NEW YORK: Ares Management has once again limited investor withdrawals from its flagship private credit fund after a sharp increase in redemption requests in the second quarter of 2026, highlighting continued pressure across the private credit sector.
The firm’s $22.6 billion Ares Strategic Income Fund (ASIF) received requests to withdraw about 14.4% of its shares during the quarter, up from 11.6% in the previous quarter, according to company filings.
However, Ares maintained its standard restriction, capping redemptions at 5% of shares outstanding, meaning only a fraction of requested withdrawals will be fulfilled.
The surge in redemption requests reflects growing investor concerns over lending conditions and exposure to sectors such as software firms facing potential disruption from artificial intelligence, according to market observers.
Despite the increase, analysts noted that the trend does not indicate broad investor panic, as a significant portion of withdrawal requests came from a small group of non-U.S. institutions and family offices, while demand from U.S. private wealth investors declined.
Nearly two-thirds of redemption requests were submitted by investors who had also requested withdrawals in the previous quarter, suggesting persistent but concentrated outflows rather than widespread retreat.
The fund, which launched in 2022, continues to report strong underlying performance, with performing loans remaining high and returns in positive territory in recent months.
Ares also stated it aims to clear pending redemption requests by the end of the year, assuming withdrawal demand remains stable.
The developments come amid broader pressure on private credit funds, with several major asset managers, including Apollo and Blackstone, also reporting elevated redemption requests and enforcing similar liquidity caps.
Industry-wide, non-traded private credit funds have faced billions in withdrawal requests in 2026 as investors reassess risk in semi-liquid alternative assets amid shifting interest rate expectations and economic uncertainty.