Ares Plans a Smaller Private Credit Fund With Less Leverage

Ares Management Corp. is planning a significantly smaller flagship US direct lending fund than its previous record-breaking vehicle of $33.6 billion to speed up the deployment of capital amid broader dislocations in private markets.

The Los Angeles-based firm, one of the world’s biggest private credit managers, is sounding out investors about the planned fund ahead of a formal launch sometime in the summer, according to people familiar with the matter who asked not to be identified discussing confidential talks.