Ares Management closed its latest U.S. real estate fund with $1.8 billion, which made the fund more than 75% larger than its predecessor fund that closed at $1.04 billion in November 2018.
The overall Ares Real Estate portfolio totals $50 billion and 220 investment professionals. The unit’s investment approach is across equity and debt strategies focused on major property types that have value creation opportunities in liquid markets with diversified economies.
“We are confident in our ability to continue driving compelling risk-adjusted returns for our investors through the combination of our team’s deep market and sector coverage and a disciplined, cycle-tested approach to investing in attractive sectors, such as multifamily and industrial,” said David Roth, partner and co-head of Ares U.S. Real Estate.
The Ares U.S. Real Estate Fund X is part of the $334 billion firm’s U.S. value-add strategy that applies a cycle-tested approach to investing in “high-quality” real estate assets with in-place cash flows and defined opportunities to enhance property values. The portfolio includes multifamily and industrial properties.
The fund’s initial assets are focused on durable sectors and markets that stand to benefit from long-standing secular trends, said Howard Huang, partner and CIO of Diversified U.S. Equity at Ares.
“We look forward to building a diverse portfolio that delivers current income to our investors while implementing longer-term value-add enhancements to our properties,” he added in a statement.
