Alternative investment firm Ares SSG said Friday it has secured capital commitments of more than $1.6 billion for its third secured lending fund, making it one of the largest pan-Asian secured credit vehicles.
This is Ares SSG’s eighth fund and attracted international institutional investors, including sovereign wealth funds, pension funds and insurance companies. The fund is twice the size of its predecessor that raised just over $800 million in 2017.
The firm said the new fund will follow the same investment strategy as its two predecessor funds, providing flexible capital solutions, primarily in the form of secured loans. Ares SSG has already started investing from the fund and has deployed about 27% of the capital to date.
“We believe the need for private credit solutions in Asia is becoming greater than ever in the wake of the COVID-19 crisis,” said Edwin Wong, CEO and managing partner of Ares SSG.
“Many banks are becoming increasingly cautious on new lending, and we believe we are well-positioned as an alternative investment manager to finance growth opportunities within the fund,” he added.
Ares SSG, previously known as SSG Capital, was founded in 2009. Since then, it has managed and invested in 12 Asia-Pacific markets including China, India, Southeast Asia, South Korea and Australia across sectors including real estate, financials, consumer retail, media, industrials and resources.
It is one of the largest alternative asset managers in Asia-Pacific with around $7.5 billion in assets under management, more than 85 employees and over 120 direct institutional investors as of June 30, 2021.
Ares SSG makes credit, private equity and special situations investments. It is a subsidiary of Ares Management Corporation, a NYSE-listed global alternative investment manager.
Ares Management had about $262 billion of assets under management globally as of June 30, 2021. It has about 2,000 employees across North America, Europe, Asia Pacific and the Middle East.
Another Asian alternative investment firm that is active in India is Baring PE Asia. Its India-focused credit team is raising $500 million for a new debt fund in addition to a co-investment vehicle.