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Ares Management Raises $2.2B of Climate Infrastructure Capital

December 16, 2021, 07:52 AM
Filed Under: Private Equity News

Ares Management Corporation raised $2.2 billion of dedicated climate infrastructure capital, comprising its inaugural Ares Climate Infrastructure Partners Fund (“ACIP” or the “Fund”) with approximately $1.4 billion in total raised, and $800 million in related transaction vehicles.

Through ACIP, the Ares Infrastructure and Power team provides value-add and flexible capital financing solutions in the climate infrastructure space. The team focuses on supporting the development of high-quality assets and companies across the renewable energy, resource and energy efficiency, energy storage, vehicle electrification and transmission climate sectors. The Fund invests across the capital structure in equity, preferred equity and structured debt of assets and companies that, among other characteristics, are accelerating the transition to a low carbon economy.

Ares has a long and established track record in climate infrastructure with over $2 billion invested or committed since 2015. The Ares Infrastructure and Power team believes its robust sourcing networks, incumbent relationships, structuring expertise, portfolio management and extensive market knowledge are key differentiators for ACIP. The Fund is partnered with Aligned Climate Capital LLC, which provides a robust Environmental, Social and Governance (“ESG”) screening and reporting framework, as well as support in sourcing investments for the Fund. The deployment of the Fund is well underway with nearly 50% of ACIP’s capital already invested or committed.

“We appreciate the strong support and confidence from our global investor base as we continue to invest in climate infrastructure as a positive, proactive catalyst for the transition to a low carbon economy,” said Keith Derman, Partner and Co-Head of Ares Infrastructure and Power. “This is an asset class that has demonstrated resiliency across market cycles and is benefitting from significant tailwinds. With our innovative approach to structuring transactions and benefits from the Ares platform, we believe we are a partner of choice in one of the largest and fastest growing opportunity sets in the infrastructure market.”

“Our climate infrastructure strategy is focused on directly originating essential clean energy investments that have a positive impact on our communities,” said Andrew Pike, Partner and Co-Head of Ares Infrastructure and Power. “We have developed differentiated ESG capabilities that we believe provide meaningful value-add across the investment lifecycle. We are proud that our strategy provides the opportunity to align our clients’ investment objectives with their sustainability goals.”

ACIP attracted strong support from a broad and diverse group of investors from North America, Europe, Asia and the Middle East, with nearly 30% of its limited partners new to the Ares platform. ACIP’s global investor base comprises pension funds, sovereign wealth funds, insurance companies, ultra-high net worth individuals, family offices and funds-of-funds.

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