LOS ANGELES--(BUSINESS WIRE)--
Ares Management Corporation (NYSE:ARES) announced today the final
closing of Ares U.S. Real Estate Fund IX (“U.S. Fund IX” or the “Fund”),
which primarily targets investments in multifamily, industrial, and
office properties located across the United States, at approximately
$1.04 billion. This fundraise represents a significant increase from
U.S. Fund IX’s predecessor fund, Ares U.S. Real Estate Fund VIII, which
closed at $825 million in December 2014. Through U.S. Fund IX, the team
is continuing its value-add investing strategy of acquiring and
improving institutional quality assets through renovation and
repositioning initiatives in order to generate attractive returns and
high current income.
As a reflection of its strong track record of navigating through past
cycles, U.S. Fund IX received strong support from longstanding existing
investors as well as from new entrants. The group of global investors
included pension funds, insurance companies, sovereign wealth funds,
endowments, non-profits, foundations, financial institutions, including
a private banking platform and an asset manager, and family offices. The
Fund had significant participation from existing investors, and
returning U.S. Fund VIII investors who increased their commitments did
so by an average of 65%. The Fund also brought in 15 new investors,
including 13 that were new to the Ares platform. In addition, as a
reflection of the growth in Ares’ global fundraising capabilities,
investors outside of the U.S. accounted for more than 50% of the total.
The Fund is approximately 50% committed with 12 investments across a
diverse portfolio of properties representing more than 4,300 multifamily
units and 15.7 million square feet of industrial and office space.
“It is very gratifying to receive the strong support from our long-term
investors and to attract many new investors to our expanding real estate
platform,” said Steven Wolf, Partner and Chief Investment Officer for
U.S. Equity in the Ares Real Estate Group. “This increased successor
fund underscores the cycle-tested and consistently strong performance of
the Ares Real Estate Group’s strategies.”
“We are excited about the composition of the fund’s portfolio, with 50%
of the capital invested or committed and an excellent pipeline of
compelling new investment opportunities,” said Howard Huang, Partner in
the Ares Real Estate Group. “We remain committed to deploying our
investors’ capital in a disciplined manner as we leverage the advantages
of the Ares platform to find off-market value opportunities across our
national footprint in the U.S.”
The Ares Real Estate Group manages comprehensive public and private
equity and debt strategies, with approximately $10.6 billion of assets
under management as of September 30, 2018. With its experienced team,
along with its expansive network of relationships, the Real Estate Group
capitalizes on opportunities across both real estate equity and debt
investing strategies. The Ares Real Estate Group has 76 dedicated
investment professionals, led by 14 Partners who have an average of 23
years of experience.
About Ares Management Corporation
Ares Management Corporation is a publicly traded, leading global
alternative asset manager with approximately $125 billion of assets
under management as of September 30, 2018 and 18 offices in the United
States, Europe, Asia and Australia. Since its inception in 1997, Ares
has adhered to a disciplined investment philosophy that focuses on
delivering strong risk-adjusted investment returns throughout market
cycles. Ares believes each of its three distinct but complementary
investment groups in Credit, Private Equity and Real Estate is a market
leader based on assets under management and investment performance. Ares
was built upon the fundamental principle that each group benefits from
being part of the greater whole.
Forward-Looking Statements
Statements included herein may constitute “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act of
1995, which relate to future events or our future performance or
financial condition. These statements are not guarantees of future
performance, condition or results and involve a number of risks and
uncertainties. Actual results may differ materially from those in the
forward-looking statements as a result of a number of factors, including
those described from time to time in Ares’ filings with the Securities
and Exchange Commission. Ares Management Corporation undertakes no duty
to update any forward-looking statements made herein.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181205005100/en/
Media:
Mendel Communications
Bill Mendel, 212-397-1030
[email protected]
or
Investors:
Ares
Management Corporation
Carl Drake, 800-340-6597
[email protected]
Source: Ares Management Corporation
