Ares Management, a global alternative investment manager, has once again capped withdrawals from its flagship private credit fund, the Ares Strategic Income Fund (ASIF), following a notable increase in redemption requests during the second quarter. The $22.6 billion fund, which provides direct lending to companies, saw investors seek to pull 14.4% of shares, up from 11.6% in the previous quarter. In response, ASIF limited withdrawals to 5% of shares, adhering to the customary threshold for such investment vehicles.
This move reflects a broader trend of wealthy individuals globally withdrawing money from non-traded private credit funds. Investors have expressed concerns regarding lending standards and the potential impact of artificial intelligence disruption on software companies heavily indebted to direct lenders. According to Robert A. Stanger, $12.9 billion was pulled from private credit funds for affluent individuals in the first five months of 2026. Peer firm Apollo has also recently reported moderated withdrawal requests from U.S. clients, while experiencing an increase from offshore investors.
Ares highlighted that most requests were concentrated among a small number of non-U.S. institutions and family offices, accounting for nearly half of second-quarter requests, with nearly two-thirds from repeat submitters. TD Cowen analyst Bill Katz found this detailed disclosure “quite encouraging,” suggesting widespread angst is not building. Withdrawal requests from U.S. private wealth investors, ASIF’s largest segment, only constituted 2.4% of shares and declined 35% from the prior quarter. This segment also contributed nearly half of second-quarter inflows. Since its 2022 inception, ASIF’s Class I shares have delivered an annualized total return of 10.27%.
