Ares U.S. Real Estate Opportunity Fund IV, L.P. (“AREOF IV”)
Ares U.S. Opportunistic Real Estate Track Record
Demonstrated track record that has met or exceeded target returns across cycles
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AREOF
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Vehicle
Total¹
As of June 30, 2023 (in millions)
AREOF III
AREOF II
The AREOF Series achieves a blended gross IRR of 20% (net IRR of 14%) as of June 30, 2023, across $2.2 billion of invested
capital¹,2,5
AREOF III achieves a gross IRR of 22% (net IRR of 15%) at fair values as of June 30, 2023, and is substantially committed to
approximately $1.6 billion closed and in-closing investments*
Predecessor vehicles AREOF II and AREOF have generated -$1.3 billion in proceeds, representing 146% of invested equity
Larger fund sizes have unlocked differentiated opportunities that have been accretive to the funds
Leverage of 62% LTV across the portfolio
Vintage7
2019*
2015
2012
Activity
Substantially
Committed
Harvesting
Fully Realized
Co-
Total Equity Invests
$2,226
$1,001
$730
$3,957
$529
$586
$211
$1,326
Main
Vehicles
$1,697
$415
$518
$2,631
Invested
Equity⁹
$1,272
$353
$546
$2,171
Realized
Proceeds ¹0
14
$520
$467
$849
$1,835
Main Vehicles
Liquidation
Value¹1
$1,079
$188
$0
$1,266
Total
Value¹2
$1,598
$654
$849
$3,102
Fair Value Returns
Gross /
Net IRR2,3,5
22% / 15%
30% / 25%
17% / 11%
20% / 14%
Gross /
Net EM2,3,5
1.3x/ 1.2x
1.9x / 1.7x
1.6x / 1.4x
1.4x / 1.3x
*AREOF III held its first close in December 2019 and is therefore classified as a 2019 vintage. The fund, however, commenced investment activity in 2020. Past performance is not indicative of
future results. Returns may increase or decrease as a result of currency fluctuations. Please refer to endnotes on pages 19-20 for detailed information regarding the methodology used to
calculate the performance information in this table. All investments involve risk, including loss of principal. *Invested and Committed Equity includes amounts that are committed to
investments where future fundings may be subject to certain conditions being met or other prerequisites. If such conditions or prerequisites are not met, committed amounts may not all
be funded, and these amounts could decrease.
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