Ares Management Expands Access to Leading Private Equity Secondaries Strategy for Australia Wealth Channel

Rhea-AI Summary

Ares Management (NYSE:ARES) has launched the Ares Private Markets Fund (AUT) in Australia, providing wholesale clients access to their private equity secondaries strategy through APMF. The fund, which has grown to approximately A$3 billion in AUM since its 2022 launch, focuses on private equity fund stakes in North America and Europe.

The expansion builds on Ares' success in the Australia/New Zealand region, where they have raised over A$1.5 billion since 2020 through their credit strategies products. The APMF offers quarterly liquidity and enhanced transparency, leveraging the Ares Secondaries Group's 30+ years of experience in managing secondary investments.

Positive

• Fund has grown to A$3 billion AUM since 2022 launch
• Successfully raised A$1.5 billion in Australia/New Zealand region since 2020
• Offers quarterly liquidity feature for investors
• Leverages 30+ years of secondaries investment experience

Negative

• None.

Insights

Investment Strategist

The launch of Ares Private Markets Fund in Australia represents a significant strategic expansion, offering wholesale clients access to private equity secondaries through a structured investment vehicle. With approximately A$3 billion in AUM and a track record of success since 2022, this expansion capitalizes on growing demand for private market access in the Asia-Pacific region. The fund's focus on secondary investments in North American and European private equity, combined with quarterly liquidity options, creates an attractive proposition for wholesale investors seeking institutional-quality private market exposure.

The success of Ares' previous launches in the region, having raised over A$1.5 billion since 2020, demonstrates strong market validation. This strategic move aligns with the global trend of democratizing private market investments for sophisticated retail investors, potentially driving new revenue streams and AUM growth for Ares. The Australian market's appetite for alternative investments and the fund's institutional-quality approach position it well for continued growth.

Market Research Analyst

The expansion into Australia's wealth channel demonstrates Ares' successful execution of its global democratization strategy for private markets investments. The timing is particularly strategic, as Australian investors increasingly seek portfolio diversification beyond traditional assets. The structure offering quarterly liquidity addresses a key barrier to private equity investment for wealth clients, while the secondary investment focus provides immediate portfolio diversification and potentially faster return profiles compared to primary private equity investments.

The A$1.5 billion raised across Ares' private wealth products in the region since 2020 indicates strong distribution capabilities and market acceptance. This latest product launch could accelerate Ares' market penetration in the Asia-Pacific region, potentially leading to increased management fees and carried interest opportunities. The combination of Ares' brand strength and the growing appetite for alternative investments in Australia creates favorable conditions for sustained growth.

Ares Wealth Management Solutions to Provide Wholesale Clients Access to Ares Private Markets Fund Through New Trust

Builds on A$1.5 Billion Raised From Investors Across Ares’ Private Wealth Products

SYDNEY--(BUSINESS WIRE)-- Ares Management Corporation (NYSE:ARES) (“Ares”), a leading global alternative investment manager, announced today the launch of Ares Private Markets Fund (AUT) (the “Fund”), an Australian-domiciled unit trust designed to provide wholesale clients in Australia access to Ares Private Markets Fund (“APMF”). APMF, a U.S.-registered management investment vehicle distributed through Ares’ leading Wealth Management Solutions platform (“AWMS”), is a private equity investment solution, anchored in secondary investments, that seeks to deliver attractive long-term capital appreciation to investors.

Leveraging the Ares Secondaries Group’s more than 30 years of experience, APMF invests in a diversified portfolio of private equity fund stakes backed by leading private equity sponsors in primarily North America and Europe. Since its launch in 2022, APMF has grown to approximately A$3 billion of AUM, as of September 30, 2024, and has generated risk-adjusted returns through an accessible structure that provides enhanced transparency and quarterly liquidity to its investors.

The continued expansion of Ares’ offering in the region underscores the growing demand for private markets across the global wealth channel. Ares previously launched and continues to grow its Ares Global Credit Income Fund and Ares Diversified Credit Fund to provide access to its leading credit strategies. These products have attracted significant interest to date from wealth investors in Australia and New Zealand, and Ares has now raised over A$1.5 billion since its launch in the region in 2020.

