Ares raises $4.2B for debut structured fund, quadrupling its target
What's the deal? Ares ManagementDealroom has a profile for this one. Try Dealroom → has raised $4.2 billion for its debut secondaries vehicle, the Ares Global Structured Solutions Fund — more than four times its initial target. The fund will provide capital to private managers.
What's the endgame? It will mostly provide preferred equity to managers who want to make larger commitments to their latest funds, seed new strategies, and plan for succession, according to Nate Walton, the firm's head of secondaries.
Why now? Ares found appetite far beyond its forecast. "We probably underestimated the demand for the product" from limited partners, Walton said, adding the firm "weren't quite sure how the LPs would react."
The signal: Blowing past target by such a margin points to how quickly structured secondaries have become a go-to tool for private managers looking to raise capital without selling assets outright.
Read more: news.bloomberglaw.com
Image credit: Ares Management
