Ares Management Corporation has said that recent redemption requests from one of its private credit funds were largely driven by investors outside the United States and were concentrated among smaller institutions and family offices, rather than broad-based institutional selling, according to a report by Reuters.
Speaking at the Morgan Stanley US Financials Conference in New York, CEO Michael Arougheti said withdrawal requests amounted to roughly 11% of the fund, affecting fewer than 5% of total investors. He added that the activity was primarily linked to non-US clients and did not reflect widespread institutional stress.
The firm had previously described the redemption activity as being concentrated in “select geographies,” as parts of the private credit market faced heightened scrutiny from investors concerned about transparency, lending standards, and exposure to sectors potentially impacted by artificial intelligence-driven disruption.
Private credit strategies across the industry have seen increased sensitivity from retail and wealth-linked vehicles, with some investors reducing allocations amid broader uncertainty around valuations and exit conditions in leveraged lending markets. However, Ares management indicated that the recent outflows do not signal systemic pressure within the firm’s core institutional base.
Arougheti said the experience reinforced his view that private credit markets remain resilient and are positioned to continue expanding over time, despite episodic volatility in investor sentiment.
