Ares Management closes its latest direct lending fund at record $34 bln
July 31 (Reuters) -Ares Management ARES.N said on Wednesday it has closed its latest direct lending fund with a capital base of $34 billion, making it the largest in the investment manager's history.
Total equity commitments raised for the fund, which is double the size of its predecessor, stand a little over $15 billion, more than its $10-billion target.
Credit markets have recovered after the U.S. Federal Reserve paused interest rate hikes last year. Rising borrowing costs derailed deal markets, particularly for transactions underpinned by high levels of debt.
Goldman Sachs Asset Management's alternative investments platform said in May its latest fund raised more than $20 billion for senior direct lending. Banks in the syndicated loan market compete with direct lenders including private equity firms and others.
According to bankers' estimates the direct lending market is roughly half the size of the more than $1.5 trillion syndicated loan market.
Ares' direct lending funds provide secured loans to mid-sized companies in the United States.
"The middle market continues to experience significant demand for reliable capital solutions as it remains underserved by banks and other traditional lending sources," said Mark Affolter, partner and co-head of U.S. direct lending at Ares.
The fund, known as Ares Senior Direct Lending Fund III, has committed $9 billion in capital to more than 165 companies till date.
Ares managed to rope in about $6.4 billion in debt and equity for the fund in the second quarter of 2024. The company's previous fund had $14.9 billion in equity and debt commitments.
Reporting by Pritam Biswas in Bengaluru; Editing by Shounak Dasgupta
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
