Los Angeles, CA ─ January 7, 2015 ─ Ares Management, L.P. (NYSE: ARES) announced today the final closings of two real estate funds, both of which were significantly oversubscribed. The $1.3 billion Ares European Real Estate Fund IV, which will target investments in residential, retail, office and industrial real estate located in the leading European markets including the U.K., Germany, and France, exceeded its initial target of $1 billion. The $824 million Ares US Real Estate Fund VIII, which will target value-add investments in income-producing property types such as multifamily, industrial, retail, hotel and office in major markets across the United States, exceeded its initial target of $750 million.
The Ares Real Estate Group is comprised of funds focused on opportunistic and value-add investing in both the U.S. and Europe and also includes a global debt investing business. The new funds will seek to continue the strong performance of the predecessor funds and apply the longstanding real estate investing expertise of the Ares Real Estate Group.
“The fact that both successor funds were oversubscribed demonstrates the confidence that existing and new investors of all types have in Ares Management, our respective investment teams as well as the prospects for both opportunistic and value-add real estate strategies,” said Michael Arougheti, President and Senior Partner of Ares Management. “Our investors are also relying on Ares to continue to be able to source proprietary investment opportunities by tapping into the power of our firm-wide platform.”
“The Ares European Real Estate team continues to be well positioned to meet the growing needs of our investors to find proven opportunistic investments through proprietary deal flow and we possess a long track record of successfully working with joint venture partners across Europe’s biggest markets,” said Bill Benjamin, Senior Partner of the Ares Real Estate Group. “We would like to thank our investors in prior funds as well as our new investors for their confidence in our consistent investment approach and discipline.”
“We appreciate the continued support of our existing investors and welcome several new partners as our U.S. Value-Add strategy has been successfully time-tested through several market cycles,” said Steven Wolf, Senior Partner of the Ares Real Estate Group. “We believe that the market fundamentals for value add real estate investing are very strong and that the additional insights on credit provided by the Ares platform position us well to generate attractive returns for our investors.”
Ares Management’s Real Estate Group manages a variety of public and private equity and debt strategies, with approximately $9.6 billion of assets under management as of September 30, 2014 on a pro forma basis including these two fund closings. The Group focuses on lending to and investing in properties that have been under-managed or need repositioning in core markets. The Group provides investors access to its capabilities through U.S. and European real estate private equity comingled funds, separately managed accounts and other fund types, as well as through its publicly traded commercial mortgage REIT, Ares Commercial Real Estate Corporation (NYSE: ACRE). ACRE is focused on direct lending on properties owned by commercial real estate sponsors and operators and, through a subsidiary, originates and services mortgage loans through a variety of U.S. Government-sponsored programs.
About Ares Management
Ares Management, L.P. (NYSE:ARES) is a leading global alternative asset manager with approximately $80 billion of assets under management and approximately 750 employees in more than 15 offices in the United States, Europe and Asia as of September 30, 2014. 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 four distinct but complementary investment groups in Tradable Credit, Direct Lending, 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.
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 our filings with the Securities and Exchange Commission. Ares Management, L.P. undertakes no duty to update any forward-looking statements made herein.
Carl G. Drake, CFA
Ares Management, L.P.