Private credit crunch: Ares, Apollo cap fund withdrawals
Olivia Fishlow
Two of the biggest names in private credit, Ares Management and Apollo Global Management, blocked investors from getting even half of the money they wanted out of their funds, a sign of mounting strain in the $US1.8 trillion ($2.6 trillion) market.
The $US10.7 billion Ares Strategic Income Fund limited withdrawals to 5 per cent of shares after clients sought to redeem 11.6 per cent, according to a letter to shareholders on Tuesday (Wednesday AEDT). That followed the $US15.1 billion business development company, Apollo Debt Solutions, which said on Monday it was imposing the same cap after requests to pull 11.2 per cent.