Ares Management Corporation has raised $1.8bn (€1.9bn) for its tenth US value-added real estate fund.
The global alternative investment manager said the capital raised for the Ares US Real Estate Fund X fund at close exceeded the vehicle’s $1.5bn fundraising target.
The latest capital raise also exceeds the $1.04bn Ares raised in 2018 for its predecessor fund.
Ares US Real Estate Fund X mainly invest in multifamily and industrial properties with ”select investments in other major and adjacent property types to generate both income and appreciation for investors”, Ares said.
David Roth, partner and co-head of Ares US Real Estate, said: “With the closing of the tenth fund in this series, we are proud of the continued strong support we received from our long-standing investors, along with the significant demand from our new investors.
“We believe this support validates the trust we have built with our investors and the track record we have generated by managing this strategy over multiple vintages and market cycles.
“We are confident in our ability to continue driving compelling risk-adjusted returns for our investors through the combination of our team’s deep market and sector coverage and a disciplined, cycle-tested approach to investing in attractive sectors, such as multifamily and industrial.”
Jay Glaubach, partner and co-head of Ares US real estate investments, said: “We are well positioned to capitalise on new opportunities created by the current economic environment and to leverage our experience and longstanding relationships to access potential investments.”
Howard Huang, partner and CIO of diversified US equity at Ares, said: “The fund’s initial assets, which are focused on durable sectors and markets, stand to continue to benefit from long-standing secular trends.
“We look forward to building a diverse portfolio that delivers current income to our investors while implementing longer-term value-add enhancements to our properties.”
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