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CIG, LLC, First lien senior secured loan2024-09-300001918712Actfy Buyer, Inc., First lien senior secured loan2024-09-300001918712Activate Holdings (US) Corp. and CrossPoint Capital AS SPV, LP, First lien senior secured loan2024-09-300001918712Activate Holdings (US) Corp. and CrossPoint Capital AS SPV, LP, Limited partnership interests2024-09-300001918712asif:ActivateHoldingsUSCorp.AndCrossPointCapitalASSPVLPMember2024-09-300001918712AI Titan Parent, Inc., First lien senior secured loan2024-09-300001918712Applied Systems, Inc., First lien senior secured loan2024-09-300001918712AppLovin Corporation, First lien senior secured loan2024-09-300001918712AppLovin Corporation, First lien senior secured loan 12024-09-300001918712asif:AppLovinCorporationMember2024-09-300001918712Aptean, Inc. and Aptean Acquiror Inc., First lien senior secured loan2024-09-300001918712Aptean, Inc. and Aptean Acquiror Inc., First lien senior secured loan 12024-09-300001918712asif:ApteanInc.AndApteanAcquirorInc.Member2024-09-300001918712Artifact Bidco, Inc., First lien senior secured loan2024-09-300001918712Asurion, LLC., First lien senior secured loan2024-09-300001918712BCTO Ignition Purchaser, Inc., First lien senior secured loan2024-09-300001918712BEP Intermediate Holdco, LLC, First lien senior secured loan2024-09-300001918712Bobcat Purchaser, LLC and Bobcat Topco, L.P., First lien senior secured loan2024-09-300001918712Bobcat Purchaser, LLC and Bobcat Topco, L.P., Class A-1 units2024-09-300001918712asif:BobcatPurchaserLLCAndBobcatTopcoLPMember2024-09-300001918712Boost Newco Borrower, LLC, First lien senior secured loan2024-09-300001918712CCC Intelligent Solutions Inc., First lien senior secured loan2024-09-300001918712Centralsquare Technologies, LLC and Supermoose Newco, Inc., First lien senior secured loan2024-09-300001918712Centralsquare Technologies, LLC and Supermoose Newco, Inc., Series A preferred stock2024-09-300001918712asif:CentralsquareTechnologiesLLCAndSupermooseNewcoInc.Member2024-09-300001918712Cloud Software Group, Inc. and Picard Parent, Inc., First lien senior secured loan2024-09-300001918712Cloud Software Group, Inc. and Picard Parent, Inc., First lien senior secured loan 12024-09-300001918712Cloud Software Group, Inc. and Picard Parent, Inc., First lien senior secured loan 22024-09-300001918712Cloud Software Group, Inc. and Picard Parent, Inc., Second lien senior secured notes2024-09-300001918712asif:CloudSoftwareGroupIncAndPicardParentIncMember2024-09-300001918712Conservice Midco, LLC, First lien senior secured loan2024-09-300001918712Conservice Midco, LLC, Second lien senior secured loan2024-09-300001918712asif:ConserviceMidcoLLCMember2024-09-300001918712Coupa Holdings, LLC and Coupa Software Incorporated, First lien senior secured loan2024-09-300001918712Diligent Corporation, First lien senior secured revolving loan2024-09-300001918712Diligent Corporation, First lien senior secured loan2024-09-300001918712asif:DiligentCorporationMember2024-09-300001918712DriveCentric Holdings, LLC, First lien senior secured loan2024-09-300001918712DS Admiral Bidco, LLC, First lien senior secured loan2024-09-300001918712Echo Purchaser, Inc., First lien senior secured revolving loan2024-09-300001918712Echo Purchaser, Inc., First lien senior secured loan2024-09-300001918712asif:EchoPurchaserInc.Member2024-09-300001918712ECi Macola/MAX Holding, LLC, First lien senior secured loan2024-09-300001918712Eclipse Topco, Inc., Eclipse Investor Parent, L.P. and Eclipse Buyer, Inc., First lien senior secured loan2024-09-300001918712Eclipse Topco, Inc., Eclipse Investor Parent, L.P. and Eclipse Buyer, Inc., Preferred units2024-09-300001918712Eclipse Topco, Inc., Eclipse Investor Parent, L.P. and Eclipse Buyer, Inc., Class A common units2024-09-300001918712asif:EclipseTopcoInc.EclipseInvestorParentL.P.AndEclipseBuyerInc.Member2024-09-300001918712Edmunds Govtech, Inc., First lien senior secured revolving loan2024-09-300001918712Edmunds Govtech, Inc., First lien senior secured loan2024-09-300001918712asif:EdmundsGovtechInc.Member2024-09-300001918712Ensono, Inc., First lien senior secured loan2024-09-300001918712Epicor Software Corporation, First lien senior secured loan2024-09-300001918712eResearch Technology, Inc., First lien senior secured loan2024-09-300001918712eResearch Technology, Inc., Second lien senior secured loan2024-09-300001918712asif:EResearchTechnologyInc.Member2024-09-300001918712Finastra USA, Inc., DH Corporation/Societe DH, and Finastra Europe S.A R.L., First lien senior secured loan2024-09-300001918712Genesys Cloud Services Holdings I, LLC, First lien senior secured loan2024-09-300001918712Genesys Cloud Services Holdings I, LLC, First lien senior secured loan 12024-09-300001918712Genesys Cloud Services Holdings I, LLC, First lien senior secured loan 22024-09-300001918712asif:GenesysCloudServicesHoldingsILLCMember2024-09-300001918712Guidepoint Security Holdings, LLC, First lien senior secured loan2024-09-300001918712Hakken Midco B.V., First lien senior secured loan2024-09-300001918712Hyland Software, Inc., First lien senior secured revolving loan2024-09-300001918712Hyland Software, Inc., First lien senior secured loan2024-09-300001918712asif:HylandSoftwareInc.Member2024-09-300001918712Icefall Parent, Inc., First lien senior secured loan2024-09-300001918712Idemia Group S.A.S., First lien senior secured loan2024-09-300001918712Imprivata, Inc., First lien senior secured loan2024-09-300001918712Instructure Holdings, INC., First lien senior secured loan2024-09-300001918712Internet Truckstop Group LLC, First lien senior secured loan2024-09-300001918712Leia Finco US LLC, First lien senior secured loan2024-09-300001918712Leia Finco US LLC, Second lien senior secured loan2024-09-300001918712asif:LeiaFincoUSLLCMember2024-09-300001918712Marcel Bidco GmbH, First lien senior secured loan2024-09-300001918712McAfee Corp., First lien senior secured loan2024-09-300001918712Mermaid Bidco Inc., First lien senior secured loan2024-09-300001918712Mitchell International, Inc., First lien senior secured loan2024-09-300001918712Mitchell International, Inc., Second lien senior secured loan2024-09-300001918712asif:MitchellInternationalIncMember2024-09-300001918712Mosel Bidco SE, First lien senior secured loan2024-09-300001918712Netsmart, Inc. and Netsmart Technologies, Inc., First lien senior secured loan2024-09-300001918712North Star Acquisitionco, LLC and Toucan Bidco Limited, First lien senior secured revolving loan2024-09-300001918712North Star Acquisitionco, LLC and Toucan Bidco Limited, First lien senior secured loan 2024-09-300001918712North Star Acquisitionco, LLC and Toucan Bidco Limited, First lien senior secured loan 12024-09-300001918712North Star Acquisitionco, LLC and Toucan Bidco Limited, First lien senior secured loan 22024-09-300001918712asif:NorthStarAcquisitioncoLLCAndToucanBidcoLimitedMember2024-09-300001918712Open Text Corporation, First lien senior secured loan2024-09-300001918712Particle Luxembourg S.a.r.l., First lien senior secured loan2024-09-300001918712Polaris Newco, LLC, First lien senior secured loan2024-09-300001918712Project Boost Purchaser, LLC, First lien senior secured loan 2024-09-300001918712Project Boost Purchaser, LLC, Second lien senior secured loan2024-09-300001918712asif:ProjectBoostPurchaserLLCMember2024-09-300001918712Proofpoint, Inc., First lien senior secured loan2024-09-300001918712PushPay USA Inc., First lien senior secured loan2024-09-300001918712Qualtrics Acquireco, LLC, First lien senior secured loan2024-09-300001918712RealPage, Inc., First lien senior secured loan2024-09-300001918712RealPage, Inc., Second lien senior secured loan2024-09-300001918712asif:RealPageInc.Member2024-09-300001918712Sapphire Software Buyer, Inc., First lien senior secured loan2024-09-300001918712Sedgwick Claims Management Services, Inc., First lien senior secured loan2024-09-300001918712Severin Acquisition, LLC, First lien senior secured loan2024-09-300001918712Severin Acquisition, LLC, First lien senior secured loan 12024-09-300001918712asif:SeverinAcquisitionLLCMember2024-09-300001918712Sophia, L.P., First lien senior secured loan2024-09-300001918712Spark Purchaser, Inc., First lien senior secured loan2024-09-300001918712Superman Holdings, LLC., First lien senior secured loan2024-09-300001918712Tenable Holdings, Inc., First lien senior secured loan2024-09-300001918712Transit Technologies LLC., First lien senior secured loan2024-09-300001918712UserZoom Technologies, Inc., First lien senior secured loan2024-09-300001918712Victors Purchaser, LLC and WP Victors Co-Investment, L.P., First lien senior secured loan2024-09-300001918712Victors Purchaser, LLC and WP Victors Co-Investment, L.P., Partnership units2024-09-300001918712asif:VictorsPurchaserLLCAndWPVictorsCoInvestmentL.P.Member2024-09-300001918712VS Buyer, LLC, First lien senior secured loan2024-09-300001918712Wellington Bidco Inc. and Wellington TopCo LP, First lien senior secured revolving loan2024-09-300001918712Wellington Bidco Inc. and Wellington TopCo LP, First lien senior secured loan2024-09-300001918712Wellington Bidco Inc. and Wellington TopCo LP, Class A-2 preferred units2024-09-300001918712asif:WellingtonBidcoInc.AndWellingtonTopCoLPMember2024-09-300001918712ZocDoc, Inc., First lien senior secured loan2024-09-300001918712asif:SoftwareAndServicesMember2024-09-300001918712AI Aqua Merger Sub, Inc., First lien senior secured loan 2024-09-300001918712Airx Climate Solutions, Inc., First lien senior secured loan2024-09-300001918712Airx Climate Solutions, Inc., First lien senior secured loan 12024-09-300001918712asif:AirxClimateSolutionsInc.Member2024-09-300001918712Alliance Laundry Systems LLC., First lien senior secured loan2024-09-300001918712Artera Services, LLC, First lien senior secured loan2024-09-300001918712BCPE Empire Holdings, Inc., First lien senior secured loan2024-09-300001918712BGIF IV Fearless Utility Services, Inc.,First lien senior secured revolving loan2024-09-300001918712BGIF IV Fearless Utility Services, Inc., First lien senior secured loan2024-09-300001918712asif:BGIFIVFearlessUtilityServicesInc.Member2024-09-300001918712Bleriot US Bidco Inc., First lien senior secured loan 2024-09-300001918712Brown Group Holding, LLC, First lien senior secured loan 12024-09-300001918712Brown Group Holding, LLC, First lien senior secured loan 22024-09-300001918712asif:BrownGroupHoldingLLCMember2024-09-300001918712Burgess Point Purchaser Corporation, First lien senior secured loan2024-09-300001918712Chart Industries, Inc., First lien senior secured loan2024-09-300001918712Chillaton Bidco Limited, First lien senior secured loan2024-09-300001918712CP Atlas Buyer Inc, First lien senior secured loan2024-09-300001918712CPIG Holdco Inc., First lien senior secured revolving loan2024-09-300001918712CPIG Holdco Inc., First lien senior secured loan2024-09-300001918712asif:CPIGHoldcoIncMember2024-09-300001918712Cube Industrials Buyer, Inc. and Cube A&D Buyer Inc., First lien senior secured revolving loan2024-09-300001918712Cube Industrials Buyer, Inc. and Cube A&D Buyer Inc., First lien senior secured loan2024-09-300001918712asif:CubeIndustrialsBuyerInc.AndCubeADBuyerInc.Member2024-09-300001918712Dynasty Acquisition Co., Inc., First lien senior secured loan2024-09-300001918712FCG Acquisitions, Inc., First lien senior secured loan2024-09-300001918712Gates Global LLC, First lien senior secured loan2024-09-300001918712Generator Buyer, Inc., First lien senior secured loan2024-09-300001918712GSV Purchaser, Inc., First lien senior secured loan2024-09-300001918712Helix Acquisition Holdings, Inc., First lien senior secured loan2024-09-300001918712HPCC Parent, Inc. and Patriot Container Corp., First lien senior secured loan2024-09-300001918712HPCC Parent, Inc. and Patriot Container Corp., Common stock2024-09-300001918712asif:HPCCParentInc.AndPatriotContainerCorp.Member2024-09-300001918712Husky Injection Molding Systems Ltd., First lien senior secured loan2024-09-300001918712Johnstone Supply, LLC, First lien senior secured loan2024-09-300001918712Kaman Corporation, First lien senior secured loan2024-09-300001918712LBM Acquisition LLC, First lien senior secured loan2024-09-300001918712Nvent Electric Public Limited Company, First lien senior secured loan2024-09-300001918712Pike Corporation, First lien senior secured loan2024-09-300001918712Propulsion (BC) Newco LLC, First lien senior secured loan2024-09-300001918712Specialty Building Products Holdings, LLC, First lien senior secured loan2024-09-300001918712SPX Flow, Inc., First lien senior secured loan2024-09-300001918712Star US Bidco LLC, First lien senior secured loan2024-09-300001918712Sunvair Aerospace Group, Inc. and GB Helios Holdings, L.P., First lien senior secured loan2024-09-300001918712Sunvair Aerospace Group, Inc. and GB Helios Holdings, L.P., Series A common units2024-09-300001918712asif:SunvairAerospaceGroupInc.AndGBHeliosHoldingsL.PMember2024-09-300001918712TransDigm Inc., First lien senior secured loan 2024-09-300001918712TransDigm Inc., First lien senior secured loan 12024-09-300001918712TransDigm Inc., First lien senior secured loan 22024-09-300001918712TransDigm Inc., First lien senior secured loan 32024-09-300001918712asif:TransDigmIncMember2024-09-300001918712Victory Buyer LLC, First lien senior secured loan 2024-09-300001918712WEC US Holdings Ltd., First lien senior secured loan2024-09-300001918712asif:CapitalGoodsMember2024-09-300001918712Agiliti Health, Inc., First lien senior secured loan2024-09-300001918712Amerivet Partners Management, Inc. and AVE Holdings LP, Subordinated loan2024-09-300001918712Amerivet Partners Management, Inc. and AVE Holdings LP, Class A units2024-09-300001918712Amerivet Partners Management, Inc. and AVE Holdings LP, Class C units2024-09-300001918712asif:AmerivetPartnersManagementInc.AndAVEHoldingsLPMember2024-09-300001918712Amethyst Radiotherapy Group B.V., First lien senior secured loan2024-09-300001918712Artivion, Inc., First lien senior secured revolving loan2024-09-300001918712Artivion, Inc., First lien senior secured loan2024-09-300001918712asif:ArtivionInc.Member2024-09-300001918712athenahealth Group Inc., First lien senior secured loan2024-09-300001918712Avalign Holdings, Inc. and Avalign Technologies, Inc., First lien senior secured loan2024-09-300001918712Bracket Intermediate Holding Corp., First lien senior secured loan2024-09-300001918712Charlotte Buyer, Inc., First lien senior secured loan2024-09-300001918712CNT Holdings I Corp, First lien senior secured loan2024-09-300001918712Confluent Medical Technologies, Inc., First lien senior secured loan2024-09-300001918712Electron Bidco Inc., First lien senior secured loan2024-09-300001918712Empower Payments Investor, LLC, First lien senior secured loan2024-09-300001918712Ensemble RCM, LLC, First lien senior secured loan2024-09-300001918712Envisage Management Ltd, First lien senior secured loan2024-09-300001918712Envisage Management Ltd, First lien senior secured loan 12024-09-300001918712asif:EnvisageManagementLtdMember2024-09-300001918712Financiere Mendel, First lien senior secured loan2024-09-300001918712Gainwell Acquisition Corp., First lien senior secured loan2024-09-300001918712HuFriedy Group Acquisition LLC, First lien senior secured loan2024-09-300001918712Lifepoint Health Inc, First lien senior secured loan 2024-09-300001918712Mamba Purchaser, Inc., First lien senior secured loan2024-09-300001918712MED ParentCo, LP, First lien senior secured loan2024-09-300001918712Medline Borrower, LP, First lien senior secured loan 2024-09-300001918712Medline Borrower, LP, First lien senior secured loan 12024-09-300001918712asif:MedlineBorrowerLPMember2024-09-300001918712Next Holdco, LLC, First lien senior secured loan2024-09-300001918712Nomi Health, Inc., First lien senior secured loan2024-09-300001918712Nomi Health, Inc., Warrant to purchase Series B preferred stock2024-09-300001918712Nomi Health, Inc., Warrant to purchase Class A common stock2024-09-300001918712asif:NomiHealthInc.Member2024-09-300001918712Option Care Health Inc, First lien senior secured loan2024-09-300001918712Paragon 28, Inc. and Paragon Advanced Technologies, Inc., First lien senior secured revolving loan2024-09-300001918712Paragon 28, Inc. and Paragon Advanced Technologies, Inc., First lien senior secured loan2024-09-300001918712asif:Paragon28Inc.AndParagonAdvancedTechnologiesInc.Member2024-09-300001918712PointClickCare Technologies Inc., First lien senior secured loan2024-09-300001918712Radnet Management, Inc., First lien senior secured loan2024-09-300001918712RegionalCare Hospital Partners Holdings, Inc., First lien senior secured loan2024-09-300001918712RegionalCare Hospital Partners Holdings, Inc., First lien senior secured loan 12024-09-300001918712asif:RegionalCareHospitalPartnersHoldingsInc.Member2024-09-300001918712Resonetics, LLC, First lien senior secured loan2024-09-300001918712Sharp Midco LLC, First lien senior secured loan2024-09-300001918712Sotera Health Holdings, LLC, First lien senior secured loan2024-09-300001918712Surgery Center Holdings, Inc., First lien senior secured loan2024-09-300001918712United Digestive MSO Parent, LLC and Koln Co-Invest Unblocked, LP, First lien senior secured revolving loan2024-09-300001918712United Digestive MSO Parent, LLC and Koln Co-Invest Unblocked, LP, First lien senior secured loan2024-09-300001918712United Digestive MSO Parent, LLC and Koln Co-Invest Unblocked, LP, Class A interests2024-09-300001918712asif:UnitedDigestiveMSOParentLLCAndKolnCoInvestUnblockedLPMember2024-09-300001918712Viant Medical Holdings, Inc., First lien senior secured loan2024-09-300001918712Viant Medical Holdings, Inc., Second lien senior secured loan2024-09-300001918712asif:ViantMedicalHoldingsIncMember2024-09-300001918712Waystar Technologies, Inc., First lien senior secured loan2024-09-300001918712Zelis Cost Management Buyer, Inc., First lien senior secured loan2024-09-300001918712us-gaap:HealthcareSectorMember2024-09-300001918712Aldinger Company Inc, First lien senior secured loan2024-09-300001918712AlixPartners, LLP, First lien senior secured loan2024-09-300001918712AMCP Clean Acquisition Company, LLC, First lien senior secured loan2024-09-300001918712Ankura Consulting Group, LLC, First lien senior secured loan2024-09-300001918712Celnor Group Limited, First lien senior secured loan2024-09-300001918712Corporation Service Company, First lien senior secured loan2024-09-300001918712Dorado Bidco, Inc., First lien senior secured loan2024-09-300001918712DP Flores Holdings, LLC, First lien senior secured loan2024-09-300001918712Drogon Bidco Inc. & Drogon Aggregator LP, First lien senior secured loan2024-09-300001918712Drogon Bidco Inc. & Drogon Aggregator LP, Class A-2 common units2024-09-300001918712asif:DrogonBidcoInc.DrogonAggregatorLPMember2024-09-300001918712Dun & Bradstreet Corporation, First lien senior secured loan2024-09-300001918712Duraserv LLC, First lien senior secured loan2024-09-300001918712Eagle Parent Corp., First lien senior secured loan2024-09-300001918712FlyWheel Acquireco, Inc., First lien senior secured revolving loan2024-09-300001918712FlyWheel Acquireco, Inc., First lien senior secured loan2024-09-300001918712asif:FlyWheelAcquirecoIncMember2024-09-300001918712GCM HVAC Holdco, LLC and GCM HVAC Topco, LLC, Private asset backed investment2024-09-300001918712GCM HVAC Holdco, LLC and GCM HVAC Topco, LLC, Private asset backed investment 12024-09-300001918712asif:GCMHVACHoldcoLLCAndGCMHVACTopcoLLCMember2024-09-300001918712Geosyntec Consultants, Inc., First lien senior secured loan 2024-09-300001918712Grant Thornton Advisors LLC, First lien senior secured loan 2024-09-300001918712HP RSS Buyer, Inc., First lien senior secured loan 2024-09-300001918712HP RSS Buyer, Inc., First lien senior secured loan 12024-09-300001918712asif:HPRSSBuyerInc.Member2024-09-300001918712Indigo Acquisition B.V., First lien senior secured loan 2024-09-300001918712Indigo Acquisition B.V., First lien senior secured loan 12024-09-300001918712asif:IndigoAcquisitionB.V.Member2024-09-300001918712ISolved, Inc., First lien senior secured loan2024-09-300001918712Kings Buyer, LLC, First lien senior secured revolving loan2024-09-300001918712Kings Buyer, LLC, First lien senior secured loan2024-09-300001918712asif:KingsBuyerLLCMember2024-09-300001918712KPS Global LLC and Cool Group LLC, First lien senior secured loan2024-09-300001918712LABL, Inc., First lien senior secured loan2024-09-300001918712LBC Woodlands Purchaser LLC and LBC Woodlands Holdings LP, First lien senior secured loan2024-09-300001918712LBC Woodlands Purchaser LLC and LBC Woodlands Holdings LP, Class A common units2024-09-300001918712asif:LBCWoodlandsPurchaserLLCAndLBCWoodlandsHoldingsLPMember2024-09-300001918712Lightbeam Bidco, Inc., First lien senior secured revolving loan2024-09-300001918712Lightbeam Bidco, Inc., First lien senior secured loan2024-09-300001918712asif:LightbeamBidcoIncMember2024-09-300001918712Motus LLC, First lien senior secured loan2024-09-300001918712Mustang Prospects Holdco, LLC, Mustang Prospects Purchaser, LLC and Senske Acquisition, Inc., First lien senior secured loan2024-09-300001918712Mustang Prospects Holdco, LLC, Mustang Prospects Purchaser, LLC and Senske Acquisition, Inc., Class A preferred units2024-09-300001918712Mustang Prospects Holdco, LLC, Mustang Prospects Purchaser, LLC and Senske Acquisition, Inc., Class B common units2024-09-300001918712asif:MustangProspectsHoldcoLLCMustangProspectsPurchaserLLCAndSenskeAcquisitionInc.Member2024-09-300001918712North Haven Fairway Buyer, LLC, Fairway Lawns, LLC and Command Pest Control, LLC, First lien senior secured revolving loan 2024-09-300001918712North Haven Fairway Buyer, LLC, Fairway Lawns, LLC and Command Pest Control, LLC, First lien senior secured loan 2024-09-300001918712North Haven Fairway Buyer, LLC, Fairway Lawns, LLC and Command Pest Control, LLC, First lien senior secured loan 12024-09-300001918712asif:NorthHavenFairwayBuyerLLCFairwayLawnsLLCAndCommandPestControlLLCMember2024-09-300001918712North Haven Stack Buyer, LLC, First lien senior secured loan 12024-09-300001918712North