Unlocking Hidden Value: Ares Management's $5.3 Billion Infrastructure Secondaries Strategy Redefines Private Market Investing

In an era where institutional investors increasingly seek uncorrelated returns and inflation protection, Ares Management has emerged as a trailblazer in the infrastructure secondaries space. The firm's recent $5.3 billion raise for its Infrastructure Secondaries strategy-anchored by the Ares Secondaries Infrastructure Solutions III (ASIS III) fund-marks a pivotal moment in private market investing. This capital infusion, which surpassed the fund's initial $2 billion target and dwarfs its 2021 predecessor by over threefold, underscores a growing appetite for innovative liquidity solutions in an asset class long undervalued by traditional markets.

A Strategic Framework for Value Creation

Ares' approach to infrastructure secondaries is rooted in its ability to identify inefficiencies in the secondary market and transform them into opportunities. By leveraging its 30-year track record in secondaries and a $34 billion asset base across infrastructure, real estate, and private equity, according to Ares' secondaries page, the firm employs a multi-pronged strategy:
1. Preferred Structure Transactions: These low-risk investments allow Ares to target stable cash flows from seasoned infrastructure assets, such as toll roads or energy grids, without assuming full ownership risks, as reported by Bloomberg Law.
2. GP-Led Continuation Vehicles: By partnering with fund managers to extend the life of underperforming infrastructure funds, Ares avoids the friction of traditional exits while preserving asset value, according to PitchBook.
3. LP Interest Acquisitions: Direct purchases of limited partner stakes in infrastructure funds enable Ares to consolidate fragmented portfolios and optimize returns, as shown by StockAnalysis.

Central to this strategy is the firm's Quantitative Research Group, which employs proprietary analytics to identify undervalued assets and structure transactions that maximize risk-adjusted returns, described on Ares' Secondaries research. For instance, Ares' infrastructure platform-managed by over 130 professionals and overseeing $21 billion in assets-provides granular insights into sectors like renewable energy and digital infrastructure, where regulatory tailwinds and long-term demand are reshaping valuations, as noted in a FinancialContent report.

Market Validation and Performance Momentum

The scale of Ares' fundraising reflects robust market validation. According to a report by the Financial Post, the $3.3 billion final close of ASIS III is among the largest infrastructure secondaries campaigns in history. This success is not isolated: as of June 2025, the Ares Secondaries Group reported $33.95 billion in assets under management, with infrastructure secondaries contributing a significant portion, per GuruFocus.

Performance metrics further reinforce this momentum. Between 2020 and 2025, Ares' infrastructure secondaries strategy capitalized on rising interest rates by targeting assets with long-duration cash flows, a tactic that insulated portfolios from broader market volatility, as reported by SecondaryLink. For example, the firm's focus on stabilized infrastructure assets-such as utility-scale solar farms or water treatment facilities-has yielded consistent returns, even as traditional private equity markets faced liquidity crunches, according to Secondaries Investor.

Addressing Liquidity Gaps in a Fragmented Market

One of Ares' most compelling value propositions lies in its ability to address liquidity mismatches. Infrastructure assets, by nature, are illiquid and often held by institutional investors seeking exit strategies. Ares bridges this gap by offering tailored solutions:
- Customized Transaction Structures: By blending debt, equity, and preferred returns, the firm creates flexible terms that align with both buyer and seller objectives, as its Ares' secondaries page describes.
- Diversification Benefits: Ares' portfolios span geographies and sectors, reducing exposure to idiosyncratic risks while enhancing resilience during economic downturns-the same dynamics highlighted in the earlier Businesswire coverage.

The Road Ahead: Scaling a Proven Model

With the ASIS III fund now fully capitalized, Ares is poised to accelerate its deployment into a pipeline of opportunities. These include underappreciated assets in emerging markets-such as Southeast Asian ports or African broadband networks-where structural growth and regulatory reforms are unlocking value, noted on the ASIS III fund page. The firm's emphasis on ESG integration further aligns with global capital flows, as infrastructure projects with strong sustainability credentials attract premium valuations, according to an FT Markets announcement.

Critics may question the scalability of secondaries in a maturing market, but Ares' track record suggests otherwise. By combining deep sector expertise, quantitative rigor, and a capital base tripled since 2021, the firm has redefined what it means to unlock hidden value in private infrastructure. As the line between traditional and alternative assets blurs, Ares' strategy offers a blueprint for investors seeking to navigate-and profit from-the complexities of the modern private market landscape.