Ares Management’s $3 Billion Milestone: A Strategic Shift in Private Markets Access

In a year marked by shifting investor preferences, ares management corporation has cemented its position as a leader in private markets with the Ares Private Markets Fund (APMF) surpassing $3 billion in assets under management (AUM) by May 2025. This milestone, achieved just three years after its 2022 launch, underscores the growing demand for diversified, liquid alternatives in a landscape where traditional private equity’s long lock-up periods and opacity are increasingly scrutinized. The APMF’s success is rooted in a strategic blend of secondary market expertise, structural innovation, and a focus on democratizing access to private assets.

The Strategy Behind the Growth

The APMF distinguishes itself by focusing on secondary private equity investments—acquiring stakes in existing private equity funds managed by top-tier sponsors. This approach allows the fund to sidestep the high concentration risks of direct investments while benefiting from the performance of seasoned managers. By March 31, 2025, the fund held over 276 investments across 7,500+ underlying portfolio companies, spread across 11 sectors. This diversification reduces exposure to any single asset or manager, a critical advantage in volatile markets.

The fund’s geographic focus on North America and Europe aligns with Ares’ long-standing expertise in these regions, particularly through its Secondaries Group, which boasts over 30 years of experience in negotiating complex deals. This team’s data-driven sourcing and valuation processes are central to the fund’s ability to identify undervalued opportunities and mitigate risk.

Structural Innovations: Liquidity and Transparency

A key differentiator for the APMF is its quarterly liquidity mechanism, enabling investors to redeem up to 5% of their holdings annually—a stark contrast to traditional private equity’s multiyear lock-up periods. Combined with enhanced transparency, including detailed disclosures on underlying holdings and valuations, the fund attracts investors seeking flexibility without sacrificing exposure to private markets.

This structure is particularly appealing to accredited investors and qualified clients, who now have a vehicle to participate in an asset class previously reserved for institutional players. The fund’s monthly subscription opportunities further lower the barrier to entry, while its three share classes (Class I, D, and A) cater to varying capital levels and fee preferences.

Market Context and Competitiveness

The APMF’s rise coincides with broader trends reshaping private markets. Institutional investors are increasingly favoring “open-ended” vehicles that balance liquidity with returns, while retail investors seek alternatives to stagnant public markets. Ares’ Wealth Management Solutions (AWMS) platform, which now employs 150+ global professionals, has been pivotal in scaling the fund by targeting financial advisors and their clients.

Competitively, the fund’s 1.40% management fee and 12.5% incentive fee (subject to a high-water mark) are in line with industry standards, but its expense caps (e.g., 0.30% on “other expenses” through 2024) provide cost certainty. Meanwhile, Ares’ broader platform—spanning credit, real estate, and infrastructure—offers synergies that smaller competitors cannot match.

Risks and Considerations

While the APMF’s structure mitigates some risks, investors must acknowledge the high-risk nature of private markets. The fund’s documentation warns of potential total capital loss, reliance on third-party fund managers, and the inherent illiquidity of its investments. Regulatory compliance, particularly around accredited investor eligibility, also remains a critical factor.

Looking Ahead: Ares’ Vision for Private Markets

The APMF’s $3 billion milestone reflects Ares’ broader ambition to redefine private markets access. With its $525 billion total AUM (as of December 2024), the firm is leveraging its scale to expand its AWMS platform, which now serves as a gateway for advisors to offer private equity exposure to retail clients.

Barry Miller, CEO of the APMF and partner in the Secondaries Group, emphasized this vision: “We are thrilled to achieve this milestone, which reflects the demand from investors for access to quality private markets solutions… Ares has been a leader in sourcing and managing secondaries investments while employing an innovative and data-driven approach to generate value through market cycles.”

Conclusion

Ares Management’s APMF has not only surpassed the $3 billion mark but has also set a new standard for how private equity can be democratized. By combining secondary market expertise with structural innovations like quarterly liquidity, the fund has attracted $3B in AUM in just three years—a rapid ascent fueled by investor demand for flexibility and diversification.

The fund’s 276 investments across 7,500+ companies demonstrate its ability to scale while maintaining risk discipline, while Ares’ global platform ensures competitive sourcing and execution. As private markets continue to grow—projected to reach $15.8 trillion in AUM by 2027—the APMF’s model could serve as a blueprint for future vehicles. For investors, this milestone signals that the era of rigid, opaque private equity is fading, replaced by accessible, liquid alternatives that align with modern portfolio needs.

In a market where liquidity and transparency are no longer trade-offs, Ares’ achievement is more than a number—it’s a harbinger of the future of private investing.