Most withdrawals from Ares private credit fund came from outside US, CEO says
Ares Management reported that most redemption requests from its private credit fund came from investors outside the United States. The withdrawals represented 11% of the fund’s assets and involved less than 5% of its investors, mainly small institutions and family offices. CEO Michael Arougheti said the experience reinforces his confidence in market growth despite concerns about transparency and AI-related risks.
- ▪Ares said 11% of its private credit fund was subject to redemption requests, affecting less than 5% of its investors.
- ▪The majority of those requests originated from non‑U.S. investors, particularly small institutions and family offices.
- ▪Wealthy individuals withdrew more capital than they contributed to private credit vehicles earlier in the year due to worries about transparency, lending standards, and AI disruption.
- ▪Michael Arougheti shared these details at the Morgan Stanley U.S. Financials conference in New York.
- ▪He expressed confidence that the markets will continue to grow despite the recent redemption activity.
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