Ares Management Corporation has raised $5bn (€4.8bn) for its Infrastructure Debt Fund V (IDF V) and has already committed close to 40% of the global fund’s capital.

The asset manager said IDF V, which closed on 29 December 2022, is focused on making subordinated investments across the digital, utilities, renewables, energy and transportation sectors.

The fund’s $5bn commitments include general partner commitments and related transaction vehicles, Ares said.

It said that, to date, its infrastructure debt team has invested or committed approximately $2bn, or roughly 40% of IDF V’s investable capital base. Among its investments, IDF V has structured sustainability-linked debt facilities, the manager said.

Patrick Trears, partner and global head of Ares infrastructure debt, said: “We appreciated the strong support and interest from our existing and new investors in IDF V. Our investors’ confidence and trust reflects the strength of the Ares Infrastructure Debt strategy, which is backed by our global team with a long track record supported by the increasing capital demands for infrastructure debt.

“Given the Ares infrastructure debt team’s global footprint, offering customised and bespoke credit solutions, our global team is positioned well to deliver a diversified infrastructure portfolio.”

Michael Smith, partner and co-head of the Ares credit group, said: “By adding the infrastructure debt strategy to the Ares platform, we have been able to provide our investors a meaningful opportunity to participate in the expanding infrastructure market.

“As a leader in private credit and infrastructure debt, we seek to provide one-stop financing solutions for essential infrastructure projects and companies. Our scale and flexibility have allowed us to create sustainable, long-term partnerships across the world, further enhancing the value we can provide our investors.”

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