Ares Management Closes Fifth PE Fund at $7.85B Hard Cap

Apr 25 2016 | 6:29pm ET

Global alternative asset manager Ares Management has raised $7.85 billion for its fifth global private equity fund, well above its initial target of $6.5 billion and hitting its hard cap.

The fundraising for Ares Corporate Opportunities Fund V, L.P., began in the third quarter of last year, according to the company, and includes $250 million from the fund’s general partner. Approximately 80% of the new fund’s $7.6 billion in limited partner commitments came from investors already in one or more of the company’s four prior funds. 

The new fund will continue to execute the investment strategy employed by its predecessors, pursuing opportunistic investments in primarily North American and European businesses with strong franchises and world class management teams where the Ares Private Equity Group can help unlock additional growth opportunities through flexible capital, the company said. As with the prior funds, Ares V will be able to make investments ranging from leveraged buyouts to distressed situations.

The prior four funds have generated an aggregate gross IRR of 23% and a net IRR of 16%, the company said.  

“We believe that the strong and favorable response of our limited partners to this fundraising process reflects their confidence in the strength of the Ares investment platform, the Private Equity team and our expertise in creating value and driving growth at our portfolio companies,” said David Kaplan, co-founder of Ares Management and co-head of the Ares Private Equity Group.

The Ares Private Equity Group had more than $21 billion in assets under management as of December 31, 2015. Ares Management as a whole has approximately $94 billion in AUM deployed across credit, private equity and real estate strategies. 


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