In this articleOWLMSAPORJFBARC-GBARESBXDeteriorating asset quality, collateral markdowns and a growing rush for the exits are rattling private credit markets and prompting comparisons to the Global Financial Crisis.But a spike in loan defaults, while painful, could help shake out pockets of stress from the $3 trillion sector and provide what one industry pro calls a "healthy reset" after its first major liquidity test.Ares Management on Tuesday opted to curb investor withdrawals from its $10.7 billion priva ...

In this articleOWLMSAPORJFBARC-GBARESBXDeteriorating asset quality, collateral markdowns and a growing rush for the exits are rattling private credit markets and prompting comparisons to the Global Financial Crisis.But a spike in loan defaults, while painful, could help shake out pockets of stress from the $3 trillion sector and provide what one industry pro calls a "healthy reset" after its first major liquidity test.Ares Management on Tuesday opted to curb investor withdrawals from its $10.7 billion priva ...

The Financial Times reported that the $10.7 billion fund received $1.2 billion in redemption requests during this period, fulfilling $524 million, which is slightly over 40% of the total requests. Ares explained that the redemptions were primarily initiated by a small group of family offices  and smaller investors, collectively representing less than 1% of the fund’s more than 20,000 investors. The fund’s assets, bolstered by leverage, comprise loans and securities valued at $20.8 billion, FT stated.Despite ...

Ares is the latest private credit fund limiting payouts to investors following a record spike in attempts to withdraw money. Investors requested to redeem more than 11% of shares in Ares Strategic Income Fund this quarter, and the firm decided to cap payouts at 5%, according to a filing with the Securities and Exchange Commission. The fund's net value is $10.7 billion as of February 28, with a total portfolio value of $22.7 billion.Investors looked to withdraw more than $1.2 billion in the quarter, with the ...

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The deal values Plenitude, a renewable power and electric-vehicle charging business established by Eni, at 10.75 billion euros before new money. ...

CrowdStrike is among a handful of tech stocks that have outperformed since the Iran conflict broke out. - AFP via Getty Images Some of the weakest areas of the market in 2026 have turned into outperformers since the Iran conflict began, according to Deutsche Bank Research. “Almost every major global asset class — oil aside — has lost ground over the past two weeks,” said Jim Reid, global head of macro and thematic research at Deutsche Bank Research, in a note emailed Tuesday. But “some of 2026’s weakest ...

Core Insights - Recent investor anxiety in private credit markets has been driven by high-profile fraud allegations against certain companies, leading to increased redemption requests from investors [1][3][6] - It is crucial to differentiate between anecdotal evidence and actual market data, as the majority of private credit remains stable despite isolated incidents [2][4][6] Group 1: Market Conditions - Allegations of fraud have surfaced in the broader private credit market, but none have been linked to the direct lending market, which is where most investors have exposure [4][6] - The current default rate in public credit stands at approximately 1.3%, while the average non-accrual rate for the top 20 Business Development Companies (BDCs) is around 1.54% [7][8] - Historical context shows that during the global financial crisis, the default rate peaked at 10.82%, indicating that current levels are significantly lower [8] Group 2: Investor Behavior - There has been a notable increase in redemption requests, particularly from funds like Morgan Stanley's private credit fund, which has limited the ability to return all investor funds [5][15] - Despite some uptick in redemptions, inflows into private credit funds have also increased, with Goldman Sachs reporting an 11% rise in inflows in December compared to their average [16][17] - The exposure of Goldman Sachs to traditional retail investors is minimal, with only about 17% of their private credit assets under management (AUM) coming from this segment [17] Group 3: Sector-Specific Concerns - The software sector is experiencing heightened scrutiny due to perceived risks from AI disruption, affecting both equity and debt markets [10][12] - Publicly traded software companies have seen stock declines of 30% or more, while corresponding double B loans have decreased by about 2.5% and single B loans by approximately 9.5% [12][13] - The impact of these market dynamics varies significantly among companies, with some loans experiencing minimal declines while others face reductions of 15% or more [14] Group 4: Recommendations for Investors - Investors are advised to conduct thorough due diligence, focusing on the track record of fund managers, origination funnels, and diversity of funding sources [18] - Monitoring key metrics such as the pick rate and non-accrual rates is essential, as this data is published quarterly and is accessible for analysis [19]

For almost a decade, I held research analyst positions in various investment firms, mostly in Toronto. I started in sell-side research with a Canadian bank, then moved to a hedge fund, followed by a family office and then finished my career in wealth management. I was 20 on my first day on Bay Street. I will forever remember. I had worked so hard to get there, from a small French-speaking town in Québec. Getting my CFA and CAIA designations by 25 was another important milestone. I was a young man with a dre ...

Core Viewpoint - Ares Management (ARES) has experienced a decline in its stock price, similar to its asset management peers, due to market concerns regarding the impact of AI on software-linked credit and an increase in redemption requests [1] Group 1: Market Conditions - The equity market is characterized by significant daily price fluctuations that can lead to substantial long-term wealth creation or destruction [1] - There is a prevailing sense of panic in the market related to AI's influence on credit linked to software [1] Group 2: Investment Strategy - Pacifica Yield is focused on long-term wealth creation by targeting undervalued high-growth companies, high-dividend stocks, REITs, and firms in the green energy sector [1]