Ares Management has closed its first special opportunities fund on $3.5 billion, blowing past an original $2 billion goal. The news comes shortly after Bain Capital raised $3.2 billion for a similar vehicle focused on distressed debt and special opportunities, according to Bloomberg.
With the coronavirus pandemic bringing unexpected financial hardships to many companies, the universe of potential distressed investments has expanded in recent months. So far, though, the market for raising funds targeting such deals hasn’t experienced a similar boom.
Globally, firms have raised $16 billion across 10 distressed debt and special situations funds so far this year, according to PitchBook data, including the recent efforts from Ares and Bain. Last year, investors tallied $28.2 billion across 34 such funds.
There is also a slew of older vehicles that may be positioned to capitalize on the current landscape. The distressed debt and special situations fundraising market reached its recent peak in 2017, when the industry closed 58 different funds with a combined $49 billion in commitments.
Source: Pitchbook
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