The Fund was oversubscribed and closed at its increased hard cap, well in excess of its $6.5 billion target and its $6.6 billion 2023 vintage Pathfinder II fund. The Fund held its first and final closing less than six months after its launch in January 2026 and represents the largest global asset-based finance ("ABF") fund in the market, underscoring the significant investor demand for Ares' leading capabilities in ABF and tactical asset-focused investing.

As previously announced, investors representing approximately $4.0 billion of commitments in Pathfinder II elected to extend the reinvestment period for an additional two years. Inclusive of this incremental capacity, Pathfinder III and related transaction vehicles, Ares Alternative Credit's Pathfinder closed-end strategy raised approximately $12.7 billion to invest in ABF in the last nine months.

As of March 31, 2026 and inclusive of Pathfinder III and related transaction vehicles, Ares Alternative Credit managed approximately $57.3 billion in assets, including approximately $33.1 billion dedicated to non-investment grade. Ares believes this represents the market's largest pool of illiquid ABF capital.

"The speed and size of this fundraise underscore our investors' confidence in our team's differentiated track record of sourcing and underwriting relative value investment opportunities in ABF," said Joel Holsinger, Co-Head of Alternative Credit at Ares. "With 95 investment professionals, our team benefits from extensive experience and deep relationships as well as the breadth of the global Ares platform as we seek to drive attractive, risk-adjusted returns for our investors."

"Bolstered by market volatility as well as our team's expanded capabilities across sectors, we are energized by the growing opportunity set across the ABF market," said Kevin Alexander, Co-Head of Alternative Credit at Ares. "We believe we have raised four of the five largest ABF funds in the market to date, strengthening our ability to capitalize on the demand driven by current market conditions and deliver customizable liquidity solutions at scale."

"In addition to the value creation opportunity for our investors, this fundraise represents meaningful anticipated capital for charitable organizations through the Pathfinder family of funds' innovative charitable pledge," said Keith Ashton, Co-Head of Alternative Credit at Ares. "We are proud to build on the Pathfinder philanthropic commitment, and with the launch of Promote Giving last year, Ares and the other signatories are advancing a new model for philanthropy across the investment industry – demonstrating that it is possible to prioritize investors' returns while also driving positive outcomes for underserved communities."

The Pathfinder family of funds (the "Pathfinder funds") are structured with a charitable tie-in by which Ares and Pathfinder's portfolio managers have pledged to donate at least 5-10% of the carried interest profits from the funds to global health and education charitable organizations. As of March 31, 2026 and inclusive of Pathfinder III, the Pathfinder funds comprise approximately $28.7 billion in assets under management that drive this philanthropic effort. Based on performance to date, the Pathfinder funds have already accrued approximately $56.9 million in pledged charitable contributions.