Ares Group Ares to Launch Europe's Largest Direct Lending Fund Ares Capital Europe V Fund

Highlights Aug.29,2022 07:44

In July 2022, Ares Management Corp. is preparing to raise a new European direct lending fund with a target size of more than 11 billion euros ($11.2 billion), which will be the largest in the region, according to people familiar with the matter. Largest fund to date.

The alternative asset manager has started contacting investors about a new fund product, Ares Capital Europe VI, ahead of its official launch, which is scheduled for the first quarter of 2023, people familiar with the matter said. The people requested anonymity because the matter is not public.

The Los Angeles-based company said in April 2021 that it had raised 11 billion euros for its Ares Capital Europe V Fund. The fund is the largest direct lending fund in the region. Institutional investors in the fund include California Public Employees Retirement System, Virginia State Retirement System and Maine Public Employees Retirement System, according to data compiled by Bloomberg.

Private credit financing has remained stable through 2022 despite turbulence in financial markets amid rising inflation and heightened geopolitical uncertainty. Asset managers raised about $100 billion in funding for the strategy in the first half of this year, according to data provider Preqin.