Ares Launches Private Credit Fund for High-Net-Worth Clients

Ares Management Corp. started a roughly $1.5 billion credit fund for high-net-worth individuals that will invest in secured loans to US middle-market companies.

Ares Strategic Income Fund raised more than $847 million in equity commitments from institutional investors and about $625 million of credit facility commitments. The fund will invest primarily in floating interest-rate loans to companies that are first in line for repayment, but may also invest in unsecured loans and other junior debt.

The perpetual, non-traded business-development company will invest alongside Ares’s credit group, which managed $214 billion at year-end.

“It’s a great asset class that’s been very ...