Ares Management Raises $5B for Infrastructure Debt Fund

Global alternative investment manager Ares Management Corp. raised about $5bn for its Infrastructure Debt Fund V (IDF V), which invests in the debt of infrastructure assets such as data centers, telecommunication towers, ports and utilities.

IDF V closed on December 29, 2022, including General Partner obligations and related transaction vehicles.

The new fund is the first infrastructure debt fund raised by the Los Angeles-based firm following its acquisition of the debt business of Sydney, Australia-based investment firm AMP Capital in February 2022.

“By adding the Infrastructure Debt strategy to the Ares platform, we have been able to provide our investors a meaningful opportunity to participate in the expanding infrastructure market,” said Michael Smith, Partner and Co-Head of the Ares Credit Group.

Ares has already invested about $2bn of the fund’s capital. The firm provided $1bn in sustainability-linked debt facilities to Virginia-based data center provider EdgeConneX.

Founded in 1997, Ares manages about $341bn in assets across real estate, infrastructure, credit, private equity and secondary funds.