Ares Strategic Income Fund received third-quarter repurchase requests representing approximately 11.6% of its outstanding shares, exceeding the nontraded BDC’s quarterly repurchase limit.
The fund will repurchase shares equal to 5% of those outstanding. Based on the disclosed figures, participating investors will receive approximately 43.1% of the liquidity they requested, with the balance remaining invested.
Ares attributed most of the requests to a limited group of family offices and smaller institutions in certain geographic markets. According to the fund’s shareholder communication, those investors represented less than 1% of its approximately 20,000 individual shareholders.
The fund reported approximately $10.5 billion in net assets. It also said no loans were on nonaccrual status and that portfolio companies generated approximately 14% organic EBITDA growth during the latest reported 12-month period.
The results place Ares Strategic Income Fund among several large nontraded BDCs whose third-quarter repurchase demand exceeded their 5% quarterly limits. Apollo Debt Solutions and HPS Corporate Lending Fund also recently announced significant proration.
