(HedgeCo.Net)  Ares Management is expanding its already-dominant position in global private credit, announcing the launch of a new direct-lending fund projected to exceed $25 billion—one of the largest vehicles of its kind. The initiative comes after a year of robust performance across Ares’ credit strategies.

Executives at Ares emphasized that borrower demand remains exceptionally strong as companies seek flexible financing outside traditional banking channels. The firm continues to highlight private credit as one of the most durable, income-generating strategies in the alternative investment universe.

Ares’ real estate and private equity divisions also reported strong activity this week. The firm is targeting distressed opportunities in commercial real estate debt and select value-add properties across Europe and the U.S. In private equity, Ares is exploring mid-market acquisitions in business services, software, and healthcare.

The firm’s fundraising momentum remains one of the strongest in the industry. Ares’ global investors—ranging from state pensions to sovereign wealth funds—have increased allocations to its credit and real assets strategies as they seek higher yields and lower volatility.

Ares leadership noted that the next 12–18 months may offer some of the most attractive credit opportunities in more than a decade, driven by a refinancing wall, volatile public markets, and heightened demand from middle-market borrowers.

If current trends continue, Ares is positioned to further solidify its place among the top global alternative investment giants, with private credit serving as the core pillar of its long-term strategy.