Ares Management has held a final close on its €6.5bn hard-cap for its fourth European direct lending fund, Ares Capital Europe IV (Ace IV).
The final close comes within six months of its launch, with the fund surpassing its initial target of €4.5bn. According to Ares, the final close on €6.5bn makes Ace IV fund the largest European direct lending fund raised to date.
Predecessor fund Ares Capital Europe III held its final close in May 2016 at €2.5bn.
Along with anticipated leverage, the total available capital for Ace IV will be approximately €10bn.
Around 125 investors committed to Ace IV, including 59 new investors. Around 70% of commitments were re-upped from existing investors. The group of global investors included pension funds, insurance companies, sovereign wealth funds, endowments, a private banking platform and family offices.
The fund will continue Ares' strategy of providing capital to mid-market companies across Europe. In addition, Ace IV will be the first Ares European direct lending fund to offer an unleveraged sleeve in the structure.
Ares Management – Kipp deVeer (partner, head of the Ares Credit Group); Michael Dennis, Blair Jacobson (partners).
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