Ares Management Corporation closed a $7.1 billion capital raise for its new Credit Secondaries Fund (ACS), the largest dedicated institutional credit secondaries vehicle ever launched by a single manager. The fund secured $4 billion in limited‑partner equity commitments, effectively doubling the original $2 billion target and bringing the total capital, including affiliated vehicles and leverage, to $7.1 billion.
The ACS will invest in a diversified mix of senior‑secured, private‑equity‑backed, and floating‑rate private‑credit portfolios, targeting LP‑led and continuation‑vehicle transactions in partnership with leading asset managers. The structure allows Ares to capture fee‑related earnings from a rapidly expanding segment of the private credit market while leveraging its deep origination network and data‑driven investment approach.
Ares’ secondaries platform, which manages $38 billion of assets as of September 30 2025, has a 30‑year track record across private equity, real estate, infrastructure, and credit. The platform’s growth was accelerated by the 2021 acquisition of Landmark Partners and the launch of its first credit secondaries commingled fund in May 2023. Ares’ total assets under management reached $595 billion at the end of 2025, underscoring the scale of its diversified alternatives platform.
The fundraise is expected to boost Ares’ fee‑related earnings (FRE), which grew 39% year‑over‑year to $471.2 million in Q3 2025 and 26% year‑over‑year to $409.1 million in Q2 2025. By adding a dedicated institutional credit secondaries vehicle, Ares positions itself to capture a larger share of the fee stream that is projected to grow as the credit secondaries market expands beyond $50 billion in the next few years.
Blair Jacobson, co‑president of Ares, said the milestone underscores the firm’s early‑mover advantage in credit secondaries and the power of the Ares platform. “As investors’ liquidity needs evolve, we will continue to develop innovative GP and LP solutions,” he added. Dave Schwartz, head of credit secondaries, noted that the final closing of ACS reflects the strength and market leadership of the strategy, supported by one of the largest purpose‑built teams in the market and a significant pipeline in a rapidly growing opportunity.
The announcement signals Ares’ intent to deepen its presence in a high‑growth niche, strengthen its diversified alternatives offering, and reinforce its competitive edge against peers such as Coller Capital, Pantheon, and HarbourVest. The move aligns with broader market trends that favor liquidity solutions and capital recycling, positioning Ares to capture fee‑related earnings as the credit secondaries market continues to expand.
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