Haven Stack Buyer, LLC, First lien senior secured loan 22024-09-300001918712asif:NorthHavenStackBuyerLLCMember2024-09-300001918712Omnia Partners, LLC, First lien senior secured loan2024-09-300001918712Priority Waste Holdings LLC, Priority Waste Holdings Indiana LLC and Priority Waste Super Holdings, LLC, First lien senior secured revolving loan2024-09-300001918712Priority Waste Holdings LLC, Priority Waste Holdings Indiana LLC and Priority Waste Super Holdings, LLC, First lien senior secured loan2024-09-300001918712Priority Waste Holdings LLC, Priority Waste Holdings Indiana LLC and Priority Waste Super Holdings, LLC, Warrant to purchase Class A common units 12024-09-300001918712Priority Waste Holdings LLC, Priority Waste Holdings Indiana LLC and Priority Waste Super Holdings, LLC, Warrant to purchase Class A common units 22024-09-300001918712asif:PriorityWasteHoldingsLLCPriorityWasteHoldingsIndianaLLCAndPriorityWasteSuperHoldingsLLCMember2024-09-300001918712PSC Parent, Inc., First lien senior secured revolving loan 12024-09-300001918712PSC Parent, Inc., First lien senior secured revolving loan 22024-09-300001918712PSC Parent, Inc., First lien senior secured loan2024-09-300001918712asif:PSCParentInc.Member2024-09-300001918712PYE-Barker Fire & Safety, LLC, First lien senior secured revolving loan2024-09-300001918712PYE-Barker Fire & Safety, LLC, First lien senior secured loan2024-09-300001918712asif:PYEBarkerFireSafetyLLCMember2024-09-300001918712Saturn Purchaser Corp., First lien senior secured loan2024-09-300001918712SV Newco 2, Inc., First lien senior secured loan2024-09-300001918712Tempo Acquisition, LLC, First lien senior secured loan2024-09-300001918712Teneo Holdings LLC, First lien senior secured loan2024-09-300001918712The Hiller Companies, LLC, First lien senior secured revolving loan2024-09-300001918712Thevelia (US) LLC, First lien senior secured loan2024-09-300001918712UP Intermediate II LLC and UPBW Blocker LLC, First lien senior secured revolving loan2024-09-300001918712UP Intermediate II LLC and UPBW Blocker LLC, First lien senior secured loan2024-09-300001918712UP Intermediate II LLC and UPBW Blocker LLC, Common units 12024-09-300001918712UP Intermediate II LLC and UPBW Blocker LLC, Common units 22024-09-300001918712asif:UPIntermediateIILLCAndUPBWBlockerLLCMember2024-09-300001918712W.S. Connelly & Co., LLC and WSC Ultimate Holdings, LLC, First lien senior secured revolving loan 12024-09-300001918712W.S. Connelly & Co., LLC and WSC Ultimate Holdings, LLC, First lien senior secured revolving loan 22024-09-300001918712W.S. Connelly & Co., LLC and WSC Ultimate Holdings, LLC, First lien senior secured loan2024-09-300001918712W.S. Connelly & Co., LLC and WSC Ultimate Holdings, LLC, Class A preferred units2024-09-300001918712W.S. Connelly & Co., LLC and WSC Ultimate Holdings, LLC, Class A common units2024-09-300001918712asif:W.S.ConnellyCo.LLCAndWSCUltimateHoldingsLLCMember2024-09-300001918712Xplor T1, LLC, First lien senior secured loan2024-09-300001918712Zinc Buyer Corporation, First lien senior secured revolving loan2024-09-300001918712Zinc Buyer Corporation, First lien senior secured loan2024-09-300001918712asif:ZincBuyerCorporationMember2024-09-300001918712asif:CommercialAndProfessionalServicesMember2024-09-300001918712Alterra Mountain Company, First lien senior secured loan 12024-09-300001918712Alterra Mountain Company, First lien senior secured loan 22024-09-300001918712asif:AlterraMountainCompanyMember2024-09-300001918712Apex Service Partners, LLC and Apex Service Partners Holdings, LLC, First lien senior secured revolving loan2024-09-300001918712Apex Service Partners, LLC and Apex Service Partners Holdings, LLC, First lien senior secured loan2024-09-300001918712Apex Service Partners, LLC and Apex Service Partners Holdings, LLC, Series B common units2024-09-300001918712asif:ApexServicePartnersLLCMember2024-09-300001918712Belfor Holdings, Inc., First lien senior secured loan2024-09-300001918712Bulldog Purchaser Inc., First lien senior secured loan2024-09-300001918712Caesars Entertainment Inc, First lien senior secured loan 12024-09-300001918712Caesars Entertainment Inc, First lien senior secured loan 22024-09-300001918712asif:CaesarsEntertainmentIncMember2024-09-300001918712ClubCorp Holdings, Inc., First lien senior secured loan2024-09-300001918712Equinox Holdings, Inc., First lien senior secured loan2024-09-300001918712Equinox Holdings, Inc., Second lien senior secured loan2024-09-300001918712asif:EquinoxHoldingsInc.Member2024-09-300001918712Eternal Aus Bidco Pty Ltd, First lien senior secured loan2024-09-300001918712Excel Fitness Consolidator LLC, First lien senior secured loan2024-09-300001918712Fertitta Entertainment, LLC, First lien senior secured loan2024-09-300001918712Fitness Ventures Holdings, Inc. and Meaningful Partners Fitness Ventures Co-Investment LP, First lien senior secured revolving loan2024-09-300001918712Fitness Ventures Holdings, Inc. and Meaningful Partners Fitness Ventures Co-Investment LP, First lien senior secured loan2024-09-300001918712Fitness Ventures Holdings, Inc. and Meaningful Partners Fitness Ventures Co-Investment LP, Common units2024-09-300001918712asif:FitnessVenturesHoldingsInc.AndMeaningfulPartnersFitnessVenturesCoInvestmentLPMember2024-09-300001918712Flint OpCo, LLC, First lien senior secured loan 12024-09-300001918712Flint OpCo, LLC, First lien senior secured loan 22024-09-300001918712asif:FlintOpCoLLCMember2024-09-300001918712GBT Group Services B.V., First lien senior secured loan2024-09-300001918712GS SEER Group Borrower LLC and GS SEER Group Holdings LLC, First lien senior secured loan2024-09-300001918712GS SEER Group Borrower LLC and GS SEER Group Holdings LLC, Class A common units2024-09-300001918712asif:GSSEERGroupBorrowerLLCAndGSSEERGroupHoldingsLLCMember2024-09-300001918712Helios Service Partners, LLC and Astra Service Partners, LLC, First lien senior secured revolving loan2024-09-300001918712Helios Service Partners, LLC and Astra Service Partners, LLC, First lien senior secured loan2024-09-300001918712asif:HeliosServicePartnersLLCAndAstraServicePartnersLLCMember2024-09-300001918712Infinity Home Services HoldCo, Inc., D&S Amalco and IHS Parent Holdings, L.P., First lien senior secured revolving loan2024-09-300001918712Infinity Home Services HoldCo, Inc., D&S Amalco and IHS Parent Holdings, L.P., First lien senior secured loan 12024-09-300001918712Infinity Home Services HoldCo, Inc., D&S Amalco and IHS Parent Holdings, L.P., First lien senior secured loan 22024-09-300001918712Infinity Home Services HoldCo, Inc., D&S Amalco and IHS Parent Holdings, L.P., First lien senior secured loan 32024-09-300001918712Infinity Home Services HoldCo, Inc., D&S Amalco and IHS Parent Holdings, L.P., First lien senior secured loan 42024-09-300001918712Infinity Home Services HoldCo, Inc., D&S Amalco and IHS Parent Holdings, L.P., Class A units2024-09-300001918712asif:InfinityHomeServicesHoldCoInc.DSAmalcoAndIHSParentHoldingsL.P.Member2024-09-300001918712IRB Holding Corp., First lien senior secured loan2024-09-300001918712KUEHG Corp, First lien senior secured loan2024-09-300001918712Learning Care Group (US) No. 2 Inc., First lien senior secured loan2024-09-300001918712Leviathan Intermediate Holdco, LLC and Leviathan Holdings, L.P., First lien senior secured loan2024-09-300001918712Leviathan Intermediate Holdco, LLC and Leviathan Holdings, L.P., Limited partnership interests2024-09-300001918712asif:LeviathanIntermediateHoldcoLLCAndLeviathanHoldingsLPMember2024-09-300001918712Mister Car Wash Holdings, Inc., First lien senior secured loan2024-09-300001918712Northwinds Holding, Inc. and Northwinds Services Group LLC, First lien senior secured loan2024-09-300001918712Northwinds Holding, Inc. and Northwinds Services Group LLC, Common units2024-09-300001918712asif:NorthwindsHoldingIncAndNorthwindsServicesGroupLLCMember2024-09-300001918712Ontario Gaming GTA LP, First lien senior secured loan2024-09-300001918712PCI Gaming Authority, First lien senior secured loan2024-09-300001918712PestCo Holdings, LLC and PestCo, LLC, First lien senior secured loan2024-09-300001918712PestCo Holdings, LLC and PestCo, LLC, Class A units2024-09-300001918712asif:PestCoHoldingsLLCAndPestCoLLCMember2024-09-300001918712PG Investment Company 59 S.a r.l., First lien senior secured loan2024-09-300001918712Premiere Buyer, LLC, First lien senior secured loan2024-09-300001918712Quick Quack Car Wash Holdings, LLC and KKR Game Changer Co-Invest Feeder II L.P., First lien senior secured loan2024-09-300001918712Quick Quack Car Wash Holdings, LLC and KKR Game Changer Co-Invest Feeder II L.P., Limited partnership interests2024-09-300001918712asif:QuickQuackCarWashHoldingsLLCAndKKRGameChangerCoInvestFeederIIL.P.Member2024-09-300001918712Radiant Intermediate Holding, LLC, First lien senior secured loan2024-09-300001918712Restaurant Brands International Inc., First lien senior secured loan2024-09-300001918712Service Logic Acquisition, Inc. and MSHC, Inc., First lien senior secured loan2024-09-300001918712Simon & Schuster, Inc., First lien senior secured loan2024-09-300001918712Station Casinos LLC, First lien senior secured loan2024-09-300001918712TSS Buyer, LLC, First lien senior secured loan2024-09-300001918712University Support Services LLC, First lien senior secured loan2024-09-300001918712Vertex Service Partners, LLC and Vertex Service Partners Holdings, LLC, First lien senior secured revolving loan2024-09-300001918712Vertex Service Partners, LLC and Vertex Service Partners Holdings, LLC, First lien senior secured loan 12024-09-300001918712Vertex Service Partners, LLC and Vertex Service Partners Holdings, LLC, First lien senior secured loan 22024-09-300001918712Vertex Service Partners, LLC and Vertex Service Partners Holdings, LLC, Class B common units2024-09-300001918712asif:VertexServicePartnersLLCAndVertexServicePartnersHoldingsLLCMember2024-09-300001918712Whatabrands LLC, First lien senior secured loan2024-09-300001918712asif:ConsumerServicesMember2024-09-300001918712Aduro Advisors, LLC, First lien senior secured loan2024-09-300001918712Cliffwater LLC, First lien senior secured loan2024-09-300001918712Corient Holdings, Inc., Series A preferred stock2024-09-300001918712Endeavor Bidco LLC and Endeavor TopCo, Inc., First lien senior secured loan2024-09-300001918712Endeavor Bidco LLC and Endeavor TopCo, Inc., Class A common units2024-09-300001918712asif:EndeavorBidcoLLCAndEndeavorTopCoInc.Member2024-09-300001918712Envestnet, Inc., First lien senior secured loan2024-09-300001918712Focus Financial Partners, LLC, First lien senior secured loan2024-09-300001918712GC Waves Holdings, Inc., First lien senior secured loan 12024-09-300001918712GC Waves Holdings, Inc., First lien senior secured loan 22024-09-300001918712asif:GCWavesHoldingsInc.Member2024-09-300001918712GTCR Everest Borrower, LLC, First lien senior secured loan2024-09-300001918712GTCR F Buyer Corp. and GTCR (D) Investors LP, First lien senior secured loan2024-09-300001918712GTCR F Buyer Corp. and GTCR (D) Investors LP, Limited partnership interests2024-09-300001918712asif:GTCRFBuyerCorpAndGTCRDInvestorsLPMember2024-09-300001918712Harbourvest Global Private Equity Limited, Private asset-backed investment2024-09-300001918712HighTower Holding, LLC, First lien senior secured loan2024-09-300001918712HV Chimera LLC, Private asset-backed investment2024-09-300001918712Isthmus Capital LLC, Private asset-backed investment 12024-09-300001918712Isthmus Capital LLC, Private asset-backed investment 22024-09-300001918712asif:IsthmusCapitalLLCMember2024-09-300001918712Mai Capital Management Intermediate LLC, First lien senior secured loan2024-09-300001918712Mars Downstop Loan Purchaser Trust, Private asset-backed investment2024-09-300001918712Monroe Capital Income Plus Corporation, Corporate bond2024-09-300001918712Nuvei Technologies Corp., First lien senior secured loan2024-09-300001918712Paint Intermediate III, LLC, First lien senior secured loan2024-09-300001918712Parexel International Inc., First lien senior secured loan2024-09-300001918712Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P., First lien senior secured revolving loan2024-09-300001918712Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P., First lien senior secured loan2024-09-300001918712Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P., Limited partnership interests2024-09-300001918712asif:PathstoneFamilyOfficeLLCAndKelsoXITailwindCoInvestmentLPMember2024-09-300001918712PCIA SPV-3, LLC and ASE Royal Aggregator, LLC, First lien senior secured loan2024-09-300001918712PCIA SPV-3, LLC and ASE Royal Aggregator, LLC, Preferred units2024-09-300001918712asif:PCIASPV3LLCAndASERoyalAggregatorLLCMember2024-09-300001918712PCS MidCo, Inc. and PCS Parent, L.P., First lien senior secured revolving loan2024-09-300001918712PCS MidCo, Inc. and PCS Parent, L.P., First lien senior secured loan2024-09-300001918712PCS MidCo, Inc. and PCS Parent, L.P., Class A units2024-09-300001918712asif:PCSMidCoInc.AndPCSParentL.P.Member2024-09-300001918712RFS Opco LLC, First lien senior secured loan2024-09-300001918712Steward Partners Global Advisory, LLC and Steward Partners Investment Advisory, LLC, First lien senior secured loan2024-09-300001918712Sunbit Receivables Trust IV, Private asset-backed investment2024-09-300001918712The Edelman Financial Center, LLC, First lien senior secured loan2024-09-300001918712The Edelman Financial Center, LLC, Second lien senior secured loan2024-09-300001918712asif:TheEdelmanFinancialCenterLLCMember2024-09-300001918712Wellington-Altus Financial Inc., First lien senior secured loan2024-09-300001918712Wellington-Altus Financial Inc., Common stock2024-09-300001918712asif:WellingtonAltusFinancialInc.Member2024-09-300001918712us-gaap:FinancialServicesSectorMember2024-09-300001918712Accession Risk Management Group, Inc. and RSC Insurance Brokerage, Inc., First lien senior secured loan 12024-09-300001918712Acrisure, LLC, First lien senior secured loan 12024-09-300001918712Acrisure, LLC, First lien senior secured loan 22024-09-300001918712asif:AcrisureLLCMember2024-09-300001918712Alliant Holdings Intermediate, LLC, First lien senior secured loan2024-09-300001918712AssuredPartners, Inc., First lien senior secured loan2024-09-300001918712Broadstreet Partners, Inc., First lien senior secured loan2024-09-300001918712Cross Financial Corp., First lien senior secured loan2024-09-300001918712DOXA Insurance Holdings LLC and Rocket Co-Invest, SLP, First lien senior secured loan 12024-09-300001918712DOXA Insurance Holdings LLC and Rocket Co-Invest, SLP, First lien senior secured loan 22024-09-300001918712DOXA Insurance Holdings LLC and Rocket Co-Invest, SLP, Limited partnership interests2024-09-300001918712asif:DOXAInsuranceHoldingsLLCAndRocketCoInvestSLPMember2024-09-300001918712Gestion ABS Bidco Inc. / ABS Bidco Holdings Inc., First lien senior secured loan2024-09-300001918712HIG Finance 2 Limited, First lien senior secured loan 12024-09-300001918712HIG Finance 2 Limited, First lien senior secured loan 22024-09-300001918712asif:HIGFinance2LimitedMember2024-09-300001918712Higginbotham Insurance Agency, Inc., First lien senior secured loan 12024-09-300001918712Higginbotham Insurance Agency, Inc., First lien senior secured loan 22024-09-300001918712asif:HigginbothamInsuranceAgencyInc.Member2024-09-300001918712Hub International Limited, First lien senior secured loan2024-09-300001918712Keystone Agency Partners LLC, First lien senior secured loan2024-09-300001918712OakBridge Insurance Agency LLC and Maple Acquisition Holdings, LP, First lien senior secured revolving loan2024-09-300001918712OakBridge Insurance Agency LLC and Maple Acquisition Holdings, LP, First lien senior secured loan2024-09-300001918712OakBridge Insurance Agency LLC and Maple Acquisition Holdings, LP, Class A2 units2024-09-300001918712asif:OakBridgeInsuranceAgencyLLCAndMapleAcquisitionHoldingsLPMember2024-09-300001918712OneDigital Borrower LLC, First lien senior secured loan2024-09-300001918712Ryan Specialty Group, LLC, First lien senior secured loan2024-09-300001918712SIG Parent Holdings, LLC, First lien senior secured loan2024-09-300001918712Truist Insurance Holdings, LLC, First lien senior secured revolving loan2024-09-300001918712USI, Inc., First lien senior secured loan 12024-09-300001918712USI, Inc., First lien senior secured loan 22024-09-300001918712asif:USIIncMember2024-09-300001918712World Insurance Associates, LLC and World Associates Holdings, LLC, First lien senior secured loan2024-09-300001918712us-gaap:InsuranceSectorMember2024-09-30000191871222 HoldCo Limited, Senior subordinated loan2024-09-3000019187123 Step Sports LLC, First lien senior secured loan2024-09-300001918712AVSC Holding Corp., First lien senior secured loan 12024-09-300001918712AVSC Holding Corp., First lien senior secured loan 22024-09-300001918712asif:AVSCHoldingCorpMember2024-09-300001918712Broadcast Music, Inc., First lien senior secured loan2024-09-300001918712CFC Funding LLC, Loan instrument units2024-09-300001918712Creative Artists Agency, LLC, First lien senior secured loan 12024-09-300001918712Creative Artists Agency, LLC, First lien senior secured loan 22024-09-300001918712asif:CreativeArtistsAgencyLLCMember2024-09-300001918712Fever Labs, Inc., First lien senior secured revolving loan2024-09-300001918712Fever Labs, Inc., First lien senior secured loan2024-09-300001918712Fever Labs, Inc., Series E-5 Convertible Shares2024-09-300001918712asif:FeverLabsInc.Member2024-09-300001918712League One Volleyball, Inc., Series B preferred stock2024-09-300001918712League One Volleyball, Inc., Series C preferred stock2024-09-300001918712asif:LeagueOneVolleyballInc.Member2024-09-300001918712Legends Hospitality Holding Company, LLC and ASM Buyer, Inc., First lien senior secured revolving loan2024-09-300001918712Legends Hospitality Holding Company, LLC and ASM Buyer, Inc., First lien senior secured loan2024-09-300001918712asif:LegendsHospitalityHoldingCompanyLLCAndASMBuyerInc.Member2024-09-300001918712LiveBarn Inc., Middle preferred shares2024-09-300001918712NEP Group, Inc., First lien senior secured loan 12024-09-300001918712NEP Group, Inc., First lien senior secured loan 22024-09-300001918712asif:NEPGroupInc.Member2024-09-300001918712Orange Barrel Media, LLC/IKE Smart City, LLC, Private asset-backed investment2024-09-300001918712OVG Business Services, LLC, First lien senior secured loan2024-09-300001918712Quartz Holding Company, First lien senior secured loan2024-09-300001918712Sandlot Action Sports, LLC, Common units2024-09-300001918712Summer (BC) Bidco B LLC, First lien senior secured loan 12024-09-300001918712Summer (BC) Bidco B LLC, First lien senior secured loan 22024-09-300001918712asif:SummerBCBidcoBLLCMember2024-09-300001918712United Talent Agency LLC, First lien senior secured loan2024-09-300001918712Univision Communications Inc., First lien senior secured loan 22024-09-300001918712Univision Communications Inc., First lien senior secured loan 32024-09-300001918712asif:UnivisionCommunicationsInc.Member2024-09-300001918712William Morris Endeavor Entertainment, LLC (IMG Worldwide Holdings, LLC), First lien senior secured loan2024-09-300001918712WRE Sports Investments LLC, First lien senior secured loan2024-09-300001918712Zuffa Guarantor LLC, First lien senior secured loan2024-09-300001918712asif:MediaAndEntertainmentMember2024-09-300001918712ABPCI 2019-5A, Collaterized loan obligation2024-09-300001918712ABPCI 2024-17, Collaterized loan obligation2024-09-300001918712ATRM 14, Collaterized loan obligation 12024-09-300001918712ATRM 14, Collaterized loan obligation 22024-09-300001918712asif:ATRM14Member2024-09-300001918712ATRM 15, Collaterized loan obligation2024-09-300001918712AUDAX 2024-9, Collaterized loan obligation2024-09-300001918712BABSN 2023-3, Collaterized loan obligation2024-09-300001918712BALLY 2023-24, Collaterized loan obligation2024-09-300001918712BALLY 2024-26, Collaterized loan obligation2024-09-300001918712BCC 2020-1, Collaterized loan obligation2024-09-300001918712BCC 2023-3, Collaterized loan obligation2024-09-300001918712BERRY 2024-1, Collaterized loan obligation2024-09-300001918712BROOKP 2024-1, Collaterized loan obligation2024-09-300001918712BSP 2018-14, Collaterized loan obligation2024-09-300001918712BSP 2024-34, Collaterized loan obligation2024-09-300001918712BSP 2024-35, Collaterized loan obligation2024-09-300001918712BTCP 2023-1, Collaterized loan obligation2024-09-300001918712CAVU 2021-1, Collaterized loan obligation2024-09-300001918712CGMS 2019-2, Collaterized loan obligation2024-09-300001918712CGMS 2022-5, Collaterized loan obligation2024-09-300001918712CGMS 2023-1, Collaterized loan obligation2024-09-300001918712CGMS 2023-2, Collaterized loan obligation2024-09-300001918712CGMS 2024-1, Collaterized loan obligation2024-09-300001918712CGMS 2024-2, Collaterized loan obligation2024-09-300001918712CGMS 2024-3, Collaterized loan obligation2024-09-300001918712CGMS 2024-5, Collaterized loan obligation 12024-09-300001918712CGMS 2024-5, Collaterized loan obligation 22024-09-300001918712asif:CGMS20245Member2024-09-300001918712CIFC 2021-1, Collaterized loan obligation2024-09-300001918712CIFC 2021-4, Collaterized loan obligation2024-09-300001918712CIFC 2022-5, Collaterized loan obligation2024-09-300001918712CIFC 2022-6, Collaterized loan obligation2024-09-300001918712CIFC 2024-2, Collaterized loan obligation2024-09-300001918712CIFC 2024-4, Collaterized loan obligation2024-09-300001918712Constellation Wealth Capital Fund, L.P., Limited partner interests2024-09-300001918712CPTPK 2024-1, Collaterized loan obligation2024-09-300001918712CWC Fund I Co-Invest (ALTI) LP, Limited partnership interests2024-09-300001918712DRSLF 2022-104, Collaterized loan obligation2024-09-300001918712ELM12 2021-5, Collaterized loan obligation2024-09-300001918712ELM27 2024-3, Collaterized loan obligation2024-09-300001918712ELM29 2024-5, Collaterized loan obligation2024-09-300001918712ELM32 2024-8, Collaterized loan obligation2024-09-300001918712ELMW1 2019-1, Collaterized loan obligation2024-09-300001918712ELMW4 2020-1, Collaterized loan obligation2024-09-300001918712ELMW8 