Ares Management Unveils $1.5B BDC Private Credit Fund

Los Angeles’ alternative investment manager Ares Management Corporation has launched the Ares Strategic Income Fund (ASIF), a non-traded BDC that looks to invest in directly originated, senior secured, floating-rate loans to the US middle market.

The company seeded the new fund with about $1.5 billion in investable capital, of which more than $847 million of equity commitments came from certain existing institutional relationships in a private placement and approximately $625 million in credit facility commitments.

The fund will be distributed through Ares Wealth Management Solutions and will be available through registered investment advisors and financial advisors across the US.

The new fund will invest alongside Ares’ credit group, which managed more than $214 billion in assets as of the end of last year.

“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,” said Mitchell Goldstein, Partner, Co-CEO of ASIF and Co-Head of the Ares Credit Group.