Ares Management has raised approximately $1.5 billion for its dedicated specialty healthcare strategy under Ares Direct Lending, marking the final close of the inaugural Ares Specialty Healthcare Fund (ASH). The total includes anticipated leverage and represents a significant expansion of Ares’ investment activity across the healthcare sector.
The fund aims to support both sponsored and non-sponsored specialty healthcare companies through flexible capital solutions, including directly originated first-lien, second-lien, mezzanine, preferred equity, and non-control equity investments. Ares plans to deploy capital across public and private companies globally, concentrating on five healthcare sub-sectors: pharmaceuticals and biotechnology, medical technologies, tools and diagnostics, specialty services, and healthcare IT.
The ASH platform is supported by an 11-member investment team and a 12-member Industry Advisory Board, comprised of senior healthcare executives who provide strategic insight and operational expertise. The firm intends to leverage its scale and experience to back businesses across all stages of growth and transformation.
Ares has already invested in 28 portfolio companies through ASH, building a diverse pipeline of opportunities amid growing demand for flexible credit and equity structures. The fund also benefits from the scale and institutional knowledge of Ares’ broader Direct Lending platform, which includes more than 390 investment professionals and over two decades of experience investing in healthcare. As of June 30, 2025, Ares had deployed roughly $56 billion in the healthcare sector.
Founded on its position as a leading alternative investment manager, Ares Management Corporation oversees more than $572 billion in assets under management across credit, real estate, private equity, and infrastructure strategies. Its collaborative investment approach focuses on providing long-term, flexible capital that drives value for both portfolio companies and investors.
KEY QUOTES:
“The final close of our inaugural ASH fund reflects the strength of our dedicated and tenured team, the depth of our healthcare industry experience and our demonstrated ability to provide creative capital solutions to meet the needs of businesses in an evolving market. As a scaled manager with longstanding relationships across both the financial sponsor and the healthcare markets, Ares is well positioned to support private and public companies through various stages of growth and transformation. We appreciate the strong support and confidence from our global investor base.”
Douglas Dieter, Dr.P.H., Co-Head of Ares Specialty Healthcare
“Specialty healthcare continues to benefit from secular tailwinds that are driving robust origination activity and the need for capital formation. As we look to capitalize on these compelling growth dynamics, we continue to leverage the scale and track record of Ares’ leading Direct Lending platform to source proprietary deal flow. Importantly, we remain steadfast in our credit-first investment approach—selectively investing in opportunities that align with our focus on building a diversified portfolio of high-quality businesses. We are pleased to have made investments in 28 portfolio companies to date, and we look forward to the exciting opportunities ahead.”
Raj Chudgar, Co-Head of Ares Specialty Healthcare
