Ares Management‘s (NYSE:ARES) private credit challenges mounted in February, with one of its funds posting the deepest monthly loss in its history as the sector weakened.
The Ares Strategic Income Fund (ASIF), which managed close to $23 billion in assets as of January, declined 0.68% last month in the worst setback since it was launched in 2023, according to a Bloomberg report. Still, ASIF has delivered annual returns of 10.6% since inception through the end of January, according to the outlet.
The Morningstar LSTA index, which tracks publicly traded leveraged loans, fell by 0.8% in February, reflecting broader market challenges.
Withdrawals Capped
Reports of the ASIF loss comes after Ares announced it would limit withdrawals from the fund after facing a significant increase in redemption requests. The fund, which targets affluent investors, saw redemptions rise to 11.6% in the first quarter, prompting the firm to cap outflows at 5%.
The fund received $1.2 billion in redemption requests during this period, fulfilling $524 million, which is slightly over 40% of the total requests, …
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