Ares Invests $100 Million in Dubai Family Office Amid Gulf Private Credit Expansion

Ares Management has made a $100 million investment in the Dubai-based multi-family office Patrimium, marking a significant interest from global financial institutions in private credit opportunities in the Gulf, according to a company statement.

Ares stated that this deal is part of a NAV Financing structure and is among the first of its kind in the region executed by a global firm specializing in alternative investments. The financing was conducted through Ares's Alternative Credit strategy, which has assets of approximately $46.7 billion, while the firm's total managed assets exceed $595 billion.

NAV financing allows investment funds to raise liquidity by pledging their core portfolio assets, providing a flexible funding source without the need to sell assets or pursue external funding rounds. While some critics argue that this type of financing carries risks, Patrimium asserts that it is an effective tool for supporting new investments and managing capital more efficiently.

This deal reflects a growing trend among Gulf entities towards more sophisticated financing tools, as international institutions compete for private credit deals in the region, aiming to fill the gap left by local banks focused on funding large government projects.

Patrimium was established in 2017 as a single-family office before transitioning into a multi-family office investing across various asset classes. The Ares facilities will be utilized within the company’s broader capital planning objectives, with the financing structured around a diversified portfolio of private market investments.

This transaction is the latest in a series of initiatives by Ares in the Gulf region. Earlier this year, the firm provided debt financing to the Dubai-based platform Property Finder and established a partnership with the Abu Dhabi Investment Council (ADIC) and the private equity unit of Mubadala to create an entity investing in minority stakes in mid-sized private companies.

In 2023, Ares launched a joint venture with Mubadala and Aldar to invest $1 billion in private real estate credit opportunities in the UK and Europe, alongside a strategic relationship through its wealth management channel with Kuwait's InvestGB.

This increasing activity underscores the Gulf's emergence as an attractive hub for private capital, with the expansion of advanced financing tools supporting investment growth away from traditional banking channels.