Ares Management Corp. closed its latest alternative credit fund at $6.6 billion, beating its $5 billion target, a news release said.
The fund Ares Pathfinder Fund II and its affiliated fund Ares Pathfinder Fund II (Offshore) held a final close seven months after its March first close. Ares officials are declining to say when they started marketing the fund.
The fund targets collateralized investments in assets ranging from loans and leases to royalties and fees. Ares' second alternative credit fund exceeds its predecessor fund, Ares Pathfinder Fund which raised $3.7 billion in 2021.
Ares Pathfinder Fund II includes a combination of new investors and existing investors, with approximately 90% of the limited partners in the first Pathfinder fund committing to the new fund, an Ares spokeswoman said. "This was one of the reasons the fund was raised so quickly," she said. Investors in the fund include the $42.7 billion Texas County & District Retirement System; $42.5 billion New Mexico State Investment Council, Santa Fe; $41.3 billion Indiana Public Retirement System, Indianapolis; $33.5 billion San Francisco City & County Employees' Retirement System; $11.8 billion New Hampshire Retirement System, Concord; $10.3 billion Wyoming State Loan and Investment Board, Cheyenne; and $4.1 billion San Joaquin County Employees' Retirement Association, Stockton, Calif.