2021-1, Collaterized loan obligation2024-09-300001918712GCBSL 2022-60, Collaterized loan obligation2024-09-300001918712GNRT 2, Collaterized loan obligation2024-09-300001918712GNRT 2022-10, Collaterized loan obligation2024-09-300001918712GNRT 2023-11, Collaterized loan obligation2024-09-300001918712GNRT 2024-15, Collaterized loan obligation2024-09-300001918712GNRT 4, Collaterized loan obligation2024-09-300001918712GNRT 6, Collaterized loan obligation2024-09-300001918712GOCAP 2024-71, Collaterized loan obligation2024-09-300001918712KKR 48, Collaterized loan obligation2024-09-300001918712Linden Structured Capital Fund II-A LP, Limited partnership interests2024-09-300001918712MAGNE 2019-24, Collaterized loan obligation2024-09-300001918712MAGNE 2022-33, Collaterized loan obligation2024-09-300001918712MAGNE 2023-36, Collaterized loan obligation2024-09-300001918712MAGNE 2024-44, Collaterized loan obligation2024-09-300001918712MDPK 2016-20, Collaterized loan obligation2024-09-300001918712MDPK 2018-32, Collaterized loan obligation2024-09-300001918712MDPK 2019-34, Collaterized loan obligation2024-09-300001918712MDPK 2019-37, Collaterized loan obligation2024-09-300001918712MDPK 2021-59, Collaterized loan obligation2024-09-300001918712MDPK 2022-55, Collaterized loan obligation2024-09-300001918712MDPK 2024-67, Collaterized loan obligation2024-09-300001918712MDPK 2024-69, Collaterized loan obligation2024-09-300001918712OAKC 2016-13, Collaterized loan obligation2024-09-300001918712OAKC 2021-9, Collaterized loan obligation2024-09-300001918712OAKC 2022-12, Collaterized loan obligation2024-09-300001918712OAKC 2023-15, Collaterized loan obligation2024-09-300001918712OAKC 2023-16, Collaterized loan obligation2024-09-300001918712PLMRS 2022-4, Collaterized loan obligation2024-09-300001918712RRAM 2019-6, Collaterized loan obligation2024-09-300001918712RRAM 2022-21, Collaterized loan obligation2024-09-300001918712RRAM 2024-30, Collaterized loan obligation2024-09-300001918712SIXST 2022-21, Collaterized loan obligation2024-09-300001918712SPEAK 2024-11, Collaterized loan obligation2024-09-300001918712STKPK 2022-1, Collaterized loan obligation2024-09-300001918712SYMP 2022-36, Collaterized loan obligation2024-09-300001918712THPT 2023-THL, Commercial mortgage-backed security2024-09-300001918712Tikehau Ruby CLO Equity LP, Private asset backed investment2024-09-300001918712Tikehau Topaz LP, Private asset backed investment2024-09-300001918712VOYA 2022-3, Collaterized loan obligation2024-09-300001918712WILDPK 2024-1, Collaterized loan obligation2024-09-300001918712asif:InvestmentFundsAndVehiclesMember2024-09-300001918712A-AP Buyer, Inc., First lien senior secured loan2024-09-300001918712Altium Packaging LLC, First lien senior secured loan2024-09-300001918712Berlin Packaging L.L.C., First lien senior secured loan2024-09-300001918712BW Holding, Inc., First lien senior secured loan2024-09-300001918712Charter Next Generation, Inc., First lien senior secured loan2024-09-300001918712Derby Buyer LLC, First lien senior secured loan2024-09-300001918712Flexsys Holdings, Inc., First lien senior secured loan2024-09-300001918712Meyer Laboratory, LLC and Meyer Parent, LLC, First lien senior secured loan2024-09-300001918712Meyer Laboratory, LLC and Meyer Parent, LLC, Common units2024-09-300001918712asif:MeyerLaboratoryLLCAndMeyerParentLLCMember2024-09-300001918712Pregis TopCo LLC, First lien senior secured loan2024-09-300001918712Reagent Chemical & Research, LLC, First lien senior secured loan2024-09-300001918712Ring Container Technologies Group, LLC, First lien senior secured loan2024-09-300001918712Touchdown Acquirer Inc., First lien senior secured loan2024-09-300001918712Trident TPI Holdings, Inc., First lien senior secured loan2024-09-300001918712USALCO, LLC, First lien senior secured loan2024-09-300001918712Vobev, LLC and Vobev Holdings, LLC, First lien senior secured revolving loan2024-09-300001918712Vobev, LLC and Vobev Holdings, LLC, First lien senior secured loan2024-09-300001918712Vobev, LLC and Vobev Holdings, LLC, Warrant to purchase ordinary shares2024-09-300001918712Vobev, LLC and Vobev Holdings, LLC, Warrant to purchase Class B units2024-09-300001918712asif:VobeyLLCAndVobeyHoldingsLLCMember2024-09-300001918712asif:MaterialsSectorMember2024-09-300001918712Amazon Holdco Inc., First lien senior secured loan2024-09-300001918712BradyPlus Holdings, LLC, First lien senior secured loan2024-09-300001918712Harbor Freight Tools USA, Inc., First lien senior secured loan2024-09-300001918712Hills Distribution, Inc., Hills Intermediate FT Holdings, LLC and GMP Hills, LP, First lien senior secured revolving loan2024-09-300001918712Hills Distribution, Inc., Hills Intermediate FT Holdings, LLC and GMP Hills, LP, First lien senior secured loan2024-09-300001918712Hills Distribution, Inc., Hills Intermediate FT Holdings, LLC and GMP Hills, LP, Limited partnership interests2024-09-300001918712asif:HillsDistributionInc.HillsIntermediateFTHoldingsLLCAndGMPHillsLPMember2024-09-300001918712LS Group Opco Acquisition LLC (LS Group PropCo Acquisition LLC), First lien senior secured loan2024-09-300001918712Madison Safety & Flow LLC, First lien senior secured loan2024-09-300001918712Phoenix YW Buyer, Inc. and Phoenix YW Parent, Inc., First lien senior secured loan2024-09-300001918712Phoenix YW Buyer, Inc. and Phoenix YW Parent, Inc., Class B common stock2024-09-300001918712asif:PhoenixYWBuyerInc.AndPhoenixYWParentInc.Member2024-09-300001918712SCIH Salt Holdings Inc., First lien senior secured loan2024-09-300001918712Wrench Group LLC, First lien senior secured loan2024-09-300001918712asif:RetailingAndDistributionMember2024-09-300001918712ADMA Biologics Inc., First lien senior secured revolving loan2024-09-300001918712ADMA Biologics Inc., First lien senior secured loan2024-09-300001918712asif:ADMABiologicsInc.Member2024-09-300001918712Alcami Corporation, First lien senior secured loan2024-09-300001918712Bamboo US BidCo LLC, First lien senior secured revolving loan2024-09-300001918712Bamboo US BidCo LLC, First lien senior secured loan 12024-09-300001918712Bamboo US BidCo LLC, First lien senior secured loan 22024-09-300001918712asif:BambooUSBidCoLLCMember2024-09-300001918712Cambrex Corporation, First lien senior secured loan2024-09-300001918712Catalent Pharma Solutions, Inc., First lien senior secured loan2024-09-300001918712Curia Global, INC., First lien senior secured loan2024-09-300001918712Curium BidCo S.a r.l., First lien senior secured loan2024-09-300001918712Da Vinci Purchaser Corp., First lien senior secured loan2024-09-300001918712Grifols Worldwide Operations USA, Inc., First lien senior secured loan2024-09-300001918712Packaging Coordinators Midco, Inc., First lien senior secured loan2024-09-300001918712Precision Medicine Group, LLC, First lien senior secured loan2024-09-300001918712Solar Bidco Limited, First lien senior secured loan2024-09-300001918712WCI-BXC Purchaser, LLC and WCI-BXC Investment Holdings, L.P., First lien senior secured loan2024-09-300001918712WCI-BXC Purchaser, LLC and WCI-BXC Investment Holdings, L.P., Limited partnership interests2024-09-300001918712asif:WCIBXCPurchaserLLCAndWCIBXCInvestmentHoldingsL.P.Member2024-09-300001918712asif:PharmaceuticalsBiotechnologyAndLifeSciencesMember2024-09-300001918712Clarios Global LP, First lien senior secured loan2024-09-300001918712Collision SP Subco, LLC, First lien senior secured revolving loan2024-09-300001918712Collision SP Subco, LLC, First lien senior secured loan2024-09-300001918712asif:CollisionSPSubcoLLCMember2024-09-300001918712Dynamo US Bidco Inc., First lien senior secured loan2024-09-300001918712LTI Holdings, Inc., First lien senior secured loan2024-09-300001918712New ChurcHill HoldCo LLC and Victory Topco, LP, First lien senior secured loan2024-09-300001918712New ChurcHill HoldCo LLC and Victory Topco, LP, Class A-2 common units2024-09-300001918712asif:NewChurcHillHoldCoLLCAndVictoryTopcoLPMember2024-09-300001918712Truck-Lite Co., LLC, Ecco Holdings Corp. and Clarience Technologies, LLC, First lien senior secured revolving loan2024-09-300001918712Truck-Lite Co., LLC, Ecco Holdings Corp. and Clarience Technologies, LLC, First lien senior secured loan2024-09-300001918712Truck-Lite Co., LLC, Ecco Holdings Corp. and Clarience Technologies, LLC, Class A common units2024-09-300001918712asif:TruckLiteCo.LLCEccoHoldingsCorp.AndClarienceTechnologiesLLCMember2024-09-300001918712Wand Newco 3, Inc., First lien senior secured loan2024-09-300001918712asif:AutomobilesAndComponentsSectorMember2024-09-300001918712Lakeshore Learning Materials, LLC, First lien senior secured loan2024-09-300001918712Recess Holdings, Inc., First lien senior secured loan2024-09-300001918712St Athena Global LLC and St Athena Global Holdings Limited, First lien senior secured loan 12024-09-300001918712St Athena Global LLC and St Athena Global Holdings Limited, First lien senior secured loan 22024-09-300001918712asif:StAthenaGlobalLLCAndStAthenaGlobalHoldingsLimitedMember2024-09-300001918712Varsity Brands Holding Co., Inc., Hercules Achievement, Inc. and BCPE Hercules Holdings, LP, First lien senior secured loan2024-09-300001918712asif:ConsumerDurablesAndApparelMember2024-09-300001918712ConnectWise, LLC, First lien senior secured loan2024-09-300001918712Emerald Debt Merger Sub LLC, First lien senior secured loan 12024-09-300001918712Emerald Debt Merger Sub LLC, First lien senior secured loan 22024-09-300001918712asif:EmeraldDebtMergerSubLLCMember2024-09-300001918712Excelitas Technologies Corp., First lien senior secured loan2024-09-300001918712Mirion Technologies, Inc., First lien senior secured loan2024-09-300001918712asif:TechnologyHardwareAndEquipmentMember2024-09-300001918712Delta Topco, Inc., First lien senior secured loan2024-09-300001918712Iridium Communications Inc, First lien senior secured loan2024-09-300001918712Switch Master Holdco LLC, Private asset backed investment 12024-09-300001918712Switch Master Holdco LLC, Private asset backed investment 22024-09-300001918712asif:SwitchMasterHoldcoLLCMember2024-09-300001918712Zayo Group Holdings, Inc., First lien senior secured loan2024-09-300001918712asif:TelecommunicationServicesMember2024-09-300001918712BGI Purchaser, Inc., First lien senior secured revolving loan2024-09-300001918712BGI Purchaser, Inc., First lien senior secured loan2024-09-300001918712asif:BGIPurchaserIncMember2024-09-300001918712BR PJK Produce, LLC, First lien senior secured loan2024-09-300001918712City Line Distributors LLC and City Line Investments LLC, First lien senior secured loan2024-09-300001918712City Line Distributors LLC and City Line Investments LLC, Class A units2024-09-300001918712asif:CityLineDistributorsLLCAndCityLineInvestmentsLLCMember2024-09-300001918712Mr. Greens Intermediate, LLC, Florida Veg Investments LLC, MRG Texas, LLC and Restaurant Produce and Services Blocker, LLC, First lien senior secured revolving loan2024-09-300001918712Mr. Greens Intermediate, LLC, Florida Veg Investments LLC, MRG Texas, LLC and Restaurant Produce and Services Blocker, LLC, First lien senior secured loan2024-09-300001918712Mr. Greens Intermediate, LLC, Florida Veg Investments LLC, MRG Texas, LLC and Restaurant Produce and Services Blocker, LLC, Class B limited liability company interest2024-09-300001918712asif:MrGreensIntermediateLLCFloridaVegInvestmentsLLCMRGTexasLLCAndRestaurantProduceAndServicesBlockerLLCMember2024-09-300001918712Royal Borrower, LLC and Royal Parent, LP, First lien senior secured revolving loan2024-09-300001918712Royal Borrower, LLC and Royal Parent, LP, First lien senior secured loan2024-09-300001918712Royal Borrower, LLC and Royal Parent, LP, Class A preferred units2024-09-300001918712asif:RoyalBorrowerLLCAndRoyalParentLPMember2024-09-300001918712Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P., First lien senior secured revolving loan2024-09-300001918712Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P., First lien senior secured loan2024-09-300001918712Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P., Common units2024-09-300001918712asif:WorldwideProduceAcquisitionLLCAndREPWWPCoinvestIVLPMember2024-09-300001918712asif:ConsumerStaplesDistributionAndRetailMember2024-09-3000019187128th Avenue Food & Provisions, Inc., First lien senior secured loan 12024-09-3000019187128th Avenue Food & Provisions, Inc., First lien senior secured loan 22024-09-300001918712asif:A8thAvenueFoodProvisionsInc.Member2024-09-300001918712Chobani, LLC, First lien senior secured loan 12024-09-300001918712Chobani, LLC, First lien senior secured loan 22024-09-300001918712asif:ChobaniLLCMember2024-09-300001918712Demakes Borrower, LLC, First lien senior secured loan2024-09-300001918712Sugar PPC Buyer LLC, First lien senior secured loan2024-09-300001918712us-gaap:FoodAndBeverageSectorMember2024-09-300001918712OPH NEP Investment, LLC, Senior subordinated loan2024-09-300001918712OPH NEP Investment, LLC, Class B common units2024-09-300001918712asif:OPHNEPInvestmentLLCMember2024-09-300001918712Pallas Funding Trust No.2, Private asset backed investment 12024-09-300001918712Pallas Funding Trust No.2, Private asset backed investment 22024-09-300001918712Pallas Funding Trust No.2, Private asset backed investment 32024-09-300001918712asif:PallasFundingTrustNo.2Member2024-09-300001918712Pallas NZ Funding Trust No. 1, Private asset backed investment2024-09-300001918712Quintain Investments Holdings Limited, Private asset backed investment 12024-09-300001918712Quintain Investments Holdings Limited, Private asset backed investment 22024-09-300001918712asif:QuintainInvestmentsHoldingsLimitedMember2024-09-300001918712asif:RealEstateManagementAndDevelopmentMember2024-09-300001918712Alpha Generation LLC, First lien senior secured loan2024-09-300001918712EFS Cogen Holdings I LLC, First lien senior secured loan2024-09-300001918712Hamilton Projects Acquiror, LLC, First lien senior secured loan2024-09-300001918712South Field, LLC, First lien senior secured loan2024-09-300001918712Thunder Generation, First lien senior secured loan2024-09-300001918712Watt Holdco Limited, First lien senior secured loan 12024-09-300001918712Watt Holdco Limited, First lien senior secured loan 22024-09-300001918712asif:WattHoldcoLimitedMember2024-09-300001918712asif:PowerGenerationMember2024-09-300001918712CPPIB OVM Member U.S. LLC, First lien senior secured loan2024-09-300001918712HighPeak Energy, Inc., First lien senior secured loan2024-09-300001918712M6 Etx Holdings II Midco LLC, First lien senior secured loan2024-09-300001918712Prairie ECI Acquiror LP, First lien senior secured loan2024-09-300001918712TransMontaigne Operating Company L.P., First lien senior secured loan2024-09-300001918712us-gaap:EnergySectorMember2024-09-300001918712Silk Holdings III Corp. and Silk Holdings I Corp., First lien senior secured revolving loan2024-09-300001918712Silk Holdings III Corp. and Silk Holdings I Corp., First lien senior secured loan2024-09-300001918712Silk Holdings III Corp. and Silk Holdings I Corp., Common stock2024-09-300001918712asif:SilkHoldingsIIICorpAndSilkHoldingsICorpMember2024-09-300001918712asif:HouseholdAndPersonalProductsMember2024-09-300001918712Iron Mountain Information Management, LLC, First lien senior secured loan2024-09-300001918712Vantage Data Centers Europe S.a r.l., Private asset backed investment2024-09-300001918712us-gaap:RealEstateSectorMember2024-09-300001918712Ultra Clean Holdings, Inc., First lien senior secured loan2024-09-300001918712asif:SemiconductorsAndSemiconductorEquipmentMember2024-09-300001918712£, Canadian Imperial Bank of Commerce 12024-09-300001918712CAD, Canadian Imperial Bank of Commerce 12024-09-300001918712£, Canadian Imperial Bank of Commerce 22024-09-300001918712£, Wells Fargo Bank, N.A. 12024-09-300001918712€, Wells Fargo Bank, N.A. 12024-09-300001918712AUD, Wells Fargo Bank, N.A.2024-09-300001918712€, Wells Fargo Bank, N.A. 22024-09-300001918712£, Canadian Imperial Bank of Commerce 32024-09-300001918712AUD, Canadian Imperial Bank of Commerce 12024-09-300001918712CAD, Canadian Imperial Bank of Commerce 22024-09-300001918712£, Canadian Imperial Bank of Commerce 42024-09-300001918712€, Canadian Imperial Bank of Commerce 12024-09-300001918712NOK, Canadian Imperial Bank of Commerce2024-09-300001918712£, Wells Fargo Bank, N.A. 22024-09-300001918712€, Canadian Imperial Bank of Commerce 22024-09-300001918712AUD, Canadian Imperial Bank of Commerce 22024-09-300001918712NZD, Canadian Imperial Bank of Commerce 12024-09-300001918712CAD, Wells Fargo Bank, N.A.2024-09-300001918712€, Canadian Imperial Bank of Commerce 32024-09-300001918712£, Wells Fargo Bank, N.A. 32024-09-300001918712£, Wells Fargo Bank, N.A. 42024-09-300001918712€, Canadian Imperial Bank of Commerce 42024-09-300001918712€, Canadian Imperial Bank of Commerce 52024-09-300001918712€, Canadian Imperial Bank of Commerce 62024-09-300001918712€, Canadian Imperial Bank of Commerce 72024-09-300001918712€, Canadian Imperial Bank of Commerce 82024-09-300001918712€, Canadian Imperial Bank of Commerce 92024-09-300001918712€, Canadian Imperial Bank of Commerce 102024-09-300001918712€, Canadian Imperial Bank of Commerce 112024-09-300001918712NZD, Canadian Imperial Bank of Commerce 22024-09-300001918712NZD, Canadian Imperial Bank of Commerce 32024-09-300001918712NZD, Canadian Imperial Bank of Commerce 42024-09-300001918712NZD, Canadian Imperial Bank of Commerce 52024-09-300001918712NZD, Canadian Imperial Bank of Commerce 62024-09-300001918712NZD, Canadian Imperial Bank of Commerce 72024-09-300001918712NZD, Canadian Imperial Bank of Commerce 82024-09-300001918712us-gaap:InterestRateSwapMember2024-09-300001918712asif:August2029NotesMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-09-300001918712us-gaap:AccountsPayableAndAccruedLiabilitiesMemberus-gaap:InterestRateSwapMember2024-09-300001918712Fitness Ventures Holdings, Inc. and Meaningful Partners Fitness Ventures Co-Investment LP2024-01-012024-09-300001918712Fitness Ventures Holdings, Inc. and Meaningful Partners Fitness Ventures Co-Investment LP2024-09-300001918712OPH NEP Investment, LLC2024-01-012024-09-300001918712OPH NEP Investment, LLC2024-09-300001918712us-gaap:CustomerConcentrationRiskMemberasif:InvestmentsAtFairValueAndOtherNonQualifyingAssetsMemberasif:NonQualifyingAssetsMember2024-01-012024-09-3000019187123 Step Sports LLC2024-09-300001918712Accession Risk Management Group, Inc. and RSC Insurance Brokerage, Inc.2024-09-300001918712Actfy Buyer, Inc.2024-09-300001918712Activate Holdings (US) Corp. and CrossPoint Capital AS SPV, LP2024-09-300001918712ADMA Biologics Inc.2024-09-300001918712Aduro Advisors, LLC2024-09-300001918712AI Titan Parent, Inc.2024-09-300001918712Airx Climate Solutions, Inc.2024-09-300001918712Alcami Corporation2024-09-300001918712Aldinger Company Inc2024-09-300001918712Amerivet Partners Management, Inc. and AVE Holdings LP2024-09-300001918712Amethyst Radiotherapy Group B.V.2024-09-300001918712Apex Service Partners, LLC and Apex Service Partners Holdings, LLC2024-09-300001918712Aptean, Inc. and Aptean Acquiror Inc.2024-09-300001918712Artifact Bidco, Inc.2024-09-300001918712Artivion, Inc.2024-09-300001918712Avalign Holdings, Inc. and Avalign Technologies, Inc.2024-09-300001918712Bamboo US BidCo LLC2024-09-300001918712BGI Purchaser, Inc.2024-09-300001918712BGIF IV Fearless Utility Services, Inc.2024-09-300001918712Bizzdesign Holding BV2024-09-300001918712Bobcat Purchaser, LLC and Bobcat Topco, L.P.2024-09-300001918712BR PJK Produce, LLC2024-09-300001918712BradyPlus Holdings, LLC2024-09-300001918712Broadcast Music, Inc.2024-09-300001918712Celnor Group Limited2024-09-300001918712Centralsquare Technologies, LLC and Supermoose Newco, Inc.2024-09-300001918712Chillaton Bidco Limited2024-09-300001918712City Line Distributors LLC and City Line Investments LLC2024-09-300001918712Cliffwater LLC2024-09-300001918712Collision SP Subco, LLC2024-09-300001918712Coupa Holdings, LLC and Coupa Software Incorporated2024-09-300001918712CPIG Holdco Inc.2024-09-300001918712Cube Industrials Buyer, Inc. and Cube A&D Buyer Inc.2024-09-300001918712Demakes Borrower, LLC2024-09-300001918712Diligent Corporation2024-09-300001918712Dorado Bidco, Inc.2024-09-300001918712DOXA Insurance Holdings LLC and Rocket Co-Invest, SLP 12024-09-300001918712DP Flores Holdings, LLC2024-09-300001918712DriveCentric Holdings, LLC2024-09-300001918712Drogon Bidco Inc. & Drogon Aggregator LP2024-09-300001918712Duraserv LLC2024-09-300001918712Echo Purchaser, Inc.2024-09-300001918712Eclipse Topco, Inc., Eclipse Investor Parent, L.P. and Eclipse Buyer, Inc.2024-09-300001918712Edmunds Govtech, Inc.2024-09-300001918712Empower Payments Investor, LLC2024-09-300001918712Envisage Management Ltd2024-09-300001918712Epicor Software Corporation2024-09-300001918712Eternal Aus Bidco Pty Ltd2024-09-300001918712Excel Fitness 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Intermediate FT Holdings, LLC and GMP Hills, LP2024-09-300001918712HP RSS Buyer, Inc.2024-09-300001918712HPCC Parent, Inc. and Patriot Container Corp.2024-09-300001918712HuFriedy Group Acquisition LLC2024-09-300001918712Hyland Software, Inc.2024-09-300001918712Icefall Parent, Inc.2024-09-300001918712IGEA Bidco S.P.A2024-09-300001918712Indigo Acquisition B.V.2024-09-300001918712Infinity Home Services HoldCo, Inc., D&S Amalco and IHS Parent Holdings, L.P.2024-09-300001918712Internet Truckstop Group LLC2024-09-300001918712Keystone Agency Partners LLC2024-09-300001918712Kings Buyer, LLC2024-09-300001918712KPS Global LLC and Cool Group LLC2024-09-300001918712LBC Woodlands Purchaser LLC and LBC Woodlands Holdings LP2024-09-300001918712Legends Hospitality Holding Company, LLC and ASM Buyer, Inc.2024-09-300001918712Leviathan Intermediate Holdco, LLC and Leviathan Holdings, L.P.2024-09-300001918712Lightbeam Bidco, Inc.2024-09-300001918712Mai Capital Management Intermediate 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LLC2024-09-300001918712Silk Holdings III Corp. and Silk Holdings I Corp.2024-09-300001918712Solar Bidco Limited2024-09-300001918712Spark Purchaser, Inc.2024-09-300001918712St Athena Global LLC and St Athena Global Holdings Limited2024-09-300001918712Steward Partners Global