At a glance
- Ares does not need a first-time fund to prove it can raise.
- Secondaries capital has outrun the deal flow available to absorb it, a gap this publication has argued shows up in clean prints that stay small while larger GP-led deals close without a disclosed price.
- If that substitution happens at the margin, financing quietly shrinks the supply of assets the secondaries market gets to price, and a facility is harder to observe than a closed continuation vehicle.
Ares Management has raised about $4.2bn for its first dedicated structured solutions strategy, more than quadrupling the $1bn target it took to market, according to AltAssets. The capital is aimed directly at private-equity managers, which the report ties to growing demand for that exposure, and the raise reads as institutional appetite for the financing side of NAV lending and GP financing—structures that deliver liquidity against fund interests without a secondary trade changing hands.
Ares does not need a first-time fund to prove it can raise. SEC records show the firm reports $458.8bn in regulatory assets under management across 715 accounts and 3,990 employees. A manager at that scale built structured solutions in-house, found enough demand on the first attempt to clear its target, and spent the same stretch adding co-investment vehicles to its credit lineup.
Financing the manager instead of buying the fund
Secondaries capital has outrun the deal flow available to absorb it, a gap this publication has argued shows up in clean prints that stay small while larger GP-led deals close without a disclosed price. The raise is not secondaries dry powder and should not be counted as such, but it competes for the same need: a GP with access to a structured facility has one less reason to run a continuation vehicle, and a facility can be struck without the market-clearing mark a CV requires.
That substitution is an inference from the vehicle's stated focus, since the coverage attributes the raise to demand for manager financing and says nothing about the fund's tenor, sectors, or borrowers. If that substitution happens at the margin, financing quietly shrinks the supply of assets the secondaries market gets to price, and a facility is harder to observe than a closed continuation vehicle. Whether Ares's capital lands in those situations is unconfirmed, and the coverage does not describe the pipeline.
A first vehicle clearing its target more than four times over is the disclosed arithmetic. Where the money goes will settle whether the firms that follow with structured solutions vehicles are secondaries managers adding a financing arm or credit managers deciding the financing side is the better business.
Reported by the Fundraising desk from AltAssets and SEC records via PWD entity file. Published . Corrections