One Day After Gating, Ares Private Credit Fund Posts Biggest Monthly Loss In History, As Blankfein Warns Of “Reckoning”

The market barely had time to process news that alternative investing giant, Aresm had joined the private credit “gate parade” – where fund after multi-billion fund informed investors they would get only a fraction of their requested redemption from money invested in Software “not so perfectly money good” private credit loans – before finding out that the same Ares private credit fund, posted its steepest monthly loss on record in February, providing further evidence of the rapid decompression in the $1.8 trillion private credit market (which Goldman valiantly defended overnight, in what may prove very quickly to have been a futile endeavor).

The Ares Strategic Income Fund, a non-traded business development company launched in December 2022, lost 0.68% in February, according to Bloomberg calculations based on the fund’s regulatory filings.