Advisory, LLC and Steward Partners Investment Advisory, LLC2024-09-300001918712Sugar PPC Buyer LLC2024-09-300001918712Sunbit Receivables Trust IV2024-09-300001918712Sunvair Aerospace Group, Inc. and GB Helios Holdings, L.P.2024-09-300001918712Superman Holdings, LLC2024-09-300001918712SV Newco 2, Inc.2024-09-300001918712The Hiller Companies, LLC2024-09-300001918712Transit Technologies LLC2024-09-300001918712Truck-Lite Co., LLC, Ecco Holdings Corp. and Clarience Technologies, LLC2024-09-300001918712Truist Insurance Holdings, LLC2024-09-300001918712TSS Buyer, LLC2024-09-300001918712United Digestive MSO Parent, LLC and Koln Co-Invest Unblocked, LP2024-09-300001918712UP Intermediate II LLC and UPBW Blocker LLC2024-09-300001918712Vantage Data Centers Europe S.a r.l.2024-09-300001918712Vertex Service Partners, LLC and Vertex Service Partners Holdings, LLC2024-09-300001918712Victors Purchaser, LLC and WP Victors Co-Investment, L.P.2024-09-300001918712Vobev, LLC and Vobev Holdings, LLC2024-09-300001918712W.S. Connelly & Co., LLC and WSC Ultimate Holdings, LLC2024-09-300001918712Watt Holdco Limited2024-09-300001918712WCI-BXC Purchaser, LLC and WCI-BXC Investment Holdings, L.P.2024-09-300001918712Wellington Bidco Inc. and Wellington TopCo LP2024-09-300001918712Wellington-Altus Financial Inc. (1)2024-09-300001918712World Insurance Associates, LLC and World Associates Holdings, LLC2024-09-300001918712Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P.2024-09-300001918712WRE Sports Investments LLC2024-09-300001918712Zinc Buyer Corporation2024-09-300001918712asif:RevolvingAndDelayedDrawLoanCommitmentsMember2024-09-300001918712Constellation Wealth Capital Fund, L.P.2024-09-300001918712DOXA Insurance Holdings LLC and Rocket Co-Invest, SLP 22024-09-300001918712GTCR F Buyer Corp. and GTCR (D) Investors LP 22024-09-300001918712Linden Structured Capital Fund II-A LP2024-09-300001918712Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P. 22024-09-300001918712Quintain Investments Holdings Limited2024-09-300001918712Tikehau Ruby CLO Equity LP2024-09-300001918712Tikehau Topaz LP2024-09-300001918712Wellington-Altus Financial Inc. (2)2024-09-300001918712Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P. 22024-09-300001918712asif:EquityInvestmentCommitmentsMember2024-09-300001918712Access CIG, LLC, First lien senior secured loan2023-12-310001918712Applied Systems, Inc., First lien senior secured loan2023-12-310001918712Aptean, Inc. and Aptean Acquiror Inc., First lien senior secured loan2023-12-310001918712BCTO Ignition Purchaser, Inc., First lien senior secured loan2023-12-310001918712Bobcat Purchaser, LLC and Bobcat Topco, L.P., First lien senior secured loan2023-12-310001918712Bobcat Purchaser, LLC and Bobcat Topco, L.P., Class A-1 units2023-12-310001918712asif:BobcatPurchaserLLCAndBobcatTopcoLPMember2023-12-310001918712Boxer Parent Company Inc., First lien senior secured loan2023-12-310001918712CCC Intelligent Solutions Inc., First lien senior secured loan2023-12-310001918712Cloud Software Group, Inc. and Picard Parent, Inc., First lien senior secured loan 12023-12-310001918712Cloud Software Group, Inc. and Picard Parent, Inc., First lien senior secured loan 22023-12-310001918712Cloud Software Group, Inc. and Picard Parent, Inc., Second lien senior secured notes2023-12-310001918712asif:CloudSoftwareGroupIncAndPicardParentIncMember2023-12-310001918712Conservice Midco, LLC, First lien senior secured loan2023-12-310001918712Coupa Holdings, LLC and Coupa Software Incorporated, First lien senior secured loan2023-12-310001918712Crosspoint Capital AS SPV, LP, First lien senior secured revolving loan2023-12-310001918712Crosspoint Capital AS SPV, LP, First lien senior secured loan2023-12-310001918712Crosspoint Capital AS SPV, LP, Limited partnership interest2023-12-310001918712asif:CrosspointCapitalASSPVLPMember2023-12-310001918712Echo Purchaser, Inc., First lien senior secured revolving loan2023-12-310001918712Echo Purchaser, Inc., First lien senior secured loan2023-12-310001918712asif:EchoPurchaserInc.Member2023-12-310001918712Epicor Software Corporation, First lien senior secured loan 12023-12-310001918712Epicor Software Corporation, First lien senior secured loan 22023-12-310001918712asif:EpicorSoftwareCorporationMember2023-12-310001918712eResearch Technology, Inc., First lien senior secured loan2023-12-310001918712Finastra USA, Inc., DH Corporation/Societe DH, and Finastra Europe S.A R.L., First lien senior secured loan2023-12-310001918712Flexera Software LLC, First lien senior secured loan2023-12-310001918712Gainwell Acquisition Corp., First lien senior secured loan2023-12-310001918712Genesys Cloud Services Holdings I, LLC, First lien senior secured loan2023-12-310001918712Go Daddy Operating Company, LLC (GD Finance Co, Inc.), First lien senior secured loan2023-12-310001918712Guidepoint Security Holdings, LLC, First lien senior secured loan2023-12-310001918712Hakken Midco B.V., First lien senior secured loan 12023-12-310001918712Hakken Midco B.V., First lien senior secured loan 22023-12-310001918712asif:HakkenMidcoBVMember2023-12-310001918712Hyland Software, Inc., First lien senior secured loan2023-12-310001918712Idemia Group S.A.S., First lien senior secured loan2023-12-310001918712Instructure Holdings, INC., First lien senior secured loan2023-12-310001918712ISolved, Inc., First lien senior secured loan2023-12-310001918712Marcel Bidco GmbH, First lien senior secured loan2023-12-310001918712Mitchell International, Inc., First lien senior secured loan 12023-12-310001918712Mitchell International, Inc., First lien senior secured loan 22023-12-310001918712Mitchell International, Inc., Second lien senior secured loan2023-12-310001918712asif:MitchellInternationalIncMember2023-12-310001918712Mosel Bidco SE, First lien senior secured loan2023-12-310001918712Netsmart, Inc. and Netsmart Technologies, Inc., First lien senior secured loan2023-12-310001918712Open Text Corporation, First lien senior secured loan2023-12-310001918712Particle Luxembourg S.a.r.l., First lien senior secured loan2023-12-310001918712Polaris Newco, LLC, First lien senior secured loan2023-12-310001918712Project Accelerate Parent, LLC, First lien senior secured loan2023-12-310001918712Project Boost Purchaser, LLC, First lien senior secured loan 12023-12-310001918712Project Boost Purchaser, LLC, First lien senior secured loan 22023-12-310001918712asif:ProjectBoostPurchaserLLCMember2023-12-310001918712Proofpoint, Inc., First lien senior secured loan2023-12-310001918712PushPay USA Inc., First lien senior secured loan2023-12-310001918712Quartz AcquireCo, LLC, First lien senior secured loan2023-12-310001918712Quest Software US Holdings Inc., First lien senior secured loan2023-12-310001918712RealPage, Inc., First lien senior secured loan2023-12-310001918712RealPage, Inc., Second lien senior secured loan2023-12-310001918712asif:RealPageInc.Member2023-12-310001918712Severin Acquisition, LLC, First lien senior secured loan2023-12-310001918712Sophia, L.P., First lien senior secured loan 12023-12-310001918712Sophia, L.P., First lien senior secured loan 22023-12-310001918712asif:SophiaLPMember2023-12-310001918712Tenable Holdings, Inc., First lien senior secured loan2023-12-310001918712UserZoom Technologies, Inc., First lien senior secured loan2023-12-310001918712Verscend Holding Corp., First lien senior secured loan2023-12-310001918712asif:SoftwareAndServicesMember2023-12-310001918712Agiliti Health, Inc., First lien senior secured loan2023-12-310001918712Amerivet Partners Management, Inc. and AVE Holdings LP, Subordinated loan2023-12-310001918712Amerivet Partners Management, Inc. and AVE Holdings LP, Class C units2023-12-310001918712asif:AmerivetPartnersManagementInc.AndAVEHoldingsLPMember2023-12-310001918712athenahealth Group Inc., First lien senior secured loan2023-12-310001918712Bausch + Lomb Corporation, First lien senior secured loan2023-12-310001918712Bracket Intermediate Holding Corp., First lien senior secured loan2023-12-310001918712Confluent Medical Technologies, Inc., First lien senior secured loan2023-12-310001918712Electron Bidco Inc., First lien senior secured loan2023-12-310001918712Ensemble RCM, LLC, First lien senior secured loan2023-12-310001918712Financiere Mendel, First lien senior secured loan2023-12-310001918712Lifepoint Health Inc, First lien senior secured loan2023-12-310001918712Mamba Purchaser, Inc., First lien senior secured loan2023-12-310001918712Medline Borrower, LP, First lien senior secured loan2023-12-310001918712Next Holdco, LLC, First lien senior secured loan2023-12-310001918712Nomi Health, Inc., First lien senior secured loan2023-12-310001918712Option Care Health Inc, First lien senior secured loan2023-12-310001918712Paragon 28, Inc. and Paragon Advanced Technologies, Inc., First lien senior secured revolving loan2023-12-310001918712Paragon 28, Inc. and Paragon Advanced Technologies, Inc., First lien senior secured loan2023-12-310001918712asif:Paragon28Inc.AndParagonAdvancedTechnologiesInc.Member2023-12-310001918712PointClickCare Technologies Inc., First lien senior secured loan2023-12-310001918712R1 RCM Inc., First lien senior secured loan2023-12-310001918712Radnet Management, Inc., First lien senior secured loan2023-12-310001918712Select Medical Corporation, First lien senior secured loan2023-12-310001918712Sharp Midco LLC, First lien senior secured loan 12023-12-310001918712Sharp Midco LLC, First lien senior secured loan 22023-12-310001918712asif:SharpMidcoLLCMember2023-12-310001918712Sotera Health Holdings, LLC, First lien senior secured loan 12023-12-310001918712Sotera Health Holdings, LLC, First lien senior secured loan 22023-12-310001918712asif:SoteraHealthHoldingsLLCMember2023-12-310001918712Surgery Center Holdings, Inc., First lien senior secured loan2023-12-310001918712United Digestive MSO Parent, LLC and Koln Co-Invest Unblocked, LP, First lien senior secured loan2023-12-310001918712United Digestive MSO Parent, LLC and Koln Co-Invest Unblocked, LP, Class A interests2023-12-310001918712asif:UnitedDigestiveMSOParentLLCAndKolnCoInvestUnblockedLPMember2023-12-310001918712Viant Medical Holdings, Inc., First lien senior secured loan2023-12-310001918712Viant Medical Holdings, Inc., Second lien senior secured loan2023-12-310001918712asif:ViantMedicalHoldingsIncMember2023-12-310001918712Waystar Technologies, Inc., First lien senior secured loan2023-12-310001918712Zelis Cost Management Buyer, Inc., First lien senior secured loan2023-12-310001918712us-gaap:HealthcareSectorMember2023-12-310001918712Alterra Mountain Company, First lien senior secured loan 12023-12-310001918712Alterra Mountain Company, First lien senior secured loan 22023-12-310001918712asif:AlterraMountainCompanyMember2023-12-310001918712Apex Service Partners, LLC and Apex Service Partners Holdings, LLC, First lien senior secured revolving loan 12023-12-310001918712Apex Service Partners, LLC and Apex Service Partners Holdings, LLC, First lien senior secured revolving loan 22023-12-310001918712Apex Service Partners, LLC and Apex Service Partners Holdings, LLC, First lien senior secured loan2023-12-310001918712Apex Service Partners, LLC and Apex Service Partners Holdings, LLC, Series B common units2023-12-310001918712asif:ApexServicePartnersLLCMember2023-12-310001918712Belfor Holdings, Inc., First lien senior secured loan2023-12-310001918712Caesars Entertainment Inc, First lien senior secured loan2023-12-310001918712ClubCorp Holdings, Inc., First lien senior secured loan 12023-12-310001918712ClubCorp Holdings, Inc., First lien senior secured loan 22023-12-310001918712asif:ClubCorpHoldingsInc.Member2023-12-310001918712Eternal Aus Bidco Pty Ltd, First lien senior secured loan2023-12-310001918712Excel Fitness Consolidator LLC, First lien senior secured loan2023-12-310001918712Fertitta Entertainment, LLC, First lien senior secured loan2023-12-310001918712Flint OpCo, LLC, First lien senior secured loan2023-12-310001918712Four Seasons Holdings Inc., First lien senior secured loan2023-12-310001918712Gems Menasa (Cayman) Limited, First lien senior secured loan2023-12-310001918712GroundWorks, LLC, First lien senior secured loan2023-12-310001918712GS SEER Group Borrower LLC and GS SEER Group Holdings LLC, First lien senior secured loan2023-12-310001918712GS SEER Group Borrower LLC and GS SEER Group Holdings LLC, Class A common units2023-12-310001918712asif:GSSEERGroupBorrowerLLCAndGSSEERGroupHoldingsLLCMember2023-12-310001918712Helios Service Partners, LLC and Astra Service Partners, LLC, First lien senior secured revolving loan2023-12-310001918712Helios Service Partners, LLC and Astra Service Partners, LLC, First lien senior secured loan2023-12-310001918712asif:HeliosServicePartnersLLCAndAstraServicePartnersLLCMember2023-12-310001918712Hilton Domestic Operating Company Inc., First lien senior secured loan2023-12-310001918712Infinity Home Services HoldCo, Inc., D&S Amalco and IHS Parent Holdings, L.P., First lien senior secured loan 12023-12-310001918712Infinity Home Services HoldCo, Inc., D&S Amalco and IHS Parent Holdings, L.P., First lien senior secured loan 22023-12-310001918712Infinity Home Services HoldCo, Inc., D&S Amalco and IHS Parent Holdings, L.P., Class A units2023-12-310001918712asif:InfinityHomeServicesHoldCoInc.DSAmalcoAndIHSParentHoldingsL.P.Member2023-12-310001918712IRB Holding Corp., First lien senior secured loan2023-12-310001918712Learning Care Group (US) No. 2 Inc., First lien senior secured loan2023-12-310001918712Leviathan Intermediate Holdco, LLC and Leviathan Holdings, L.P., First lien senior secured loan2023-12-310001918712Leviathan Intermediate Holdco, LLC and Leviathan Holdings, L.P., Limited partnership interests2023-12-310001918712asif:LeviathanIntermediateHoldcoLLCAndLeviathanHoldingsLPMember2023-12-310001918712Motion Acquisition Limited, First lien senior secured loan2023-12-310001918712Northwinds Holding, Inc. and Northwinds Services Group LLC, First lien senior secured loan2023-12-310001918712Northwinds Holding, Inc. and Northwinds Services Group LLC, Common units2023-12-310001918712asif:NorthwindsHoldingIncAndNorthwindsServicesGroupLLCMember2023-12-310001918712PestCo Holdings, LLC and PestCo, LLC, First lien senior secured loan2023-12-310001918712PestCo Holdings, LLC and PestCo, LLC, Class A units2023-12-310001918712asif:PestCoHoldingsLLCAndPestCoLLCMember2023-12-310001918712Radiant Intermediate Holding, LLC, First lien senior secured loan2023-12-310001918712Restaurant Brands International Inc., First lien senior secured loan2023-12-310001918712Service Logic Acquisition, Inc. and MSHC, Inc., First lien senior secured loan 12023-12-310001918712Service Logic Acquisition, Inc. and MSHC, Inc., First lien senior secured loan 22023-12-310001918712asif:ServiceLogicAcquisitionIncAndMSHCIncMember2023-12-310001918712TSS Buyer, LLC, First lien senior secured loan2023-12-310001918712Vertex Service Partners, LLC and Vertex Service Partners Holdings, LLC, First lien senior secured loan2023-12-310001918712Vertex Service Partners, LLC and Vertex Service Partners Holdings, LLC, Class B common units2023-12-310001918712asif:VertexServicePartnersLLCAndVertexServicePartnersHoldingsLLCMember2023-12-310001918712Whatabrands LLC, First lien senior secured loan2023-12-310001918712asif:ConsumerServicesMember2023-12-310001918712AI Aqua Merger Sub, Inc., First lien senior secured loan 12023-12-310001918712AI Aqua Merger Sub, Inc., First lien senior secured loan 22023-12-310001918712asif:AIAquaMergerSubInc.Member2023-12-310001918712Airx Climate Solutions, Inc., First lien senior secured loan2023-12-310001918712Artera Services, LLC, First lien senior secured loan 12023-12-310001918712Artera Services, LLC, First lien senior secured loan 22023-12-310001918712asif:ArteraServicesLLCMember2023-12-310001918712Brookfield WEC Holdings Inc., First lien senior secured loan 12023-12-310001918712Brookfield WEC Holdings Inc., First lien senior secured loan 22023-12-310001918712asif:BrookfieldWECHoldingsIncMember2023-12-310001918712Brown Group Holding, LLC, First lien senior secured loan 12023-12-310001918712Brown Group Holding, LLC, First lien senior secured loan 22023-12-310001918712asif:BrownGroupHoldingLLCMember2023-12-310001918712Burgess Point Purchaser Corporation, First lien senior secured loan2023-12-310001918712Chart Industries, Inc., First lien senior secured loan2023-12-310001918712Clarios Global LP, First lien senior secured loan2023-12-310001918712CPIG Holdco Inc., First lien senior secured revolving loan2023-12-310001918712CPIG Holdco Inc., First lien senior secured loan2023-12-310001918712asif:CPIGHoldcoIncMember2023-12-310001918712Cube Industrials Buyer, Inc. and Cube A&D Buyer Inc., First lien senior secured loan2023-12-310001918712Dynasty Acquisition Co., Inc., First lien senior secured loan2023-12-310001918712Gates Global LLC, First lien senior secured loan 12023-12-310001918712Gates Global LLC, First lien senior secured loan 22023-12-310001918712asif:GatesGlobalLLCMember2023-12-310001918712Helix Acquisition Holdings, Inc., First lien senior secured loan2023-12-310001918712Husky Injection Molding Systems Ltd., First lien senior secured loan2023-12-310001918712Pike Corporation, First lien senior secured loan2023-12-310001918712Propulsion (BC) Newco LLC, First lien senior secured loan2023-12-310001918712Specialty Building Products Holdings, LLC, First lien senior secured loan2023-12-310001918712SRS Distribution Inc., First lien senior secured loan2023-12-310001918712Star US Bidco LLC, First lien senior secured loan2023-12-310001918712TransDigm Inc., First lien senior secured loan 12023-12-310001918712TransDigm Inc., First lien senior secured loan 22023-12-310001918712TransDigm Inc., First lien senior secured loan 32023-12-310001918712asif:TransDigmIncMember2023-12-310001918712Wilsonart LLC, First lien senior secured loan2023-12-310001918712asif:CapitalGoodsMember2023-12-310001918712Accession Risk Management Group, Inc. and RSC Insurance Brokerage, Inc., First lien senior secured loan 12023-12-310001918712Accession Risk Management Group, Inc. and RSC Insurance Brokerage, Inc., First lien senior secured loan 22023-12-310001918712Accession Risk Management Group, Inc. and RSC Insurance Brokerage, Inc., First lien senior secured loan 32023-12-310001918712asif:AccessionRiskManagementGroupInc.AndRSCInsuranceBrokerageInc.Member2023-12-310001918712Acrisure, LLC, First lien senior secured loan2023-12-310001918712Acrisure, LLC, Senior subordinated loan2023-12-310001918712asif:AcrisureLLCMember2023-12-310001918712Alliant Holdings Intermediate, LLC, First lien senior secured loan2023-12-310001918712AMWINS Group, Inc., First lien senior secured loan2023-12-310001918712Asurion, LLC, First lien senior secured loan 12023-12-310001918712Asurion, LLC, First lien senior secured loan 22023-12-310001918712asif:AsurionLLCMember2023-12-310001918712Broadstreet Partners, Inc., First lien senior secured loan2023-12-310001918712Cross Financial Corp., First lien senior secured loan2023-12-310001918712DOXA Insurance Holdings LLC, First lien senior secured loan2023-12-310001918712HIG Finance 2 Limited, First lien senior secured loan2023-12-310001918712Higginbotham Insurance Agency, Inc., First lien senior secured loan2023-12-310001918712Hub International Limited, First lien senior secured loan 12023-12-310001918712Hub International Limited, First lien senior secured loan 22023-12-310001918712asif:HubInternationalLimitedMember2023-12-310001918712Hyperion Refinance S.a r.l., First lien senior secured loan2023-12-310001918712Keystone Agency Partners LLC, First lien senior secured loan2023-12-310001918712NFP Corp., First lien senior secured loan2023-12-310001918712OakBridge Insurance Agency LLC and Maple Acquisition Holdings, LP, First lien senior secured loan2023-12-310001918712OakBridge Insurance Agency LLC and Maple Acquisition Holdings, LP, Class A2 units2023-12-310001918712asif:OakBridgeInsuranceAgencyLLCAndMapleAcquisitionHoldingsLPMember2023-12-310001918712OneDigital Borrower LLC, First lien senior secured loan2023-12-310001918712Sedgwick Claims Management Services, Inc. (Lightning Cayman Merger Sub, Ltd.), First lien senior secured loan2023-12-310001918712USI, Inc., First lien senior secured loan 12023-12-310001918712USI, Inc., First lien senior secured loan 22023-12-310001918712asif:USIIncMember2023-12-310001918712us-gaap:InsuranceSectorMember2023-12-310001918712BIFM CA Buyer Inc., First lien senior secured loan2023-12-310001918712Bleriot US Bidco Inc., First lien senior secured loan2023-12-310001918712Citco Funding LLC, First lien senior secured loan2023-12-310001918712Cliffwater LLC, First lien senior secured loan2023-12-310001918712Corient Holdings, Inc., Series A preferred stock2023-12-310001918712Delta Topco, Inc., First lien senior secured loan2023-12-310001918712Focus Financial Partners, LLC, First lien senior secured loan 12023-12-310001918712Focus Financial Partners, LLC, First lien senior secured loan 22023-12-310001918712Focus Financial Partners, LLC, First lien senior secured loan 32023-12-310001918712asif:FocusFinancialPartnersLLCMember2023-12-310001918712GC Waves Holdings, Inc., First lien senior secured loan2023-12-310001918712GIP Pilot Acquisition Partners, L.P., First lien senior secured loan2023-12-310001918712GTCR F Buyer Corp. and GTCR (D) Investors LP, First lien senior secured loan2023-12-310001918712GTCR F Buyer Corp. and GTCR (D) Investors LP, Limited partnership interests2023-12-310001918712asif:GTCRFBuyerCorpAndGTCRDInvestorsLPMember2023-12-310001918712GTCR W Merger Sub LLC, First lien senior secured loan2023-12-310001918712Hg Saturn LuchaCo Limited, Private asset-backed investment2023-12-310001918712HV Chimera LLC, Private asset-backed investment2023-12-310001918712Isthmus Capital LLC, Private asset-backed investment 12023-12-310001918712Isthmus Capital LLC, Private asset-backed investment 22023-12-310001918712asif:IsthmusCapitalLLCMember2023-12-310001918712LBM Acquisition LLC, First lien senior secured loan2023-12-310001918712Midcap Financial Issuer Trust, Senior subordinated loan2023-12-310001918712Monroe Capital Income Plus Corporation, Senior subordinated loan2023-12-310001918712NEP