Ares Strategic Income Fund Moves Forward With 2024 Share Buyback Plan

Ares Strategic Income Fund announces a tender offer for Class I, Class D, and Class S shares, enabling shareholder liquidity.

November 22, 2024

Overview of the Buyback Program

Ares Strategic Income Fund has launched its 2024 share repurchase program, initiating a tender offer for Class I, Class D, and Class S shares. This strategic decision aligns with the fund's aim to provide liquidity to shareholders while adhering to its long-term investment objectives. The program is set to expire on December 20, 2024, unless extended, offering shareholders the chance to liquidate shares based on the net asset value as of November 30, 2024.

Details of the Offer

The fund plans to repurchase up to 5% of its outstanding shares, equivalent to roughly 9 million shares across the three classes. With shares not publicly traded, this initiative is a key step in addressing shareholder liquidity challenges. By providing cash payments at current valuations, Ares demonstrates its commitment to investor flexibility within a structured, illiquid investment framework.

Operational and Financial Context

Administered by Ares Capital Management LLC, the fund operates out of New York, with additional support from its Los Angeles-based adviser. The buyback program requires no additional financing, reflecting the fund's strong financial health. As part of its ongoing operations, the fund continues to offer up to $7.5 billion in registered shares, complemented by private placements and reinvested dividends.

Leadership Perspective

The Board of Trustees and executive leadership, including Co-CEOs Mitchell Goldstein and Michael L. Smith, have structured the tender to promote fairness and transparency. Their decision not to tender personal shares underscores confidence in the fund's resilience and growth prospects.

Implications for Shareholders

This tender offer not only provides liquidity but also reflects Ares Strategic Income Fund's robust operational and financial stability. Shareholders are presented with an opportunity to access the value of their investments while the fund pursues its long-term strategies.

The program’s design ensures equal treatment for all participants, reaffirming the fund’s commitment to maintaining investor trust and financial discipline.