Ares Management closed two oversubscribed real estate funds with total capital commitments of $2.1 billion, said Bill Mendel, spokesman for the alternative investment firm.
Ares European Real Estate Fund IV closed with $1.3 billion, exceeding its $1 billion fundraising target. The fund will invest in residential, retail, office and industrial real estate in Western Europe.
The $824 million Ares U.S. Real Estate Fund VIII closed above its $750 million fundraising target. The fund will make value-added investments in income-producing properties in sectors including multifamily, industrial, retail, hotel and office in the U.S.
Investors in Ares European Real Estate Fund IV include the $19 billion New Mexico State Investment Council, Santa Fe; $52 billion Pennsylvania Public School Employees’ Retirement System, Harrisburg; and $2.7 billion Nashville (Tenn.) & Davidson County Metropolitan Government Employee Benefit Trust Fund. Investors in the Ares U.S. Real Estate Fund VIII include the $29.9 billion Texas Permanent School Fund, Austin.