Ares Management Secures Record-Breaking $3.3 Billion for U.S. Real Estate Fund

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In a notable achievement within the investment landscape, Ares Management Corporation (NYSE: ARES) has announced the successful closing of its Ares U.S. Real Estate Opportunity Fund IV, L.P. With over $3.3 billion raised, this fund marks the largest closed-end real estate fundraise in Ares’ history, surpassing the $2.2 billion raised for its predecessor. This substantial increase underscores Ares’ growing influence in the real estate sector and its strategic positioning to capitalize on emerging opportunities (Business Wire).

A New Era of Opportunistic Real Estate Investment

The Ares U.S. Real Estate Opportunity Fund IV (AREOF IV) is designed to target high-potential real estate investments in the U.S., focusing on distressed assets, undervalued properties, and development projects in high-demand areas. The Fund is part of Ares' broader strategy, which now includes $5.5 billion of opportunistic capital across both the U.S. and European markets. This dual focus enables Ares to leverage its expertise and capital to navigate and capitalize on evolving real estate landscapes globally (Business Wire).

David Roth, Partner and Co-Head of Ares U.S. Real Estate, highlighted the current market dynamics, noting, “As capital markets stabilize, we are observing significant opportunities for AREOF IV. The need for capital infusion due to recent deleveraging has created a compelling environment for high-quality real estate investments” (Business Wire).

Strategic Acquisitions and Transformations

AREOF IV’s recent activities illustrate its strategic approach to value creation. The Fund’s notable acquisitions include the Hyatt Regency Orlando for $1.07 billion, one of the largest hotel transactions of 2024. Additionally, the Fund has played a crucial role in the conversion of 55 Broad Street in New York City, one of the largest office-to-residential projects in the city’s history. These investments reflect AREOF IV’s commitment to enhancing and repositioning key assets in prime markets (Business Wire).

A Global Network of Investors

The Fund has successfully attracted a diverse range of investors, including sovereign wealth funds, public and corporate pensions, insurance companies, endowments, family offices, and private banks from across the Americas, the Middle East, Asia, and Europe. This wide-ranging investor base underscores the broad appeal and confidence in Ares’ real estate strategies (Business Wire).

Ares Management’s Expansive Reach

As of June 30, 2024, Ares Real Estate oversees approximately $52 billion in assets, supported by over 270 investment professionals across 17 key markets in the U.S. and Europe. This robust team, backed by Ares’ integrated platform, enables the execution of diverse equity and debt strategies, positioning Ares to effectively navigate the complex real estate landscape (Business Wire).

About Ares Management Corporation

Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager, offering a range of investment solutions across credit, real estate, private equity, and infrastructure. With over $447 billion in assets under management and more than 2,950 employees worldwide, Ares is dedicated to providing flexible capital and generating attractive returns for its stakeholders (Business Wire).