Ares Management Corporation has raised $3.3bn (€3.1bn) to make secondary investments in various types of real estate and real estate-related entities, including taking limited partnership positions in existing funds.
The manager said the amount raised for its real estate secondaries, comprises commitments to its Landmark Real Estate Fund IX (LREF IX), general partner commitments and affiliated vehicles.
As previously reported, the Nebraska Investment Council committed $63m to LREF IX, a fund seeking to acquire “seasoned assets at attractive discounts to market value and build highly diversified portfolios” for its investors. Oklahoma Teachers’ Retirement System also told IPE Real Assets that it has approved a $100m commitment to the fund.
LREF IX recently made an equity investment in a data centre complex in Portland, Oregon through a recapitalisation deal.
Data centres are the second-largest property asset class in Landmark Fund IX, accounting for 21% of its total assets. This is surpassed only by industrial properties at 38%.
Jamie Sunday, partner and co-head of the $8bn real estate secondaries business at Ares, said: “Following record transaction volumes in 2022, the real estate secondary market is poised for continued growth as fund sponsors look to manage through near-term debt maturities while addressing the liquidity needs across their legacy fund vehicles.
“We share the strong enthusiasm of our investors and believe that the current real estate market dislocation and volatility provides a highly attractive environment for scaled and experienced secondary managers.”
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