Ares Management Corporation, a global alternative investment manager, has successfully raised an impressive $3.3 billion in funding for its real estate secondaries strategies. This funding includes contributions to the Landmark Real Estate Fund IX (LREF IX) and commitments from General Partners and affiliated entities.
This achievement highlights Ares Management’s prowess in attracting substantial capital for its real estate endeavors. The company’s Real Estate Secondaries team, led by Michelle Creed and Jamie Sunday, specializes in offering flexible and highly customizable solutions for both Limited Partners and General Partners in the real estate space.
The focus of the LREF IX is on acquiring mature assets at attractive discounts to their market values. The fund aims to build diversified portfolios, providing investors with a strategic approach to navigating the dynamic real estate market.
The Real Estate Secondaries team, with over 25 years of experience, has established itself as a key player in the market. They have successfully invested or committed around $8.3 billion across more than 200 transactions, showcasing their depth of knowledge and ability to deliver strong results.
Michelle Creed, Partner and Co-Head of Real Estate Secondaries, expressed gratitude for the support from existing and new investors. She emphasized the significance of Ares Management’s platform differentiation, citing its scale, structuring capabilities, extensive relationships, and the team’s thought leadership approach.
The fundraise aligns with the growing interest in secondary markets, especially as fund sponsors seek effective ways to manage near-term debt maturities and address liquidity needs in their legacy fund vehicles. Ares Management’s success in this funding round positions the company as a major player in real estate secondaries, leveraging its team’s capabilities and the broader Ares global platform.
The Ares Real Estate Secondaries strategy is part of the Ares Secondaries Group, which manages $23.3 billion in assets as of September 30, 2023. The Ares Secondaries Group has been a pioneer in the secondary markets, with established strategies across real estate, infrastructure, private equity, and credit asset classes.
Ares Management’s accomplishment in securing $3.3 billion in funding underscores its leadership in real estate secondaries and reflects the industry’s confidence in the company’s ability to generate compelling risk-adjusted returns for investors.