Group, Inc., First lien senior secured loan2023-12-310001918712Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P., First lien senior secured revolving loan2023-12-310001918712Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P., First lien senior secured loan 12023-12-310001918712Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P., First lien senior secured loan 22023-12-310001918712Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P., Limited partnership interests2023-12-310001918712asif:PathstoneFamilyOfficeLLCAndKelsoXITailwindCoInvestmentLPMember2023-12-310001918712PCIA SPV-3, LLC and ASE Royal Aggregator, LLC, First lien senior secured loan2023-12-310001918712PCIA SPV-3, LLC and ASE Royal Aggregator, LLC, Preferred units2023-12-310001918712asif:PCIASPV3LLCAndASERoyalAggregatorLLCMember2023-12-310001918712Steward Partners Global Advisory, LLC and Steward Partners Investment Advisory, LLC, First lien senior secured loan2023-12-310001918712The Edelman Financial Center, LLC, Second lien senior secured loan2023-12-310001918712us-gaap:FinancialServicesSectorMember2023-12-310001918712AlixPartners, LLP, First lien senior secured loan2023-12-310001918712Clean Harbors, Inc., First lien senior secured loan2023-12-310001918712Corporation Service Company, First lien senior secured loan2023-12-310001918712Dun & Bradstreet Corporation, The, First lien senior secured loan2023-12-310001918712FlyWheel Acquireco, Inc., First lien senior secured revolving loan2023-12-310001918712FlyWheel Acquireco, Inc., First lien senior secured loan2023-12-310001918712asif:FlyWheelAcquirecoIncMember2023-12-310001918712HP RSS Buyer, Inc., First lien senior secured loan2023-12-310001918712Kings Buyer, LLC, First lien senior secured loan2023-12-310001918712Lightbeam Bidco, Inc., First lien senior secured loan 12023-12-310001918712Lightbeam Bidco, Inc., First lien senior secured loan 22023-12-310001918712asif:LightbeamBidcoIncMember2023-12-310001918712North Haven Fairway Buyer, LLC, Fairway Lawns, LLC and Command Pest Control, LLC, First lien senior secured loan2023-12-310001918712North Haven Stack Buyer, LLC, First lien senior secured loan2023-12-310001918712Omnia Partners, LLC, First lien senior secured loan2023-12-310001918712Priority Waste Holdings LLC, Priority Waste Holdings Indiana LLC and Priority Waste Super Holdings, LLC, First lien senior secured revolving loan2023-12-310001918712Priority Waste Holdings LLC, Priority Waste Holdings Indiana LLC and Priority Waste Super Holdings, LLC, First lien senior secured loan2023-12-310001918712Priority Waste Holdings LLC, Priority Waste Holdings Indiana LLC and Priority Waste Super Holdings, LLC, Warrant to purchase units of Class A common units2023-12-310001918712asif:PriorityWasteHoldingsLLCPriorityWasteHoldingsIndianaLLCAndPriorityWasteSuperHoldingsLLCMember2023-12-310001918712Saturn Purchaser Corp., First lien senior secured loan 12023-12-310001918712Saturn Purchaser Corp., First lien senior secured loan 22023-12-310001918712asif:SaturnPurchaserCorp.Member2023-12-310001918712Tempo Acquisition, LLC, First lien senior secured loan2023-12-310001918712asif:CommercialAndProfessionalServicesMember2023-12-31000191871222 HoldCo Limited, Senior subordinated loan2023-12-3100019187123 Step Sports LLC and 3 Step Holdings, LLC, First lien senior secured revolving loan2023-12-3100019187123 Step Sports LLC and 3 Step Holdings, LLC, First lien senior secured loan2023-12-3100019187123 Step Sports LLC and 3 Step Holdings, LLC, Series D preferred units2023-12-310001918712asif:A3StepSportsLLCAnd3StepHoldingsLLCMember2023-12-310001918712AVSC Holding Corp., First lien senior secured loan 12023-12-310001918712AVSC Holding Corp., First lien senior secured loan 22023-12-310001918712asif:AVSCHoldingCorpMember2023-12-310001918712CFC Funding LLC, Loan instrument units2023-12-310001918712Creative Artists Agency, LLC, First lien senior secured loan2023-12-310001918712League One Volleyball, Inc., Series B preferred stock2023-12-310001918712LiveBarn Inc., Middle preferred shares2023-12-310001918712NASCAR Holdings, LLC, First lien senior secured loan2023-12-310001918712United Talent Agency, LLC, First lien senior secured loan2023-12-310001918712William Morris Endeavor Entertainment, LLC (IMG Worldwide Holdings, LLC), First lien senior secured loan2023-12-310001918712Zuffa Guarantor LLC, First lien senior secured loan2023-12-310001918712asif:MediaAndEntertainmentMember2023-12-310001918712ADMA Biologics Inc., First lien senior secured revolving loan2023-12-310001918712ADMA Biologics Inc., First lien senior secured loan2023-12-310001918712asif:ADMABiologicsInc.Member2023-12-310001918712Alcami Corporation, First lien senior secured loan2023-12-310001918712Bamboo US BidCo LLC, First lien senior secured loan 12023-12-310001918712Bamboo US BidCo LLC, First lien senior secured loan 22023-12-310001918712asif:BambooUSBidCoLLCMember2023-12-310001918712Cambrex Corporation, First lien senior secured loan2023-12-310001918712Catalent Pharma Solutions, Inc., First lien senior secured loan2023-12-310001918712Curium BidCo S.a r.l., First lien senior secured loan2023-12-310001918712Da Vinci Purchaser Corp., First lien senior secured loan2023-12-310001918712IQVIA Inc, First lien senior secured loan2023-12-310001918712Maravai Intermediate Holdings, LLC, First lien senior secured loan2023-12-310001918712Packaging Coordinators Midco, Inc., First lien senior secured loan2023-12-310001918712Precision Medicine Group, LLC, First lien senior secured loan2023-12-310001918712Solar Bidco Limited, First lien senior secured loan2023-12-310001918712WCI-BXC Purchaser, LLC and WCI-BXC Investment Holdings, L.P., First lien senior secured loan2023-12-310001918712WCI-BXC Purchaser, LLC and WCI-BXC Investment Holdings, L.P., Limited partnership interest2023-12-310001918712asif:WCIBXCPurchaserLLCAndWCIBXCInvestmentHoldingsL.P.Member2023-12-310001918712asif:PharmaceuticalsBiotechnologyAndLifeSciencesMember2023-12-310001918712B&G Foods Inc, First lien senior secured loan2023-12-310001918712Chobani, LLC, First lien senior secured loan 12023-12-310001918712Chobani, LLC, First lien senior secured loan 22023-12-310001918712asif:ChobaniLLCMember2023-12-310001918712Demakes Borrower, LLC, First lien senior secured loan2023-12-310001918712Max US Bidco Inc., First lien senior secured loan2023-12-310001918712Sugar PPC Buyer LLC, First lien senior secured loan2023-12-310001918712us-gaap:FoodAndBeverageSectorMember2023-12-310001918712BradyIFS Holdings, LLC, First lien senior secured loan2023-12-310001918712CNT Holdings I Corp, First lien senior secured loan2023-12-310001918712Hills Distribution, Inc., Hills Intermediate FT Holdings, LLC and GMP Hills, LP, First lien senior secured revolving loan2023-12-310001918712Hills Distribution, Inc., Hills Intermediate FT Holdings, LLC and GMP Hills, LP, First lien senior secured loan2023-12-310001918712Hills Distribution, Inc., Hills Intermediate FT Holdings, LLC and GMP Hills, LP, Limited partnership interest2023-12-310001918712asif:HillsDistributionInc.HillsIntermediateFTHoldingsLLCAndGMPHillsLPMember2023-12-310001918712LS Group Opco Acquisition LLC (LS Group PropCo Acquisition LLC), First lien senior secured loan2023-12-310001918712Peer Holding III B.V., First lien senior secured loan2023-12-310001918712SCIH Salt Holdings Inc., First lien senior secured loan2023-12-310001918712asif:RetailingAndDistributionMember2023-12-310001918712First Brands Group, LLC, First lien senior secured loan2023-12-310001918712New ChurcHill HoldCo LLC and Victory Topco, LP, First lien senior secured revolving loan2023-12-310001918712New ChurcHill HoldCo LLC and Victory Topco, LP, First lien senior secured loan2023-12-310001918712New ChurcHill HoldCo LLC and Victory Topco, LP, Class A-2 common units2023-12-310001918712asif:NewChurcHillHoldCoLLCAndVictoryTopcoLPMember2023-12-310001918712Wand Newco 3, Inc., First lien senior secured loan2023-12-310001918712asif:AutomobilesAndComponentsSectorMember2023-12-310001918712Charter Next Generation, Inc., First lien senior secured loan2023-12-310001918712Derby Buyer LLC, First lien senior secured loan2023-12-310001918712Element Solutions Inc (Macdermid, Incorporated), First lien senior secured loan2023-12-310001918712Summit Materials, LLC, First lien senior secured loan2023-12-310001918712Trident TPI Holdings, Inc., First lien senior secured loan 12023-12-310001918712Trident TPI Holdings, Inc., First lien senior secured loan 22023-12-310001918712Trident TPI Holdings, Inc., First lien senior secured loan 32023-12-310001918712asif:TridentTPIHoldingsInc.Member2023-12-310001918712Vobev, LLC and Vobev Holdings, LLC, First lien senior secured revolving loan2023-12-310001918712Vobev, LLC and Vobev Holdings, LLC, First lien senior secured loan 12023-12-310001918712Vobev, LLC and Vobev Holdings, LLC, First lien senior secured loan 22023-12-310001918712Vobev, LLC and Vobev Holdings, LLC, Warrant to purchase Class B units2023-12-310001918712asif:VobeyLLCAndVobeyHoldingsLLCMember2023-12-310001918712asif:MaterialsSectorMember2023-12-310001918712Silk Holdings III Corp. and Silk Holdings I Corp., First lien senior secured revolving loan2023-12-310001918712Silk Holdings III Corp. and Silk Holdings I Corp., First lien senior secured loan2023-12-310001918712Silk Holdings III Corp. and Silk Holdings I Corp., Common stock2023-12-310001918712asif:SilkHoldingsIIICorpAndSilkHoldingsICorpMember2023-12-310001918712Sunshine Luxembourg VII S.a r.l., First lien senior secured loan2023-12-310001918712asif:HouseholdAndPersonalProductsMember2023-12-310001918712Iridium Satellite LLC, First lien senior secured loan2023-12-310001918712Switch Master Holdco LLC, First lien senior secured loan2023-12-310001918712Zayo Group Holdings, Inc., First lien senior secured loan2023-12-310001918712asif:TelecommunicationServicesMember2023-12-310001918712BALLY 2023-24, Collaterized loan obligation2023-12-310001918712BCC 2023-3, Collaterized loan obligation2023-12-310001918712BTCP 2023-1, Private asset-backed investment2023-12-310001918712CGMS 2023-1, Collaterized loan obligation2023-12-310001918712CGMS 2023-2, Collaterized loan obligation2023-12-310001918712JNPPK 2023-1, Collaterized loan obligation2023-12-310001918712KKR 48, Collaterized loan obligation2023-12-310001918712MAGNE 2023-36, Collaterized loan obligation2023-12-310001918712OAKC 2022-12, Collaterized loan obligation2023-12-310001918712OAKC 2023-15, Collaterized loan obligation2023-12-310001918712OAKC 2023-16, Collaterized loan obligation2023-12-310001918712TCIFC 2023-2, Collaterized loan obligation2023-12-310001918712THPT 2023-THL, Commercial mortgage-backed security2023-12-310001918712VOYA 2022-3, Collaterized loan obligation2023-12-310001918712asif:InvestmentFundsAndVehiclesMember2023-12-310001918712Emerald Debt Merger Sub LLC, First lien senior secured loan2023-12-310001918712Mirion Technologies (US Holdings), Inc., First lien senior secured loan2023-12-310001918712Safe Fleet Holdings LLC, First lien senior secured loan2023-12-310001918712TGG TS Acquisition Company, First lien senior secured loan2023-12-310001918712asif:TechnologyHardwareAndEquipmentMember2023-12-310001918712HighPeak Energy, Inc., First lien senior secured loan2023-12-310001918712us-gaap:EnergySectorMember2023-12-310001918712Fugue Finance LLC, First lien senior secured loan2023-12-310001918712Simon & Schuster, Inc., First lien senior secured loan2023-12-310001918712University Support Services LLC, First lien senior secured loan2023-12-310001918712asif:EducationMember2023-12-310001918712BR PJK Produce, LLC, First lien senior secured loan2023-12-310001918712City Line Distributors LLC and City Line Investments LLC, First lien senior secured loan2023-12-310001918712City Line Distributors LLC and City Line Investments LLC, Class A units2023-12-310001918712asif:CityLineDistributorsLLCAndCityLineInvestmentsLLCMember2023-12-310001918712Mr. Greens Intermediate, LLC, Florida Veg Investments LLC, MRG Texas, LLC and Restaurant Produce and Services Blocker, LLC, First lien senior secured loan2023-12-310001918712Mr. Greens Intermediate, LLC, Florida Veg Investments LLC, MRG Texas, LLC and Restaurant Produce and Services Blocker, LLC, Class B limited liability company interest2023-12-310001918712asif:MrGreensIntermediateLLCFloridaVegInvestmentsLLCMRGTexasLLCAndRestaurantProduceAndServicesBlockerLLCMember2023-12-310001918712Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P., First lien senior secured revolving loan2023-12-310001918712Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P., First lien senior secured loan2023-12-310001918712Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P., Common units2023-12-310001918712asif:WorldwideProduceAcquisitionLLCAndREPWWPCoinvestIVLPMember2023-12-310001918712asif:ConsumerStaplesDistributionAndRetailMember2023-12-310001918712BIP PipeCo Holdings LLC, First lien senior secured loan2023-12-310001918712Terraform Power Operating, LLC, First lien senior secured loan2023-12-310001918712asif:PowerGenerationMember2023-12-310001918712Lakeshore Learning Materials, LLC, First lien senior secured loan2023-12-310001918712asif:ConsumerDurablesAndApparelMember2023-12-310001918712First Student Bidco Inc., First lien senior secured loan2023-12-310001918712asif:TransportationMember2023-12-310001918712Iron Mountain Information Management, LLC, First lien senior secured loan2023-12-310001918712us-gaap:RealEstateSectorMember2023-12-310001918712MKS Instruments, Inc., First lien senior secured loan2023-12-310001918712asif:SemiconductorsAndSemiconductorEquipmentMember2023-12-310001918712GBP, Wells Fargo Bank, N.A., Company Settlement Date August 21, 20262023-12-310001918712EUR, Wells Fargo Bank, N.A., Company Settlement Date January 26, 20242023-12-310001918712AUD, Wells Fargo Bank, N.A., Company Settlement Date November 17, 20262023-12-310001918712CAD, Wells Fargo Bank, N.A., Company Settlement Date November 16, 20262023-12-310001918712GBP, Wells Fargo Bank, N.A., Company Settlement Date March 31, 20262023-12-310001918712GBP, Wells Fargo Bank, N.A., Company Settlement Date March 31, 20252023-12-310001918712us-gaap:CustomerConcentrationRiskMemberasif:InvestmentsAtFairValueAndOtherNonQualifyingAssetsMemberasif:NonQualifyingAssetsMember2023-01-012023-12-31000191871222 HoldCo Limited2023-12-3100019187123 Step Sports LLC and 3 Step Holdings, LLC2023-12-310001918712Accession Risk Management Group, Inc. and RSC Insurance Brokerage, Inc.2023-12-310001918712ADMA Biologics Inc.2023-12-310001918712AI Aqua Merger Sub, Inc.2023-12-310001918712Airx Climate Solutions, Inc.2023-12-310001918712Alcami Corporation and ACM Note Holdings, LLC2023-12-310001918712Amerivet Partners Management, Inc. and AVE Holdings LP2023-12-310001918712Apex Service Partners, LLC and Apex Service Partners Holdings, LLC2023-12-310001918712Bamboo US BidCo LLC2023-12-310001918712Bobcat Purchaser, LLC and Bobcat Topco, L.P.2023-12-310001918712BR PJK Produce, LLC2023-12-310001918712BradyIFS Holdings, LLC2023-12-310001918712City Line Distributors LLC and City Line Investments LLC2023-12-310001918712Cliffwater LLC2023-12-310001918712Coupa Holdings, LLC and Coupa Software Incorporated2023-12-310001918712CPIG Holdco Inc.2023-12-310001918712Crosspoint Capital AS SPV, LP2023-12-310001918712Cube Industrials Buyer, Inc. and Cube A&D Buyer Inc.2023-12-310001918712Demakes Borrower, LLC2023-12-310001918712DOXA Insurance Holdings LLC2023-12-310001918712Echo Purchaser, Inc.2023-12-310001918712Eternal Aus Bidco Pty Ltd2023-12-310001918712Excel Fitness Consolidator LLC2023-12-310001918712Finastra USA, Inc., DH Corporation/Societe DH, and Finastra Europe S.A R.L.2023-12-310001918712Flint OpCo, LLC2023-12-310001918712FlyWheel Acquireco, Inc.2023-12-310001918712GC Waves Holdings, Inc.2023-12-310001918712GroundWorks, LLC2023-12-310001918712GS SEER Group Borrower LLC and GS SEER Group Holdings LLC2023-12-310001918712GTCR F Buyer Corp. and GTCR (D) Investors LP2023-12-310001918712Guidepoint Security Holdings, LLC2023-12-310001918712Hakken Midco B.V.2023-12-310001918712Helios Service Partners, LLC and Astra Service Partners, LLC2023-12-310001918712Higginbotham Insurance Agency, Inc.2023-12-310001918712Hills Distribution, Inc., Hills Intermediate FT Holdings, LLC and GMP Hills, LP2023-12-310001918712HP RSS Buyer, Inc.2023-12-310001918712Hyland Software, Inc.2023-12-310001918712Infinity Home Services HoldCo, Inc. and IHS Parent Holdings, L.P.2023-12-310001918712Keystone Agency Partners LLC2023-12-310001918712Kings Buyer, LLC2023-12-310001918712Leviathan Intermediate Holdco, LLC and Leviathan Holdings, L.P.2023-12-310001918712Lightbeam Bidco, Inc.2023-12-310001918712Mr. Greens Intermediate, LLC, Florida Veg Investments LLC, MRG Texas, LLC and Restaurant Produce and Services Blocker, LLC2023-12-310001918712New ChurcHill HoldCo LLC and Victory Topco, LP2023-12-310001918712Next Holdco, LLC2023-12-310001918712North Haven Fairway Buyer, LLC, Fairway Lawns, LLC and Command Pest Control, LLC2023-12-310001918712North Haven Stack Buyer, LLC2023-12-310001918712Northwinds Holding, Inc. and Northwinds Services Group LLC2023-12-310001918712OakBridge Insurance Agency LLC and Maple Acquisition Holdings, LP2023-12-310001918712Omnia Partners, LLC2023-12-310001918712Paragon 28, Inc. and Paragon Advanced Technologies, Inc.2023-12-310001918712Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P.2023-12-310001918712PCIA SPV-3, LLC and ASE Royal Aggregator, 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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2024
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____ to _____
Commission File No. 814-01512
ARES STRATEGIC INCOME FUND
(Exact name of Registrant as specified in its charter)
| | | | | | | | |
| Delaware | | 88-6432468 |
| (State or other jurisdiction of | | (I.R.S. Employer |
| incorporation or organization) | | Identification Number) |
245 Park Avenue, 44th Floor, New York, NY 10167
(Address of principal executive office) (Zip Code)
(212) 750-7300
(Registrant’s telephone number, including area code)
____________________________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | |
| Title of each class | Trading symbol | Name of each exchange on which registered |
| None | None | None |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes ý No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| | | | | | | | |
Large accelerated filer o | | Accelerated filer o |
Non-accelerated filer ý | | Smaller reporting company o |
| | Emerging growth company o |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Securities Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý
The number of the Registrant’s common shares, $0.01 par value per share, outstanding as of November 7, 2024 was 146,237,457, 26,299,321 and 9,015,519 of Class I, Class S and Class D common shares, respectively. Common shares outstanding exclude November 1, 2024 subscriptions since the issuance price is not yet finalized at this time.
ARES STRATEGIC INCOME FUND
TABLE OF CONTENTS
| | | | | | | | |
| Part I. | | |
| Item 1. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| Item 2. | | |
| Item 3. | | |
| Item 4. | | |
| | |
| Part II. | | |
| Item 1. | | |
| Item 1A. | | |
| Item 2. | | |
| Item 3. | | |
| Item 4. | | |
| Item 5. | | |
| Item 6. | | |
| | |
PART I - FINANCIAL INFORMATION
Item 1. Financial Statement
ARES STRATEGIC INCOME FUND
CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES
(in thousands, except per share data)
| | | | | | | | | | | |
| | As of |
| | | |
| | September 30, 2024 | | December 31, 2023 |
| (unaudited) | | |
| ASSETS | | | |
| Investments at fair value | | | |
| Non-controlled/non-affiliate company investments | $ | 7,234,650 | | | $ | 2,577,558 | |
| | | |
| Non-controlled affiliate company investments | 81,373 | | | — | |
| | | |
| | | |
Total investments at fair value (amortized cost of $7,268,365 and $2,556,784, respectively) | 7,316,023 | | | 2,577,558 | |
| Cash and cash equivalents | 57,518 | | | 57,972 | |
| Restricted cash | 38,730 | | | — | |
| Interest receivable | 54,280 | | | 18,126 | |
| Receivable for open trades | 145,908 | | | 21,971 | |
| | | |
| Other assets | 78,995 | | | 29,925 | |
| Total assets | $ | 7,691,454 | | | $ | 2,705,552 | |
| LIABILITIES | | | |
| Debt | $ | 2,161,668 | | | $ | 710,325 | |
| Base management fee payable | 9,172 | | | 1,851 | |
| Income based fee payable | 12,576 | | | 4,606 | |
| Capital gains incentive fee payable | 7,912 | | | 3,162 | |
| Interest and facility fees payable | 19,774 | | | 1,656 | |
| | | |
| Payable for open trades | 778,619 | | | 199,602 | |
| Accounts payable and other liabilities | 54,993 | | | 9,089 | |
| Distribution payable | 35,469 | | | 13,645 | |
| Distribution and servicing fee payable | 525 | | | 224 | |
| Total liabilities | 3,080,708 | | | 944,160 | |
| Commitments and contingencies (Note 7) | | | |
| NET ASSETS | | | |
Common shares, par value $0.01 per share, unlimited common shares authorized; 167,962 and 64,721 common shares issued and outstanding, respectively | 1,680 | | | 647 | |
| Capital in excess of par value | 4,540,775 | | | 1,719,185 | |
| Accumulated earnings | 68,291 | | | 41,560 | |
| | | |
| | | |
| Total net assets | 4,610,746 | | | 1,761,392 | |
| Total liabilities and net assets | $ | 7,691,454 | | | $ | 2,705,552 | |
| | | |
| NET ASSET VALUE PER SHARE | | | |
| Class I Shares: | | | |
| Net assets | $ | 3,709,086 | | | $ | 1,413,632 | |
Common shares outstanding ($0.01 par value, unlimited shares authorized) | 135,116 | | | 51,943 | |
| Net asset value per share | $ | 27.45 | | | $ | 27.22 | |
| Class S Shares: | | | |
| Net assets | $ | 693,222 | | | $ | 298,608 | |
Common shares outstanding ($0.01 par value, unlimited shares authorized) | 25,253 | | | 10,972 | |
| Net asset value per share | $ | 27.45 | | | $ | 27.22 | |
| Class D Shares: | | | |
| Net assets | $ | 208,438 | | | $ | 49,152 | |
Common shares outstanding ($0.01 par value, unlimited shares authorized) | 7,593 | | | 1,806 | |
| Net asset value per share | $ | 27.45 | | | $ | 27.22 | |
| | | |
See accompanying notes to consolidated financial statements.
