Ares Management Raises Europe’s Biggest Direct-Lending Fund

U.S. investment firm Ares Management Corp. has raised Europe’s biggest direct-lending fund with around 15 billion euros ($18.2 billion) of total firepower to deploy on ventures deemed too risky by many banks.

The manager has closed a fundraising after investors committed 11 billion euros, making it Europe’s biggest direct-lending fund to date, according to a statement on Thursday. Ares initially planned to raise 9 billion euros for its fifth European fund but passed that target after eight months of marketing. By applying leverage, Ares will have roughly 15 billion euros to put to work.

The fundraising comes as investors chase ...