Ares Management Closes $34 Billion for U.S. Senior Direct Lending Strategy
31 Julio 2024 - 5:30AM
Business Wire
Oversubscribed SDL III Significantly Exceeds
Target, Creating the Largest Direct Lending Fund in the Firm’s
History and the Largest Institutional Fund in the Market
Ares Management Corporation (“Ares”) (NYSE: ARES), a leading
global alternative investment manager, announced today the final
closing of Ares Senior Direct Lending Fund III (“SDL III” or the
“Fund”). With total equity commitments of approximately $15.3
billion, SDL III was oversubscribed relative to its initial target
of $10.0 billion. The total capital base for SDL III is expected to
be approximately $33.6 billion, which includes equity commitments
in related vehicles and anticipated leverage. The Fund is nearly
double the size of SDL II, its 2021 predecessor fund, which had
$14.9 billion in total debt and equity commitments. Approximately
$6.4 billion in debt and equity commitments for SDL III were raised
during the second quarter of 2024 alone.
“Over the last twenty years, Ares has developed significant
scale, relationships, and deep investment experience within direct
lending, all of which have continued to support our leadership
position in the market,” said Mitch Goldstein, Partner and Co-Head
of the Ares Credit Group. “We appreciate the strong vote of
confidence from our growing investor base, and we look forward to
executing on our longstanding strategy of providing flexible
capital solutions to our borrowers while seeking to generate
attractive risk adjusted returns for our investors.”
“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. “Our extensive origination
capability enables us to see a broad set of potential opportunities
to lend to high quality small, medium and large-sized companies. We
are pleased to have already deployed nearly one third of the fund’s
capital to date in what we believe are compelling investment
opportunities.”
Through its U.S. Direct Lending strategy, Ares provides directly
originated senior secured loans to middle market companies in North
America. Ares has deployed the same strategy in SDL III as its
predecessor funds, SDL I and SDL II, with investments in companies
with $10 million to over $150 million of EBITDA where Ares funds
act primarily as the lead provider of capital. Ares seeks to invest
in companies that maintain a strong competitive position in their
respective markets with experienced management teams and strong
free cash flow characteristics. Importantly, SDL III has already
deployed significant capital with the Fund committing $9.0 billion
of capital to over 165 companies to date.
About Ares Management Corporation
Ares Management Corporation (NYSE:ARES) is a leading global
alternative investment manager offering clients complementary
primary and secondary investment solutions across the credit, real
estate, private equity and infrastructure asset classes. We seek to
provide flexible capital to support businesses and create value for
our stakeholders and within our communities. By collaborating
across our investment groups, we aim to generate consistent and
attractive investment returns throughout market cycles. As of March
31, 2024, Ares Management Corporation's global platform had
approximately $428 billion of assets under management, with
approximately 2,900 employees operating across North America,
Europe, Asia Pacific and the Middle East. For more information,
please visit www.aresmgmt.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240730849667/en/
Media: Priscila Roney, +1-212-808-1185 Brittany Cash,
+1-212-301-0347 media@aresmgmt.com
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