Ares Management Corporation is seeking to raise $2bn (€1.8bn) for its infrastructure secondaries fund, according to a potential investor.
According to documents prepared for Boston Retirement System, Ares is planning to raise the capital for Ares Secondaries Infrastructure Solutions Fund III.
Fund III is Ares’s first infrastructure secondaries fund following its acquisition of Landmark Partners in 2021, a deal that marked the manager’s move into secondaries.
Landmark raised $915m in May 2021 at the close of its Infrastructure Partners II, an amount that fell short of the fund’s $1.5bn target.
Boston Retirement, which has not yet issued a commitment to Fund III, told IPE Real Assets that Ares is scheduled to present its fund at the pension fund’s September board meeting.
Boston Retirement has $40m to invest in private equity and infrastructure funds in the current year.
Fund III is expected to buy partnership interests in existing infrastructure funds. The fund expects to generate an internal rate of return of 11% to 14%.
Ares declined a request for comment.
Back in January, Ares raised $5bn for Infrastructure Debt Fund V, a fund focused on making subordinated investments across the digital, utilities, renewables, energy and transportation sectors.
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