In brief: Ares markets $5bn philanthropy-related credit fund

Ares Management, one of the market’s top private debt investors, has unveiled a second Pathfinder offering geared to asset-based opportunities.

Ares Pathfinder II Fund is expected to reach a size of $5 billion, according to a report by New Mexico State Investment Council. A first closing is anticipated “on or around” March 2023.

Fund II is slated to be bigger than Ares’ debut vehicle. At $5 billion, it would be 35 percent larger than Pathfinder I, closed two years ago on $3.7 billion.

A key aspect of the debut Pathfinder fund was its social impact pledge, with Ares committing to donate at least 10 percent of the vehicle’s carried interest profits to global health and education charities. While this was not referenced in the NMSIC report, Fund II is expected to take a similar approach.