Investing.com -- Ares Management secured $8.5 billion from institutional investors for its latest specialty credit fund, the Financial Times reported on Wednesday.

The fund represents the third installment in the company's Pathfinder series and ranks among the largest closed-end funds targeting complex asset-backed debt, according to the report.

The total includes $4 billion in recommitted capital from investors in a previous Ares fund who chose to extend their investments for an additional two years, the report said.

The fundraising occurs as certain segments of the private credit industry face slower inflows from retail and wealthy investors, along with increasing redemption requests and credit quality concerns.

In May, Ares Management reported record first-quarter fundraising of approximately $30 billion.

The asset manager expanded its investor base, with direct institutional clients increasing roughly 50% between 2022 and 2025.