Ares Management is facing a significant wave of withdrawal requests from investors in its flagship private credit fund, according to reports from Cityam.
The surge in exit orders highlights growing liquidity pressures within the alternative asset class, as investors seek to pull capital from illiquid vehicles amid shifting market conditions.
The development at Ares echoes recent turmoil at rival Apollo Global Management, where redemption requests for its primary retail private credit fund reached 17% of the vehicle’s value in the second quarter.
The development at Ares echoes recent turmoil at rival Apollo Global Management, where redemption requests for its primary retail private credit fund reached 17% of the vehicle’s value in the second quarter.
That spike prompted Apollo to impose caps on investor withdrawals, a move that underscored the fragility of liquidity in the sector.
Ares’ current situation suggests the stress is not isolated to one manager but is becoming a systemic challenge for firms offering retail access to private credit.
Private credit funds have been popular with investors seeking higher yields in a rising rate environment, but their illiquid nature has come under scrutiny as economic uncertainty grows.