Capital Withdrawal Accelerates, Ares and Apollo Restrict Private Credit Fund Redemptions

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According to the letter to shareholders on Tuesday, the $10.7 billion Ares Strategic Income Fund will limit redemptions to 5% despite clients requesting an 11.6% redemption. Previously, business development company Apollo Debt Solutions also announced implementing the same redemption cap on Monday after clients requested an 11.2% redemption. On Tuesday, a new wave of investor anxiety caused the market value of Ares, Apollo, and competitors Blackstone and KKR & Co. to evaporate by approximately $10.2 billion, with all four asset management firms’ stock prices falling more than 2%.

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