Ares Raises $5.4B for Value-Add Real Estate in U.S., Europe

Ares Management Corporation has raised approximately $5.4 billion in aggregate capital to pursue value-add real estate opportunities across high-conviction markets in the U.S. and Europe. 

The capital raise follows the final closes of Ares US Real Estate Fund XI and Ares European Property Enhancement Partners IV. The U.S. vehicle closed at its increased hard cap of $3.1 billion, bringing total capital to approximately $3.5 billion when including related vehicles and GP commitments. The European strategy raised about $1.9 billion across equity commitments and affiliated structures. 

The funds are focused on sectors benefiting from long-term structural demand, including logistics, multifamily, self-storage and adjacent “New Economy” segments. These asset classes have remained resilient amid shifting macro conditions, supported by e-commerce growth, housing shortages and evolving consumer behavior. 

To date, both funds have already deployed or identified roughly $1.1 billion in initial investments, reflecting an active pipeline as opportunities emerge in a repricing environment. 

“As real estate markets move into the early stages of recovery, our confidence is fueled by the increase in long-term structural demand across our high-conviction New Economy sectors,” said Julie Solomon, Head of Ares Real Estate. 

Ares Real Estate manages approximately $114 billion in assets, while the broader firm oversees nearly $623 billion globally across credit, private equity and real assets strategies.