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LONDON - Ares Management Corporation (NYSE: NYSE:ARES), a prominent global alternative investment manager with a market capitalization of $54.89 billion and an impressive 52.42% return over the past year, has announced the final close of its Ares Capital Europe VI (ACE VI) fund, surpassing its initial target with commitments of €17.1 billion. According to InvestingPro data, the company maintains a GOOD financial health score, reflecting its strong market position. The fund, which is believed to be the largest institutional fund in the global direct lending market based on limited partner (LP) equity commitments, exceeded its €15 billion goal and reached its hard cap, reflecting a 53% increase in LP commitments compared to its predecessor, Ares Capital Europe V.
The closing of ACE VI, combined with the previously announced $33.6 billion raised for its Senior Direct Lending Fund III, brings Ares' total capital closed across its direct lending strategies to approximately $64.5 billion, reinforcing the firm's leadership in the global market. The company has demonstrated consistent shareholder returns, maintaining dividend payments for 11 consecutive years with a current yield of 2.12%. For deeper insights into Ares' financial metrics and growth potential, InvestingPro offers comprehensive analysis and 10+ additional ProTips.
Blair Jacobson, Partner and Co-Head of European Credit at Ares, expressed gratitude to investors for their confidence in the company's established and differentiated strategy. Michael Dennis, also a Partner and Co-Head of European Credit, highlighted the firm's local pan-European approach and deep regional and sector experience as keys to originating significant opportunities with high-quality borrowers. Matt Theodorakis, Partner and Co-Head of European Direct Lending, emphasized the team's commitment to maintaining structuring discipline and selective capital deployment.
The ACE VI fund, which has already committed roughly €6.4 billion across more than 50 investments, focuses on providing flexible financing solutions for leading European companies in defensive industries with EBITDA over €10 million. The fund aims for a senior-secured weighting, prioritizing capital preservation, a sole or lead lender position, and low volatility.
Ares' European Direct Lending strategy is supported by approximately 90 investment professionals across major European cities and manages over $74 billion in assets, including the ACE VI commitments. Since the inception of its European Direct Lending business, Ares has completed nearly 380 investments totaling over €70 billion.
Ares Management Corporation, with approximately $464 billion of assets under management as of September 30, 2024, operates a diverse global platform with more than 3,100 employees in various regions, offering a range of investment solutions across credit, real estate, private equity, and infrastructure asset classes. With analysts setting price targets ranging from $152 to $227, investors can access detailed valuation analysis and comprehensive research reports through InvestingPro's extensive coverage of over 1,400 US equities.
This report is based on a press release statement from Ares Management Corporation.
In other recent news, Ares Management Corporation has demonstrated robust growth in its third-quarter earnings. The company reported an 18% rise in management fees, a 24% increase in fee-related earnings, and a 28% growth in realized income. Furthermore, Ares deployed nearly $30 billion in the quarter, contributing to a total of $74.6 billion for the year, and raised nearly $21 billion in the third quarter alone.
RBC Capital Markets has updated its outlook on Ares Management, lifting the investment firm's price target from $185.00 to $205.00, maintaining an Outperform rating on the stock. The rationale behind the price target increase is Ares Management's robust standing as a leading entity in the private credit sector and consistent revenue growth. The analyst also noted the company's potential resilience in fundraising activities.
Despite previous concerns regarding the company's valuation, Ares Management's shares trade at only a slight premium compared to the average of its peers when looking at the projected 2026 price to funds from operations multiples. Ares Management expects strong Q4 performance with anticipated fee-related performance revenues between $160 million and $170 million and expects continued growth in assets under management and performance income in 2025 and beyond. These recent developments highlight a period of strong performance and optimism for Ares Management Corporation.
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