Ares Credit Secondaries Fund Closes at $7.1 Billion, Surpassing Target

Event summary

  • Ares Management Corporation raised $7.1 billion for its inaugural Ares Credit Secondaries Fund (ACS), including leverage.
  • The fund secured $4 billion in limited partner (LP) equity commitments, doubling its initial $2 billion target.
  • ACS is reportedly the largest dedicated institutional credit secondaries fund globally by LP equity commitments.
  • The Credit Secondaries strategy is led by Blair Jacobson, Dave Schwartz, Sebastien Burdel, Chrissy Lamont Svejnar and Luca Salvato.
  • Ares manages over $595 billion in assets as of September 30, 2025, with $38 billion in assets managed by the Secondaries Group.

The big picture

The oversubscribed ACS fundraise highlights the growing appetite for credit secondaries strategies, which offer a way to access private credit portfolios at potentially discounted prices. Ares’ early-mover advantage and established relationships are key differentiators, but the fund’s scale necessitates careful portfolio construction and risk management. This success reinforces Ares’ position as a major player in the alternative investment landscape, but also increases scrutiny of its ability to deliver on its ambitious mandate.

What we're watching

Market Dynamics
The rapid growth of credit secondaries suggests increasing liquidity needs among private credit LPs, potentially driven by macroeconomic uncertainty and a desire to rebalance portfolios.
Competitive Landscape
Ares' success will likely spur increased competition in the credit secondaries space, potentially compressing spreads and increasing deal complexity.
Execution Risk
The fund's size and leverage introduce execution risk; Ares will need to demonstrate its ability to deploy capital effectively and generate returns in a competitive environment.