Ares Strategic Income Fund Limits Redemptions to 5%
Ares Strategic Income Fund capped redemptions at 5% after investors sought to withdraw 11.6% of shares. The move follows similar limits by Blackstone and HPS.
The private credit fund managed by Ares Management Corporation has limited investor redemptions to 5% after a surge in withdrawal requests reached 11.6% of total outstanding shares. This decision, detailed in a recent regulatory filing, aligns the fund with strategies used by other prominent firms in the private credit sector. Specifically, Blackstone Inc. and the HPS Corporate Lending Fund, which is managed by BlackRock, Inc., have previously instituted similar 5% redemption caps to manage liquidity. In a formal communication to its investors, the Ares Strategic Income Fund emphasized that the move was intended to protect the long-term health of the fund. > We have made this decision, as with all capital allocation decisions, aligned with what we believe are the best interests of the Fund and all of our stakeholders. As a result of the cap, shareholders will receive 43.1% of their requested redemption amounts. This action highlights the ongoing efforts by private credit managers to balance investor liquidity needs with the stability of their underlying portfolios.
