Ares Management Corporation Raises $2.2 Billion of Climate Infrastructure Capital – EQ Mag Pro
Final Fund Closing and Related Vehicles Reinforce Ares’ Commitment to Accelerating the Transition to a Low Carbon Economy
LOS ANGELES : Ares Management Corporation (“Ares”) (NYSE: ARES), a leading global alternative investment manager, announced today that it has raised $2.2 billion of dedicated climate infrastructure capital, comprising its inaugural Ares Climate Infrastructure Partners Fund (“ACIP” or the “Fund”) with approximately $1.4 billion in total raised, and $800 million in related transaction vehicles.
Through ACIP, the Ares Infrastructure and Power team provides value-add and flexible capital financing solutions in the climate infrastructure space. The team focuses on supporting the development of high-quality assets and companies across the renewable energy, resource and energy efficiency, energy storage, vehicle electrification and transmission climate sectors. The Fund invests across the capital structure in equity, preferred equity and structured debt of assets and companies that, among other characteristics, are accelerating the transition to a low carbon economy.
Ares has a long and established track record in climate infrastructure with over $2 billion invested or committed since 2015. The Ares Infrastructure and Power team believes its robust sourcing networks, incumbent relationships, structuring expertise, portfolio management and extensive market knowledge are key differentiators for ACIP. The Fund is partnered with Aligned Climate Capital LLC (“Aligned”), which provides a robust Environmental, Social and Governance (“ESG”) screening and reporting framework, as well as support in sourcing investments for the Fund. The deployment of the Fund is well underway with nearly 50% of ACIP’s capital already invested or committed.
“We appreciate the strong support and confidence from our global investor base as we continue to invest in climate infrastructure as a positive, proactive catalyst for the transition to a low carbon economy,” said Keith Derman, Partner and Co-Head of Ares Infrastructure and Power. “This is an asset class that has demonstrated resiliency across market cycles and is benefitting from significant tailwinds. With our innovative approach to structuring transactions and benefits from the Ares platform, we believe we are a partner of choice in one of the largest and fastest growing opportunity sets in the infrastructure market.”
“Our climate infrastructure strategy is focused on directly originating essential clean energy investments that have a positive impact on our communities,” said Andrew Pike, Partner and Co-Head of Ares Infrastructure and Power. “We have developed differentiated ESG capabilities that we believe provide meaningful value-add across the investment lifecycle. We are proud that our strategy provides the opportunity to align our clients’ investment objectives with their sustainability goals.”
ACIP attracted strong support from a broad and diverse group of investors from North America, Europe, Asia and the Middle East, with nearly 30% of its limited partners new to the Ares platform. ACIP’s global investor base comprises pension funds, sovereign wealth funds, insurance companies, ultra-high net worth individuals, family offices and funds-of-funds.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, private equity, real estate and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of September 30, 2021, Ares Management Corporation’s global platform had approximately $282 billion of assets under management, with approximately 2,000 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com. Follow Ares on Twitter @Ares_Management.
Ares Infrastructure and Power
Ares Infrastructure and Power has nearly 30 investment professionals with an average of 25 years of experience at the senior level. The team has deep domain experience and has deployed over $9 billion of capital in more than 250 different infrastructure and power assets and companies as of September 30, 2021.
About Aligned Climate Capital
Aligned Climate Capital LLC is an asset manager investing exclusively in the people, companies, and real assets that are decarbonizing the global economy. Founded in 2019, Aligned is a dynamic and mission-driven firm that believes that decarbonization is a unique opportunity to generate strong financial returns, while also achieving meaningful environmental and social impact. The team works at the intersection of finance, technology, and public policy with a particular focus on ESG metrics.