Ares nears completion of record $32.7b direct-lending fund

The news: Alternative investment manager, Ares Management Group, is close to finalising what will become the largest direct-lending fund to date, according to a report from Bloomberg.

The numbers: The fund is reportedly raising €15 billion ($24.5 billion) from investors and an additional €5 billion of leveraged funds. The fund is set to be €5 billion larger than its previous total package of €15 billion.

The context: Ares’ new fund, called Ares Capital Europe VI, will target European lending opportunities. The booming private credit market continues to attract investors as traditional lending providers remain cautious as a result of high interest rates and economic uncertainty.