ARES STRATEGIC INCOME FUND
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended September 30, | | For the Nine Months Ended September 30, |
| 2024 | | 2023 | | 2024 | | 2023 |
| | | |
| INVESTMENT INCOME: | | | | | | | |
| From non-controlled/non-affiliate company investments: | | | | | | | |
| Interest income | $ | 146,650 | | | $ | 30,547 | | | $ | 327,240 | | | $ | 50,806 | |
| | | | | | | |
| Dividend income | 2,136 | | | 101 | | | 4,418 | | | 101 | |
| Other income | 3,942 | | | 225 | | | 8,761 | | | 414 | |
| Total investment income from non-controlled/non-affiliate company investments | 152,728 | | | 30,873 | | | 340,419 | | | 51,321 | |
| From non-controlled affiliate company investments: | | | | | | | |
| Interest income | 1,570 | | | — | | | 2,137 | | | — | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| Other income | 19 | | | — | | | 19 | | | — | |
| Total investment income from non-controlled affiliate company investments | 1,589 | | | — | | | 2,156 | | | — | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| Total investment income | 154,317 | | | 30,873 | | | 342,575 | | | 51,321 | |
| EXPENSES: | | | | | | | |
| Interest and credit facility fees | 36,264 | | | 5,796 | | | 78,358 | | | 12,311 | |
| Base management fee | 13,300 | | | 3,065 | | | 29,803 | | | 4,763 | |
| Income based fee | 12,576 | | | 2,203 | | | 27,494 | | | 3,016 | |
| Capital gains incentive fee | 164 | | | 830 | | | 4,806 | | | 1,397 | |
| Offering expenses | 363 | | | 1,729 | | | 3,361 | | | 2,412 | |
| Shareholder servicing and distribution fees | | | | | | | |
| Class S | 1,412 | | | 143 | | | 3,391 | | | 143 | |
| Class D | 92 | | | 11 | | | 182 | | | 11 | |
| Administrative and other fees | 1,545 | | | 769 | | | 4,392 | | | 2,205 | |
| | | | | | | |
| Other general and administrative | 2,001 | | | 1,509 | | | 6,016 | | | 2,898 | |
| Total expenses | 67,717 | | | 16,055 | | | 157,803 | | | 29,156 | |
Expense support (Note 3) | (10,857) | | | (6,438) | | | (25,499) | | | (13,981) | |
| | | | | | | |
| Net expenses | 56,860 | | | 9,617 | | | 132,304 | | | 15,175 | |
| NET INVESTMENT INCOME BEFORE INCOME TAXES | 97,457 | | | 21,256 | | | 210,271 | | | 36,146 | |
| Income tax expense, including excise tax | 234 | | | 378 | | | 697 | | | 378 | |
| NET INVESTMENT INCOME | 97,223 | | | 20,878 | | | 209,574 | | | 35,768 | |
| REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS: | | | | | | | |
| Net realized gains (losses): | | | | | | | |
| Non-controlled/non-affiliate company investments | 3,808 | | | 2,270 | | | 11,919 | | | 4,224 | |
| | | | | | | |
| Foreign currency transactions | 32 | | | (23) | | | 131 | | | (23) | |
| Net realized gains | 3,840 | | | 2,247 | | | 12,050 | | | 4,201 | |
| Net unrealized gains (losses): | | | | | | | |
| Non-controlled/non-affiliate company investments | 2,726 | | | 4,022 | | | 28,819 | | | 6,857 | |
| Non-controlled affiliate company investments | (534) | | | — | | | 1,864 | | | — | |
| Foreign currency transactions | (4,720) | | | 373 | | | (4,283) | | | 373 | |
| Net unrealized (losses) gains | (2,528) | | | 4,395 | | | 26,400 | | | 7,230 | |
| Net realized and unrealized gains on investments and foreign currency transactions | 1,312 | | | 6,642 | | | 38,450 | | | 11,431 | |
| | | | | | | |
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 98,535 | | | $ | 27,520 | | | $ | 248,024 | | | $ | 47,199 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
See accompanying notes to consolidated financial statements.
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 30, 2024
(dollar amounts in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (3) | | Reference (6) | | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| Software and Services | | | | | | | | | | | | | | | | | | | | | | | |
| Access CIG, LLC | | First lien senior secured loan | | 10.25% | | SOFR (Q) | | 5.00% | | | | 08/2028 | | | | $ | 27,498.3 | | | $ | 27,338.4 | | | $ | 27,576.9 | | (2)(7) | | |
| Actfy Buyer, Inc. (10) | | First lien senior secured loan | | 9.85% | | SOFR (M) | | 5.00% | | | | 05/2031 | | | | 30,000.0 | | | 29,435.9 | | | 29,400.0 | | (2)(7)(12) | | |
| Activate Holdings (US) Corp. and CrossPoint Capital AS SPV, LP (10) | | First lien senior secured loan | | 9.85% | | SOFR (Q) | | 5.25% | | | | 07/2030 | | | | 20,832.7 | | | 20,446.6 | | | 20,832.7 | | (2)(5)(7)(12) | | |
| | Limited partnership interests | | 8.00% PIK | | | | | | 10/2023 | | | | 100,000 | | | | 102.5 | | | 150.1 | | (2)(5)(12) | | |
| | | | | | | | | | | | | | | | | | 20,549.1 | | | 20,982.8 | | | | |
| AI Titan Parent, Inc. (10) | | First lien senior secured loan | | 9.81% | | SOFR (Q) | | 4.75% | | | | 08/2031 | | | | 53,245.3 | | | 52,719.7 | | | 52,712.8 | | (2)(7)(12) | | |
| Applied Systems, Inc. | | First lien senior secured loan | | 7.60% | | SOFR (Q) | | 3.00% | | | | 02/2031 | | | | 12,995.0 | | | 12,995.5 | | | 12,996.7 | | (2) | | |
| AppLovin Corporation | | First lien senior secured loan | | 7.35% | | SOFR (M) | | 2.50% | | | | 10/2028 | | | | 595.2 | | | 595.2 | | | 594.8 | | (5)(7) | | |
| | First lien senior secured loan | | 7.35% | | SOFR (M) | | 2.50% | | | | 08/2030 | | | | 5,572.0 | | | 5,559.2 | | | 5,565.0 | | (2)(5)(7) | | |
| | | | | | | | | | | | | | | | | | 6,154.4 | | | 6,159.8 | | | | |
| Aptean, Inc. and Aptean Acquiror Inc. (10) | | First lien senior secured loan | | 9.85% | | SOFR (M) | | 5.00% | | | | 01/2031 | | | | 36,375.7 | | | 36,054.8 | | | 36,375.7 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 9.81% | | SOFR (Q) | | 5.00% | | | | 01/2031 | | | | 89.8 | | | 69.6 | | | 89.8 | | (2)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 36,124.4 | | | 36,465.5 | | | | |
| Artifact Bidco, Inc. (10) | | First lien senior secured loan | | 9.10% | | SOFR (Q) | | 4.50% | | | | 07/2031 | | | | 24,848.9 | | | 24,606.9 | | | 24,600.4 | | (2)(7)(12) | | |
| Asurion, LLC | | First lien senior secured loan | | 8.21% | | SOFR (M) | | 3.25% | | | | 12/2026 | | | | 7,149.0 | | | 7,111.5 | | | 7,140.8 | | (2) | | |
| BCTO Ignition Purchaser, Inc. | | First lien senior secured loan | | 14.28% PIK | | SOFR (Q) | | 9.00% | | | | 10/2030 | | | | 17,543.2 | | | 17,180.5 | | | 17,543.2 | | (2)(5)(7)(12) | | |
| BEP Intermediate Holdco, LLC | | First lien senior secured loan | | 8.60% | | SOFR (M) | | 3.75% | | | | 04/2031 | | | | 16,565.3 | | | 16,573.9 | | | 16,606.7 | | (2)(12) | | |
| Bobcat Purchaser, LLC and Bobcat Topco, L.P. (10) | | First lien senior secured loan | | 9.39% | | SOFR (Q) | | 4.75% | | | | 06/2030 | | | | 13,270.2 | | | 12,999.9 | | | 13,270.2 | | (2)(7)(12) | | |
| | Class A-1 units | | | | | | | | 06/2023 | | | | 113,541 | | | | 113.5 | | | 122.9 | | (12) | | |
| | | | | | | | | | | | | | | | | | 13,113.4 | | | 13,393.1 | | | | |
| Boost Newco Borrower, LLC | | First lien senior secured loan | | 7.10% | | SOFR (Q) | | 2.50% | | | | 01/2031 | | | | 17,400.0 | | | 17,418.8 | | | 17,392.7 | | (2) | | |
| CCC Intelligent Solutions Inc. | | First lien senior secured loan | | 7.21% | | SOFR (M) | | 2.25% | | | | 09/2028 | | | | 6,957.5 | | | 6,958.3 | | | 6,952.3 | | (2)(5)(7) | | |
| Centralsquare Technologies, LLC and Supermoose Newco, Inc. (10) | | First lien senior secured loan | | 11.60% (3.50% PIK) | | SOFR (M) | | 6.50% | | | | 04/2030 | | | | 38,513.6 | | | 37,639.7 | | | 37,550.7 | | (2)(7)(12) | | |
| | Series A preferred stock | | 15.00% PIK | | | | | | 04/2024 | | | | 22,759 | | | | 23,696.7 | | | 24,379.5 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 61,336.4 | | | 61,930.2 | | | | |
| Cloud Software Group, Inc. and Picard Parent, Inc. | | First lien senior secured loan | | 9.10% | | SOFR (Q) | | 4.50% | | | | 03/2031 | | | | 15,000.0 | | | 14,894.1 | | | 15,031.2 | | (2)(7) | | |
| | First lien senior secured loan | | 8.60% | | SOFR (M) | | 4.00% | | | | 03/2029 | | | | 70,922.5 | | | 69,162.8 | | | 70,575.0 | | (2)(7) | | |
| | First lien senior secured notes | | 8.25% | | | | | | | | 06/2032 | | | | 100.0 | | | 100.0 | | | 104.5 | | (2) | | |
| | Second lien senior secured notes | | 9.00% | | | | | | | | 09/2029 | | | | 10,100.0 | | | 10,082.3 | | | 10,266.7 | | (2) | | |
| | | | | | | | | | | | | | | | | | 94,239.2 | | | 95,977.4 | | | | |
| Conservice Midco, LLC | | First lien senior secured loan | | 8.35% | | SOFR (M) | | 3.50% | | | | 05/2027 | | | | 32,213.7 | | | 32,210.7 | | | 32,241.1 | | (2) | | |
| | Second lien senior secured loan | | 10.10% | | SOFR (M) | | 5.25% | | | | 05/2028 | | | | 17,234.2 | | | 17,234.2 | | | 17,234.2 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 49,444.9 | | | 49,475.3 | | | | |
| Coupa Holdings, LLC and Coupa Software Incorporated (10) | | First lien senior secured loan | | 10.75% | | SOFR (Q) | | 5.50% | | | | 02/2030 | | | | 4,578.7 | | | 4,490.2 | | | 4,578.7 | | (2)(7)(12) | | |
See accompanying notes to consolidated financial statements.
5
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 30, 2024
(dollar amounts in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (3) | | Reference (6) | | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| Diligent Corporation (10) | | First lien senior secured revolving loan | | | | | | | | | | 08/2030 | | | | — | | | — | | | — | | (2)(8)(12) | | |
| | First lien senior secured loan | | 10.09% | | SOFR (Q) | | 5.00% | | | | 08/2030 | | | | 20,988.5 | | | 20,841.7 | | | 20,988.5 | | (2)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 20,841.7 | | | 20,988.5 | | | | |
| DriveCentric Holdings, LLC (10) | | First lien senior secured loan | | 9.87% | | SOFR (Q) | | 4.75% | | | | 08/2031 | | | | 16,646.0 | | | 16,482.6 | | | 16,479.6 | | (2)(7)(12) | | |
| DS Admiral Bidco, LLC | | First lien senior secured loan | | 9.10% | | SOFR (M) | | 4.25% | | | | 06/2031 | | | | 2,500.0 | | | 2,475.8 | | | 2,400.0 | | (2)(12) | | |
| Echo Purchaser, Inc. (10) | | First lien senior secured revolving loan | | 12.50% | | Base Rate (Q) | | 4.50% | | | | 11/2029 | | | | 159.1 | | | 91.1 | | | 159.1 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 10.35% | | SOFR (M) | | 5.50% | | | | 11/2029 | | | | 26,053.1 | | | 25,606.2 | | | 26,053.1 | | (2)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 25,697.3 | | | 26,212.2 | | | | |
| ECi Macola/MAX Holding, LLC | | First lien senior secured loan | | 8.35% | | SOFR (Q) | | 3.75% | | | | 05/2030 | | | | 2,343.9 | | | 2,343.9 | | | 2,348.3 | | (7) | | |
| Eclipse Topco, Inc., Eclipse Investor Parent, L.P. and Eclipse Buyer, Inc. (10) | | First lien senior secured loan | | 9.74% | | SOFR (S) | | 4.75% | | | | 09/2031 | | | | 116,367.5 | | | 115,215.2 | | | 115,203.8 | | (2)(7)(12) | | |
| | Preferred units | | 12.50% PIK | | | | | | 09/2024 | | | | 304 | | | | 2,978.2 | | | 2,978.2 | | (2)(12) | | |
| | Class A common units | | | | | | | | 09/2024 | | | | 261 | | | | 261.0 | | | 261.0 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 118,454.4 | | | 118,443.0 | | | | |
| Edmunds Govtech, Inc. (10) | | First lien senior secured revolving loan | | 8.60% | | SOFR (Q) | | 4.00% | | | | 02/2030 | | | | 301.4 | | | 296.0 | | | 301.4 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 9.60% | | SOFR (Q) | | 5.00% | | | | 02/2031 | | | | 3,130.8 | | | 3,073.5 | | | 3,130.8 | | (2)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 3,369.5 | | | 3,432.2 | | | | |
| Ensono, Inc. | | First lien senior secured loan | | 8.96% | | SOFR (M) | | 4.00% | | | | 05/2028 | | | | 23,640.8 | | | 23,405.8 | | | 23,581.7 | | (2)(7) | | |
| Epicor Software Corporation (10) | | First lien senior secured loan | | 8.10% | | SOFR (M) | | 3.25% | | | | 05/2031 | | | | 30,308.4 | | | 30,241.0 | | | 30,318.7 | | (2)(7) | | |
| eResearch Technology, Inc. | | First lien senior secured loan | | 8.85% | | SOFR (M) | | 4.00% | | | | 02/2027 | | | | 60,681.0 | | | 59,739.9 | | | 60,921.3 | | (2)(7) | | |
| | Second lien senior secured loan | | 12.95% | | SOFR (M) | | 8.00% | | | | 02/2028 | | | | 8,904.5 | | | 8,473.7 | | | 8,904.5 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 68,213.6 | | | 69,825.8 | | | | |
| Finastra USA, Inc., DH Corporation/Societe DH, and Finastra Europe S.A R.L. (10) | | First lien senior secured loan | | 12.18% | | SOFR (Q) | | 7.25% | | | | 09/2029 | | | | 22,537.1 | | | 22,163.8 | | | 22,537.1 | | (2)(5)(7)(12) | | |
| Genesys Cloud Services Holdings I, LLC | | First lien senior secured loan | | 8.71% | | SOFR (M) | | 3.75% | | | | 12/2027 | | | | 9,950.0 | | | 9,928.7 | | | 9,951.3 | | (2)(7) | | |
| | First lien senior secured loan | | 8.35% | | SOFR (M) | | 3.50% | | | | 12/2027 | | | | 12,497.5 | | | 12,525.9 | | | 12,511.0 | | (2)(7) | | |
| | First lien senior secured loan | | 7.60% | | SOFR (Q) | | 3.00% | | | | 12/2027 | | | | 4,450.0 | | | 4,450.0 | | | 4,454.8 | | (7) | | |
| | | | | | | | | | | | | | | | | | 26,904.6 | | | 26,917.1 | | | | |
| Guidepoint Security Holdings, LLC (10) | | First lien senior secured loan | | 10.85% | | SOFR (M) | | 6.00% | | | | 10/2029 | | | | 6,085.5 | | | 5,983.6 | | | 6,085.5 | | (2)(7)(12) | | |
| Hakken Midco B.V. (10) | | First lien senior secured loan | | 10.89% | | Euribor (S) | | 7.25% | | | | 07/2030 | | | | 5,088.4 | | | 4,885.2 | | | 5,088.4 | | (2)(5)(7)(12) | | |
| Hyland Software, Inc. (10) | | First lien senior secured revolving loan | | | | | | | | | | 09/2029 | | | | — | | | — | | | — | | (2)(8)(12) | | |
| | First lien senior secured loan | | 10.85% | | SOFR (M) | | 6.00% | | | | 09/2030 | | | | 23,717.8 | | | 23,413.6 | | | 23,717.8 | | (2)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 23,413.6 | | | 23,717.8 | | | | |
| Icefall Parent, Inc. (10) | | First lien senior secured loan | | 11.35% | | SOFR (M) | | 6.50% | | | | 01/2030 | | | | 11,140.8 | | | 10,942.2 | | | 11,140.8 | | (2)(7)(12) | | |
| Idemia Group S.A.S. | | First lien senior secured loan | | 8.95% | | SOFR (Q) | | 4.25% | | | | 09/2028 | | | | 3,960.1 | | | 3,929.4 | | | 3,967.5 | | (2)(5)(7) | | |
| Imprivata, Inc. | | First lien senior secured loan | | 8.75% | | SOFR (Q) | | 3.50% | | | | 12/2027 | | | | 10,188.7 | | | 10,209.0 | | | 10,215.6 | | (2)(7) | | |
| Instructure Holdings, INC. | | First lien senior secured loan | | 8.07% | | SOFR (Q) | | 2.75% | | | | 10/2028 | | | | 16,011.7 | | | 15,968.2 | | | 16,015.0 | | (2)(5)(7) | | |
See accompanying notes to consolidated financial statements.
6
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 30, 2024
(dollar amounts in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (3) | | Reference (6) | | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| Internet Truckstop Group LLC (10) | | First lien senior secured loan | | 10.25% | | SOFR (Q) | | 5.50% | | | | 04/2027 | | | | 33,285.0 | | | 32,984.4 | | | 32,952.1 | | (2)(7)(12) | | |
| Leia Finco US LLC | | First lien senior secured loan | | 7.50% | | SOFR (S) | | 3.25% | | | | 07/2031 | | | | 19,900.0 | | | 19,789.6 | | | 19,571.1 | | (5) | | |
| | Second lien senior secured loan | | 9.50% | | SOFR (S) | | 5.25% | | | | 07/2032 | | | | 7,164.5 | | | 7,128.7 | | | 6,980.9 | | (5) | | |
| | | | | | | | | | | | | | | | | | 26,918.3 | | | 26,552.0 | | | | |
| Marcel Bidco GmbH | | First lien senior secured loan | | 8.85% | | SOFR (M) | | 4.00% | | | | 11/2030 | | | | 11,570.3 | | | 11,521.3 | | | 11,628.2 | | (2)(5)(7) | | |
| McAfee Corp. | | First lien senior secured loan | | 8.45% | | SOFR (M) | | 3.25% | | | | 03/2029 | | | | 6,384.0 | | | 6,354.9 | | | 6,354.1 | | (2)(7) | | |
| Mermaid Bidco Inc. | | First lien senior secured loan | | 8.49% | | SOFR (Q) | | 3.25% | | | | 07/2031 | | | | 8,029.8 | | | 8,024.3 | | | 8,009.7 | | (2)(12) | | |
| Mitchell International, Inc. | | First lien senior secured loan | | 8.10% | | SOFR (M) | | 3.25% | | | | 06/2031 | | | | 16,700.0 | | | 16,598.9 | | | 16,439.8 | | (2)(7) | | |
| | Second lien senior secured loan | | 10.10% | | SOFR (M) | | 5.25% | | | | 06/2032 | | | | 23,000.0 | | | 22,888.6 | | | 22,578.4 | | (2)(7) | | |
| | | | | | | | | | | | | | | | | | 39,487.5 | | | 39,018.2 | | | | |
| Mosel Bidco SE | | First lien senior secured loan | | 9.10% | | SOFR (Q) | | 4.50% | | | | 09/2030 | | | | 8,112.1 | | | 8,109.0 | | | 8,142.5 | | (2)(5)(7)(12) | | |
| Netsmart, Inc. and Netsmart Technologies, Inc. (10) | | First lien senior secured loan | | 10.05% (3.00% PIK) | | SOFR (M) | | 5.20% | | | | 08/2031 | | | | 78,101.9 | | | 77,335.0 | | | 77,320.9 | | (2)(7)(12) | | |
| North Star Acquisitionco, LLC and Toucan Bidco Limited (10) | | First lien senior secured revolving loan | | 9.95% | | SONIA (Q) | | 5.00% | | | | 05/2029 | | | | 363.9 | | | 354.2 | | | 372.9 | | (2)(5)(12) | | |
| | First lien senior secured loan | | 9.60% | | SOFR (Q) | | 5.00% | | | | 05/2029 | | | | 10,906.9 | | | 10,857.0 | | | 10,852.3 | | (2)(5)(7)(12) | | |
| | First lien senior secured loan | | 9.95% | | SONIA (Q) | | 5.00% | | | | 05/2029 | | | | 1,645.1 | | | 1,537.9 | | | 1,636.9 | | (2)(5)(12) | | |
| | First lien senior secured loan | | 9.75% | | NIBOR (Q) | | 5.00% | | | | 05/2029 | | | | 2,553.6 | | | 2,441.8 | | | 2,540.9 | | (2)(5)(12) | | |
| | | | | | | | | | | | | | | | | | 15,190.9 | | | 15,403.0 | | | | |
| Open Text Corporation | | First lien senior secured loan | | 7.10% | | SOFR (M) | | 2.25% | | | | 01/2030 | | | | 627.5 | | | 627.3 | | | 629.5 | | (2)(5)(7) | | |
| Particle Luxembourg S.a.r.l. | | First lien senior secured loan | | 8.97% | | SOFR (M) | | 4.00% | | | | 03/2031 | | | | 9,552.0 | | | 9,576.3 | | | 9,563.9 | | (2)(5) | | |
| Polaris Newco, LLC | | First lien senior secured loan | | 9.51% | | SOFR (Q) | | 4.00% | | | | 06/2028 | | | | 17,031.7 | | | 16,903.9 | | | 16,731.9 | | (2)(7) | | |
| Project Boost Purchaser, LLC | | First lien senior secured loan | | 8.79% | | SOFR (Q) | | 3.50% | | | | 07/2031 | | | | 43,758.4 | | | 43,653.5 | | | 43,721.2 | | (2) | | |
| | Second lien senior secured loan | | 10.54% | | SOFR (M) | | 5.25% | | | | 07/2032 | | | | 7,000.0 | | | 6,965.4 | | | 7,005.8 | | (2) | | |
| | | | | | | | | | | | | | | | | | 50,618.9 | | | 50,727.0 | | | | |
| Proofpoint, Inc. | | First lien senior secured loan | | 7.85% | | SOFR (M) | | 3.00% | | | | 08/2028 | | | | 47,477.0 | | | 47,455.2 | | | 47,441.9 | | (2)(7) | | |
| PushPay USA Inc. | | First lien senior secured loan | | 9.10% | | SOFR (Q) | | 4.50% | | | | 08/2031 | | | | 13,550.0 | | | 13,422.0 | | | 13,516.1 | | (2)(12) | | |
| Qualtrics Acquireco, LLC | | First lien senior secured loan | | 7.35% | | SOFR (Q) | | 2.75% | | | | 06/2030 | | | | 19,392.3 | | | 19,380.1 | | | 19,356.0 | | (2) | | |
| RealPage, Inc. | | First lien senior secured loan | | 7.96% | | SOFR (M) | | 3.00% | | | | 04/2028 | | | | 13,578.0 | | | 13,497.1 | | | 13,170.6 | | (2)(7) | | |
| | Second lien senior secured loan | | 11.46% | | SOFR (M) | | 6.50% | | | | 04/2029 | | | | 45,004.1 | | | 44,846.1 | | | 43,104.0 | | (2)(7) | | |
| | | | | | | | | | | | | | | | | | 58,343.2 | | | 56,274.6 | | | | |
| Sapphire Software Buyer, Inc. (10) | | First lien senior secured loan | | 9.25% | | SOFR (S) | | 5.00% | | | | 09/2031 | | | | 46,974.3 | | | 46,504.6 | | | 46,504.6 | | (2)(7)(12) | | |
| Sedgwick Claims Management Services, Inc. | | First lien senior secured loan | | 8.25% | | SOFR (Q) | | 3.00% | | | | 07/2031 | | | | 38,509.2 | | | 38,467.0 | | | 38,422.6 | | (2) | | |
| Severin Acquisition, LLC (10) | | First lien senior secured loan | | 9.59% | | SOFR (S) | | 4.75% | | | | 10/2031 | | | | 111,676.8 | | | 110,560.0 | | | 110,560.0 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 8.25% | | SOFR (Q) | | 3.00% | | | | 08/2027 | | | | 10,383.4 | | | 10,367.5 | | | 10,383.4 | | (2) | | |
| | | | | | | | | | | | | | | | | | 120,927.5 | | | 120,943.4 | | | | |
| Sophia, L.P. | | First lien senior secured loan | | 8.45% | | SOFR (M) | | 3.50% | | | | 10/2029 | | | | 16,865.9 | | | 16,785.1 | | | 16,900.2 | | (2)(7) | | |
| Spark Purchaser, Inc. (10) | | First lien senior secured loan | | 10.10% | | SOFR (Q) | | 5.50% | | | | 04/2031 | | | | 17,297.3 | | | 16,976.1 | | | 16,951.4 | | (2)(7)(12) | | |
See accompanying notes to consolidated financial statements.
