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New York-based Ares Management today said it has held the final fundraising round of Ares Pathfinder Fund II, and Ares Pathfinder Fund II (Offshore), netting $6.6 billion in commitments. 

The US firm is trying to acquire portfolios from banks that want to sell them to comply with higher capital requirements, as noted by Bloomberg (October 30). Such investing seeks to take advantage of changes wrought by tighter credit conditions.

The fund was oversubscribed and closed at its hard cap, which exceeded its $5 billion target and was about 80 per cent larger than the predecessor fund which had total commitments of $3.7 billion, the firm said in a statement.

Ares and Pathfinder’s portfolio managers have pledged to donate at least 5 to 10 per cent of the carried interest profits from the funds to global health and educational charities.

As of June 30, 2023, the Ares Alternative Credit strategy is one of the largest investors in asset-based credit, managing around $27.8 billion in assets under management, including the Pathfinder family of funds. As of June 30, 2023, Ares Management Corporation's global platform had approximately $378 billion of assets under management.