Ares Management, L.P. (NYSE:ARES) announced today a $700 million commercial real estate debt mandate in the fourth quarter by a large North American specialty life insurer. Under this mandate, Ares will directly originate and service variable- and fixed-rate U.S. commercial mortgage loans across a variety of property types and maturities and it is expected to be complementary to the Ares Real Estate Group’s existing origination activities, including Ares Commercial Real Estate Corporation (NYSE:ACRE).
“This new mandate expands our capabilities in offering tailored lending solutions to owners and operators of commercial real estate,” said John Jardine, Senior Partner of the Ares Real Estate Group. “With our national, direct sourcing capabilities and deep structuring experience, we are well-positioned to construct a diversified portfolio of compelling commercial mortgage loans.”
“Today’s announcement is an important milestone in the continued growth of the Ares Real Estate Group,” said Todd Schuster, Senior Partner of the Ares Real Estate Group and Head of Ares Real Estate Debt. “The addition of this separately managed account in our debt business is a significant achievement in the continued expansion of the breadth and scale of our real estate products. This expansion has resulted in strong demand across both our debt and equity real estate businesses, including the recent closings of Ares European Real Estate Fund IV and Ares US Real Estate Fund VIII also in the fourth quarter of 2014.”
“We now have more than $5 billion of assets under management through direct investments from the insurance sector,” said David Reilly, Senior Partner of the Ares Business Development Group and Head of Ares Insurance Partners. “Our insights and proprietary products provide enhancements to insurers’ decision making in asset/liability management, capital allocation and risk management. Our capabilities are leading to significant growth in assets from insurers across our global corporate credit, structured credit and real estate debt platforms.”
About Ares Management
Ares is a leading global alternative asset manager with approximately $84 billion of assets under management and more than 15 offices in the United States, Europe and Asia as of September 30, 2014, pro forma for the previously announced acquisition of Energy Investors Funds. Since its inception in 1997, Ares has adhered to a disciplined investment philosophy that focuses on delivering strong risk-adjusted investment returns throughout market cycles. Ares believes each of its four distinct but complementary investment groups in Tradable Credit, Direct Lending, Private Equity and Real Estate is a market leader based on assets under management and investment performance. Ares was built upon the fundamental principle that each group benefits from being part of the greater whole. Visit www.aresmgmt.com for more information.
Forward Looking Statement
Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which relate to future events or future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Ares’ filings with the Securities and Exchange Commission. Ares’ undertakes no duty to update any forward-looking statements made herein.