Ares CEO Says Most Withdrawals from Private Credit Fund Came from Outside US
Ares Management's CEO Michael Arougheti disclosed that 11% of redemption requests from the company's private credit fund came primarily from non-US investors, specifically small institutions and family offices. The withdrawals occurred amid broader concerns about transparency and lending standards in the private credit sector at the start of 2024. Arougheti expressed confidence that the market would continue growing despite these redemptions.
Ares Management CEO Michael Arougheti revealed at the Morgan Stanley U.S. Financials conference that the company received redemption requests affecting 11% of its private credit fund, with less than 5% of investors requesting withdrawals. He specified that these requests were concentrated among small institutions and family offices outside the United States, rather than major US-based investors. This disclosure provides more geographic specificity to Ares's earlier statement that withdrawals came from "select geographies." The redemptions occurred amid a broader wave of withdrawals from private credit vehicles across multiple asset managers at the beginning of 2024, driven by investor concerns about transparency, lending standards, and how heavily indebted software companies would adapt to artificial intelligence disruption. Despite these headwinds, Arougheti expressed confidence in the sector's long-term growth prospects.
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Most withdrawals from Ares private credit fund came from outside US, CEO says
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