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Ares' latest fund closes above target at $4.7B

by Taina Rosa  |  Published August 22, 2012 at 3:52 PM
Ares Management LLC said Wednesday, Aug. 22, it made a final closing on its $4.7 billion Ares Corporate Opportunities Fund IV LP, surpassing its initial target of $4 billion.

Los Angeles-based Ares is a global alternative asset manager with about $54 billion of committed capital under management and some 520 employees. Ares has dedicated teams in private equity, private debt and capital markets.

The new fund, which raised 35% more than its predecessor fund, will pursue majority or shared-control investments, principally in middle-market companies.

The successful fundraising is in line with trends seen during the second quarter of 2012. According to a research report from the Private Equity Growth Capital Council, private equity funds raised $42 billion in the second quarter of 2012, up 106% from the $20 billion raised the previous quarter.

Ares' private equity group, led by David Kaplan and Bennett Rosenthal, manages about $6 billion of committed capital through three private equity funds -- Ares Corporate Opportunities Fund LP (2003), Ares Corporate Opportunities Fund II LP (2006) and Ares Corporate Opportunities Fund III LP (2008).

"We greatly appreciate the tremendous support of our limited partners," Kaplan said in a statement. "We believe their participation is reflective of their confidence in the strength of the Ares investment platform, the Ares Private Equity team and our expertise in the growth of middle market companies."

Added Rosenthal: "We believe our proven investment discipline, ability to invest during all market cycles and consistent strong performance track record has been especially attractive to our limited partners in meeting their investment expectations."

The partners were not available for comment.

Ares' private equity funds have been performing well, according to information from limited partner California Public Employees' Retirement System, which has invested in all four Ares private equity funds raised up to now.

Data show that as of December 2011, CalPERS's net internal rate of return from ACOF I, to which it committed $100 million, is 13.1%. Net IRR for ACOF II, to which it committed $200 million, is 13.1%. ACOF III, to which CalPERS committed $400 million, is providing net IRR of 25.5%.

It is not known how much CalPERS has committed to the fourth fund.

New York State Common Retirement Fund notes on its website that it committed $150 million to the new fund. It had already committed $100 million to Ares' third fund.
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Tags: Ares Corporate Opportunities Fund II LP | Ares Corporate Opportunities Fund III LP | Ares Corporate Opportunities Fund IV LP | Ares Corporate Opportunities Fund LP | Ares Management LLC | Bennett Rosenthal | California Public Employees' Retirement System | CalPERS | David Kaplan | New York State Common Retirement Fund | Private Equity Growth Capital Council

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Taina Rosa

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