January 13, 2026
Finance

Ares Management Secures $7 Billion for Credit Secondaries Investment Initiative

Fundraising Success Highlights Ares' Strength in Credit Strategies and Expands Institutional Investor Base

Summary

Ares Management Corporation has successfully completed capital raising of approximately $7.1 billion for its Credit Secondaries strategy. This total includes the final closing of its first-ever Ares Credit Secondaries Fund (ACS), affiliated vehicles, and expected leverage. The ACS fund secured around $4 billion in limited partner equity, surpassing its initial $2 billion goal by doubling that target, marking Ares' most substantial inaugural institutional fundraising effort to date. The firm aims to build a diversified portfolio focused on senior secured, private-equity-backed, and floating-rate private credit assets through planned allocations to LP-led and continuation vehicle deals in partnership with asset managers.

Key Points

Ares Management raised about $7.1 billion for its Credit Secondaries strategy, including the final closing of its inaugural Ares Credit Secondaries Fund (ACS) and affiliated vehicles with leverage.
The ACS fund alone secured approximately $4 billion in limited partner equity, doubling its initial $2 billion target, making it Ares’ largest inaugural institutional fundraise.
The investment strategy focuses on building a diversified portfolio of primarily senior secured, private equity-backed, and floating-rate private credit portfolios via LP-led and continuation vehicle transactions.
The Credit Secondaries team at Ares combines multi-decade experience, a large dedicated team, and global scale, positioning them for disciplined investing with emphasis on diversification and protection against downside risk.

Ares Management Corporation announced it has successfully raised roughly $7.1 billion of capital designated for its Credit Secondaries strategy. This figure encompasses the culmination of fundraising efforts for the firm’s inaugural Ares Credit Secondaries Fund (ACS), related affiliated investment vehicles, as well as anticipated leverage arrangements. Notably, the ACS fund alone attracted approximately $4 billion in limited partner equity commitments, doubling its original $2 billion target and establishing it as Ares’ largest opening institutional fundraise.

The firm’s strategy via ACS is to create a diversified investment portfolio predominantly consisting of senior secured, private equity-backed, and floating-rate private credit opportunities. The approach entails targeting investments across limited partner-led transactions, continuation vehicles, and works in collaboration with other asset managers to execute these allocations.

Blair Jacobson, co-president of Ares, commented on the fundraising milestone, highlighting the firm’s first-mover advantage in the credit secondaries market. He emphasized the strength of the Ares platform and its broad capabilities. Jacobson noted the evolving liquidity requirements of investors and expressed the firm’s commitment to developing innovative general partner (GP) and limited partner (LP) solutions leveraging decades of investment expertise and extensive relationship networks.

Dave Schwartz, Head of Credit Secondaries at Ares, reflected on the successful final closing of ACS as evidence of the strategy’s market strength and leadership position. Schwartz pointed out that the initiative is supported by one of the largest dedicated teams focused on credit secondaries. He underscored Ares’ multi-decade experience in credit and secondaries investing combined with their global reach, allowing a disciplined investment process prioritizing diversification and downside protection.

Schwartz expressed enthusiasm about the sizable pipeline of opportunities in a market that is both rapidly growing and attractive, indicating plans to execute on current prospects.

The leadership team overseeing the Ares Credit Secondaries strategy includes partners Sebastien Burdel, Chrissy Lamont Svejnar, and Luca Salvato. This team operates under the umbrella of the Ares Secondaries Group, an entity with a proven investment track record spanning over 30 years across private equity, real estate, infrastructure, and credit sectors. As of September 30, 2025, the group managed $38 billion in assets.

At the firmwide level, Ares' global platform oversaw assets under management totaling over $595 billion, with operations spanning North America, South America, Europe, Asia Pacific, and the Middle East as of the same date.

This fundraise marks a significant development in the credit secondaries space, positioning Ares to capitalize on the increasing demand for liquidity solutions and opportunities in private credit markets. The firm’s scale, experience, and comprehensive platform underpin their ability to navigate complexities and deliver diversified exposure within the credit secondaries investment sphere.

Risks
  • The fund’s success depends on continued market demand for credit secondaries and liquidity solutions, which may be affected by evolving investor needs and market conditions.
  • Investment performance is subject to execution risks inherent in private credit and secondary market transactions, including accurate valuation and timely deal sourcing.
  • The strategy involves leveraging affiliated vehicles, which introduces financial risk related to borrowing and leverage management.
  • Market growth and opportunity pipeline assumptions may not materialize as expected, impacting the ability to deploy capital profitably and generate targeted returns.
Disclosure
Education only / not financial advice
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