Ares Private-Credit Fund Caps Redemptions Again as 14% of Investors Seek Exits
ARES sits 19% above its 52-week low of $95.8 on light trading volume (0.3× avg).
Summary
Ares Management's $23 billion Ares Strategic Income Fund capped investor redemptions for the second consecutive quarter, honoring only 5% of the 14.4% of shares that sought to exit, representing $1.5 billion in requested redemptions. This follows similar action by Apollo Global Management's $26 billion Apollo Debt Solutions fund, which also capped redemptions at 5% after 17% of investors sought exits this quarter. While Ares states the underlying loans are performing well, repeated redemption caps signal waning investor confidence and potential liquidity challenges for these non-traded private credit funds. Ares expects to clear the backlog of unfulfilled redemption requests by year-end.
At the time of this announcement, ARES was trading at $113.71 on NYSE in the Finance sector, with a market capitalization of approximately $25.2B. The 52-week trading range was $95.80 to $195.26. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.