Ares Management Corporation Closes Oversubscribed Third U.S. Opportunistic Real Estate Fund

Rhea-AI Summary

Ares Management Corporation (NYSE: ARES) announced the final closing of its Ares U.S. Real Estate Opportunity Fund III, L.P. (AREOF III), surpassing its $1.5 billion target with $1.7 billion in commitments. This fund represents Ares' largest U.S. real estate equity fundraising to date, significantly exceeding the $1 billion raised for the previous fund. The Fund aims to capitalize on post-COVID-19 market dislocation with nine investments already committed, reflecting the team's extensive experience and strategic positioning to seize attractive investment opportunities.

Positive

• Oversubscribed fund raised $1.7 billion, exceeding the $1.5 billion target.
• Largest U.S. real estate equity fundraise for Ares, marking significant growth from previous funds.
• Nine investments already committed, indicating strong market engagement.
• Diverse investor base attracted from across the globe, enhancing Ares' market presence.

Negative

• None.

Ares Management Corporation (“Ares”) (NYSE: ARES), a leading global alternative investment manager, announced today the final closing of its Ares U.S. Real Estate Opportunity Fund III, L.P. (“AREOF III” or the “Fund”). The Fund, which targets distressed, repositioning, and selective development opportunities, was oversubscribed with approximately $1.7 billion of commitments compared to its $1.5 billion target. This marks the largest U.S. real estate equity fundraise for Ares to date and is a significant increase from the $1 billion of commitments raised for the predecessor fund and related vehicles.

Ares’ U.S. opportunistic real estate strategy draws on the team’s experience investing across market cycles and sectors and pursues a flexible approach that seeks to generate differentiated investment opportunities for investors. The Fund has already capitalized on what we believe is an attractive market opportunity post-COVID-19 with nine investments committed to date. The high-quality investment activity in a period of market dislocation potentially demonstrates the key advantages of the Fund’s distinct opportunistic strategy and proprietary sourcing capability through longstanding relationships. Additionally, the Fund is positioned with ample dry powder to deploy towards forthcoming opportunities as they arise.

“We are very pleased with the strong support from both new and existing investors in this fund series,” said Bill Benjamin, Partner and Head of the Ares Real Estate Group. “Our investors recognize the importance of being aligned with a cycle-tested team that can effectively capitalize on the current market opportunity.”

“We have been able to draw on our team’s deep market coverage, longstanding relationships and ability to navigate shifting market dynamics, and the experience of our U.S. real estate equity Partners Jay Glaubach, Andrew Holm and Howard Huang, in an effort to source differentiated investment opportunities. Looking ahead, the unprecedented change in space utilization has potentially widened the opportunity set for both attractive undercapitalized assets and assets within sectors experiencing accelerated demand,” said David Roth, Head of U.S. Real Estate Private Equity. “We believe that we are well positioned with our flexible mandate and experienced team to continue to build upon the great progress that the Fund has already achieved.”

The Fund garnered significant demand from a diverse set of investors from the Americas, Middle East, Asia, and Europe, representing a broad array of investor types, such as sovereign wealth funds, public pensions, insurance companies, foundations, family offices, and private banks. The Fund received support from its incumbent investor base and attracted a number of new investors to both the Ares Real Estate Group and Ares.

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.

Ares Real Estate Group

The Ares Real Estate Group manages comprehensive public and private, equity and debt strategies with approximately $14.8 billion of assets under management and more than 80 investment professionals, as of December 31, 2020. The real estate team maintains a time-tested and consistent investment approach across equity and debt strategies focusing on major property types that have value creation opportunities, located in liquid markets with diversified economies.

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FAQ

What is the total amount raised by Ares U.S. Real Estate Opportunity Fund III?

Ares U.S. Real Estate Opportunity Fund III raised a total of $1.7 billion.

When was the final closing of Ares U.S. Real Estate Opportunity Fund III announced?

The final closing of Ares U.S. Real Estate Opportunity Fund III was announced recently.

How does the new fund compare to previous funds raised by Ares?

The new fund is Ares' largest U.S. real estate equity fundraising to date, significantly up from $1 billion raised for the predecessor fund.

What types of investments does Ares U.S. Real Estate Opportunity Fund III focus on?

The fund targets distressed, repositioning, and selective development opportunities.

How many investments has the Ares U.S. Real Estate Opportunity Fund III committed to so far?

The fund has committed to nine investments to date.