Ares Strategic Income Fund

05/19/2026 | Press release | Distributed by Public on 05/19/2026 14:36

Private Placement (Form 8-K)

Item 3.02 Unregistered Sale of Equity Securities.
During May 2026, Ares Strategic Income Fund (the "Fund") sold Class I common shares of beneficial interest. The number of shares to be issued was finalized on May 19, 2026. The purchase price per Class I common share equaled the Fund's net asset value ("NAV") per Class I common share as of April 30, 2026. The offer and sale of these Class I common shares was exempt from the registration provisions of the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) thereof and/or Regulation S promulgated thereunder. The following table details the Class I common shares sold:
Date of Unregistered Sales (dollar amount in millions) Amount of Class I Common Shares Total Consideration
During May 2026 (number of shares finalized on May 19, 2026)
1,934,637 $ 52.1
Item 8.01 Other Events.
Net Asset Value
The NAV per share of each class of the Fund as of April 30, 2026, as determined in accordance with the valuation policies and procedures of Ares Capital Management LLC, the Fund's investment adviser, was as follows:
NAV as of April 30, 2026
Class I $ 26.95
Class S $ 26.95
Class D $ 26.95
As of April 30, 2026, the Fund's aggregate NAV was approximately $10.7 billion, the fair value of its portfolio investments was approximately $21.3 billion, and it had approximately $10.9 billion of debt outstanding. The Fund's debt-to-equity ratio as of April 30, 2026 was 1.05x, or 1.02x net of available cash of approximately $293 million. In addition, subject to borrowing base and other restrictions, the Fund had approximately $4.3 billion available for additional borrowings under its existing credit facilities as of April 30, 2026.
May 2026 Distributions
As previously disclosed, the Fund announced the declaration of regular monthly distributions for each class of the Fund's common shares of beneficial interest, including Class I shares, Class S shares and Class D shares (the "Common Shares") in the amounts per share set forth below:
Gross Distribution Shareholder Servicing and/or Distribution Fee Net Distribution
Class I $ 0.21430 $ 0.00000 $ 0.21430
Class S $ 0.21430 $ 0.01946 $ 0.19484
Class D $ 0.21430 $ 0.00572 $ 0.20858
The distributions for each class of Common Shares are payable to shareholders of record as of the open of business on May 29, 2026 and will be paid on or about June 24, 2026.
The May 2026 distributions will be paid in cash or reinvested in the Common Shares for shareholders participating in the Fund's distribution reinvestment plan.
June, July, August and September 2026 Distributions
As previously disclosed, the Fund announced the declaration of regular monthly gross distributions for June, July, August and September 2026, in each case for each class of its Common Shares in the amounts per share set forth below:
Gross Distribution Per Share
Record Date Payment Date(1) Class I Class S Class D
June 30, 2026 July 23, 2026 $ 0.21430 $ 0.21430 $ 0.21430
July 31, 2026 August 21, 2026 $ 0.21430 $ 0.21430 $ 0.21430
August 31, 2026 September 23, 2026 $ 0.21430 $ 0.21430 $ 0.21430
September 30, 2026 October 23, 2026 $ 0.21430 $ 0.21430 $ 0.21430
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(1)The distributions for each class of the Fund's Common Shares will be paid on or about the payment dates above.
These distributions will be paid in cash or reinvested in the Common Shares for shareholders participating in the Fund's distribution reinvestment plan. The net distributions received by shareholders of each of the Class S shares and Class D shares will be equal to the gross distribution in the table above, less specific shareholder servicing and/or distribution fees applicable to such class of the Fund's Common Shares as of their respective record dates. Class I shares have no shareholder servicing and/or distribution fees.
Performance Update 1
The Fund continues to deliver durable current income and sustained long-term outperformance relative to Morningstar LSTA US Leveraged Loan Index, which is designed to reflect the U.S. loan market's weighted performance of institutional leveraged loans. Since inception through April 30, 2026, the Fund has generated a 10.22% annualized total return for Class I shares, outperforming leveraged loans over the same period by 170 bps. 2, 3, 4, 5
In April 2026, the Fund generated a 1.17% monthly return for Class I shares.6 The April 2026 performance was largely characterized by durable income generation and modest unrealized gains across the portfolio, driven by a broader rebound in credit markets.
As of April 30, 2026, the Fund's annualized distribution rate for Class I shares was 9.54%.7
1 The performance data quoted represents past performance and is not a guarantee of future results. Certain information presented is for a limited amount of time and is not representative of the long-term performance of the Fund. There can be no assurance that the Fund will achieve its investment objective or avoid substantial losses.
2 Inception date for Class I shares is December 5, 2022 and August 1, 2023 for Class S shares and Class D shares. Annualized inception-to-date total return through April 30, 2026 is 9.57% for Class I shares with Upfront Placement Fees and Brokerage Commissions, 9.41% for Class D common shares, 8.61% for Class D shares with Upfront Placement Fees and Brokerage Commissions, 8.76% for Class S shares, and 7.36% for Class S shares with Upfront Placement Fees and Brokerage Commissions.
