Ares raises $2.2 billion for climate infrastructure investment

Ares Management Corp., based in Los Angeles, announced on Thursday that it had raised $2.2 billion to invest in infrastructure companies in the renewable energy, energy efficiency, and energy storage sectors.

Ares said it acquired $1.4 billion in fresh capital as part of its inaugural Ares Climate Infrastructure Partners Fund, as well as $800 million in managed accounts to go along with it.

Renewable energy, resource and energy efficiency, energy storage, and vehicle electrification would be among the investments targeted, according to the corporation.

According to Ares, nearly half of the new fund’s cash has already been invested in climate infrastructure projects, predominantly in North America and Europe, through equity, preferred equity, and structured loans.

“We’re investing in the energy transition, meaning a decarbonisation of the power sector particularly with wind, solar, and battery storage,” Keith Derman, co-head of Ares Infrastructure and Power, said in an interview.

Ares stated that it had invested over $9 billion in around 250 infrastructure and power assets in the climate infrastructure, natural gas generating, and energy transportation sectors. The Lincoln Land Wind project in Morgan County, Illinois, with a capacity of 302 megawatts, was sold to Orsted A/S of Denmark.