Ares U.S. Real Estate Opportunity Fund IV, L.P. (“AREOF IV”)
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Executive Summary
Fund Overview
Opportunistic
Strategy
Four Year
Investment
Horizon
Why Now?
Launched in May 2022, AREOF IV is the fourth vintage in Ares Real Estate's opportunistic series
AREOF IV is targeting $3.0 billion in commitments and held its initial close in Q4 2022
The Fund seeks to achieve a target net IRR of 15-17% ¹4
At this time, AREOF IV is targeting a final close on December 21st, 2023
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AREOF IV will follow an opportunistic investment strategy designed to identify and capitalize on
changing market conditions
AREOF IV has a four-year investment window that extends through the end of 2026
The fund is favorably positioned with ample dry powder and a four-year window with which to capitalize on
market conditions, which allows Ares to be highly disciplined in its transaction selection
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The three pillars of the AREOF series strategy are distress, repositioning, and development
We are focused on distressed and special situations in the near term given current market conditions. We
continue to be highly dynamic across our three strategy pillars, and the final composition of AREOF IV will
depend on the market environment over the duration of the investment period
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We believe the current environment represents a compelling moment to be forming
opportunistic capital
Inflation has induced higher rate and credit contraction, which has ended the post-GFC expansion and
created what we believe is an attractive window to buy into secular strength at values that may represent
cyclical lows
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In addition to having new programmatic JVs with existing AREOF III partners ready to move forward, we are
focused on an expanding universe of over-levered properties requiring gap equity and stalled projects in
need of rescue capital
Impact of the Fed's rate hikes continues to spread through the economy, sidelining levered buyers and
arresting transaction activity
Ares advantage resulting from extensive sourcing and lending relationships, deal flow and infrastructure of
Ares' broader platform to originate on a proprietary basis
All investments involve risk, including loss of principal. Past performance is not indicative of future results. Returns may increase or
decrease as a result of currency fluctuations. Please refer to the fund's offering memorandum for a full description of partnership terms and
for further information about the material risks of the fund discussed herein.
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