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Ares Management has hit a target-beating $1.7bn final close for its biggest real estate opportunity fund yet.
The firm was hoping to collect $1.5bn for Ares US Real Estate Opportunity Fund III, already a significant rise on the $1bn it gathered for Fund II and related vehicles.
Ares said it had already capitalised on what it believes is an attractive market opportunity “post-Covid-19” with nine investments committed to date.
David Roth, head of US real estate private equity at the firm, said, “We have been able to draw on our team’s deep market coverage, longstanding relationships and ability to navigate shifting market dynamics, and the experience of our US real estate equity Partners Jay Glaubach, Andrew Holm and Howard Huang, in an effort to source differentiated investment opportunities.
Ares closes latest real estate fund at $1.7 billion
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Ares Management Corp. closed Ares U.S. Real Estate Opportunity Fund III at $1.7 billion, exceeding its fundraising target, the firm said Tuesday in news release.
The target for the firm s latest real estate fund was $1.5 billion with a $2 billion hard cap, according to a report to the board of the $215 million Plymouth County (Mass.) Retirement Association.
The fund is 70% larger than the $1 billion that was raised by its predecessor fund in 2015. It has already made nine investments. The fund s investments are expected to include distressed investments, properties that are being repositioned and some development.