Ares Management has closed its latest US and European value-add real estate funds with a combined $5.4 billion in capital commitments. The Los Angeles-based firm reached its $3.1 billion hard-cap for Ares US Real Estate Fund XI, marking its largest-ever capital haul for a closed-end real estate fund. The European vehicle also attracted significant investor interest.

Fund XI represents a major milestone for Ares' real estate platform, surpassing previous fundraising records. The firm secured an additional $400 million for related transaction vehicles and manager co-investment, bringing the total US strategy to approximately $3.5 billion. This substantial capital raise demonstrates continued investor appetite for value-add real estate strategies despite market uncertainties.

The successful closings position Ares to pursue opportunistic acquisitions across both markets. With these funds, the manager can target distressed assets and value-creation opportunities in major metropolitan areas. The scale of commitments reflects confidence in Ares' track record and investment approach during a period of market transition.