Ares eyes record fundraising year after $31bn third-quarter haul
Ares Management raised $31bn in the third quarter, putting the alternative asset manager on course for a record fundraising year as investors committed capital across private credit, real estate and infrastructure, according to a report by Reuters.
Ares Management, a prominent alternative asset manager, is set to achieve a record fundraising year, according to a report by Reuters. The firm raised a staggering $31 billion in the third quarter, with investors committing capital across various private asset classes, including private credit, real estate, and infrastructure. Over half of the inflows in the quarter originated from outside credit sources. Specifically, the credit business raised $15.2 billion, while real assets attracted $11.2 billion.
CEO Michael Arougheti attributed the firm's strong performance to sustained demand from both institutional and wealth investors. He expressed confidence that this positive trend would carry over into the fourth quarter. Assets under management for Ares Management surged 16% to $690.6 billion during the quarter, while fee-related earnings increased by 11% to $524.2 million.
Recent fundraising efforts included a substantial $4 billion allocation for a Japan-focused logistics development fund and another $4.2 billion raised for a debut secondaries vehicle. Ares Management deployed a total of $34.8 billion during the quarter, with investments primarily focused on US and European direct lending, alternative credit, and infrastructure strategies.
Uninvested capital rose 16% to $173.8 billion, and management anticipates a further acceleration in investment activity during the fourth quarter, following subdued buyout activity and competition from syndicated lenders.
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