Ares Management closed its latest debt fund with $5 billion in committed capital focused on investments within the global digital, utilities, renewables, energy and transportation sectors.
Officials said that Infrastructure Debt Fund V (IDF V) is thought to be the largest global infrastructure subordinated debt fund ever raised.
“Our investors’ confidence and trust reflects the strength of the Ares Infrastructure Debt strategy, which is backed by our global team with a long track record supported by the increasing capital demands for infrastructure debt,” said Patrick Trears, partner and global head of Ares Infrastructure Debt.
Investor demand for infrastructure debt is on the rise. Barings, for instance, announced roughly $3.4 billion in infrastructure debt investments over an 18-month period last year with a focus on investments in North America and Europe.
At Ares, its 25-strong investment team is seated across the U.S., Europe, Australia and Asia, boasting deep local relationship networks that provide robust direct origination and high-quality deal flow capabilities. The infrastructure debt team’s track record totals $10.4 billion in investments across more than 60 assets since 2011.
Trears added, “As a result of the growth in the infrastructure sector, I believe that we can drive attractive risk-adjusted returns for our investors as the infrastructure asset class demonstrates low volatility and consistent returns.”
Through IDF V, the team to date has invested or committed roughly $2 billion or 40% of the fund’s investable capital base. These investments include structured sustainability-linked debt facilities, which underscores Ares’ commitment to responsible investment and ESG integration across its platform.
“As a leader in private credit and infrastructure debt, we seek to provide one-stop financing solutions for essential infrastructure projects and companies,” said Michael Smith, partner and co-head of the Ares Credit Group. “Our scale and flexibility have allowed us to create sustainable, long-term partnerships across the world, further enhancing the value we can provide our investors.”
