Ares Management has raised $5.3bn (£4bn) for its infrastructure secondaries strategy, as private infrastructure reaches “new phase of growth”.
The $5.3bn of capital includes the final closing of the alternative investment manager’s latest dedicated fund, Ares Secondaries Infrastructure Solutions III (ASIS III), as well as general partner (GP) commitments and affiliated vehicles.
After raising its hard cap, the fund closed above its initial $2bn target at approximately $3.3bn in equity commitments, which is more than three times the size of its 2021 predecessor fund.
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The infrastructure secondaries team will invest ASIS III in a diversified portfolio of private infrastructure assets through flexible secondary solutions, including preferred structure transactions, GP-led continuation vehicles, and traditional limited partner interest acquisitions.
Blair Jacobson, co-president of Ares, said the fundraise means its infrastructure secondaries team is well-positioned to invest its “substantial” capital base in attractive value-creation opportunities.
“Over the last four years, our secondaries business has accelerated its scaling and differentiation to meet the growing demand for creative liquidity solutions, leveraging the resources, capabilities and relationships of the global Ares platform,” he added.
“We have continued to emphasize product specialization across asset classes, including infrastructure, as we seek to better support private markets investors through cycles.”
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Private infrastructure has reached “a new phase of growth”, while the infrastructure secondaries market has become “increasingly dynamic”, according to Edward Keith III, partner and head of infrastructure secondaries at Ares.
“This fundraise is a testament to the strength of the integrated global Ares Secondaries platform and our team’s ability to innovate and find novel capital solutions to solve the challenges faced by limited partners and general partners,” said Keith.
The infrastructure secondaries strategy is part of the Ares Secondaries Group, which manages nearly $34bn in assets across the infrastructure, real estate, private equity and credit asset classes.
The strategy will make use of the firm’s infrastructure platform, which is supported by more than 130 investment professionals managing more than $21bn in assets.
