Ares Secures $5.4 Billion for Real Estate Value-Add Strategies

Event summary

  • Ares Management Corporation raised a combined $5.4 billion for U.S. and European value-add real estate strategies.
  • The U.S. fund (US XI) closed at its hard cap of $3.1 billion, with total capital raised reaching $3.5 billion including related vehicles.
  • The European fund (EPEP IV) secured $1.9 billion in total capital.
  • Ares Real Estate manages approximately $114 billion in assets under management as of December 31, 2025.
  • Ares Management Corporation has nearly $623 billion in assets under management globally as of December 31, 2025.

The big picture

Ares's successful fundraising demonstrates continued investor appetite for value-add real estate strategies, particularly in the U.S. and Europe, as markets begin to recover. The substantial capital commitment, combined with Ares's scale ($114 billion AUM), positions them to capitalize on perceived opportunities in supply-constrained sectors. This fundraising underscores the ongoing shift towards alternative investment vehicles for institutional investors seeking to diversify portfolios and generate yield.

What we're watching

Deployment Pace
The speed at which Ares deploys the $5.4 billion will indicate their confidence in current market conditions and their ability to source deals meeting their value-add criteria.
Sector Resilience
How Ares’s focus on ‘New Economy’ sectors like logistics and multifamily performs relative to other real estate segments will test the durability of their thematic investment approach.
Competition
Increased capital flowing into value-add real estate could intensify competition for deals, potentially impacting Ares’s ability to maintain its differentiated access to high-quality assets.