Ares Management Corp. raised €1.78 billion for its fifth European property fund at final close, surpassing its €1.25 billion target.
The alternative investment manager said Ares European Real Estate Fund V SCSp is the largest real estate private equity fund it has raised thus far. New and existing backers, including pension funds, insurers, sovereign wealth funds, endowments, asset managers, private banks and family offices, committed to the fund.
The fund invests in residential, office, industrial and mixed-use assets mainly in Germany, France, the U.K., Spain and other key markets in Europe.
Ares said about 40% of the fund's capital has already been deployed across nine investments, including the purchase of a seven-building office portfolio in Europe, the aggregation of a for-rent residential platform in Madrid and the acquisition of a mixed-use asset at 68 King William St. in the City of London.
