HedgeCo.Net — Ares Management has held the first close of its latest U.S. senior direct lending program with more than $8 billion of equity commitments, the firm said on its third-quarter earnings call on Thursday. The close combines Ares Senior Direct Lending Fund IV, its fourth closed-end U.S. senior direct lending fund, and Ares Senior Direct Lending Core, its first open-ended institutional product in the strategy.
Both vehicles launched about six months ago. Management said the combined first close already represents 80% of the target and is 60% larger than the prior vintage’s first close. Including anticipated fund-level leverage, the initial closings represent roughly $15 billion of total investable capital, and Ares expects additional closes this year with fundraising running through the first half of 2027.
A person familiar with the matter said Fund IV has secured almost $6 billion of equity and the Core vehicle more than $2 billion. The prior flagship ultimately surpassed $15 billion of equity commitments, a record for an institutional direct lending fund.
The close came as Ares reported $691 billion of assets under management, up 16% from a year earlier, $31 billion of gross capital raised in the quarter and management fees of $1.1 billion. Chief executive Michael Arougheti told analysts that concerns about private credit redemptions were getting too much attention, pointing to the fundraise as evidence of continued institutional demand. U.S. direct lending non-accruals edged down to 1.8% from 1.9%.
The pairing of a closed-end fund with an evergreen institutional vehicle reflects how large lenders are adapting to LPs that want continuous exposure to senior loans without re-underwriting a new vintage every few years. It also gives Ares more permanent capital to deploy as sponsors return to the market.