Key Takeaways
- • Investors in the $22.7 billion Ares Strategic Income Fund (ASIF) requested to redeem 13.1% of shares in the third-quarter tender offer, down from 14.4% in the second quarter, according to a regulatory filing reported by Reuters on September 24, 2026.
- • ASIF limited withdrawals to 5% of shares, the customary tender-offer threshold, leaving repeat requests to accumulate across successive quarters.
- • Net new withdrawal demands equaled 3% of net asset value, with much of the redemption pressure coming from investors resubmitting unfulfilled requests.
- • Investors who first submitted repurchase requests in Q1 2026 and continued resubmitting are expected to have received nearly 80% of their originally requested capital; ASIF expects to mostly satisfy outstanding requests by year-end if withdrawal levels hold at Q3 rates.
- • BlackRock and Apollo also reported declining redemption requests at their private credit funds earlier in September, while Stanger's Kevin Gannon said it is too soon to conclude the broader market has turned a corner.
Summary
Withdrawal requests at Ares Management's flagship private credit fund eased slightly in its third-quarter tender offer, according to a regulatory filing reported by Reuters on September 24, 2026. Investors in the $22.7 billion Ares Strategic Income Fund (ASIF) sought to redeem 13.1% of shares in the third quarter, down from 14.4% in the prior quarter. The fund, as with major non-traded private credit vehicles this year, limited withdrawals to the customary 5% of shares.
The redemption pressure follows a period in which wealthy individuals pulled money from non-traded private credit funds amid concerns about lending standards and whether software companies that have borrowed heavily from direct lenders will weather AI disruption. Reuters reports that redemption pressures at several major non-traded funds are now showing signs of easing as asset managers clear backlogs and investor sentiment recovers from recent turbulence. Earlier in September, BlackRock and Apollo also reported declines in redemption requests at their private credit funds.
ASIF said much of the remaining pressure stems from investors submitting repeat requests. Net new withdrawal demands amounted to 3% of net asset value. The fund stated that an investor who first submitted a repurchase request in Q1 2026 and continued resubmitting any unfulfilled portion in Q2 and Q3 is expected to have received nearly 80% of its originally requested capital. The fund expects to mostly satisfy unfulfilled requests by year-end, assuming withdrawal requests remain in line with the third quarter. ASIF Class I shares have generated a 9.97% annualized total return since inception, a 161-basis-point premium to broadly syndicated bank loans.
Kevin Gannon, chairman and CEO of Stanger, which tracks alternative assets, said redemption demand is easing across most reporting funds, but requests remain backlogged and persisting at several of the largest. "It is too soon to conclude that the broader market has turned a corner, but the direction is encouraging," he said. Data from Blue Owl funds is expected in the coming weeks.
The redemption pressure follows a period in which wealthy individuals pulled money from non-traded private credit funds amid concerns about lending standards and whether software companies that have borrowed heavily from direct lenders will weather AI disruption. Reuters reports that redemption pressures at several major non-traded funds are now showing signs of easing as asset managers clear backlogs and investor sentiment recovers from recent turbulence. Earlier in September, BlackRock and Apollo also reported declines in redemption requests at their private credit funds.
ASIF said much of the remaining pressure stems from investors submitting repeat requests. Net new withdrawal demands amounted to 3% of net asset value. The fund stated that an investor who first submitted a repurchase request in Q1 2026 and continued resubmitting any unfulfilled portion in Q2 and Q3 is expected to have received nearly 80% of its originally requested capital. The fund expects to mostly satisfy unfulfilled requests by year-end, assuming withdrawal requests remain in line with the third quarter. ASIF Class I shares have generated a 9.97% annualized total return since inception, a 161-basis-point premium to broadly syndicated bank loans.
Kevin Gannon, chairman and CEO of Stanger, which tracks alternative assets, said redemption demand is easing across most reporting funds, but requests remain backlogged and persisting at several of the largest. "It is too soon to conclude that the broader market has turned a corner, but the direction is encouraging," he said. Data from Blue Owl funds is expected in the coming weeks.
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