Ares Management's Strategic Push Into Energy Infrastructure: Leveraging Private Credit for the Energy Transition

In 2025, Ares Management has emerged as a pivotal player in the energy transition, leveraging its private credit expertise to fund high-growth infrastructure projects. The firm's strategic investments in energy transition platforms, renewable energy partnerships, and infrastructure secondaries underscore its commitment to aligning capital with long-term sustainability trends while capitalizing on robust investor demand for alternative assets.

Private Credit as a Catalyst for Energy Transition

Private credit has become a cornerstone of Ares's energy infrastructure strategy, enabling the firm to deploy capital into projects that traditional lenders often deem too complex or risky. A prime example is Ares's €2 billion investment in Plenitude, an Eni Group subsidiary focused on renewable energy and energy efficiency. This stake, acquired through Ares Alternative Credit funds, values Plenitude at over €12 billion and positions Ares to benefit from Europe's accelerating decarbonization agenda, according to an Alternatives Watch report. The investment reflects a broader trend: private credit's ability to provide tailored financing for energy transition initiatives, which require long-term, flexible capital structures, as shown in Ares's Q1 2025 slides.

Ares's partnership with ENGIE further illustrates this dynamic. The firm co-owns a 3.7 GW portfolio of U.S. renewable energy and storage assets, including solar, wind, and battery storage projects. This collaboration, expanded in 2025 with the addition of a nearly 1 GW portfolio, highlights Ares's focus on scalable, asset-backed opportunities in the energy transition, as noted by PE Insights. By leveraging private credit's capacity for structured financing, Ares can support the development of infrastructure critical to reducing carbon emissions while generating stable returns for investors.

Infrastructure Secondaries: Unlocking Liquidity in Energy Assets

Ares has also capitalized on the growing demand for infrastructure secondaries, raising $5.3 billion for its Infrastructure Secondaries strategy in 2025. This includes the final closing of Ares Secondaries Infrastructure Solutions III, which tripled the size of its predecessor fund, according to PE Insights. The strategy targets seasoned private infrastructure assets, such as renewable energy projects and energy efficiency platforms, offering investors liquidity solutions while enabling Ares to acquire high-quality assets at attractive valuations, per Ares's Energy Opportunities page.

This approach aligns with the energy transition's need for sustained capital. Secondary investments allow Ares to access mature infrastructure projects-like solar farms or grid modernization initiatives-without the lengthy development timelines of greenfield projects. By deploying private credit into these secondaries, Ares bridges the gap between capital availability and the urgent need for decarbonization infrastructure.

Financial Strength and Investor Demand Drive Expansion

Ares's strategic push is underpinned by strong financial performance. In Q1 2025, the firm raised $20 billion, with over half allocated to its credit group, reflecting investor confidence in private credit's role in the energy transition. Total assets under management (AUM) surged to $545.9 billion, with the firm maintaining a robust balance sheet and significant dry powder for future deployments. This liquidity positions Ares to scale its energy infrastructure initiatives, particularly in markets like Japan, where it is expanding data center investments to meet growing digital demand.

Conclusion: Ares's Vision for the Energy Transition

Ares Management's strategic investments in energy infrastructure demonstrate how private credit can accelerate the energy transition. By combining direct ownership of renewable assets, secondary market expertise, and partnerships with industry leaders like Eni and ENGIE, Ares is not only diversifying its portfolio but also addressing systemic challenges in decarbonization. As global energy markets evolve, Ares's ability to deploy private credit into sustainable infrastructure will likely remain a key differentiator, offering investors exposure to high-impact, long-term growth opportunities.