Ares agrees funding partnership with Indonesia’s sovereign wealth fund

Ares Management has partnered with Indonesia’s sovereign wealth fund to finance up to $500m (£387.6m) of investment opportunities annually that will benefit the country’s economy.

The alternative asset manager said that the Ares Asia Credit funds will foster these investments through “innovative financing mechanisms” such as hybrid capital solutions and securitisation.

The Indonesia Investment Authority (INA) and Ares will aim to deploy capital to achieve optimal risk-adjusted returns that leverage the investment expertise and networks of both organisations.

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Ares is one of the largest credit-focused alternative investment managers in the APAC region, with $348.8bn in assets under management as of the end of 2024.

The Ares Asia Credit platform oversees $11.5bn of assets.

“This collaboration with Ares represents a significant step in INA’s efforts to strengthen the implementation of innovative financing practices such as Hybrid Capital Solutions and securitization,” said Ridha Wirakusumah, chief executive of INA. “Together we aim to establish a stronger track record and knowledge base while leveraging global expertise to unlock scalable investment opportunities. This collaboration reflects a shared commitment to deploying capital effectively and creating innovative and sustainable solutions for Indonesia’s financial ecosystem.”

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Eric Vimont, partner and head of strategy of Ares Asia, said: “As Ares looks to scale our presence in Asia Pacific, we see attractive investment opportunities in Indonesia.

“Alongside INA, we look forward to leverage our experience in private credit and securitization, bringing more innovative financing solutions to the Indonesian market that can help support sustainable economic growth.”

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