7
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 30, 2024
(dollar amounts in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (3) | | Reference (6) | | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| Superman Holdings, LLC (10) | | First lien senior secured loan | | 9.56% | | SOFR (Q) | | 4.50% | | | | 08/2031 | | | | 39,579.9 | | | 39,384.6 | | | 39,382.0 | | (2)(7)(12) | | |
| Tenable Holdings, Inc. | | First lien senior secured loan | | 7.71% | | SOFR (M) | | 2.75% | | | | 07/2028 | | | | 5,388.5 | | | 5,390.8 | | | 5,386.3 | | (2)(5)(7) | | |
| Transit Technologies LLC (10) | | First lien senior secured loan | | 9.71% | | SOFR (M) | | 4.75% | | | | 08/2031 | | | | 10,947.7 | | | 10,840.0 | | | 10,838.2 | | (2)(7)(12) | | |
| UserZoom Technologies, Inc. | | First lien senior secured loan | | 12.75% | | SOFR (S) | | 7.50% | | | | 04/2029 | | | | 634.4 | | | 620.6 | | | 628.1 | | (2)(7)(12) | | |
| Victors Purchaser, LLC and WP Victors Co-Investment, L.P. (10) | | First lien senior secured loan | | 9.35% | | SOFR (Q) | | 4.75% | | | | 08/2031 | | | | 49,849.0 | | | 49,359.7 | | | 49,350.6 | | (2)(7)(12) | | |
| | Partnership units | | | | | | | | 08/2024 | | | | 1,807,000 | | | | 1,815.8 | | | 1,807.0 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 51,175.5 | | | 51,157.6 | | | | |
| VS Buyer, LLC | | First lien senior secured loan | | 8.35% | | SOFR (M) | | 3.25% | | | | 04/2031 | | | | 7,561.5 | | | 7,543.8 | | | 7,558.3 | | (2) | | |
| Wellington Bidco Inc. and Wellington TopCo LP (10) | | First lien senior secured revolving loan | | 9.60% | | SOFR (Q) | | 5.00% | | | | 06/2030 | | | | 1,189.7 | | | 1,107.5 | | | 1,102.9 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 9.60% | | SOFR (Q) | | 5.00% | | | | 06/2030 | | | | 51,594.0 | | | 51,105.8 | | | 51,078.0 | | (2)(7)(12) | | |
| | Class A-2 preferred units | | 8.00% PIK | | | | | | 06/2024 | | | | 2,106,000 | | | | 2,160.1 | | | 2,336.6 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 54,373.4 | | | 54,517.5 | | | | |
| ZocDoc, Inc. | | First lien senior secured loan | | 11.63% | | SOFR (Q) | | 6.50% | | | | 05/2029 | | | | 32,500.0 | | | 31,068.7 | | | 32,093.8 | | (2)(7)(12) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 1,816,026.8 | | | 1,822,505.7 | | | 39.53 | % | |
| Capital Goods | | | | | | | | | | | | | | | | | | | | | | | |
| AI Aqua Merger Sub, Inc. | | First lien senior secured loan | | 8.70% | | SOFR (M) | | 3.50% | | | | 07/2028 | | | | 43,033.3 | | | 43,061.7 | | | 42,968.3 | | (2)(7) | | |
| Airx Climate Solutions, Inc. (10) | | First lien senior secured loan | | 11.03% | | SOFR (Q) | | 5.75% | | | | 11/2029 | | | | 23,388.0 | | | 22,889.3 | | | 23,388.0 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 10.25% | | SOFR (S) | | 5.00% | | | | 11/2029 | | | | 11,028.2 | | | 10,870.4 | | | 11,028.2 | | (2)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 33,759.7 | | | 34,416.2 | | | | |
| Alliance Laundry Systems LLC | | First lien senior secured loan | | 8.35% | | SOFR (M) | | 3.50% | | | | 08/2031 | | | | 24,354.8 | | | 24,269.5 | | | 24,371.6 | | (2) | | |
| Artera Services, LLC | | First lien senior secured loan | | 9.10% | | SOFR (Q) | | 4.50% | | | | 02/2031 | | | | 19,368.6 | | | 19,370.5 | | | 18,832.8 | | (2) | | |
| BCPE Empire Holdings, Inc. | | First lien senior secured loan | | 8.85% | | SOFR (M) | | 4.00% | | | | 12/2028 | | | | 3,967.5 | | | 3,965.1 | | | 3,967.1 | | (2)(7) | | |
| BGIF IV Fearless Utility Services, Inc. (10) | | First lien senior secured revolving loan | | | | | | | | | | 06/2030 | | | | — | | | — | | | — | | (2)(8)(12) | | |
| | First lien senior secured loan | | 10.12% | | SOFR (M) | | 5.00% | | | | 06/2031 | | | | 42,311.3 | | | 41,907.4 | | | 41,888.2 | | (2)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 41,907.4 | | | 41,888.2 | | | | |
| Bleriot US Bidco Inc. | | First lien senior secured loan | | 7.85% | | SOFR (Q) | | 3.25% | | | | 10/2030 | | | | 7,354.7 | | | 7,357.2 | | | 7,356.2 | | (2) | | |
| Brown Group Holding, LLC | | First lien senior secured loan | | 7.60% | | SOFR (M) | | 2.75% | | | | 07/2031 | | | | 12,203.8 | | | 12,193.5 | | | 12,166.4 | | (7) | | |
| | First lien senior secured loan | | 7.84% | | SOFR (Q) | | 2.75% | | | | 07/2031 | | | | 6,490.9 | | | 6,486.0 | | | 6,472.8 | | (2)(7) | | |
| | | | | | | | | | | | | | | | | | 18,679.5 | | | 18,639.2 | | | | |
| Burgess Point Purchaser Corporation | | First lien senior secured loan | | 10.20% | | SOFR (M) | | 5.25% | | | | 07/2029 | | | | 69,975.7 | | | 66,877.1 | | | 65,826.8 | | (2)(7) | | |
| Chart Industries, Inc. | | First lien senior secured loan | | 7.82% | | SOFR (S) | | 2.50% | | | | 03/2030 | | | | 14,562.6 | | | 14,518.8 | | | 14,526.1 | | (2)(5)(7)(12) | | |
| Chillaton Bidco Limited (10) | | First lien senior secured loan | | 11.70% | | SONIA (S) | | 6.50% | | | | 05/2031 | | | | 3,987.9 | | | 3,629.7 | | | 3,987.9 | | (2)(5)(7)(12) | | |
| CP Atlas Buyer Inc | | First lien senior secured loan | | 8.70% | | SOFR (M) | | 3.75% | | | | 11/2027 | | | | 9,100.5 | | | 8,941.1 | | | 8,969.7 | | (2)(7) | | |
| CPIG Holdco Inc. (10) | | First lien senior secured revolving loan | | 10.18% | | SOFR (Q) | | 4.75% | | | | 04/2028 | | | | 0.5 | | | 0.5 | | | 0.5 | | (2)(7)(9)(12) | | |
| | First lien senior secured loan | | 12.43% | | SOFR (Q) | | 7.00% | | | | 04/2028 | | | | 14,850.0 | | | 14,531.8 | | | 14,850.0 | | (2)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 14,532.3 | | | 14,850.5 | | | | |
See accompanying notes to consolidated financial statements.
8
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 30, 2024
(dollar amounts in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (3) | | Reference (6) | | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| Cube Industrials Buyer, Inc. and Cube A&D Buyer Inc. (10) | | First lien senior secured revolving loan | | | | | | | | | | 10/2029 | | | | — | | | — | | | — | | (2)(8)(12) | | |
| | First lien senior secured loan | | 11.25% | | SOFR (Q) | | 6.00% | | | | 10/2030 | | | | 16,505.0 | | | 16,147.5 | | | 16,505.0 | | (2)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 16,147.5 | | | 16,505.0 | | | | |
| Dynasty Acquisition Co., Inc. | | First lien senior secured loan | | 8.35% | | SOFR (M) | | 3.50% | | | | 08/2028 | | | | 25,951.3 | | | 25,873.6 | | | 25,956.8 | | (2) | | |
| FCG Acquisitions, Inc. | | First lien senior secured loan | | 8.71% | | SOFR (M) | | 3.75% | | | | 03/2028 | | | | 11,629.3 | | | 11,643.2 | | | 11,617.7 | | (2)(7) | | |
| Gates Global LLC | | First lien senior secured loan | | 7.10% | | SOFR (M) | | 2.25% | | | | 11/2029 | | | | 855.0 | | | 855.0 | | | 855.7 | | (2)(5)(7) | | |
| Generator Buyer, Inc. (10) | | First lien senior secured loan | | 9.22% | | CORRA (Q) | | 5.25% | | | | 07/2030 | | | | 7,072.8 | | | 6,828.1 | | | 6,936.0 | | (2)(5)(7)(12) | | |
| GSV Purchaser, Inc. (10) | | First lien senior secured loan | | 10.00% | | SOFR (Q) | | 4.75% | | | | 08/2031 | | | | 39,607.0 | | | 39,220.4 | | | 39,607.0 | | (2)(7)(12) | | |
| Helix Acquisition Holdings, Inc. | | First lien senior secured loan | | 11.95% | | SOFR (M) | | 7.00% | | | | 03/2030 | | | | 14,188.7 | | | 13,854.6 | | | 14,188.7 | | (2)(7)(12) | | |
| HPCC Parent, Inc. and Patriot Container Corp. (10) | | First lien senior secured loan | | 13.00% (7.00% PIK) | | | | | | | | 09/2030 | | | | 68,370.2 | | | 66,516.4 | | | 66,490.0 | | (2)(12) | | |
| | Common stock | | | | | | | | 09/2024 | | | | 406,680 | | | | 3,855.3 | | | 3,855.3 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 70,371.7 | | | 70,345.3 | | | | |
| Husky Injection Molding Systems Ltd. | | First lien senior secured loan | | 10.33% | | SOFR (S) | | 5.00% | | | | 02/2029 | | | | 9,488.4 | | | 9,358.5 | | | 9,433.1 | | (2)(5) | | |
| Johnstone Supply, LLC | | First lien senior secured loan | | 8.17% | | SOFR (M) | | 3.00% | | | | 06/2031 | | | | 5,029.0 | | | 5,029.0 | | | 5,012.8 | | (2) | | |
| Kaman Corporation | | First lien senior secured loan | | 8.10% | | SOFR (Q) | | 3.50% | | | | 04/2031 | | | | 18,920.8 | | | 18,950.1 | | | 18,976.0 | | (2)(7) | | |
| LBM Acquisition LLC | | First lien senior secured loan | | 8.97% | | SOFR (M) | | 3.75% | | | | 06/2031 | | | | 16,933.5 | | | 16,668.4 | | | 16,584.4 | | (2)(7) | | |
| Nvent Electric Public Limited Company | | First lien senior secured loan | | 8.10% | | SOFR (Q) | | 3.50% | | | | 09/2031 | | | | 6,000.0 | | | 5,970.0 | | | 5,992.5 | | | | |
| Pike Corporation | | First lien senior secured loan | | 7.96% | | SOFR (M) | | 3.00% | | | | 01/2028 | | | | 5,185.6 | | | 5,185.6 | | | 5,204.6 | | (2) | | |
| Propulsion (BC) Newco LLC | | First lien senior secured loan | | 8.35% | | SOFR (Q) | | 3.75% | | | | 09/2029 | | | | 14,788.3 | | | 14,789.2 | | | 14,816.1 | | (2)(5)(7) | | |
| Specialty Building Products Holdings, LLC | | First lien senior secured loan | | 8.70% | | SOFR (M) | | 3.75% | | | | 10/2028 | | | | 7,003.0 | | | 6,968.8 | | | 6,948.1 | | (2)(7) | | |
| SPX Flow, Inc. | | First lien senior secured loan | | 8.35% | | SOFR (M) | | 3.50% | | | | 04/2029 | | | | 12,359.4 | | | 12,400.2 | | | 12,367.6 | | (2)(7) | | |
| Star US Bidco LLC | | First lien senior secured loan | | 8.60% | | SOFR (M) | | 3.75% | | | | 03/2027 | | | | 8,828.3 | | | 8,799.4 | | | 8,866.9 | | (2)(7) | | |
| Sunvair Aerospace Group, Inc. and GB Helios Holdings, L.P. (10) | | First lien senior secured loan | | 9.74% | | SOFR (Q) | | 5.00% | | | | 05/2031 | | | | 32,367.0 | | | 31,905.1 | | | 31,881.5 | | (2)(7)(12) | | |
| | Series A common units | | | | | | | | 05/2024 | | | | 996 | | | | 996.0 | | | 1,154.5 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 32,901.1 | | | 33,036.0 | | | | |
| TransDigm Inc. | | First lien senior secured loan | | 7.84% | | SOFR (Q) | | 2.50% | | | | 02/2031 | | | | 24,020.6 | | | 24,014.4 | | | 23,919.7 | | (2)(5)(7) | | |
| | First lien senior secured loan | | 7.35% | | SOFR (Q) | | 2.75% | | | | 03/2030 | | | | 16,556.5 | | | 16,601.8 | | | 16,551.4 | | (2)(5) | | |
| | First lien senior secured loan | | 7.35% | | SOFR (Q) | | 2.75% | | | | 08/2028 | | | | 2,282.6 | | | 2,291.2 | | | 2,281.1 | | (5) | | |
| | First lien senior secured loan | | 7.32% | | SOFR (Q) | | 2.50% | | | | 01/2032 | | | | 8,000.0 | | | 7,981.3 | | | 7,966.6 | | (5) | | |
| | | | | | | | | | | | | | | | | | 50,888.7 | | | 50,718.8 | | | | |
| Victory Buyer LLC | | First lien senior secured loan | | 8.72% | | SOFR (M) | | 3.75% | | | | 11/2028 | | | | 7,699.4 | | | 7,415.8 | | | 7,384.2 | | (7) | | |
| WEC US Holdings Ltd. | | First lien senior secured loan | | 7.60% | | SOFR (M) | | 2.75% | | | | 01/2031 | | | | 29,343.8 | | | 29,304.4 | | | 29,326.5 | | (2) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 710,292.9 | | | 711,280.4 | | | 15.43 | % | |
| Health Care Services | | | | | | | | | | | | | | | | | | | | | | | |
| Agiliti Health, Inc. | | First lien senior secured loan | | 8.33% | | SOFR (Q) | | 3.00% | | | | 05/2030 | | | | 14,592.5 | | | 14,563.4 | | | 14,154.8 | | (2)(5)(12) | | |
| Amerivet Partners Management, Inc. and AVE Holdings LP (10) | | Subordinated loan | | 16.50% PIK | | | | | | | | 12/2030 | | | | 34,220.1 | | | 32,660.7 | | | 34,220.1 | | (2)(12) | | |
See accompanying notes to consolidated financial statements.
9
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 30, 2024
(dollar amounts in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (3) | | Reference (6) | | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| | Class A units | | | | | | | | 03/2024 | | | | 1,575 | | | | 1,575.0 | | | 590.1 | | (2)(12) | | |
| | Class C units | | | | | | | | 11/2023 | | | | 3,849 | | | | 768.4 | | | 322.3 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 35,004.1 | | | 35,132.5 | | | | |
| Amethyst Radiotherapy Group B.V. (10) | | First lien senior secured loan | | 8.94% | | Euribor (Q) | | 5.25% | | | | 04/2031 | | | | 2,226.7 | | | 2,075.1 | | | 2,226.7 | | (2)(5)(7)(12) | | |
| Artivion, Inc. (10) | | First lien senior secured revolving loan | | 9.28% | | SOFR (Q) | | 4.00% | | | | 01/2030 | | | | 1,983.0 | | | 1,895.5 | | | 1,983.0 | | (2)(5)(7)(12) | | |
| | First lien senior secured loan | | 11.78% | | SOFR (Q) | | 6.50% | | | | 01/2030 | | | | 26,884.3 | | | 26,289.7 | | | 26,884.3 | | (2)(5)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 28,185.2 | | | 28,867.3 | | | | |
| athenahealth Group Inc. | | First lien senior secured loan | | 8.10% | | SOFR (M) | | 3.25% | | | | 02/2029 | | | | 47,565.2 | | | 46,826.0 | | | 47,218.5 | | (2)(7) | | |
| Avalign Holdings, Inc. and Avalign Technologies, Inc. (10) | | First lien senior secured loan | | 12.31% (3.63% PIK) | | SOFR (Q) | | 7.25% | | | | 12/2028 | | | | 26,669.8 | | | 26,196.1 | | | 25,603.0 | | (2)(7)(12) | | |
| Bracket Intermediate Holding Corp. | | First lien senior secured loan | | 9.70% | | SOFR (Q) | | 5.00% | | | | 05/2028 | | | | 16,317.5 | | | 16,171.9 | | | 16,375.9 | | (2)(7) | | |
| Charlotte Buyer, Inc. | | First lien senior secured loan | | 9.85% | | SOFR (M) | | 4.75% | | | | 02/2028 | | | | 17,500.0 | | | 17,512.2 | | | 17,631.2 | | (2)(7) | | |
| CNT Holdings I Corp | | First lien senior secured loan | | 8.75% | | SOFR (Q) | | 3.50% | | | | 11/2027 | | | | 30,361.0 | | | 30,310.3 | | | 30,407.5 | | (2)(7) | | |
| Confluent Medical Technologies, Inc. | | First lien senior secured loan | | 8.35% | | SOFR (Q) | | 3.75% | | | | 02/2029 | | | | 14,735.7 | | | 14,675.1 | | | 14,754.1 | | (2)(7) | | |
| Electron Bidco Inc. | | First lien senior secured loan | | 7.96% | | SOFR (M) | | 3.00% | | | | 11/2028 | | | | 10,400.7 | | | 10,340.3 | | | 10,408.5 | | (2)(7) | | |
| Empower Payments Investor, LLC (10) | | First lien senior secured loan | | 9.60% | | SOFR (M) | | 4.75% | | | | 03/2031 | | | | 12,264.0 | | | 12,038.2 | | | 12,264.0 | | (2)(7)(12) | | |
| Ensemble RCM, LLC | | First lien senior secured loan | | 8.25% | | SOFR (Q) | | 3.00% | | | | 08/2029 | | | | 30,216.3 | | | 30,164.2 | | | 30,239.3 | | (2) | | |
| Envisage Management Ltd (10) | | First lien senior secured loan | | 12.51% | | SONIA (Q) | | 7.50% | | | | 02/2031 | | | | 3,344.4 | | | 3,069.3 | | | 3,344.4 | | (2)(5)(7)(12) | | |
| | First lien senior secured loan | | 12.56% (2.00% PIK) | | SONIA (Q) | | 7.50% | | | | 02/2031 | | | | 2,079.1 | | | 1,934.4 | | | 2,079.1 | | (2)(5)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 5,003.7 | | | 5,423.5 | | | | |
| Financiere Mendel | | First lien senior secured loan | | 8.35% | | SOFR (Q) | | 3.25% | | | | 11/2030 | | | | 7,960.0 | | | 7,895.0 | | | 7,960.0 | | (2)(5) | | |
| Gainwell Acquisition Corp. | | First lien senior secured loan | | 8.70% | | SOFR (Q) | | 4.00% | | | | 10/2027 | | | | 15,020.0 | | | 14,493.3 | | | 14,262.7 | | (2)(7) | | |
| HuFriedy Group Acquisition LLC (10) | | First lien senior secured loan | | 10.56% | | SOFR (Q) | | 5.50% | | | | 05/2031 | | | | 48,893.9 | | | 47,963.1 | | | 47,916.0 | | (2)(7)(12) | | |
| Lifepoint Health Inc | | First lien senior secured loan | | 8.00% | | SOFR (S) | | 3.75% | | | | 05/2031 | | | | 10,465.3 | | | 10,422.9 | | | 10,444.3 | | | | |
| Mamba Purchaser, Inc. | | First lien senior secured loan | | 8.35% | | SOFR (M) | | 3.25% | | | | 10/2028 | | | | 23,449.4 | | | 23,363.4 | | | 23,384.9 | | (2)(7) | | |
| MED ParentCo, LP | | First lien senior secured loan | | 8.85% | | SOFR (M) | | 4.00% | | | | 04/2031 | | | | 835.4 | | | 835.4 | | | 835.8 | | (2) | | |
| Medline Borrower, LP | | First lien senior secured loan | | 7.60% | | SOFR (M) | | 2.75% | | | | 10/2028 | | | | 26,241.8 | | | 26,222.8 | | | 26,239.1 | | (2)(7) | | |
| | First lien senior secured loan | | 7.10% | | SOFR (M) | | 2.25% | | | | 10/2028 | | | | 17,790.0 | | | 17,791.4 | | | 17,764.6 | | (2)(7) | | |
| | | | | | | | | | | | | | | | | | 44,014.2 | | | 44,003.7 | | | | |
| Next Holdco, LLC (10) | | First lien senior secured loan | | 11.06% | | SOFR (Q) | | 6.00% | | | | 11/2030 | | | | 5,757.2 | | | 5,681.7 | | | 5,757.2 | | (2)(7)(12) | | |
| Nomi Health, Inc. | | First lien senior secured loan | | 13.58% | | SOFR (Q) | | 8.25% | | | | 07/2028 | | | | 18,611.2 | | | 18,150.5 | | | 18,425.1 | | (2)(7)(12) | | |
| | Warrant to purchase Series B preferred stock | | | | | | | | 07/2023 | | 07/2033 | | 10,142 | | | | — | | | — | | (2)(12) | | |
| | Warrant to purchase Class A common stock | | | | | | | | 06/2024 | | 06/2034 | | 22,661 | | | | — | | | 80.0 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 18,150.5 | | | 18,505.1 | | | | |
| Option Care Health Inc | | First lien senior secured loan | | 7.10% | | SOFR (M) | | 2.25% | | | | 10/2028 | | | | 5,849.8 | | | 5,848.6 | | | 5,866.9 | | (2)(5)(7) | | |
| Paragon 28, Inc. and Paragon Advanced Technologies, Inc. (10) | | First lien senior secured revolving loan | | 9.30% | | SOFR (Q) | | 4.00% | | | | 11/2028 | | | | 0.5 | | | 0.5 | | | 0.5 | | (2)(5)(7)(12) | | |
See accompanying notes to consolidated financial statements.
