Ares Management Corp. has closed its latest credit secondaries fund with $7.1 billion in commitments, reflecting strong investor interest in secondary market strategies for private credit assets. The raise underscores ongoing momentum in the credit secondaries sector as institutional investors seek liquidity and diversification.
- Ares Management Corp. raised $7.1 billion for its latest credit secondaries fund in early 2026.
- The fund attracted commitments from major institutional investors including pension funds and sovereign wealth funds.
- This marks a notable increase from Ares’ prior $5.4 billion secondaries fund launched in 2023.
- Over 85% of capital was committed before official launch, indicating strong investor demand.
- Secondaries activity is surging due to liquidity needs, risk mitigation, and slowing primary issuance.
- Capital will be deployed across leveraged loans, mezzanine debt, and distressed credit over the next two years.
Ares Management Corp. has successfully raised $7.1 billion for its newest credit secondaries fund, marking one of the largest single raises in the segment during 2026. The capital was sourced from a broad base of institutional investors, including pension funds, sovereign wealth funds, and insurance companies across North America and Europe. This fund will focus on acquiring existing private credit investments from financial institutions and other holders, providing an alternative to primary market exposure. The $7.1 billion figure highlights the sustained demand for credit secondaries, a niche but rapidly growing segment where investors buy portfolios of pre-existing credit positions rather than originate new ones. In recent years, asset managers have increasingly turned to secondaries to meet investor appetite for private credit while managing risk and improving portfolio liquidity. Ares' ability to close such a large fund confirms the strength of this trend, particularly as global markets remain volatile and regulatory scrutiny intensifies on unregulated private assets. This latest fund’s size represents a significant increase from Ares’ previous credit secondaries vehicle, which raised $5.4 billion in 2023. The growth in target size reflects rising confidence in the sector’s long-term viability and the increasing sophistication of investor strategies in private credit. With approximately 85% of the fund's capital already committed before launch, the fundraising process was completed in under two months—a testament to robust market demand. Market participants say the surge in secondaries activity is also driven by the need to de-risk balance sheets amid tightening credit conditions. As primary issuance slows, sellers are more willing to exit positions at competitive valuations, creating opportunities for buyers like Ares. The firm plans to deploy capital over the next 18 to 24 months across diversified credit strategies, including leveraged loans, mezzanine debt, and distressed credit. The outcome benefits not only Ares but also the broader ecosystem of private credit, including originators, service providers, and end investors seeking stable returns in uncertain environments.