Ares Management Corporation has closed its sixth European direct lending fund, Ares Capital Europe VI (ACE VI), securing €17.1bn in commitments and reaching its hard cap, according to a report by BusinessWire.
The fund surpassed its €15bn target.
According to Ares, ACE VI represents the largest institutional private credit fund to date, based on limited partner (LP) equity commitments.
This marks a significant 53% increase in LP commitments compared to its predecessor, Ares Capital Europe V, which closed at €11.1bn in 2021.
Including related vehicles and anticipated leverage, the total capital available for Ares’ European Direct Lending strategy is projected to reach approximately €30bn.
Combined with the previously announced $33.6bn raised for Senior Direct Lending Fund III (SDL III), Ares has now secured approximately $64.5bn across its SDL III and ACE VI strategies, further solidifying its position as a global market leader.
As of 30 September 2024, Ares’ European Direct Lending strategy includes approximately 90 investment professionals located across London, Paris, Frankfurt, Stockholm, Amsterdam, and Madrid.
The platform manages over $74bn in assets, including ACE VI commitments, and has completed nearly 380 investments totalling over €70bn since its inception.
ACE VI is focused on originating flexible financing solutions for leading European companies in defensive industries, targeting businesses with EBITDA exceeding €10m.
The fund prioritises senior-secured positions, capital preservation, low volatility, and a sole or lead lender role. To date, ACE VI has committed approximately €6.4bn across over 50 investments.
