Hong Kong-based asset manager Ares SSG has closed its third secured lending fund at more than $1.6 billion, making it twice as large as its predecessor fund, according to a statement.
This is Ares SSG’s eighth fund and also the largest pan-Asian secured lending fund to date, the firm said. DealStreetAsia had reported in July last year that Ares was targeting to raise $1.5 billion for the third lending fund.
Limited partners in the fund include international sovereign wealth funds, pension funds, and insurance companies. The Secured Lending Opportunities Fund II closed in 2017 at over $800 million.
Similar to the first two vehicles, Secured Lending Opportunities Fund III provides flexible capital solutions, primarily in the form of secured loans, in the Asia Pacific.
Ares SSG said it has already started investing from the third fund, which is approximately 27% deployed.
The asset manager has managed and invested in 12 Asia Pacific markets including China, India, Southeast Asia, South Korea, and Australia. The sectors it is involved in include real estate, financials, consumer retail, media, industrials, and resources.
“We believe the need for private credit solutions in Asia is becoming more pronounced than ever in the wake of the COVID-19 crisis. Many banks are becoming increasingly cautious on new lending,” said Edwin Wong, CEO and managing partner of Ares SSG, which currently has around $7.5 billion in assets under management
In July 2020, NYSE-listed Ares Management Corporation completed its acquisition of a controlling interest in Asia Pacific alternative asset manager SSG Capital Holdings to form Ares SSG.
Ares SSG this year acquired debt-ridden real estate financier Altico Capital India Ltd for Rs2,800 crore ($380 million).
Last September, the firm appointed John Knox, former CEO of Credit Suisse Australia, as chairman for its Australia and New Zealand business.
Also last year, Ares SSG was reported to plan investments of up to 15 billion baht ($456 million) in Thailand over the course of five years. Ares SSG had earlier invested in Thai asset management company Alpha Capital.
Alpha Capital is contemplating an IPO next year.