Ares Management closed Ares Pathfinder Fund II and Ares Pathfinder Fund II (Offshore) (collectively, “the fund”) at $6.6 billion in commitments. The fund was oversubscribed and closed at its hard cap, which exceeded its $5 billion target and was approximately 80% larger than the predecessor fund, which had total commitments of $3.7 billion. The fund held its final closing seven months following its first closing in March.
Through Pathfinder II, Ares’ alternative credit team will pursue a strategy of providing scaled solutions tailored to owners of portfolios of assets that seek to generate contractual cash flows across market cycles. As of June 30, the Ares Alternative Credit manages approximately $27.8 billion in assets under management, including the Pathfinder family of funds.
“We are deeply grateful for the continued support from our investors. In our view, their trust and confidence in Ares Alternative Credit is a testament to the team’s success in executing on their behalf and creating value across a range of market and economic environments,” Keith Ashton, partner and co-head of alternative credit Ares, said “Especially in these times of growing opportunity but also increasing uncertainty, we believe that our strategy benefits from diversified asset portfolios with meaningful downside protections. As many banking participants grapple with new capital and liability paradigms, we see significant potential for the fund given its scale and flexibility.”
The Pathfinder family of funds also have a predefined structure of social impact purpose as Ares and Pathfinder’s portfolio managers have pledged to donate at least 5% to 10% of the carried interest profits from the funds to global health and educational charities. Since inception in March 2021, the Ares Pathfinder family of funds have raised approximately $15 billion in LP commitments with a charitable tie-in and the company’s charitable pledge has accrued more than $13 million of donations for charity based on performance as of June 30.
“Our Pathfinder family of funds seek attractive risk-adjusted returns for our investors in a differentiated private credit strategy and create a real impact by donating a portion of the profits to global health and education initiatives,” Joel Holsinger, partner and co-head of alternative credit at Ares, said. “When investors commit to our funds, they gain access to one of the largest and most seasoned teams in alternative credit while having the opportunity to make a difference to impoverished communities around the world.”
