(Bloomberg) -- Ares Management Corp. is discussing raising $400 million for a new special purpose acquisition company, even as dealmaking by blank-check firms has lagged, according to people with knowledge of the matter.

The alternative asset manager is in discussions with underwriters and has held meetings with prospective investors, said one of the people, all of whom requested anonymity discussing confidential information. Terms aren’t finalized and Ares could decide against raising a new SPAC. 

An Ares representative declined to comment. 

The potential debut comes amid an ailing market that has resulted in highly volatile trading due to low liquidity, and lofty redemption levels. 

In February 2021, Ares raised $1 billion for a blank-check firm, Ares Acquisition Corp. That vehicle, led by Chief Executive Officer David Kaplan, has agreed to merge with X Energy Reactor Co., a nuclear power technology firm.

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