Ares Strategic Income Fund’s leverage rose to 1.24x after the $9.9 billion nontraded BDC paid roughly $515 million to meet third-quarter repurchase requests, our tracking shows.
Investors tendered 13.1% of the fund’s shares, but the quarterly cap permitted only 5%, so the fund filled 38.2% of the requests.
The $515 million payout reduced the fund’s aggregate net asset value by roughly the same amount, according to our records.
That NAV decline, by shrinking the fund’s equity denominator, likely accounts for at least part of the higher leverage ratio.
Reported by The Wrap desk from our tracking. Published . Corrections