Newsletter Edition 73
Jun 12, 2025
Ares Targets $2B+ for New Asia Special Situations Fund Amid Record Credit Growth
Ares Management Corporation is seeking to raise more than $2 billion for a new Asia-focused special situations fund, as the alternative investment giant expands its regional credit platform, according to a Bloomberg report citing sources familiar with the matter.
The Los Angeles-based firm aims to match or exceed the size of its previous Asia Special Situations Fund, which closed at approximately $2.4 billion in 2023. Ares is also evaluating the launch of a separate vehicle dedicated to performing credit in Asia, though fundraising targets for that initiative are still being finalised.
The new fund would reinforce Ares’ strategic emphasis on private credit, particularly in opportunistic and distressed segments across the Asia-Pacific region. As of Q1 2025, Ares reported $359 billion in credit-related assets under management—part of its $546 billion firmwide AUM—highlighting credit as the cornerstone of its long-term growth strategy.
Asia has become a key growth driver for Ares’ global platform. Its Asia-Pacific credit strategy returned a standout 27.2% in 2024, the highest across the firm’s credit offerings. In Q1 2025 alone, Ares raised more than $20 billion, with firmwide AUM rising 27% year-on-year. US senior direct lending and Asia-Pacific credit strategies posted quarterly returns of 3.2% and 4.4%, respectively.
The firm’s regional presence has grown significantly through a series of acquisitions. In 2020, Ares acquired SSG Capital Holdings, one of Asia’s leading alternative credit firms. More recently, the firm purchased Crescent Point Capital, a Singapore-based private equity firm with deep exposure to Southeast Asia and China. In March 2025, Ares further expanded its footprint with the acquisition of GCP International (excluding its Greater China operations), gaining access to a portfolio spanning logistics, self-storage, and digital infrastructure.
Ares is also ramping up efforts to attract capital from high-net-worth individuals, with a goal of managing $100 billion through wealth channels by 2028—a strategy it believes could generate $600 million in recurring management fees annually.
The new fundraising push comes on the heels of a banner year for the firm. In 2024, Ares raised $92.7 billion globally, marking a 25% increase over the previous year. The upcoming Asia special situations fund will add further fuel to the firm’s momentum as it positions itself as a dominant player in global and regional credit markets.
CalPERS Reports 11.3% Private Equity Return as $92bn Strategy Revamp Gains Momentum
The California Public Employees’ Retirement System (CalPERS) posted an 11.3% return on its private equity portfolio in 2024, marking a strong early success in its ambitious $92 billion strategy overhaul of the asset class.
This performance outpaced the State Street Private Equity Index and reflects the growing impact of the transformation led by Anton Orlich, Managing Investment Director for Private Equity. “Our private equity performance ranks at the top of our peer group over both one- and three-year horizons,” Orlich commented. “It’s a leading indicator that the strategy is working.”
Since initiating the overhaul in late 2022, CalPERS has increased its private equity allocation from $50 billion to over $92 billion, with a significant $14.6 billion already committed in the first nine months of its 2024-2025 fiscal year. This puts the fund on track to exceed its $15.5 billion annual target, further strengthening its private equity portfolio.
Private equity now makes up 17.9% of CalPERS’ total assets, surpassing its 17% policy benchmark and moving closer to its 22% ceiling. The strategic shift includes a substantial decrease in large-cap buyouts, which now account for less than half of new capital deployed. At the same time, the fund has increased its focus on venture and growth equity, which made up 43% of new commitments in fiscal 2023-24, a significant rise from just 9% in 2021.
CalPERS has also bolstered its secondaries programme, completing several billion-dollar deals annually to improve portfolio diversification across vintages. Despite broader market challenges, including slower distributions and delayed exits, the fund continues to expand its private equity footprint. In 2024, CalPERS recorded $21.7 billion in capital calls against $9.6 billion in distributions.
“We believe this is an attractive entry point into a strong secular growth story,” Orlich concluded, reinforcing the system’s confidence in its strategy as it continues to scale its private equity efforts.
KKR and Stonepeak Raise Assura Takeover Bid to $2.3B in Final Offer
Private equity giants KKR and Stonepeak have increased their bid to acquire UK-listed healthcare real estate firm Assura to nearly £1.7 billion ($2.3 billion), presenting what they describe as their “best and final” offer, according to a report by Reuters.
The revised all-cash proposal values Assura at 52.1 pence per share, including dividends, slightly above a rival offer from Primary Health Properties (PHP), which had tabled a 51.7 pence bid last month. The new offer represents a 39% premium to Assura’s share price on February 13 — the day before KKR and Stonepeak made their initial approach.
The move intensifies a bidding war for Assura, which owns and manages over 600 medical buildings worth more than £3 billion and plays a key role in delivering infrastructure for the UK’s National Health Service (NHS). The transaction would mark one of the largest UK healthcare real estate buyouts in recent years and highlights growing foreign private equity interest in undervalued British assets.
“This offer is lower risk than other alternatives and involves no asset divestments,” said Andrew Furze, Managing Director at KKR, indicating a streamlined acquisition process designed to win over shareholders.
In April, Assura had backed an earlier version of the KKR-Stonepeak offer, prompting PHP — itself a specialist in healthcare properties — to enter the fray with a counterbid involving equity and potential operational synergies.
While PHP’s offer was seen by some analysts as strategically compelling, the certainty and simplicity of an all-cash bid from KKR and Stonepeak may now tilt the outcome in their favor.
Shares in Assura have surged by 32% since news of the private equity interest first emerged, with the company’s market capitalization now reaching approximately £1.6 billion. The board of Assura is expected to make a recommendation in the coming days.
https://www.privateequitywire.co.uk/kkr-and-stonepeak-up-assura-bid-to-2-3bn/