Ares Management Corporation has secured $5.4bn (€4.7bn) in capital commitments for its US and Europe value-add real etstate strategies.
The manager said it reached $3.5bn in total capital for its Ares US Real Estate Fund XI (US XI), which closed at its $3.1bn hard cap and included capital secured for related transaction vehicles and a general partner commitment. The Ares European Property Enhancement Partners IV (EPEP IV) raised approximately $1.9bn of total capital across equity commitments and related transaction vehicles.
As previously reported, Texas Permanent School Fund approved a $200m commitment to the value-add US real estate fund, with Kansas Public Employees Retirement System and North Dakota State Investment Board also making commitments of $85m and $75m, respectively.
Also, New Mexico State Investment Council approved a €200m commitment to EPEP IV.
To date, US XI and EPEP IV have each deployed or identified approximately $1.1bn of initial investments, Ares said.
Julie Solomon, head of Ares Real Estate, said: “As real estate markets move into the early stages of recovery, our confidence is fueled by the increase in long‑term structural demand across our high-conviction new economy sectors.
“We believe this substantial capital reinforces our team’s ability to invest in the most compelling opportunities, particularly in supply-constrained sectors where durable cash flows and valuation resets are creating attractive entry points.
“Reflecting our track record of performance through the cycle, we are grateful to our investors for sharing our conviction in the opportunity ahead and look forward to building on this momentum through our differentiated approach.”
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