Ares Core Infrastructure Fund Reports $155M in Assets

The newly launched infrastructure-focused fund has entered the market with a renewable energy-heavy portfolio and plans for continued capital growth.

January 17, 2025

Ares Core Infrastructure Fund Posts Initial Results Amid Private Offering Expansion

Ares Core Infrastructure Fund, a newly formed Delaware-based business development company (BDC), has released its financial results for the third quarter of 2024. The fund, managed by Ares Capital Management II LLC, reported net assets of $155.1 million and has focused its early investments on renewable energy infrastructure. With a strategy centered on generating long-term income and stability through core infrastructure investments, the fund is expanding its capital commitments while positioning itself to navigate the evolving infrastructure market.

Early Investments and Portfolio Positioning

The fund's primary holding as of September 30, 2024, is Denali Equity Holdings LLC, which comprises a 2.6-gigawatt portfolio of renewable energy assets, including solar (53%), wind (25%), and co-located battery storage capacity (22%). This investment, valued at $347.9 million, accounts for over 95% of the fund’s total assets, reflecting Ares Core Infrastructure Fund’s focus on sustainable energy.

To support this investment, the fund secured a $212.5 million term loan under the Denali Credit Agreement with MUFG Bank Ltd. and BNP Paribas, featuring an interest rate of SOFR + 2.00%. Additionally, $10.2 million in letters of credit was established to meet minimum debt service reserve requirements.

Financial Performance and Growth Strategy

The fund commenced operations on August 28, 2024, following its initial private offering that raised $155.7 million. As of January 16, 2025, total capital commitments have grown to $395 million, with $239 million remaining undrawn.

Key financial metrics include:

• Total assets:$364.4 million


• Total liabilities:$209.3 million


• Net asset value (NAV) per share:$24.92


• Net investment loss:$679,000


• Unrealized gains on investments and derivatives:$151,000

With its BDC transition completed and liquidity reserves in place, Ares Core Infrastructure Fund is well-positioned to expand its investments while delivering consistent returns to investors.