Key Takeaways
- • Ares Management Corp. raised $4.2 billion for its debut secondaries fund, the Ares Global Structured Solutions Fund, more than four times its initial target, according to Bloomberg.
- • The fund will mostly provide preferred equity to private managers seeking to make larger commitments to their latest funds, seed new strategies, and arrange succession planning.
- • Nate Walton, Ares' head of secondaries, described the fund's strategy, which positions Ares in structured solutions for private market managers.
- • The fundraise signals strong institutional demand for structured secondaries capital in the private markets.
Summary
Ares Management Corp. has raised $4.2 billion for its debut secondaries fund, according to Bloomberg, with the vehicle more than quadrupling its initial fundraising target. The Ares Global Structured Solutions Fund is designed to provide capital to private managers rather than traditional fund stakes.
According to Nate Walton, head of secondaries at Ares, the fund will primarily deploy preferred equity. The capital is aimed at managers looking to make larger commitments to their latest funds, seed new strategies, and arrange succession planning. This positioning places the strategy within the structured solutions segment of the secondaries market, where preferred equity can give general partners liquidity and flexibility without a full sale of assets or interests.
The size of the close relative to the original target points to strong investor appetite for structured secondaries exposure. Bloomberg's report does not disclose the fund's return targets, fee terms, or investor composition in the available source material, and those details would be needed for a full assessment of the vehicle.
According to Nate Walton, head of secondaries at Ares, the fund will primarily deploy preferred equity. The capital is aimed at managers looking to make larger commitments to their latest funds, seed new strategies, and arrange succession planning. This positioning places the strategy within the structured solutions segment of the secondaries market, where preferred equity can give general partners liquidity and flexibility without a full sale of assets or interests.
The size of the close relative to the original target points to strong investor appetite for structured secondaries exposure. Bloomberg's report does not disclose the fund's return targets, fee terms, or investor composition in the available source material, and those details would be needed for a full assessment of the vehicle.
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