Ares Management Corporation, which is a leading global alternative investment manager, on June 10 announced the final close of Ares Pathfinder Fund III, L.P., and Ares Pathfinder Fund III – Offshore, L.P. at $8.5 billion of LP commitments.
The fund became oversubscribed and closed at a higher hard cap, well above its $6.5 billion goal and its $6.6 billion 2023 vintage Pathfinder II fund. The fund held its first and final closing in less than six months from launch in January 2026 and happens to be the biggest global asset-based finance fund in the market, reflecting strong investor demand for Ares’ best-in-class Global Asset-Based Finance Fund as well as tactical asset-focused investing.
As previously announced, investors holding roughly $4.0 billion of commitments in Pathfinder II have decided to prolong the reinvestment period for a further two years. Pathfinder III and associated transaction vehicles: Ares Alternative Credit’s Pathfinder closed-end strategy has raised roughly $12.7 billion to make investments in Global Asset-Based Finance Fund during the past nine months with this incremental capacity.
As of March 31, 2026, Ares Alternative Credit had an estimated $57.3 billion in assets under management, which included about $33.1 billion in non-investment grade, net of Pathfinder III and associated transaction vehicles.
Ares contends that this is the largest pool of illiquid ABF capital within the market.
According to Co-Head of Alternative Credit at Ares, Joel Holsinger, “The speed and size of this fundraise underscore our investors’ confidence in our team’s differentiated track record of sourcing and underwriting relative value investment opportunities in ABF. “With 95 investment professionals, our team benefits from extensive experience and deep relationships as well as the breadth of the global Ares platform as we seek to drive attractive, risk-adjusted returns for our investors.”
Remarks Co-Head of Alternative Credit at Ares, Kevin Alexander, “Bolstered by market volatility as well as our team’s expanded capabilities across sectors, we are energized by the growing opportunity set across the ABF market. “We believe we have raised four of the five largest ABF funds in the market to date, strengthening our ability to capitalize on the demand driven by current market conditions and deliver customizable liquidity solutions at scale.”
Opines Co-Head of Alternative Credit at Ares, Keith Ashton, that “In addition to the value creation opportunity for our investors, this fundraise represents meaningful anticipated capital for charitable organizations through the Pathfinder family of funds’ innovative charitable pledge. We are proud to build on the Pathfinder philanthropic commitment, and with the launch of Promote Giving last year, Ares and the other signatories are advancing a new model for philanthropy across the investment industry – demonstrating that it is possible to prioritize investors’ returns while also driving positive outcomes for underserved communities.”
The Pathfinder family of funds is formed through a charitable tie-in whereby Ares, as well as the portfolio managers of Pathfinder, has agreed to contribute a minimum of 5-10% of the carried interest profits from the funds to charitable organizations that work in the fields of international health and education. Including Pathfinder III, the Pathfinder funds have almost $28.7 billion in assets under management in order to support this philanthropy as of March 31, 2026. To this point, the Pathfinder funds have already generated about $56.9 million in committed charitable contributions, based on performance to date.
Taking this model as a starting point, Ares and eight founding signatories launched Promote Giving, a pioneering model when it comes to philanthropy where signatories pledge to donate a minimum of 5% of their selected funds’ performance fees to charitable organizations that are dedicated to healthcare, education, and various other drivers of human well-being. Interestingly, since launching in October 2025, Promote Giving has expanded to 13 signatories.