Ares raises €30bn for Euro direct lending strategy

Alternative investment manager Ares Management Corporation announced the final closing of its sixth commingled European direct lending fund, Ares Capital Europe VI (ACE VI).

With total commitments of €17.1 billion, the fund closed above its €15 billion target and reached its hard cap.

“Ares believes that ACE VI is the largest institutional fund in the global direct lending market to date based on LP equity commitments,” said Ares.

“The final Fund size represents an approximate 53% increase in LP commitments relative to its predecessor fund, Ares Capital Europe V, which closed in 2021 at its €11.1 billion hard cap.

“Including related vehicles and anticipated leverage, the total available capital for the Ares European Direct Lending strategy is expected to be approximately €30 billion.

“Combined with the previously announced $33.6 billion of total capital raised for its Senior Direct Lending Fund III (SDL III), inclusive of related vehicles and anticipated leverage, Ares has closed on approximately $64.5 billion across its SDL III and ACE VI strategies – cementing its global market leadership.”

Blair Jacobson, Ares Partner and Co-Head of European Credit, said: “The final closing of ACE VI underscores the strength of Ares’ European direct lending platform as well as the strong demand from borrowers for flexible capital solutions.

“We thank our existing and new investors for their confidence in our longstanding and differentiated strategy.”

Ares’ European Direct Lending strategy comprises approximately 90 investment professionals across London, Paris, Frankfurt, Stockholm, Amsterdam and Madrid, as of September 30, 2024, and manages over $74 billion in assets, inclusive of the ACE VI commitments.

Since its inception, the European Direct Lending business has completed nearly 380 investments totaling over €70 billion.