Ares Management Corp. (Ares) has closed its largest-ever US real estate fund, raising over $3.3B for its Ares US Real Estate Opportunity Fund IV (AREOF IV), the company said in a September 16 news release.
The latest fundraise close marks a significant increase from the $2.2B Ares raised for its predecessor fund and is its largest closed-end real estate fundraise to date.
AREOF IV will focus on acquiring distressed real estate assets and repositioning undervalued properties, aiming to capitalize on opportunities arising from market dislocations. The capital raised will also complement Ares' European real estate strategy, bringing the firm’s total opportunistic capital to $5.5B.
AREOF IV's current portfolio includes the $1.07B redevelopment of the Hyatt Regency Orlando and preferred equity for the conversion of 55 Broad Street in New York, one of the largest office-to-residential conversions in the city’s history.
Ares Real Estate manages $52B in assets for a diverse set of investors, including sovereign wealth funds, public pensions, and family offices, the firm said. According to Dakota data, at least five public pensions in the US have invested over $200M in the strategy, including the Pennsylvania State Employees Retirement System, which committed $100M in December 2023.
View the news release here: https://ir.aresmgmt.com/news/ares-management-raises-over-3-3-billion-of-u-s-opportunistic-real-estate-capital/62c6082d-25ea-4b19-a8c3-2bc660c46ba6/
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