Global alternative investment manager Ares Management Corporation (Ares) has held the final closing of Ares Pathfinder Fund II, and Ares Pathfinder Fund II (Offshore), with $6.6bn in capital commitments.
The fund was oversubscribed and closed at its hard cap, in excess of its $5bn target and was approximately 80% larger than the predecessor fund which had total commitments of $3.7bn. The fund’s final closing came only seven months after its first closing in March 2023.
According to Ares, Pathfinder II provides scaled solutions tailored to owners of large, diversified portfolios of assets that seek to generate resilient, contractual cash flows across market cycles. As of 30 June, 2023, the Ares Alternative Credit strategy is one of the largest investors in asset based credit managing approximately $27.8bn in assets under management, including the Pathfinder family of funds.
The Pathfinder family of funds also have a predefined structure of unique social impact purpose, with Ares and Pathfinder’s portfolio managers pledging to donate at least 5-10% of the carried interest profits from the funds to global health and educational charities.
Since inception in March 2021, the Ares Pathfinder family of funds have raised approximately $15bn in LP commitments with a charitable tie-in and the firm’s charitable pledge has already accrued over $13m of donations for charity based on performance as of 30 June, 2023. This translates into the potential to generate between $10m and $20m, respectively, for every $1bn of capital that earns a 1.5x to 2.0x multiple in the closed-end Pathfinder funds
