Ares Private-Credit Fund Reports Rising Defaults, and New Deals

Dow Jones
07/30

Ares Management's biggest private-credit fund took more losses from software loans in the second quarter.

But the business-development company is benefitting from a drop in competition from other fund managers that are hurting even more.

-- The $29 billion Ares Capital Corp. fund swung to a $188 million quarterly unrealized loss from existing loans compared with the same period in 2025, but the result was an improvement from a $306 million loss in the first quarter.

-- While net new loan commitments declined by $323 million in the quarter, the fund did more new deals in June and July, especially with larger companies, fund executives said. Borrowers are agreeing to tougher terms because rival private-credit firms that raise money from individual or "retail" investors have been forced to cut back lending after increased client withdrawals, the executives said.

-- The portion of defaulted loans in the fund rose to 2.4%, up from 2.1% in the prior quarter but below the 3% long-term average.

-- Writedowns of loans to some software companies at risk of disruption from AI worsened. Ares slashed the valuation of its loan to Cornerstone OnDemand-one of the more widely held private-credit loans-to 63 cents on the dollar from about 72 cents three months earlier. It cut Symplr Software loans to around 65 cents from roughly 70 cents.

应版权方要求,你需要登录查看该内容

免责声明:投资有风险,本文并非投资建议,以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请,作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考,不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证,投资者应自行研究并在投资前寻求专业建议。

热议股票

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10