A private credit fund managed by Ares Capital posted its largest monthly loss on record in February, adding to evidence of deteriorating performance in the $1.8 trillion private credit market.

According to regulatory filings, the Ares Strategic Income Fund declined 0.68% in February. This business development company (BDC) was established in December 2022. February marked the worst performance month for the leveraged loan market since September 2022.

Including a slight loss in January, the fund, which manages approximately $23 billion in assets, has declined 0.7% year-to-date.