Ares Management Corporation, a leading global alternative investment manager, announced the final closing of its Ares Pathfinder Fund. With $3.7 billion in total commitments closed, the Fund was significantly oversubscribed at its hard cap and exceeded its original target of $2.0 billion.
Pathfinder is managed by Ares’ Alternative Credit team, which pursues a differentiated strategy of providing tailored financial solutions for owners of large, diversified portfolios of assets that generate predictable and contractual cash flows throughout market cycles.
Pathfinder is the team’s flagship global Fund that invests in alternative credit assets that are often sourced in the financing gaps found between the credit, private equity and real estate sectors. As of December 31, 2020, the Ares Alternative Credit strategy managed approximately $13 billion in assets under management across more than 25 funds and has a dedicated team of approximately 40 investment professionals.
Pathfinder also has a unique social impact purpose. Ares and Pathfinder’s portfolio managers have committed to donating at least 10% of the Fund’s carried interest profits to global health and education charities.
Ares will partner with non-profit organizations that it has identified with a track record of delivering high value per charitable dollar contributed. Ares believes Pathfinder is the first institutional private investment fund to utilize a predefined structure to make such a substantial commitment to charitable activities.
Pathfinder attracted strong interest from over 80 global investors with representation across North America, Europe, Asia, Australia and the Middle East diversified by type across public and corporate pension funds, sovereign wealth funds, insurance companies, endowments and foundations, family offices and asset managers. The Fund was well-received by new and existing clients of Ares, with approximately 34% of commitments representing investors new to Ares.
“We are grateful for this strong vote of confidence from our investors in our alternative credit strategy and its new flagship fund,” said Kipp deVeer, Partner and Head of the Ares Credit Group. “We see distinct similarities between today’s alternative credit market and the corporate direct lending market of ten years ago. We have strong conviction that there is a sizable and growing market to make attractive investments in this important asset class and we intend to continue to invest time, capital and resources to support this growth.”