Ares Management Corp. has again limited investor withdrawals from its Ares Strategic Income Fund, capping redemptions for the second consecutive quarter. The fund, valued at $22.6 billion, experienced a significant increase in redemption requests, reaching 14.4% of shares in the most recent quarter. This figure represents an acceleration from the first quarter, when 11.6% of investors sought to withdraw their money.
In response to these heightened demands for liquidity, the Ares Strategic Income Fund announced it would permit investors to redeem only 5% of their shares. This move mirrors actions taken by many other private credit funds, indicating ongoing pressure within the $1.8 trillion private credit industry. The increasing demand for cash withdrawals highlights challenges facing these funds, especially as they try to manage investor expectations and maintain liquidity.
This is not an isolated incident for Ares. Just months prior, in March 2026, Ares Management Corp. and Apollo Global Management Inc. had already imposed similar caps on their private credit funds. At that time, the now $10.7 billion Ares Strategic Income Fund limited withdrawals to 5% after 11.6% of clients requested redemptions. This pattern suggests a broader trend of investor exodus and liquidity strain across the private credit market.
