Ares Management, a leading global alternative investment manager, announced the final closing of its sixth commingled European direct lending fund, Ares Capital Europe VI (ACE VI). And with total commitments of €17.1 billion, the fund closed above its €15 billion target and reached its hard cap. Ares believes ACE VI is the largest institutional fund in the global direct lending market based on LP equity commitments.
The final Fund size represents an approximate 53% increase in LP commitments relative to its predecessor fund, Ares Capital Europe V, which closed in 2021 at its €11.1 billion hard cap. Including related vehicles and anticipated leverage, the total capital available for the Ares European Direct Lending strategy is expected to be approximately €30 billion.
Combined with the previously announced $33.6 billion of total capital raised for its Senior Direct Lending Fund III (SDL III), inclusive of related vehicles and anticipated leverage, Ares has closed on approximately $64.5 billion across its SDL III and ACE VI strategies – cementing its global market leadership.
Ares’ European Direct Lending strategy comprises about 90 investment professionals across London, Paris, Frankfurt, Stockholm, Amsterdam, and Madrid as of September 30, 2024, and manages over $74 billion in assets, including the ACE VI commitments. Since launching, the European Direct Lending business has completed nearly 380 investments totaling over €70 billion. ACE VI seeks to self-originate flexible financing solutions for high-quality and market-leading European companies in defensive industries with EBITDA over €10 million. The Fund targets senior-secured weighting and focuses on capital preservation, a sole or lead lender position, and low volatility. ACE VI has already deployed significant capital, committing roughly €6.4 billion across over 50 investments.
KEY QUOTES:
“The final closing of ACE VI underscores the strength of Ares’ European direct lending platform as well as the strong demand from borrowers for flexible capital solutions. We thank our existing and new investors for their confidence in our longstanding and differentiated strategy.”
– Blair Jacobson, Partner and Co-Head of European Credit
“Over the past 18 years, we have continued to demonstrate our market leadership through our local pan-European approach. Our team’s deep regional and sector experience, alongside our longstanding sponsor and partner relationships, enable us to originate significant opportunities with high-quality borrowers.”
– Michael Dennis, Partner and Co-Head of European Credit
“Our platform provides the scale, experience and innovation to identify new opportunities and navigate unexpected challenges, and our team is eager to continue building on our track record of success. We remain committed to the structuring discipline and selective capital deployment that have enabled our business to thrive throughout cycles.”
– Matt Theodorakis, Partner and Co-Head of European Direct Lending at Ares
