Ares rakes in USD 2.2bn for climate investments

Ares Management Corp (NYSE:ARES) has raised USD 2.2 billion (EUR 1.9bn) to invest in climate infrastructure, the alternative investment manager said on Thursday.

The fundraising includes the firm’s inaugural Ares Climate Infrastructure Partners Fund (ACIP) with a final closing of USD 1.4 billion, and USD 800 million in related transaction vehicles.

The fund targets assets and companies that speed up the move to a low-carbon economy within the renewable energy, resource and energy efficiency, energy storage, vehicle electrification and transmission sectors, investing in equity, preferred equity and structured debt.

“This is an asset class that has demonstrated resiliency across market cycles and is benefitting from significant tailwinds,” Keith Derman, partner and co-head of Ares Infrastructure and Power, said of climate infrastructure.

Nearly half of ACIP's capital has already been invested or committed. The fund was backed by investors from around the globe, including pension funds, sovereign wealth funds, insurance companies, ultra-high net worth individuals, family offices and funds-of-funds.

ACIP is collaborating with Aligned Climate Capital LLC, which provides environmental, social and governance (ESG) screening and reporting framework. Aligned also helps with sourcing investments for the fund.

(USD 1 = EUR 0.882)

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