicating strong deployment activity.

Negative

• None.

Ares Management Corporation (“Ares”) (NYSE: ARES), a leading global alternative investment manager, announced today the final closing of its fifth commingled European direct lending fund, Ares Capital Europe V (“ACE V” or “the Fund”) at €11.0 billion, representing the largest European direct lending fund raised to date. With strong investor support, ACE V surpassed its €9.0 billion target eight months after its launch and closed oversubscribed at its €11.0 billion hard cap. The final Fund size represents an increase of approximately 70% versus the predecessor fund, Ares Capital Europe IV, which closed in July 2018 at its €6.5 billion hard cap and which was also oversubscribed. Including anticipated leverage, the total available capital for ACE V will be approximately €15.0 billion. ACE V also represents the largest institutional fund raised by Ares Management to date.

The Fund attracted strong backing from a diverse group of nearly 180 investors, including 65 limited partners new to Ares Management. ACE V’s global investor base includes pension funds, insurance companies, sovereign wealth funds, endowments, asset managers and family offices. With more than 80% of commitments coming from existing Ares investors, ACE V received strong support from the firm’s broad investor base.

“We believe the successful fundraise for ACE V is a result of our market position and our cycle-tested track record,” said Blair Jacobson, Partner and Co-Head of European Credit at Ares. “We appreciate the strong continued support and confidence our investors have in our team, strategy and the strength of our leadership position in Europe. ACE V will also seek to have a positive social impact as part of our broader firm-wide focus on ESG. We look forward to working to build value for our limited partners for many years to come.”

The Ares European Direct Lending team has already started investing ACE V using its demonstrated strategy of providing flexible capital to predominantly mid-market companies. ACE V benefits from the team’s market leading pan-European sourcing platform with 11 investments committed to the Fund to date totaling €1.7 billion.

“The deployment backdrop remains constructive as middle market companies increasingly seek our flexible capital solutions in an improving economy. As a result, our team’s investment activity has been robust, and we have achieved this whilst increasing our selectively rates,” said Michael Dennis, Partner and Co-Head of European Credit at Ares. “We believe the scale of our capital remains a key differentiator due to our ability to provide flexible, one-stop financing solutions, making Ares an attractive direct lender to companies seeking a long-term partner to sustain their growth.”

Ares launched its direct lending business in Europe in 2007 gaining a first mover advantage in a nascent market for direct lending. Today, Ares has one of Europe’s largest dedicated direct lending teams with nearly 70 investment professionals across six originating offices in London, Frankfurt, Paris, Stockholm, Amsterdam and Madrid. Ares had more than $42 billion of assets under management as of December 31, 2020 in its European direct lending strategy, which we believe makes Ares the largest and most experienced capital provider in the European market. Since its inception, Ares’ European Direct Lending business has completed 235 investments totaling over €27 billion of invested capital supporting 115 private equity sponsors.

“We sincerely appreciate the continued support from our investors, who once again entrusted us with their capital and have helped us achieve this record fundraise for Ares,” added Kipp deVeer, Partner and Head of the Ares Credit Group. “We believe the market opportunity for direct lending in Europe continues to grow and are proud that the Ares team will continue to lead the way.”

About Ares Management Corporation

Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager operating integrated groups across Credit, Private Equity, Real Estate and Strategic Initiatives. Ares Management’s investment groups collaborate to deliver innovative investment solutions and consistent, attractive investment returns for fund investors throughout market cycles. As of December 31, 2020, Ares Management's global platform had approximately $197 billion of assets under management with more than 1,450 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.

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FAQ

What is the total amount raised by Ares Capital Europe V (ACE V)?

Ares Capital Europe V (ACE V) raised a total of €11.0 billion.

How does the size of ACE V compare to its predecessor fund?

ACE V is approximately 70% larger than the predecessor fund, Ares Capital Europe IV, which closed at €6.5 billion.

How many investors contributed to ACE V?

ACE V attracted nearly 180 investors, including 65 new limited partners.

What is the total available capital for ACE V after leverage?

The total available capital for ACE V, including anticipated leverage, will be approximately €15.0 billion.

What is the focus of investments for ACE V?

ACE V will primarily invest in flexible capital solutions for predominantly mid-market companies.