Ares Management is reportedly back in the market looking to raise €9bn for a new European credit fund, just two years after raising one of the biggest vehicles ever targeting the asset class in the region.
The firm hauled in €6.5bn for Ares Capital Europe IV in 2018, but is already eyeing a huge increase in capital through a successor fund according to the Wall Street Journal, which cited unnamed people it said were familiar with the situation.
It also quoted Ares chief exec and president Michael Arougheti, who said on a May 6 investor call that “based on our leadership position and the opportunity set in European direct lending, we currently expect that this fund could be the largest private commingled fund in our company’s history”.
Arougheti had said on that call that it expected to deploy more capital across credit, distressed and real estate amid the ongoing market turmoil.
Ares pulled in significantly more than initial €4.5bn target it set for Fund IV, and finished streets ahead of its predecessor vehicle in the strategy, which it closed on €2.5bn.