The Ares Strategic Income Fund has decided to limit investor withdrawal limits to 5% due to a surge in investor withdrawal requests. According to regulatory filings submitted on Tuesday, Ares stated that the funds investors attempted to withdraw accounted for approximately 11.6% of the fund's total outstanding shares. This move is similar to other competitors, including Blackstone (BX) and BlackRock's HPS Corporate Lending Fund, which have also limited withdrawals to 5%.
In a letter to shareholders, Ares noted that the withdrawal limit is based on the best interests of the fund and all stakeholders, aiming to address market volatility and pressures on capital flows. Nonetheless, Ares stated that investors would be able to complete approximately 43.1% of all redemption requests.
This decision reflects the challenges faced by the private capital market recently, especially amid intensified market uncertainties. Many private credit funds have taken similar measures to restrict capital outflows and maintain fund stability.
