Ares Management has capped withdrawals at its $23 billion private credit fund after investors sought to pull out 14.4% of shares in the second quarter. The fund limited withdrawals to 5% of shares, a common threshold for such vehicles.
Investor Concerns
Wealthy individuals have been pulling money from non-traded private credit funds over concerns about lending standards and the impact of AI disruption on software companies that borrowed heavily from direct lenders.
According to investment bank Robert A. Stanger, investors pulled a combined $12.9 billion from private credit funds for wealthy individuals in the first five months of 2026.
Most requests were concentrated among a small number of non-U.S. institutions and family offices, representing less than 1% of the fund’s more than 20,000 shareholders.
US Private Wealth Investors
Withdrawal requests from U.S. private wealth investors, the fund’s largest shareholder segment, represented only 2.4% of shares and declined 35% from the prior quarter.
The segment also accounted for nearly half of second-quarter inflows, according to the fund.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
