Ares Management secures EUR 30 billion for European direct lending strategy

Ares Management Corporation a global alternative investment firm, has successfully closed its sixth European direct lending fund, Ares Capital Europe VI (ACE VI), surpassing its fundraising target and reaching its hard cap of €17.1 billion. This milestone makes ACE VI the largest institutional direct lending fund globally based on limited partner (LP) equity commitments.

The final fund size represents a substantial 53% increase from Ares’ previous fund, Ares Capital Europe V, which closed in 2021 at €11.1 billion. With related vehicles and anticipated leverage, Ares’ European Direct Lending strategy now boasts approximately €30 billion in available capital. Combined with its recent $33.6 billion capital raise for Senior Direct Lending Fund III (SDL III), Ares has secured an impressive $64.5 billion across both strategies, reinforcing its position as a global market leader in private credit.

Blair Jacobson, Partner and Co-Head of European Credit at Ares, highlighted the firm’s growing influence in the European lending market, stating, “The final closing of ACE VI underscores the strength of Ares’ European direct lending platform and the demand for flexible capital solutions. We are grateful to our investors for their continued trust in our approach.”

Michael Dennis, also a Partner and Co-Head of European Credit, emphasized the firm’s pan-European reach and expertise. “Our local presence across key European markets, combined with our deep sector knowledge and longstanding sponsor relationships, enables us to identify attractive investment opportunities with high-quality borrowers,” he said.

ACE VI is designed to provide flexible financing solutions to market-leading European companies across defensive sectors, targeting businesses with EBITDA exceeding €10 million. The fund primarily focuses on senior-secured positions to ensure capital preservation and reduce volatility. Since its launch, ACE VI has already committed approximately €6.4 billion across more than 50 investments.

Ares’ European Direct Lending strategy is supported by a robust team of approximately 90 investment professionals operating from key financial hubs, including London, Paris, Frankfurt, Stockholm, Amsterdam, and Madrid. As of September 30, 2024, the division managed over $74 billion in assets and has executed nearly 380 transactions totaling more than €70 billion since inception.

Looking ahead, Matt Theodorakis, Partner and Co-Head of European Direct Lending, expressed confidence in the firm’s ability to capitalize on emerging opportunities. “Our platform’s scale, experience, and innovative approach allow us to navigate market complexities while maintaining disciplined capital deployment and delivering value to our investors,” he noted.

The latest fundraising achievement further cements Ares’ reputation as a powerhouse in the global direct lending space, with its continued expansion reflecting strong investor appetite and growing demand for private credit solutions in Europe.