Ares Strategic Income Fund April Inflows Slow to $51.9M After Q1 Redemption Cap

Ares Strategic Income Fund, the publicly registered nontraded business development company sponsored by Ares Management, sold 1.93 million Class I common shares through unregistered private placements during April for total consideration of $51.9 million – a 73% decline from the $190.4 million the fund raised through the same channel in March.

The slower pace follows the firm’s late-March disclosure that it had fulfilled less than half of first-quarter redemption requests, satisfying approximately 43.1% or $524.5 million – of the capital sought by shareholders after applying its 5% quarterly cap on aggregate net asset value, as AltsWire previously reported.

The fund reported a NAV per share of $26.85 across Class I, Class S, and Class D shares as of March 31, 2026, essentially flat from $26.86 at the end of February. Aggregate fund NAV stood at approximately $10.5 billion as of March 31, down from $10.7 billion at the end of February. The fund’s investment portfolio held approximately $21.3 billion at fair value across 838 portfolio companies, with 92% of debt investments at fair value carrying floating-rate terms.

The fund’s debt-to-equity ratio rose to 1.08x as of March 31 from 0.99x at the end of February, returning to levels last reported at year-end 2025, when the ratio stood at 1.09x. Net of approximately $362 million in available cash, the ratio was 1.05x. The fund had approximately $4.1 billion available for additional borrowings under its existing credit facilities, subject to borrowing-base and other restrictions.

The fund declared April monthly distributions of $0.21430 per share on a gross basis across all three share classes, payable May 21 to shareholders of record as of April 30. After shareholder servicing and distribution fees, net distributions amounted to $0.21430 for Class I, $0.20878 for Class D, and $0.19554 for Class S. The board had previously declared identical gross monthly distributions for May and June, with payment dates of June 24 and July 23, respectively.

First-lien senior secured loans represented 78.0% of the portfolio at fair value as of March 31, with senior subordinated loans at 6.2%, collateralized loan obligations at 4.1%, and the remainder split among other categories. The fund’s largest industry exposures were software and services at 20.6%, health care equipment and services at 10.8%, and commercial and professional services at 9.4%.

Ares Strategic Income Fund is currently publicly offering up to $15 billion in shares on a continuous basis, with parallel private placements to feeder vehicles. Total shares issued across the registered offering and private placements as of the filing date stood at approximately 433.3 million shares, representing $11.8 billion in total consideration since inception. The registered offering included 113,651,134 Class I shares for $3,109.3 million, 50,432,516 Class S shares for $1,378.0 million, and 33,312,466 Class D shares for $913.4 million. The private placements accounted for an additional 235,880,721 Class I shares for $6,429.1 million.

Ares Strategic Income Fund is advised by Ares Capital Management LLC, a subsidiary of Ares Management.

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