Ares Management Closes $6.6 Billion Pathfinder II Alternative Credit Fund to Invest in Private Asset Based Credit
30 October 2023 - 9:30PM
Business Wire
Oversubscribed Fund Closes at its Hard Cap and
Exceeds $5 Billion Target
Charitable Pledge Has Already Accrued Over $13
Million of Donations for Charity
Ares Management Corporation (NYSE: ARES) (“Ares”), a leading
global alternative investment manager, announced today the final
closing of Ares Pathfinder Fund II, L.P. and Ares Pathfinder Fund
II (Offshore), L.P. (and together with parallel vehicles,
“Pathfinder II” or the “Fund”) at $6.6 billion in commitments. The
Fund was oversubscribed and closed at its hard cap, which exceeded
its $5 billion target and was approximately 80 percent larger than
the predecessor fund which had total commitments of $3.7 billion.
The Fund held its final closing only seven months following its
first closing in March 2023.
Through Pathfinder II, the Alternative Credit team pursues a
differentiated strategy of providing scaled solutions tailored to
owners of large, diversified portfolios of assets that seek to
generate resilient, contractual cash flows across market cycles. As
of June 30, 2023, the Ares Alternative Credit strategy is one of
the largest investors in asset based credit managing approximately
$27.8 billion in assets under management, including the Pathfinder
family of funds.
“We are deeply grateful for the continued support from our
investors. In our view, their trust and confidence in Ares
Alternative Credit is a testament to the team’s success in
executing on their behalf and creating value across a range of
market and economic environments,” said Keith Ashton, Partner and
Co-Head of Alternative Credit. “Especially in these times of
growing opportunity but also increasing uncertainty, we believe
that our strategy benefits from diversified asset portfolios with
meaningful downside protections. As many banking participants
grapple with new capital and liability paradigms, we see
significant potential for the Fund given its scale and
flexibility.”
The Pathfinder family of funds also have a predefined structure
of unique social impact purpose as Ares and Pathfinder’s portfolio
managers have pledged to donate at least 5-10% of the carried
interest profits from the funds to global health and educational
charities. Ares partners with non-profit organizations with an
identified track record of delivering high value per charitable
dollar contributed. Since inception in March 2021, the Ares
Pathfinder family of funds have raised approximately $15 billion in
LP commitments with a charitable tie-in and our charitable pledge
has already accrued over $13 million of donations for charity based
on performance as of June 30, 2023. This translates into the
potential to generate between $10 million and $20 million,
respectively, for every $1 billion of capital that earns a 1.5x to
2.0x multiple in the closed-end Pathfinder funds.
“Our Pathfinder family of funds seek attractive risk-adjusted
returns for our investors in a differentiated private credit
strategy and create a real impact by donating a portion of the
profits to global health and education initiatives,” said Joel
Holsinger, Partner and Co-Head of Alternative Credit. “When
investors commit to our funds, they gain access to one of the
largest and most seasoned teams in alternative credit, while having
the opportunity to make a difference to impoverished communities
around the world.”
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,
private equity, real estate 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 June 30, 2023, Ares Management Corporation's global
platform had approximately $378 billion of assets under management,
with over 2,600 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/20231027398910/en/
Media: Priscila Roney, +1-212-808-1185 or Brigid Kelley,
+1-646-989-7641 media@aresmgmt.com
Investor Relations: Carl Drake, 800-340-6597
cdrake@aresmgmt.com
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