Ares Management raises $1.04bn

The LA-based alternative asset management firm closes its largest US real estate fund.

Ares Management has held a final close on approximately $1.04 billion for Ares US Real Estate Fund IX, slightly surpassing its $1 billion equity goal. It is the first US property vehicle Ares has launched and raised entirely, as the fund’s predecessor was started by AREA Property Partners, which Ares acquired in 2013.

Fund IX is primarily focused on investments in multifamily, industrial and office real estate across the US.

The fund’s limited partners included pension funds, insurance companies, sovereign wealth funds, endowments, non-profits, foundations, financial institutions, including a private banking platform and an asset manager, and family offices. Among them was the Pennsylvania Public School Employees’ Retirement System, the Texas Permanent School Fund and the City of Ocala General Employees’ Retirement System.

The fund is significantly larger than its predecessor, Fund VIII, which closed on $825 million in December 2014.