Ares Management is raising its third fund dedicated to extending loans to midsize U.S. businesses, seeking 25% more capital than it raised for a predecessor over two years ago, as banks step back from financing leveraged buyouts.

The alternative asset manager best known for its $214.2 billion in private-credit strategies aims to collect $10 billion for its Ares Senior Direct Lending Fund III, according to documents prepared for the $24.52 billion Teachers’ Retirement System of Louisiana.

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