Ares Management, a global alternative investment manager, closed its sixth commingled European direct lending fund, Ares Capital Europe VI. With total commitments of €17.1 billion, the fund closed above its €15 billion target and reached its hard cap.
The final fund size represents an approximate 53% increase in LP commitments relative to its predecessor fund, Ares Capital Europe V, which closed in 2021 at its €11.1 billion hard cap. Including related vehicles and anticipated leverage, the total available capital for the Ares European Direct Lending strategy is expected to be approximately €30 billion.
Combined with the previously announced $33.6 billion of total capital raised for its Senior Direct Lending Fund III (SDL III), inclusive of related vehicles and anticipated leverage, Ares has closed on approximately $64.5 billion across its SDL III and ACE VI strategies.
“The final closing of ACE VI underscores the strength of Ares’ European direct lending platform as well as the strong demand from borrowers for flexible capital solutions,” Blair Jacobson, partner and co-head of European credit for Ares, said. “We thank our existing and new investors for their confidence in our longstanding and differentiated strategy.”
“Over the past 18 years, we have continued to demonstrate our market leadership through our local pan-European approach,” Michael Dennis, partner and co-head of European credit for Ares, said. “Our team’s deep regional and sector experience, alongside our longstanding sponsor and partner relationships, enable us to originate significant opportunities with high-quality borrowers.”
“Our platform provides the scale, experience and innovation to identify new opportunities and navigate unexpected challenges, and our team is eager to continue building on our track record of success,” Matt Theodorakis, partner and co-head of European direct lending at Ares, said. “We remain committed to the structuring discipline and selective capital deployment that have enabled our business to thrive throughout cycles.”
Ares’ European Direct Lending strategy comprises approximately 90 investment professionals across London, Paris, Frankfurt, Stockholm, Amsterdam and Madrid, as of Sept. 30, 2024, and manages over $74 billion in assets, inclusive of the ACE VI commitments. Since its inception, the European Direct Lending business has completed nearly 380 investments totaling over €70 billion. ACE VI seeks to self-originate flexible financing solutions for high quality, market-leading European companies in defensive industries with EBITDA in excess of €10 million. The fund targets a senior-secured weighting and focuses on capital preservation, a sole or lead lender position and low volatility. ACE VI has already deployed significant capital, committing roughly €6.4 billion across over 50 investments to date.
