Ares Management Corporation, a global alternative investment manager, announced the final closing of its Ares U.S. Real Estate Opportunity Fund III LP. The fund, which targets distressed, repositioned and selective development opportunities, was oversubscribed with approximately $1.7 billion of commitments compared to its $1.5 billion target. This marks the largest U.S. real estate equity fundraise for Ares to date and is a significant increase from the $1 billion of commitments raised for the predecessor fund and related vehicles.

Ares’ U.S. opportunistic real estate strategy draws on the team’s experience of investing across market cycles and sectors, and seeks to generate differentiated investment opportunities for investors. The fund has already capitalized on market opportunities post-COVID with nine investments committed to date.

The investment activity in a period of market dislocation demonstrates the advantages of the fund’s distinct strategy and proprietary sourcing capability through longstanding relationships. Additionally, the fund is positioned with ample dry powder to deploy toward opportunities as they arise.

“Our investors recognize the importance of being aligned with a cycle-tested team that can effectively capitalize on the current market opportunity,” said Bill Benjamin, partner and head of the Ares Real Estate Group.