Ares Scales Infrastructure Secondaries Platform with $5.3B Raise

Ares Management (Ares) has secured $5.3B for its Infrastructure Secondaries strategy, anchored by the final close of Ares Secondaries Infrastructure Solutions III (ASIS III) plus GP commitments and affiliated vehicles. The fund closed with ~$3.3B in equity commitments, surpassing its initial $2B target and eclipsing its 2021 predecessor by over 3×, making this one of the largest infrastructure secondaries raises ever.

What’s notable in this round is Ares’ embrace of preferred-structure / preferred equity deals as core tools in its deployment mix alongside GP-led continuation vehicles and LP stake acquisitions.

Why preferred equity matters here:
Preferred equity lets Ares layer in priority returns and downside protection while participating in upside, making it a more sponsor-friendly capital tool in infrastructure deals where full control or equity dilution may be undesirable.

In infrastructure, cash flows tend to be steady and predictable (e.g. regulated utilities, midstream, digital networks), which makes preferred structures especially compelling: investors can lock in a coupon or hurdle while leaving the upside to the sponsor.

Its growing use signals market acceptance of “blended” secondary solutions—not just straight LP sales or continuation vehicles—but capital that is more flexible in the capital structure.

Market and competitive implications:
The inclusion of preferred equity underscores how secondaries are evolving beyond pure liquidity plays towards tailored capital solutions, especially in infrastructure, where assets demand more nuanced structuring due to capital intensity, regulatory overlays, and long duration.

That Ares is raising at scale with preferred equity baked in sends a signal: institutional investors are now comfortable with mezzanine-adjacent structures in secondaries, which may broaden the addressable deal set.

As more sponsors face follow-on capex demands or wish to monetize part of their exposure without full exits, preferred equity can serve as a bridge or value-preserving instrument.

Takeaway
Ares’ $5.3B close anchored by a multi-structure playbook including preferred equity is not just a capital milestone. It’s a signal that infrastructure secondaries are entering a new phase: one where capital structure creativity is just as vital as scale, and where investors and sponsors alike are embracing more sophisticated liquidity and capital solutions.