PE Digest: Ares raises $1.7b for ANZ fund; Warburg’s third financial sector vehicleWarburg is looking to raise $2.5b for the financial sector fund.

Private equity firm Ares Management Corp has reportedly raised about $1.7 billion for its ANZ-focused credit fund, while global buyout major Warburg Pincus is said to be targeting $2.5 billion for its third fund.

Ares secures $1.7b for ANZ-focused fund

US private credit giant Ares Management Corporation has raised A$2.6 billion ($1.7 billion) for the Ares Asia Direct Lending fund, a credit fund for Australia and New Zealand, according to a Bloomberg report.

The fund, which is Ares Management’s first leveraged buyout vehicle for ANZ, has already committed over A$1.04 billion of first lien, senior secured loans, the report added.

The new fund reportedly comprises around A$850 million from investors and the balance in loans from Sumitomo Mitsui Banking Corp. and Citigroup Inc.

Ares’ investments in APAC include three acquisitions of regional private capital players: Hong Kong-based credit provider SSG Capital Holdings, Australia-based AMP Capital’s infrastructure debt platform, and lately Singapore-based Crescent Point Capital, a private equity firm that invests in Southeast Asia and China.

The fundraising comes about three months after Ares secured the final close of its sixth flagship Asia special situations fund at $2.4 billion, including a sidecar vehicle.

Warburg Pincus sets $2.5b target for third financial sector fund

US private equity giant Warburg Pincus is looking at raising about $2.5 billion for its third financial sector-focused fund, according to a Bloomberg report that cited people familiar with the matter.

The report said Warburg Pincus has already started preliminary discussions with potential investors for WP Financial Sector III. The fund is said to invest alongside the firm’s flagship PE fund.

Warburg Pincus has more than $83 billion in assets under management. Its active portfolio of more than 250 companies is highly diversified by stage, sector, and geography.

In October last year, the firm announced raising $17.3 billion for its global flagship fund Warburg Pincus Global Growth 14 (WPGG 14), marking the largest-ever fundraising in its 57-year history.

The fund exceeded its $16-billion target and the size of the previous global flagship fund, which closed at $15 billion in 2018.

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