3 Total return is calculated as the change in monthly NAV per share during the period plus distributions per share (assuming any distributions, net of distribution and/or shareholder servicing fees, are reinvested in accordance with the Fund's distribution reinvestment plan) divided by the beginning NAV per share, which is calculated after the deduction of ongoing expenses that are borne by investors, such as management fees, incentive fees, distribution and/or shareholder servicing fees, interest expense, offering costs, professional fees, trustee fees and other general and administrative expenses. Inception-to-date figures use the initial offering price of $25.00 per share as the beginning NAV. Total return and annualized distribution rates for the Fund's other classes of common shares are lower than those presented with respect to Class I shares, due to differing fees and commissions. Expense Ratios: Class I shares: Gross: 8.02% / Net: 8.02%, Class D shares: Gross: 8.28% / Net: 8.28%, Class S shares: Gross: 8.87% / Net: 8.87%, annualized as of March 31, 2026 (the latest available data). The net expense ratio reflects an Expense Support and Conditional Reimbursement Agreement between the Fund and its investment adviser. Pursuant to this agreement the Fund's investment adviser may pay certain of the Fund's expenses on the Fund's behalf. Such payments are subject to recoupment or waiver at the option of the Fund's investment adviser for a three-year period. This agreement may be terminated by either party at any time.
4 U.S. leveraged loans are represented by the Morningstar LSTA US Leveraged Loan Index for the period from December 5, 2022 to April 30, 2026. This index is designed to reflect the U.S. loan market's weighted performance of institutional leveraged loans based upon real-time market weightings, spreads and interest payments.
5 The Fund does not charge investors an upfront sales load with respect to Class I shares, Class D shares or Class S shares. However, if you buy Class I shares, Class D shares or Class S shares through certain selling agents, they may directly charge you transaction or other fees, including upfront placement fees or brokerage commissions, in such amount as they may determine, provided that selling agents limit such charges to a maximum of 2.0% of NAV for Class I shares, 2.0% of NAV for Class D shares and 3.5% of NAV for Class S shares. Class I shares, Class D shares and Class S shares listed as With Upfront Placement Fees and Brokerage Commissions reflect the returns after the maximum upfront placement fees and brokerage commissions. Class I shares, Class D shares and Class S shares listed as Without Upfront Placement Fees and Brokerage Commissions exclude upfront placement fees and brokerage commissions.
6 April 2026 1-month return is -0.85% for Class I shares with Upfront Placement Fees and Brokerage Commissions, 1.15% for Class D shares, -0.87% for Class D shares with Upfront Placement Fees and Brokerage Commissions, 1.10% for Class S shares and -2.44% for Class S shares with Upfront Placement Fees and Brokerage Commissions.
7 As of April 30, 2026, the annualized distribution rate since inception is 8.69% for Class S shares and 9.29% for Class D shares. Distributions are not guaranteed.
Portfolio and Business Commentary
As of April 30, 2026, the Fund had investments in 829 portfolio companies with total fair value of approximately $21.3 billion, representing an average position size of 0.1%.8 As of April 30, 2026, 92% of the debt investments at fair value in the Fund's portfolio were floating rate and 80% of the Fund's investments were senior secured loans.
As of April 30, 2026, based on fair value, the Fund's portfolio investments consisted of the following:
As of April 30, 2026
Portfolio Investments
First lien senior secured loans 78.0 %
Second lien senior secured loans 1.6
Senior subordinated loans 6.4
Corporate bonds 0.5
Collateralized loan obligations 4.0
Commercial mortgage-backed securities 0.7
Private asset-backed investments 1.5
Investments in joint ventures 2.4
Preferred equity 1.6
Other equity 3.3
Total 100.0 %
As of April 30, 2026, the ten largest industries in which the Fund was invested, represented as a percentage of fair value, were as follows:
As of April 30, 2026
Industry
Software and Services 20.8 %
Health Care Equipment and Services 10.7 %
Commercial and Professional Services 9.5 %
Capital Goods 8.4 %
Investment Funds and Vehicles(1) 8.3 %
Consumer Services 6.4 %
Financial Services 6.1 %
Insurance 5.1 %
Sports, Media and Entertainment 4.1 %
Consumer Distribution and Retail 3.6 %
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(1)Includes the Fund's investments in a joint venture established between the Fund and a large North American pension fund.
Status of Offering
The Fund is currently publicly offering on a continuous basis up to $15.0 billion of its Common Shares, pursuant to a registered offering (the "Offering"). Additionally, the Fund has sold unregistered shares as part of private offerings (the "Private Placements"). The following table lists the Common Shares issued and total consideration for both the Offering and the Private Placements as of the date of this filing, reflective of transfers between share classes. The table below does not include Common Shares issued through the Fund's distribution reinvestment plan. The Fund intends to continue selling Common Shares in the Offering and in Private Placements on a monthly basis.
8 Average position size is determined by the average of the amortized cost for each portfolio company divided by total portfolio at amortized cost. Diversification does not assure profit or protect against market loss.
(dollar amounts in millions) Common Shares Issued Total Consideration(1)
Registered Offering:
Class I 114,338,115 $ 3,127.9
Class S 50,653,451 $ 1,384.0
Class D 33,335,165 $ 914.0
Private Placements
Class I 237,815,358 $ 6,481.2
Class S - -
Class D - -
Total Registered Offering and Private Placements* 436,142,089 $ 11,907.1
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(1)No underwriting discounts or commissions have been or will be paid in connection with the sale of such common shares. Although the Fund does not charge investors an upfront sales load with respect to its common shares, if common shares are purchased through certain selling agents, such selling agents may directly charge shareholders transaction or other fees, including upfront placement fees or brokerage commissions, in such amount as they may determine, provided that selling agents limit such charges to a 2.0% cap on NAV for Class I common shares, a 3.5% cap on NAV for Class S common shares and a 2.0% cap on NAV for Class D common shares.
*Amounts may not sum due to rounding.
The information in this Current Report on Form 8-K (this "Current Report") is neither an offer to sell nor a solicitation of an offer to buy any securities.
Ares Strategic Income Fund published this content on May 19, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on May 19, 2026 at 20:36 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]