– Ares Management Corporation announced the final close of Pathfinder Fund III at $8.5 billion in LP commitments.
– The fund was oversubscribed and closed at its increased hard cap, significantly exceeding its $6.5 billion target and the $6.6 billion Pathfinder II fund raised in 2023.
– Pathfinder III completed its fundraising in less than six months after launching in January 2026.
– The fund represents the largest global asset-based finance (ABF) fund raised in the market to date.
– Approximately $4.0 billion of commitments in Pathfinder II were extended through a two-year reinvestment period.
– Including Pathfinder III and related transaction vehicles, Ares Alternative Credit’s Pathfinder closed-end strategy raised approximately $12.7 billion for ABF investments over the last nine months.
– Joel Holsinger, Co-Head of Alternative Credit at Ares, said: “The speed and size of this fundraise underscore our investors’ confidence in our team’s differentiated track record of sourcing and underwriting relative value investment opportunities in ABF.”
– Kevin Alexander, Co-Head of Alternative Credit at Ares, said: “Bolstered by market volatility as well as our team’s expanded capabilities across sectors, we are energized by the growing opportunity set across the ABF market.”
– Keith Ashton, Co-Head of Alternative Credit at Ares, said: “In addition to the value creation opportunity for our investors, this fundraise represents meaningful anticipated capital for charitable organizations through the Pathfinder family of funds’ innovative charitable pledge.”
– The Pathfinder family of funds is structured with a charitable commitment under which Ares and the portfolio managers pledge to donate at least 5–10% of carried interest profits to global health and education charities.
– The initiative has grown from eight founding signatories to 13 signatories since its launch.
