Ares raises its largest direct lending fund

Published 31/07/2024, 12:20
Ares raises its largest direct lending fund

Ares Management Corporation (NYSE: NYSE:ARES), a global alternative investment manager, has announced the closure of its Ares Senior Direct Lending Fund III (SDL III).

The fund closed with approximately $15.3 billion in equity commitments, surpassing its initial target of $10 billion and setting a record as the largest direct lending fund in the firm's history. Including related vehicles and anticipated leverage, the total capital base for SDL III is expected to reach around $33.6 billion.

SDL III's equity commitments are nearly twice the size of its predecessor fund, SDL II, which had $14.9 billion in total debt and equity commitments in 2021. The firm raised about $6.4 billion of SDL III's commitments in the second quarter of 2024 alone.

Mitch Goldstein, Partner and Co-Head of the Ares Credit Group, expressed gratitude for the strong investor support and the firm's commitment to providing flexible capital solutions while aiming for attractive risk-adjusted returns.

Mark Affolter, Partner and Co-Head of U.S. Direct Lending, noted the ongoing demand for capital in the middle market, which banks and traditional lenders often underserve.

Ares' U.S. Direct Lending strategy focuses on originating senior secured loans to middle market companies in North America. SDL III follows the same strategy as SDL I and SDL II, targeting companies with $10 million to over $150 million in EBITDA.

The fund has already committed $9.0 billion to over 165 companies, demonstrating significant deployment of its capital.

Ares Management Corporation, with approximately $428 billion in assets under management as of March 31, 2024, operates across credit, real estate, private equity, and infrastructure asset classes. The company, with around 2,900 employees, has a presence in North America, Europe, Asia Pacific, and the Middle East.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.