Ares Is Latest To Gate Investors In Private Credit Fund: Here's Who Will Gate Next

Just hours after we learned that Apollo was the latest Private Credit giant to gate investors in its flagship private credit fund, and warned it will also gate redemption requests in the future having been hit with over 11% of withdrawal demands while limiting quarterly redemptions to just 5%, this morning the FT reported that Ares Management has also limited withdrawals from one of its marquee private credit funds pitched to wealthy individuals, as redemptions surged to 11.6% in the first quarter amid a broad flight from the asset class.

Ares said it received $1.2bn of redemption requests at the $10.7bn Ares Strategic Income Fund in the first three months of the year. It fulfilled $524mn of those requests, or just over two-fifths of the withdrawals it faced. Previously, the fund honored all redemption requests in the final quarter of 2025, even though they had risen above the 5% threshold; back then it was still hoping the "fund run" will mitigate into 2026. It has not, and so the company decided the time has come to start gating: the $623bn investment group said it had capped redemptions from the Ares Strategic Income Fund at 5% - a threshold built into the fund that allows it to limit outflows in any one quarter.