Ares Management Corporation (NYSE: ARES) is capitalizing on Asia’s restructuring wave with a new $2 billion+ fundraising push for its seventh Asia Special Situations Fund, according to Bloomberg News reports confirmed by multiple sources[1][25][36]. This move comes as the $1.3 trillion private credit market faces its first major test cycle since the 2008 financial crisis, with Asia-Pacific distressed debt volumes reaching $58.7 billion in 2024 according to Preqin data[46]. The Los Angeles-based alternatives giant has deployed $4.2 billion across six Asia special situations vehicles since entering the market through its 2020 SSG Capital acquisition[4][42], with Fund VI closing at $2.4 billion in November 2023[3][70].
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Strategic Imperatives for Asia Expansion
Building on SSG Integration
Ares’ Asia credit platform now spans 65 investment professionals across nine offices following its $600 million acquisition of SSG Capital[42][66]. The integration created a unique “special situations factory” combining SSG’s restructuring expertise with Ares’ global distribution – APAC assets under management grew 184% to $11.9 billion since 2020[74][75]. “Our on-the-ground presence in Jakarta, Seoul, and Mumbai gives us first look at complex situations before they hit the radar of global funds,” noted Parag Gupta, Managing Director of APAC Credit[43].
Macroeconomic Tailwinds
With China’s property sector defaults exceeding $115 billion and India’s NPA ratio at 5.2% as of Q1 2025[46], Ares is positioning itself as a liquidity provider. The fund will target three core opportunities:
| Segment | Target IRR | Deal Examples |
|---|---|---|
| Distressed Real Estate | 18-22% | Chinese commercial property recapitalizations |
| Corporate Restructurings | 20-25% | Indian infrastructure SPV debt-for-equity swaps |
| Cross-Border Special Sits | 25%+ | Southeast Asian export biz supply chain financing |
Fund Structure & Investor Profile
Vehicle Architecture
The Cayman-domiciled fund follows Ares’ successful $2.4 billion Fund VI structure[69], featuring:
- 6-year closed-end period with 2-year extensions
- 1.5% management fee on committed capital
- 15% carried interest above 8% hurdle rate
LP Composition
Early commitments suggest a diversified base:
- 40% North American public pensions
- 25% Middle East SWFs
- 20% European insurers
- 15% Asian family offices
Competitive Landscape
Direct Competitors
| Firm | Asia AUM | Recent Fundraise |
|---|---|---|
| KKR | $15B | $3B Asia Credit Fund IV (2024) |
| Bain Capital | $9B | $1.8B Special Sits II (2025) |
| PAG | $12B | $2.5B Distressed Opps Fund (2023) |
Risk Factors
Regulatory Challenges
Recent developments complicate cross-border deals:
- China’s State-Owned Enterprise Investment Ban (2024)
- India’s Foreign Exchange Management Act amendments
- ASEAN cross-border insolvency protocol delays
Conclusion & Recommendations
Ares’ latest fund positions it to capitalize on Asia’s $400 billion NPL opportunity through 2027[46]. For institutional investors:
- Consider co-investment rights in top-quartile deals
- Monitor RMB hedging costs currently at 220bps
- Evaluate secondary market exits via new Singapore EXIM platform
Sources
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