Ares Management Corporation, a global alternative investment manager, announced the launch of Ares Strategic Income Fund, a perpetual capital, continuously offered, non-traded business development company, which Ares says seeks to primarily invest in directly originated, senior secured, floating-rate loans to U.S. middle-market companies.
The fund has launched with approximately $1.5 billion in initial investible capital, including more than $847 million of equity commitments raised from certain existing institutional relationships in a private placement, and approximately $625 million in credit facility commitments.
Ares Strategic Income Fund is designed to leverage the scale, breadth and depth of the Ares Credit Group’s extensive, cycle-tested platform, which had over $214 billion in assets under management and more than 355 dedicated investment professionals as of Dec. 31, 2022. The fund will have a core allocation to senior secured directly originated loans within Ares’ U.S. direct lending strategy and the flexibility to invest in, and benefit from, the adjacent investment strategies within the Ares Credit Group. The fund has access to Ares’ origination capabilities and expects to benefit from the platform’s information advantages and proprietary transaction sourcing.
The company says the fund will be distributed through Ares Wealth Management Solutions LLC and will be available through registered investment advisers and financial advisors across the United States.
“We believe that ASIF offers a compelling value proposition as a product that has the potential to deliver attractive levels of current income with relative downside protection throughout market cycles,” said Mitchell Goldstein, partner, co-chief executive officer of ASIF and Co-Head of the Ares Credit Group. “As high-net-worth investors seek alternative sources of income, we believe that ASIF provides investors a differentiated opportunity to benefit from Ares’ leading credit investment platform and cycle-tested investment approach. Further, we appreciate the strong initial support from Ares’ institutional relationships in the private placement, which we believe underscores their confidence in ASIF and Ares’ credit capabilities.”
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