Ares Management Closes Ninth Value-Add U.S. Real Estate Fund at Approximately $1.04 Billion
December 05 2018 - 6:30AM
Business Wire
Ares Management Corporation (NYSE:ARES) announced today the
final closing of Ares U.S. Real Estate Fund IX (“U.S. Fund IX” or
the “Fund”), which primarily targets investments in multifamily,
industrial, and office properties located across the United States,
at approximately $1.04 billion. This fundraise represents a
significant increase from U.S. Fund IX’s predecessor fund, Ares
U.S. Real Estate Fund VIII, which closed at $825 million in
December 2014. Through U.S. Fund IX, the team is continuing its
value-add investing strategy of acquiring and improving
institutional quality assets through renovation and repositioning
initiatives in order to generate attractive returns and high
current income.
As a reflection of its strong track record of navigating through
past cycles, U.S. Fund IX received strong support from longstanding
existing investors as well as from new entrants. The group of
global investors included pension funds, insurance companies,
sovereign wealth funds, endowments, non-profits, foundations,
financial institutions, including a private banking platform and an
asset manager, and family offices. The Fund had significant
participation from existing investors, and returning U.S. Fund VIII
investors who increased their commitments did so by an average of
65%. The Fund also brought in 15 new investors, including 13 that
were new to the Ares platform. In addition, as a reflection of the
growth in Ares’ global fundraising capabilities, investors outside
of the U.S. accounted for more than 50% of the total.
The Fund is approximately 50% committed with 12 investments
across a diverse portfolio of properties representing more than
4,300 multifamily units and 15.7 million square feet of industrial
and office space.
“It is very gratifying to receive the strong support from our
long-term investors and to attract many new investors to our
expanding real estate platform,” said Steven Wolf, Partner and
Chief Investment Officer for U.S. Equity in the Ares Real Estate
Group. “This increased successor fund underscores the cycle-tested
and consistently strong performance of the Ares Real Estate Group’s
strategies.”
“We are excited about the composition of the fund’s portfolio,
with 50% of the capital invested or committed and an excellent
pipeline of compelling new investment opportunities,” said Howard
Huang, Partner in the Ares Real Estate Group. “We remain committed
to deploying our investors’ capital in a disciplined manner as we
leverage the advantages of the Ares platform to find off-market
value opportunities across our national footprint in the U.S.”
The Ares Real Estate Group manages comprehensive public and
private equity and debt strategies, with approximately $10.6
billion of assets under management as of September 30, 2018. With
its experienced team, along with its expansive network of
relationships, the Real Estate Group capitalizes on opportunities
across both real estate equity and debt investing strategies. The
Ares Real Estate Group has 76 dedicated investment professionals,
led by 14 Partners who have an average of 23 years of
experience.
About Ares Management Corporation
Ares Management Corporation is a publicly traded, leading global
alternative asset manager with approximately $125 billion of assets
under management as of September 30, 2018 and 18 offices in the
United States, Europe, Asia and Australia. Since its inception in
1997, Ares has adhered to a disciplined investment philosophy that
focuses on delivering strong risk-adjusted investment returns
throughout market cycles. Ares believes each of its three distinct
but complementary investment groups in Credit, Private Equity and
Real Estate is a market leader based on assets under management and
investment performance. Ares was built upon the fundamental
principle that each group benefits from being part of the greater
whole.
Forward-Looking Statements
Statements included herein may constitute “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, which relate to future events or our future
performance or financial condition. These statements are not
guarantees of future performance, condition or results and involve
a number of risks and uncertainties. Actual results may differ
materially from those in the forward-looking statements as a result
of a number of factors, including those described from time to time
in Ares’ filings with the Securities and Exchange Commission. Ares
Management Corporation undertakes no duty to update any
forward-looking statements made herein.
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version on businesswire.com: https://www.businesswire.com/news/home/20181205005100/en/
Media:Mendel CommunicationsBill Mendel,
212-397-1030bill@mendelcommunications.comorInvestors:Ares
Management CorporationCarl Drake,
800-340-6597cdrake@aresmgmt.com
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