Ares' real estate strategy shuns traditional sectors like office and hospitality, instead targeting "new economy" assets like multifamily housing, industrial logistics, and data centers. This approach treats real estate as a strategic play on core economic and technological trends rather than just property ownership.
Instead of remaining just a capital provider, Ares is evolving into an operator in the digital infrastructure space. By acquiring a logistics developer and hiring talent from hyperscalers, the firm now builds and develops data centers directly, aiming to capture greater value by controlling the asset lifecycle.
A top executive at Ares argues that private equity is no longer a growth industry. He predicts it is headed for a rationalization similar to the hedge fund industry, where oversized growth has made high returns difficult, leading to a culling of underperforming funds and an overall market shrinkage to restore health.