June 10 (Reuters) - Alternative asset manager Ares Management ARES.N has raised $8.5 billion from institutional investors for its latest specialty credit fund, the Financial Times reported on Wednesday.

The new fund, the third in the company's Pathfinder series, is one of the largest closed-end funds focused on complex asset-backed debt, the report said.

The fundraising includes an additional $4 billion of recommitted capital from investors in an earlier Ares fund who agreed to extend their investments for two more years, the report added.

The successful fundraising comes as parts of the private credit industry grapple with slower inflows from retail and wealthy investors, rising redemption requests and concerns about credit quality.

In May, Ares Management reported record ​first-quarter fundraising of about $30 billion.

The asset manager has broadened its investor base, with the number of direct institutional clients surging about 50% from 2022 to 2025.

Ares Management did not immediately respond to a Reuters request for comment.