Private Equity: Ares Raises $5 Billion En Route To $30 Billion 2020 Haul
Ares Leapfrogs Competitors Through Pandemic.
Investment firm giant Ares has raised $5 billion for its private equity fund in the second quarter. The firm’s goal is to raise up to $30 billion across all practices, including real-estate and credit. So far in the quarter, Ares raised $400 million for its real-estate fund and $3.9 billion for its credit fund. In the months of April to June, the firm raised $9.1 billion. This haul represents a sizeable jump from the same period last year, where the firm raised approximately 25 percent less.
The firm is looking to surpass its 2018 record in funds, even with today’s volatile market.
Part of the reason for Ares’ success is the firm’s institutional investors’ focus on fewer managers with a broader range of strategies. The firm raised money from 139 different institutional investors.
According to Ares CEO Michael Arougheti, “In this environment, it’s been difficult for investors to vet new managers, which is leading investors to commit more capital with known relationships…The case for investing in alternatives has also been strengthened, given the heightened market volatility in the traded sectors and near-zero interest rates.”
Ares plans not only to weather the Coronavirus pandemic, but to even further expand its current opportunity set.
Ares Management is a global alternative investment management company. The firm currently has approximately $14.1 billion in assets under management. Ares’ practice areas span across a wide range of industries, including real estate, private equity, liquid credit, and direct lending.
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