“Over the last several years, we have seen increasing demand from wealth investors in Australia and New Zealand for greater access to the private markets as they continue to seek to diversify their portfolios,” said Teiki Benveniste, Managing Director and Head of AWMS Australia and New Zealand. “To that end, Ares has been focused on delivering a comprehensive suite of institutional-quality solutions to individuals around the world, and we’re excited to introduce a differentiated private equity secondaries product to this market that builds on our complementary credit solutions available today.”

“Ares has been a leader in sourcing and managing secondaries investments for more than three decades, leveraging an innovative and data-driven approach to generate value through market cycles,” said Barry Miller, CEO of APMF and Partner in the Ares Secondaries Group. “Since launching APMF, we have seen continued enthusiasm from the wealth channel, and we are thrilled to introduce access to APMF in Australia as we seek to deliver attractive risk-adjusted returns on behalf of our investors.”

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 September 30, 2024, Ares Management Corporation's global platform had approximately $464 billion of assets under management with more than 3,100 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.

About Ares Wealth Management Solutions

As a global brand of Ares Management Corporation, Ares Wealth Management Solutions oversees the product development, distribution, marketing and client management activities of investment offerings for the global wealth management channel. AWMS’ mission is to provide advisors and their clients access to innovative, solutions-oriented investment opportunities across Ares’ platform of industry leading primary and secondary strategies across the credit, private equity, real estate and infrastructure asset classes. Through its range of institutional and retail structures, coupled with excellent client service and educational resources, AWMS helps investors diversify their portfolios with private market solutions that seek to deliver consistent, long-term growth. For more information, please visit www.areswms.com.au.

Forward-Looking Statements

This communication may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this communication may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the U.S. Securities and Exchange Commission. Ares undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this communication.

Disclaimers

The Fund is only available for wholesale clients as defined in the Corporations Act 2001 of the Commonwealth of Australia (Cth) (the “Corporations Act”).

An investor should consider the Fund’s investment objectives, risks and fees and expenses carefully before investing. This and other important information can be found in the Fund’s Information Memorandum (the “IM”), which an investor can obtain, along with the Fund’s Trust Deed, by calling Equity Trustees Limited, in its capacity as the trustee and the responsible entity of the Fund, at +61 3 8623 5000. The Fund’s units are offered for purchase exclusively through, and subject to the terms of, its IM and Trust Deed, which should be read carefully and in its entirety before making any investment decision. Investors should consult with their financial advisor about the suitability of the Fund for their portfolio.

This press release does not constitute an offer to sell, or a solicitation of an offer to buy, any security, including units of the Fund and shares of APMF. No offer, solicitation, or sale will be made in any jurisdiction in which such an offer, solicitation, or sale would be unlawful.

In addition, the IM does not constitute an offer of securities in the United States or to any U.S. Person as defined in Regulation S under the U.S. Securities Act of 1933, as amended (“U.S. Securities Act”). The units in the Fund have not been, and will not be, registered under the U.S. Securities Act or the laws of any State, and the Fund is not registered as an investment company under the U.S. Investment Company Act of 1940, as amended. The Fund may not be offered or sold in the United States to, or for, the account of any U.S. Person (as defined) except in a transaction that is exempt from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws.

The Fund, APMF, AWMS and Ares do not guarantee any level of return or risk on investments and there can be no assurance that the Fund or APMF’s investment objectives will be achieved.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241211314545/en/

Investors:

Teiki Benveniste

AWMSAustralia@aresmgmt.com

Media:

Sodali & Co

Stephen McMahon, +61 407 507 415

ares@client.sodali.com

Source: Ares Management Corporation

FAQ

What is the size of Ares Private Markets Fund (APMF) as of September 2024?

The Ares Private Markets Fund (APMF) has grown to approximately A$3 billion in Assets Under Management as of September 30, 2024.

How much has Ares (NYSE:ARES) raised in Australia/New Zealand since 2020?

Ares has raised over A$1.5 billion from investors in Australia and New Zealand since launching in the region in 2020.

What is the liquidity structure of the Ares Private Markets Fund (APMF)?

The APMF provides quarterly liquidity to its investors along with enhanced transparency.

What is the geographic focus of ARES Private Markets Fund investments?

The fund primarily invests in private equity fund stakes in North America and Europe.

When did Ares launch the Private Markets Fund (APMF)?

The Ares Private Markets Fund (APMF) was launched in 2022.