Ares Management raises $5.4 billion for real estate funds

NEW YORK - Ares Management Corporation (NYSE:ARES) closed two value-add real estate funds with approximately $5.4 billion in aggregate capital, including equity commitments and related transaction vehicles, according to a press release statement.

Ares US Real Estate Fund XI reached its increased hard cap of $3.1 billion. Including related transaction vehicles and general partner commitment, the U.S. value-add strategy raised approximately $3.5 billion of total capital. Ares European Property Enhancement Partners IV raised approximately $1.9 billion of total capital across equity commitments and related transaction vehicles.

The funds will invest in value-add real estate opportunities across markets in the U.S. and Europe, focusing on logistics, multifamily, self-storage and adjacent sectors. Both funds have deployed or identified approximately $1.1 billion of initial investments each.

"As real estate markets move into the early stages of recovery, our confidence is fueled by the increase in long-term structural demand across our high-conviction New Economy sectors," said Julie Solomon, Head of Ares Real Estate.

Ares Real Estate manages approximately $114 billion in assets as of December 31, 2025. The firm employs over 740 professionals across 38 offices in the Americas, Europe and Asia Pacific.

Ares Management Corporation had nearly $623 billion of assets under management as of December 31, 2025, with operations across North America, South America, Europe, Asia Pacific and the Middle East. The company, with a market capitalization of $34.9 billion, has seen its stock decline 33.7% year-to-date despite strong revenue growth of 44% over the last twelve months. According to InvestingPro analysis, the stock appears undervalued at current levels, placing it among opportunities on the platform’s most undervalued stocks list. InvestingPro subscribers can access the comprehensive Pro Research Report for ARES, along with 10+ additional ProTips including insights on the company’s 6-year dividend growth streak.

In other recent news, Ares Management Corp announced it expects to record approximately $75 million in realized net performance income for the first quarter of 2026, which is an increase from $41 million in the same quarter of 2025. However, this figure falls short of its earlier expectation of $100 million, primarily due to the timing of income recognition from certain European-style funds. Additionally, Ares Management has secured a $400 million term loan facility maturing in 2029, with Bank of America serving as the administrative agent. The loan carries a floating interest rate determined by the company’s senior long-term unsecured debt ratings.

In a related development, Citizens reiterated a Market Outperform rating for Ares Management, citing the strength of its alternative credit platform. Moreover, Ares Management closed an $850 million continuation vehicle for its investment in Convergint Technologies, with Leonard Green & Partners and Goldman Sachs Alternatives participating in the transaction. Meanwhile, the broader private credit industry faced scrutiny as BlackRock limited withdrawals from its corporate lending fund, affecting Ares Management and other private equity firms. These developments highlight Ares Management’s ongoing financial activities and strategic investments.

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