Ares Management Corporation closes $ 3.7 billion Pathfinder hedge fund
LOS ANGELES–(COMMERCIAL THREAD) – Ares Management Corporation (“Ares”) (NYSE: ARES), one of the world’s leading alternative investment managers, today announced the definitive closure of its Ares Pathfinder Fund, LP (as well as its parallel vehicles , “Pathfinder” or the “Fund”). With $ 3.7 billion in closed commitments, the Fund was significantly oversubscribed from its hard cap and surpassed its initial target of $ 2.0 billion.
Pathfinder is managed by the Ares Alternative Credit team, which pursues a differentiated strategy of providing tailored financial solutions to owners of large and diversified asset portfolios that generate predictable and contractual cash flows throughout the years. market cycles. Pathfinder is the team’s flagship global fund that invests in alternative credit assets that often arise from funding gaps seen between the credit, private equity and real estate industries. As of December 31, 2020, the Ares Alternative Credit strategy managed approximately $ 13 billion in assets under management in more than 25 funds and has a dedicated team of approximately 40 investment professionals.
Pathfinder also has a unique social impact goal. The portfolio managers of Ares and Pathfinder have pledged to donate at least 10% of the Fund’s deferred profits to global charities in health and education. Ares will partner with nonprofits it has identified with a history of high value per charitable dollar contributed. Ares believes Pathfinder is the first institutional private equity fund to use a predefined structure to engage in charitable activities so substantially.
Pathfinder has generated strong interest from over 80 global investors with representation in North America, Europe, Asia, Australia and the Middle East, diversified by type among public and corporate pension funds , sovereign wealth funds, insurance companies, endowments and foundations, family offices and asset managers. The Fund has been well received by new and existing clients of Ares, with around 34% of the 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 the alternative credit market today and the direct business lending market of a decade ago. We strongly believe that there is a large 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. ”
“Since expanding our alternative credit strategy a few years ago, we have experienced strong demand for our strategy, leading to a doubling of our assets under management over the past two years. Investors appreciate our focus on downside protection and capital protection, as well as the uncorrelated, income-driven returns we seek to generate through market cycles, ”said Keith Ashton, partner and co-responsible for alternative credit. “As market leaders in alternative credit investing, we look forward to continuing to provide our business partners with innovative and flexible capital solutions that step out of traditional and well-defined markets. ”
“We are very pleased to see our investors ‘shared enthusiasm for Pathfinder’s alternative credit opportunities and their support for Ares’ commitment to invest in global health and education to help save lives and foster greater equality, ”said Joel Holsinger, partner and co-leader. alternative credit. “Pathfinder’s dual purpose is to deliver compelling risk-adjusted returns on investment, while also providing resources to global charities as they strive to make a real impact on the lives of people who live in it. extreme poverty. ”
About Ares Alternative Credit
Ares’ alternative credit strategy focuses on direct lending and investing in assets that generate contractual cash flows and close the gaps in the capital markets between credit, private equity and real estate. Ares Alternative Credit targets investments across the entire capital structure in specialty finance, lender finance, loan portfolios, equipment leasing, structured products, net leasing, cash flow (royalties, licenses, management fees) and other asset-based investments. Co-led by Keith Ashton and Joel Holsinger, Ares Alternative Credit relies on a widely qualified and tight-knit team of around 40 investment professionals as of December 31, 2020.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager operating integrated groups in credit, private equity, real estate and strategic initiatives. Ares Management’s investment groups work together to deliver innovative investment solutions and consistent and attractive investment returns to fund investors throughout market cycles. As of December 31, 2020, Ares Management’s global platform had approximately $ 197 billion in assets under management with more than 1,450 employees operating in North America, Europe and Asia-Pacific. For more information, please visit www.aresmgmt.com.