Global alternative investment manager Ares Management Corporation announced today that it has raised $2.2 billion for investments in climate infrastructure capital, including $1.4 billion through the final close of its inaugural Ares Climate Infrastructure Partners Fund (ACIP), and another $800 million in related transaction vehicles.
According to Ares, ACIP attracted support from a broad and diverse group of investors across North America, Europe, Asia and the Middle East. Nearly 30% of the limited partners are new to the Ares platform.
Keith Derman, Partner and Co-Head of Ares Infrastructure and Power, said:
“We appreciate the strong support and confidence from our global investor base as we continue to invest in climate infrastructure as a positive, proactive catalyst for the transition to a low carbon economy. This is an asset class that has demonstrated resiliency across market cycles and is benefitting from significant tailwinds. With our innovative approach to structuring transactions and benefits from the Ares platform, we believe we are a partner of choice in one of the largest and fastest growing opportunity sets in the infrastructure market.”
ACIP invests in assets and companies that accelerate the transition to a low carbon economy, across the capital structure including equity, preferred equity and structured debt. Areas of investment include renewable energy, resource and energy efficiency, energy storage, vehicle electrification and transmission climate sectors. The fund partners with Aligned Climate Capital LLC, which provides an ESG screening and reporting framework, and helps source investments.
According to Ares, nearly 50% of the fund’s capital is already invested or committed.
Andrew Pike, Partner and Co-Head of Ares Infrastructure and Power, said:
“Our climate infrastructure strategy is focused on directly originating essential clean energy investments that have a positive impact on our communities. We have developed differentiated ESG capabilities that we believe provide meaningful value-add across the investment lifecycle. We are proud that our strategy provides the opportunity to align our clients’ investment objectives with their sustainability goals.”