Wednesday, June 12, 2024

Ares closes subordinated debt infrastructure fund at record $5bn

Alts manager Ares Management Corporation’s latest infra offering has raised $5bn, making it the largest global infrastructure subordinated debt fund.

Infrastructure Debt Fund V will make subordinated investments across the digital, utilities, renewables, energy and transportation sectors, the New York-headquartered firm said in a statement.

The $5bn includes general partner commitments and related transaction vehicles.

“We appreciated the strong support and interest from our existing and new investors in IDF V,” said Patrick Trears, partner and global head of Ares Infrastructure Debt.

He highlighted the recent growth in the infrastructure sector as a driver of the record fundraising as more investors are attracted to the space.

At the end of Q3, Ares’ primary infrastructure activities had $14.2bn under management and more than 50 investment professionals.

Infrastructure grew from $289.7bn in 2015 to $887.5bn in 2021, according to Preqin research, and is forecast to more than double to almost $1.9trn in 2027.

Start the week informed and get an edge with Alternative Fund Insight’s newsletter every Monday, plus breaking news and industry analysis to your inbox.