UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
CURRENT REPORT
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Item 8.01 Other Events.
Portfolio and Business Commentary
As of July 31, 2023, Ares Strategic Income Fund (the “Fund”) had investments in 179 portfolio companies with total fair value of approximately $1,198 million. As of July 31, 2023, based on fair value, the Fund’s portfolio investments consisted of 95% in first lien senior secured loans, 2% in second lien senior secured loans, 1% in collateralized loan obligations and 2% in preferred equity. All of the debt investments in the Fund’s portfolio were floating rates as of July 31, 2023. As of July 31, 2023, the ten largest industries in which the Fund was invested, represented as a percentage of fair value, were as follows:
| As of | ||||
| July 31, 2023 | ||||
| Industry | ||||
| Software and Services | 19.9 | % | ||
| Health Care Services | 13.7 | % | ||
| Consumer Services | 13.1 | % | ||
| Capital Goods | 12.6 | % | ||
| Insurance Services | 8.1 | % | ||
| Financial Services | 5.6 | % | ||
| Commercial and Professional Services | 5.0 | % | ||
| Media and Entertainment | 3.5 | % | ||
| Materials | 2.5 | % | ||
| Household and Personal Products | 2.4 | % | ||
Net Asset Value
The net asset value (“NAV”) per share of each class of the Fund as of July 31, 2023, 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 July 31, 2023 | ||||
| Class I | $ | 27.01 | ||
| Class S | $ | 27.01 | ||
| Class D | $ | 27.01 | ||
As of July 31, 2023, the Fund’s aggregate NAV was approximately $879 million, the fair value of its portfolio investments was approximately $1,198 million, and it had approximately $179 million of debt outstanding. The Fund’s debt-to-equity leverage ratio as of July 31, 2023 was 0.20x.
Status of Offering
The Fund is currently publicly offering on a continuous basis up to $7.5 billion of its common shares, including Class I shares, Class S shares and Class D shares (“Common Shares”), pursuant to an 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. 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 on a monthly basis.
| (dollar amounts in millions) | Common Shares Issued | Total Consideration | ||||||
| Offering: | ||||||||
| Class I | 2,853,391 | $ | 77.1 | |||||
| Class S | 2,393,854 | $ | 64.7 | |||||
| Class D | 693,817 | $ | 18.7 | |||||
| Private Placements: | ||||||||
| Class I | 33,257,457 | $ | 870.1 | |||||
| Class S | — | $ | — | |||||
| Class D | — | $ | — | |||||
| Total*: | 39,198,519 | $ | 1,030.6 | |||||
* Amounts may not sum due to rounding.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ARES STRATEGIC INCOME FUND | ||
| Date: August 22, 2023 | ||
| By: | /s/ JOSHUA M. BLOOMSTEIN | |
| Name: | Joshua M. Bloomstein | |
| Title: | General Counsel and Secretary |