Ares Management Corporation (NYSE: ARES), a global alternative investment manager, has launched the Ares Private Markets Fund, a continuously offered non-traded closed-end fund that plans to invest in private equity and other private assets principally through the secondary market, and to a lesser degree, primary fund investments and direct co-investments.
The Ares Private Markets Fund will be available to high net worth retail investors through registered investment advisors and financial advisors across the U.S.
“We are excited to announce our latest fund, which provides individual investors access to fund investments from many leading private equity sponsors,” said Michael Arougheti, Ares’ chief executive officer and president. “Through the fund and the strength of our global alternative investment platform, we believe we are well positioned to address the growing retail demand for attractive alternative products in today’s market environment.”
The fund launched with more than $250 million in initial capital, including investments from two institutional investors, as well as a $75 million investment directly from Ares.
Francisco Borges, partner and co-head of Ares’ Secondary Solutions Group, said that his team is “ideally positioned” to lead the investment focus for the fund. Through Landmark Partners, Ares’ Secondary Solutions Group has a 30-year track record of purchasing secondary private fund ownership stakes and has $22.1 billion in assets under management, as of the fourth quarter of 2021.
According to the prospectus, the fund offers three share classes – Class A, Class D and Class I shares – priced at the current net asset value per share with different fees and expenses. The minimum investment is $25,000 for Class A and Class D shares, and $1 million for Class I shares.
Class A shares have a 3.5 percent maximum sales load and a 0.85 percent distribution and servicing fee.
Class D shares have no sales load and a 0.25 percent distribution and servicing fee.
Class I shares have no sales load or distribution and servicing fee.
All classes have an annual advisor fee of 1.40 percent, based on value of the fund’s managed assets, which has been temporarily reduced to an annual rate of 0.25 percent until March 31, 2023.
Ares Capital Management II LLC serves as the fund’s investment adviser, and Ares Wealth Management Solutions as the distributor.
The Ares Private Markets Fund intends to invest in a portfolio of private equity fund stakes backed by private equity sponsors in both the U.S. and Europe. Ares Management Corporation (NYSE: ARES) is a global alternative investment manager with approximately $314 billion of AUM.