Ares Management Corporation has raised €1.5bn for its latest value-add European property fund. The alternative investment manager said the amount raised for Ares European Property Enhancement Partners III (EPEP III) exceeded the fund’s €1bn target and is more than twice the size of its 2016 predecessor fund. Ares said EPEP III – which received capital commitments from investors from Europe, the Americas, Asia, and the Middle East – was backed by investors including public pensions, sovereign wealth funds, insurance companies, foundations, family offices and private banks. The fund was backed by new and existing investors. As previously reported, EPEP III received capital commitments from the New Mexico State Investment Council, New York State Common Retirement Fund, and Illinois Municipal Retirement Fund.
EPEP III focuses on acquiring, income-producing assets that have the potential for value enhancement, invests across key property types in Europe, the manager said, adding that the fund has so far deployed over 30% to target logistics and residential assets. Seeing a rapidly evolving opportunity set driven by the start of a new business cycle and unprecedented changes in real estate user preferences fueled by the COVID-19 pandemic.