10
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 30, 2024
(dollar amounts in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (3) | | Reference (6) | | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| | First lien senior secured loan | | 12.08% | | SOFR (Q) | | 6.75% | | | | 11/2028 | | | | 21,214.9 | | | 20,779.6 | | | 20,790.6 | | (2)(5)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 20,780.1 | | | 20,791.1 | | | | |
| PointClickCare Technologies Inc. | | First lien senior secured loan | | 7.60% | | SOFR (Q) | | 3.00% | | | | 12/2027 | | | | 7,810.4 | | | 7,803.6 | | | 7,800.6 | | (2)(5)(7)(12) | | |
| Radnet Management, Inc. | | First lien senior secured loan | | 7.78% | | SOFR (Q) | | 2.50% | | | | 04/2031 | | | | 17,349.7 | | | 17,274.6 | | | 17,357.0 | | (2)(5) | | |
| RegionalCare Hospital Partners Holdings, Inc. | | First lien senior secured loan | | 10.05% | | SOFR (S) | | 4.75% | | | | 11/2028 | | | | 6,868.4 | | | 6,756.1 | | | 6,854.6 | | (2) | | |
| | First lien senior secured loan | | 8.96% | | SOFR (M) | | 4.00% | | | | 05/2031 | | | | 6,877.7 | | | 6,878.6 | | | 6,875.3 | | (2) | | |
| | | | | | | | | | | | | | | | | | 13,634.7 | | | 13,729.9 | | | | |
| Resonetics, LLC | | First lien senior secured loan | | 8.71% | | SOFR (M) | | 3.75% | | | | 06/2031 | | | | 27,727.0 | | | 27,773.7 | | | 27,740.0 | | (2)(7) | | |
| Sharp Midco LLC | | First lien senior secured loan | | 8.35% | | SOFR (Q) | | 3.75% | | | | 12/2028 | | | | 9,774.2 | | | 9,733.5 | | | 9,762.0 | | (2) | | |
| Sotera Health Holdings, LLC | | First lien senior secured loan | | 8.10% | | SOFR (M) | | 3.25% | | | | 05/2031 | | | | 9,311.5 | | | 9,267.0 | | | 9,276.6 | | (2)(5) | | |
| Surgery Center Holdings, Inc. | | First lien senior secured loan | | 7.67% | | SOFR (M) | | 2.75% | | | | 12/2030 | | | | 21,879.5 | | | 21,896.9 | | | 21,882.5 | | (2)(5) | | |
| United Digestive MSO Parent, LLC and Koln Co-Invest Unblocked, LP (10) | | First lien senior secured revolving loan | | 11.45% | | SOFR (Q) | | 6.50% | | | | 03/2029 | | | | 283.0 | | | 251.2 | | | 283.0 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 11.25% | | SOFR (Q) | | 6.50% | | | | 03/2029 | | | | 10,593.4 | | | 10,355.5 | | | 10,593.4 | | (2)(7)(12) | | |
| | Class A interests | | | | | | | | 03/2023 | | | | 100 | | | | 100.0 | | | 117.2 | | (12) | | |
| | | | | | | | | | | | | | | | | | 10,706.7 | | | 10,993.6 | | | | |
| Viant Medical Holdings, Inc. | | First lien senior secured loan | | 8.71% | | SOFR (M) | | 3.75% | | | | 07/2025 | | | | 45,534.2 | | | 45,119.9 | | | 45,449.1 | | (2) | | |
| | Second lien senior secured loan | | 12.71% | | SOFR (M) | | 7.75% | | | | 07/2026 | | | | 150.3 | | | 148.1 | | | 149.6 | | (2) | | |
| | | | | | | | | | | | | | | | | | 45,268.0 | | | 45,598.7 | | | | |
| Waystar Technologies, Inc. | | First lien senior secured loan | | 7.60% | | SOFR (M) | | 2.75% | | | | 10/2029 | | | | 13,263.0 | | | 13,261.1 | | | 13,254.8 | | (2) | | |
| Zelis Cost Management Buyer, Inc. | | First lien senior secured loan | | 7.60% | | SOFR (M) | | 2.75% | | | | 09/2029 | | | | 8,977.4 | | | 8,950.1 | | | 8,967.5 | | (2) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 674,083.9 | | | 676,797.7 | | | 14.68 | % | |
| Commercial and Professional Services | | | | | | | | | | | | | | | | | | | | | | | |
| Aldinger Company Inc (10) | | First lien senior secured loan | | 10.10% | | SOFR (M) | | 5.25% | | | | 07/2027 | | | | 28,557.7 | | | 28,310.7 | | | 28,249.6 | | (2)(7)(12) | | |
| AlixPartners, LLP | | First lien senior secured loan | | 7.46% | | SOFR (M) | | 2.50% | | | | 02/2028 | | | | 17,040.7 | | | 17,011.4 | | | 17,049.2 | | (2)(7) | | |
| AMCP Clean Acquisition Company, LLC | | First lien senior secured loan | | 10.06% | | SOFR (Q) | | 5.00% | | | | 06/2028 | | | | 5,448.0 | | | 5,376.5 | | | 5,448.0 | | (2)(7)(12) | | |
| Ankura Consulting Group, LLC | | First lien senior secured loan | | 9.56% | | SOFR (S) | | 4.25% | | | | 03/2028 | | | | 12,626.9 | | | 12,661.8 | | | 12,650.6 | | (2)(7) | | |
| Celnor Group Limited (10) | | First lien senior secured loan | | 10.09% | | SONIA (S) | | 5.00% | | | | 08/2031 | | | | 3,785.3 | | | 3,567.1 | | | 3,785.3 | | (2)(5)(7)(12) | | |
| Corporation Service Company | | First lien senior secured loan | | 7.35% | | SOFR (M) | | 2.50% | | | | 11/2029 | | | | 6,033.9 | | | 6,035.5 | | | 6,033.9 | | (2)(7) | | |
| Dorado Bidco, Inc. (10) | | First lien senior secured loan | | 9.08% | | SOFR (S) | | 4.50% | | | | 09/2031 | | | | 6,100.9 | | | 6,040.4 | | | 6,039.9 | | (2)(7)(12) | | |
| DP Flores Holdings, LLC (10) | | First lien senior secured loan | | 11.36% | | SOFR (S) | | 6.50% | | | | 09/2030 | | | | 52,789.3 | | | 51,734.7 | | | 51,733.5 | | (2)(7)(12) | | |
| Drogon Bidco Inc. & Drogon Aggregator LP (10) | | First lien senior secured loan | | 9.85% | | SOFR (M) | | 5.00% | | | | 08/2031 | | | | 19,823.2 | | | 19,627.5 | | | 19,625.0 | | (2)(7)(12) | | |
| | Class A-2 common units | | | | | | | | 08/2024 | | | | 2,662,000 | | | | 2,662.0 | | | 2,662.0 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 22,289.5 | | | 22,287.0 | | | | |
| Dun & Bradstreet Corporation | | First lien senior secured loan | | 7.61% | | SOFR (M) | | 2.75% | | | | 01/2029 | | | | 12,659.2 | | | 12,658.2 | | | 12,644.3 | | (2)(5) | | |
| Duraserv LLC (10) | | First lien senior secured loan | | 9.86% | | SOFR (M) | | 4.75% | | | | 06/2031 | | | | 23,259.1 | | | 23,002.2 | | | 22,987.0 | | (2)(7)(12) | | |
| Eagle Parent Corp. | | First lien senior secured loan | | 8.85% | | SOFR (Q) | | 4.25% | | | | 04/2029 | | | | 8,712.0 | | | 8,601.8 | | | 8,242.2 | | (2)(7) | | |
See accompanying notes to consolidated financial statements.
11
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 30, 2024
(dollar amounts in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (3) | | Reference (6) | | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| FlyWheel Acquireco, Inc. (10) | | First lien senior secured revolving loan | | 11.35% | | SOFR (M) | | 6.50% | | | | 05/2028 | | | | 1,071.4 | | | 1,036.6 | | | 1,071.4 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 11.35% | | SOFR (M) | | 6.50% | | | | 05/2030 | | | | 13,258.9 | | | 12,940.2 | | | 13,258.9 | | (2)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 13,976.8 | | | 14,330.3 | | | | |
| GCM HVAC Holdco, LLC and GCM HVAC Topco, LLC | | Private asset backed investment | | 14.00% | | | | | | | | 09/2031 | | | | 2,702.7 | | | 2,640.2 | | | 2,639.9 | | (12) | | |
| | Private asset backed investment | | | | | | | | 09/2024 | | | | 1,486,487 | | | | 1,486.5 | | | 1,486.5 | | (12) | | |
| | | | | | | | | | | | | | | | | | 4,126.7 | | | 4,126.4 | | | | |
| Geosyntec Consultants, Inc. | | First lien senior secured loan | | 8.60% | | SOFR (M) | | 3.75% | | | | 07/2031 | | | | 4,085.0 | | | 4,064.8 | | | 4,077.4 | | (2)(12) | | |
| Grant Thornton Advisors LLC | | First lien senior secured loan | | 8.10% | | SOFR (M) | | 3.25% | | | | 06/2031 | | | | 5,000.0 | | | 5,012.5 | | | 5,005.6 | | | | |
| HP RSS Buyer, Inc. (10) | | First lien senior secured loan | | 9.60% | | SOFR (Q) | | 5.00% | | | | 12/2029 | | | | 11,768.7 | | | 11,612.0 | | | 11,768.7 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 9.35% | | SOFR (Q) | | 4.75% | | | | 12/2029 | | | | 547.2 | | | 520.5 | | | 547.2 | | (2)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 12,132.5 | | | 12,315.9 | | | | |
| Indigo Acquisition B.V. (10) | | First lien senior secured loan | | 9.79% | | Euribor (Q) | | 6.35% | | | | 09/2031 | | | | 2,226.7 | | | 2,140.0 | | | 2,226.7 | | (2)(5)(7)(12) | | |
| | First lien senior secured loan | | 11.22% | | SOFR (Q) | | 6.35% | | | | 09/2031 | | | | 2,226.7 | | | 2,149.1 | | | 2,214.1 | | (2)(5)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 4,289.1 | | | 4,440.8 | | | | |
| ISolved, Inc. | | First lien senior secured loan | | 8.35% | | SOFR (M) | | 3.50% | | | | 10/2030 | | | | 15,817.7 | | | 15,789.3 | | | 15,852.5 | | (2) | | |
| Kings Buyer, LLC (10) | | First lien senior secured revolving loan | | 12.00% | | Base Rate (Q) | | 4.00% | | | | 10/2027 | | | | 611.7 | | | 594.5 | | | 611.7 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 9.85% | | SOFR (Q) | | 5.25% | | | | 10/2027 | | | | 18,332.2 | | | 18,121.6 | | | 18,332.2 | | (2)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 18,716.1 | | | 18,943.9 | | | | |
| KPS Global LLC and Cool Group LLC (10) | | First lien senior secured loan | | 9.60% | | SOFR (S) | | 4.75% | | | | 09/2030 | | | | 4,726.3 | | | 4,631.8 | | | 4,631.7 | | (2)(7)(12) | | |
| LABL, Inc. | | First lien senior secured loan | | 9.95% | | SOFR (M) | | 5.00% | | | | 10/2028 | | | | 19,975.9 | | | 19,594.9 | | | 19,486.9 | | (2)(7) | | |
| LBC Woodlands Purchaser LLC and LBC Woodlands Holdings LP (10) | | First lien senior secured loan | | 10.14% | | SOFR (Q) | | 5.00% | | | | 07/2031 | | | | 19,350.9 | | | 19,068.2 | | | 19,060.6 | | (2)(7)(12) | | |
| | Class A common units | | | | | | | | 07/2024 | | | | 1,409,000 | | | | 1,409.0 | | | 1,409.0 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 20,477.2 | | | 20,469.6 | | | | |
| Lightbeam Bidco, Inc. (10) | | First lien senior secured revolving loan | | | | | | | | | | 05/2029 | | | | — | | | — | | | — | | (2)(8)(12) | | |
| | First lien senior secured loan | | 9.63% | | SOFR (Q) | | 5.00% | | | | 05/2030 | | | | 17,206.7 | | | 16,962.1 | | | 17,206.7 | | (2)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 16,962.1 | | | 17,206.7 | | | | |
| Motus LLC | | First lien senior secured loan | | 8.70% | | SOFR (Q) | | 4.00% | | | | 12/2028 | | | | 4,853.9 | | | 4,859.6 | | | 4,856.9 | | (7) | | |
| Mustang Prospects Holdco, LLC, Mustang Prospects Purchaser, LLC and Senske Acquisition, Inc. (10) | | First lien senior secured loan | | 9.60% | | SOFR (Q) | | 5.00% | | | | 06/2031 | | | | 26,538.7 | | | 26,280.7 | | | 26,245.6 | | (2)(7)(12) | | |
| | Class A preferred units | | | | | | | | 09/2024 | | | | 770 | | | | 770.4 | | | 770.4 | | (12) | | |
| | Class B common units | | | | | | | | 09/2024 | | | | 770,423 | | | | 323.6 | | | 323.6 | | (12) | | |
| | | | | | | | | | | | | | | | | | 27,374.7 | | | 27,339.6 | | | | |
| North Haven Fairway Buyer, LLC, Fairway Lawns, LLC and Command Pest Control, LLC (10) | | First lien senior secured revolving loan | | 11.27% | | SOFR (Q) | | 6.50% | | | | 05/2028 | | | | 252.5 | | | 243.3 | | | 252.5 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 11.37% | | SOFR (Q) | | 6.50% | | | | 05/2028 | | | | 4,130.6 | | | 4,047.2 | | | 4,130.6 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 10.21% | | SOFR (Q) | | 5.25% | | | | 05/2028 | | | | 1,054.6 | | | 970.8 | | | 1,054.6 | | (2)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 5,261.3 | | | 5,437.7 | | | | |
See accompanying notes to consolidated financial statements.
12
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 30, 2024
(dollar amounts in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (3) | | Reference (6) | | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| North Haven Stack Buyer, LLC (10) | | First lien senior secured loan | | 10.21% | | SOFR (Q) | | 5.25% | | | | 07/2027 | | | | 24.9 | | | 24.4 | | | 24.9 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 9.63% | | SOFR (Q) | | 5.00% | | | | 07/2027 | | | | 2.7 | | | 2.6 | | | 2.7 | | (2)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 27.0 | | | 27.6 | | | | |
| Omnia Partners, LLC | | First lien senior secured loan | | 8.53% | | SOFR (Q) | | 3.25% | | | | 07/2030 | | | | 14,934.8 | | | 14,910.8 | | | 14,964.1 | | (2) | | |
| Priority Waste Holdings LLC, Priority Waste Holdings Indiana LLC and Priority Waste Super Holdings, LLC (10) | | First lien senior secured revolving loan | | 10.83% | | SOFR (Q) | | 5.50% | | | | 08/2029 | | | | 1.8 | | | 1.7 | | | 1.8 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 13.33% (2.00% PIK) | | SOFR (Q) | | 8.00% | | | | 08/2029 | | | | 40,595.1 | | | 38,101.7 | | | 37,347.5 | | (2)(7)(12) | | |
| | Warrant to purchase Class A common units | | | | | | | | 08/2023 | | 08/2036 | | 27,163 | | | | 449.6 | | | 4,253.0 | | (2)(12) | | |
| | Warrant to purchase Class A common units | | | | | | | | 06/2024 | | 06/2036 | | 8,780 | | | | 1,223.9 | | | 1,374.6 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 39,776.9 | | | 42,976.9 | | | | |
| PSC Parent, Inc. (10) | | First lien senior secured revolving loan | | 10.22% | | SOFR (M) | | 5.25% | | | | 04/2030 | | | | 4,275.1 | | | 4,205.9 | | | 4,199.7 | | (2)(7)(9)(12) | | |
| | First lien senior secured revolving loan | | 12.25% | | Base Rate (Q) | | 4.25% | | | | 04/2030 | | | | 324.7 | | | 319.4 | | | 319.0 | | (2)(7)(9)(12) | | |
| | First lien senior secured loan | | 10.38% | | SOFR (M) | | 5.25% | | | | 04/2031 | | | | 47,241.5 | | | 46,833.9 | | | 46,769.1 | | (2)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 51,359.2 | | | 51,287.8 | | | | |
| PYE-Barker Fire & Safety, LLC (10) | | First lien senior secured revolving loan | | 9.10% | | SOFR (Q) | | 4.50% | | | | 05/2030 | | | | 1,085.7 | | | 1,004.0 | | | 998.8 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 9.10% | | SOFR (Q) | | 4.50% | | | | 05/2031 | | | | 17,791.7 | | | 17,687.9 | | | 17,682.3 | | (2)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 18,691.9 | | | 18,681.1 | | | | |
| Saturn Purchaser Corp. | | First lien senior secured loan | | 10.48% | | SOFR (Q) | | 5.25% | | | | 07/2029 | | | | 7,835.7 | | | 7,804.4 | | | 7,835.7 | | (2)(7)(12) | | |
| SV Newco 2, Inc. (10) | | First lien senior secured loan | | 9.81% | | SOFR (Q) | | 4.75% | | | | 06/2031 | | | | 16,259.6 | | | 16,027.4 | | | 16,015.7 | | (2)(5)(7)(12) | | |
| Tempo Acquisition, LLC | | First lien senior secured loan | | 7.10% | | SOFR (M) | | 2.25% | | | | 08/2028 | | | | 7,784.0 | | | 7,780.5 | | | 7,786.7 | | (2)(5)(7) | | |
| Teneo Holdings LLC | | First lien senior secured loan | | 9.60% | | SOFR (M) | | 4.75% | | | | 03/2031 | | | | 5,440.7 | | | 5,394.5 | | | 5,457.7 | | (2)(7) | | |
| The Hiller Companies, LLC (10) | | First lien senior secured loan | | 10.15% | | SOFR (Q) | | 5.00% | | | | 06/2030 | | | | 25,676.7 | | | 25,412.8 | | | 25,393.1 | | (2)(7)(12) | | |
| Thevelia (US) LLC | | First lien senior secured loan | | 7.85% | | SOFR (Q) | | 3.25% | | | | 06/2029 | | | | 5,495.7 | | | 5,505.1 | | | 5,495.7 | | (2)(5)(7) | | |
| UP Intermediate II LLC and UPBW Blocker LLC (10) | | First lien senior secured revolving loan | | 10.10% | | SOFR (M) | | 5.25% | | | | 03/2030 | | | | 884.1 | | | 833.9 | | | 884.1 | | (2)(7)(9)(12) | | |
| | First lien senior secured loan | | 9.85% | | SOFR (Q) | | 5.25% | | | | 03/2031 | | | | 2,520.4 | | | 2,462.3 | | | 2,520.4 | | (2)(7)(12) | | |
| | Common units | | | | | | | | 03/2024 | | | | 31,790 | | | | 3,179.0 | | | 3,077.3 | | (2)(12) | | |
| | Common units | | | | | | | | 09/2024 | | | | 2,060 | | | | 173.0 | | | 199.4 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 6,648.2 | | | 6,681.2 | | | | |
| W.S. Connelly & Co., LLC and WSC Ultimate Holdings, LLC (10) | | First lien senior secured revolving loan | | 8.60% | | SOFR (Q) | | 4.00% | | | | 05/2030 | | | | 5,982.4 | | | 5,869.8 | | | 5,862.7 | | (2)(7)(12) | | |
| | First lien senior secured revolving loan | | 8.60% | | SOFR (Q) | | 4.00% | | | | 05/2030 | | | | 997.1 | | | 847.0 | | | 837.5 | | (2)(7)(9)(12) | | |
| | First lien senior secured loan | | 9.85% | | SOFR (Q) | | 5.25% | | | | 05/2030 | | | | 23,012.9 | | | 22,665.0 | | | 22,552.7 | | (2)(7)(12) | | |
| | Class A preferred units | | 10.00% PIK | | | | | | 05/2024 | | | | 11,930 | | | | 1,235.4 | | | 1,235.4 | | (12) | | |
| | Class A common units | | | | | | | | 05/2024 | | | | 1,111 | | | | — | | | 105.5 | | (12) | | |
| | | | | | | | | | | | | | | | | | 30,617.2 | | | 30,593.8 | | | | |
See accompanying notes to consolidated financial statements.
13
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 30, 2024
(dollar amounts in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (3) | | Reference (6) | | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| Xplor T1, LLC | | First lien senior secured loan | | 8.85% | | SOFR (Q) | | 4.25% | | | | 06/2031 | | | | 11,170.0 | | | 11,124.7 | | | 11,211.9 | | (2)(12) | | |
| Zinc Buyer Corporation (10) | | First lien senior secured revolving loan | | | | | | | | | | 07/2031 | | | | — | | | — | | | — | | (2)(8)(12) | | |
| | First lien senior secured loan | | 9.35% | | SOFR (Q) | | 4.75% | | | | 07/2031 | | | | 42,709.9 | | | 42,299.7 | | | 42,282.8 | | (2)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 42,299.7 | | | 42,282.8 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 657,939.5 | | | 662,364.2 | | | 14.37 | % | |
| Consumer Services | | | | | | | | | | | | | | | | | | | | | | | |
| Alterra Mountain Company | | First lien senior secured loan | | 8.10% | | SOFR (M) | | 3.25% | | | | 08/2028 | | | | 4,912.6 | | | 4,908.9 | | | 4,916.7 | | (2) | | |
| | First lien senior secured loan | | 8.35% | | SOFR (M) | | 3.50% | | | | 05/2030 | | | | 9,264.4 | | | 9,262.0 | | | 9,283.7 | | (2) | | |
| | | | | | | | | | | | | | | | | | 14,170.9 | | | 14,200.4 | | | | |
| Apex Service Partners, LLC and Apex Service Partners Holdings, LLC (10) | | First lien senior secured revolving loan | | 9.86% | | SOFR (M) | | 5.00% | | | | 10/2029 | | | | 979.0 | | | 935.9 | | | 979.0 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 9.86% | | SOFR (M) | | 5.00% | | | | 10/2030 | | | | 37,790.9 | | | 36,594.3 | | | 37,790.9 | | (2)(7)(12) | | |
| | Series B common units | | | | | | | | 10/2023 | | | | 45,351 | | | | 1,250.0 | | | 1,624.2 | | (12) | | |
| | | | | | | | | | | | | | | | | | 38,780.2 | | | 40,394.1 | | | | |
| Belfor Holdings, Inc. | | First lien senior secured loan | | 8.60% | | SOFR (M) | | 3.75% | | | | 11/2030 | | | | 11,968.0 | | | 11,884.2 | | | 12,005.4 | | (2)(7) | | |
| Bulldog Purchaser Inc. | | First lien senior secured loan | | 8.85% | | SOFR (Q) | | 4.25% | | | | 06/2031 | | | | 6,600.0 | | | 6,568.0 | | | 6,624.8 | | (2)(7) | | |
| Caesars Entertainment Inc | | First lien senior secured loan | | 7.60% | | SOFR (M) | | 2.75% | | | | 02/2030 | | | | 8,060.1 | | | 8,050.4 | | | 8,052.6 | | (2)(5)(7) | | |
| | First lien senior secured loan | | 7.60% | | SOFR (M) | | 2.75% | | | | 02/2031 | | | | 6,965.0 | | | 6,949.2 | | | 6,956.3 | | (2)(5)(7) | | |
| | | | | | | | | | | | | | | | | | 14,999.6 | | | 15,008.9 | | | | |
| ClubCorp Holdings, Inc. | | First lien senior secured loan | | 9.87% | | SOFR (Q) | | 5.00% | | | | 09/2026 | | | | 12,167.4 | | | 12,197.4 | | | 12,173.9 | | (2) | | |
| Equinox Holdings, Inc. | | First lien senior secured loan | | 12.85% (4.13% PIK) | | SOFR (Q) | | 8.25% | | | | 03/2029 | | | | 42,641.7 | | | 41,302.7 | | | 42,641.7 | | (2)(7)(12) | | |
| | Second lien senior secured loan | | 16.00% PIK | | | | | | | | 06/2027 | | | | 3,656.5 | | | 3,572.9 | | | 3,656.5 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 44,875.6 | | | 46,298.2 | | | | |
| Eternal Aus Bidco Pty Ltd (10) | | First lien senior secured loan | | 10.65% | | BBSY (Q) | | 6.25% | | | | 11/2029 | | | | 6,811.4 | | | 6,369.3 | | | 6,811.4 | | (2)(5)(7)(12) | | |
| Excel Fitness Consolidator LLC (10) | | First lien senior secured loan | | 10.10% | | SOFR (Q) | | 5.50% | | | | 04/2029 | | | | 9,300.0 | | | 9,133.3 | | | 9,300.0 | | (2)(7)(12) | | |
| Fertitta Entertainment, LLC | | First lien senior secured loan | | 8.85% | | SOFR (M) | | 3.75% | | | | 01/2029 | | | | 13,647.4 | | | 13,668.6 | | | 13,602.9 | | (2)(7) | | |
| Fitness Ventures Holdings, Inc. and Meaningful Partners Fitness Ventures Co-Investment LP (4)(10) | | First lien senior secured revolving loan | | 8.85% | | SOFR (M) | | 4.00% | | | | 08/2030 | | | | 1,907.9 | | | 1,872.8 | | | 1,871.8 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 10.35% | | SOFR (M) | | 5.50% | | | | 08/2031 | | | | 34,569.5 | | | 34,063.3 | | | 34,051.0 | | (2)(7)(12) | | |
| | Common units | | | | | | | | 07/2024 | | | | 11,704,000 | | | | 11,736.8 | | | 11,704.0 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 47,672.9 | | | 47,626.8 | | | | |
| Flint OpCo, LLC (10) | | First lien senior secured loan | | 9.96% | | SOFR (Q) | | 5.25% | | | | 08/2030 | | | | 9,907.2 | | | 9,728.4 | | | 9,907.2 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 9.81% | | SOFR (S) | | 4.75% | | | | 08/2030 | | | | 663.4 | | | 634.8 | | | 663.4 | | (2)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 10,363.2 | | | 10,570.6 | | | | |
| GBT Group Services B.V. | | First lien senior secured loan | | 8.28% | | SOFR (S) | | 3.00% | | | | 07/2031 | | | | 6,478.9 | | | 6,455.5 | | | 6,459.9 | | (2)(5) | | |
| GS SEER Group Borrower LLC and GS SEER Group Holdings LLC (10) | | First lien senior secured loan | | 11.35% | | SOFR (Q) | | 6.75% | | | | 04/2030 | | | | 11,435.7 | | | 11,107.1 | | | 11,435.7 | | (2)(7)(12) | | |
| | Class A common units | | | | | | | | 04/2023 | | | | 100 | | | | 100.0 | | | 71.2 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 11,207.1 | | | 11,506.9 | | | | |
See accompanying notes to consolidated financial statements.
14
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 30, 2024
(dollar amounts in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (3) | | Reference (6) | | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| Helios Service Partners, LLC and Astra Service Partners, LLC (10) | | First lien senior secured revolving loan | | 10.69% | | SOFR (Q) | | 6.00% | | | | 03/2027 | | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 10.87% | | SOFR (Q) | | 6.00% | | | | 03/2027 | | | | 8,724.8 | | | 8,610.0 | | | 8,724.8 | | (2)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 8,610.2 | | | 8,725.0 | | | | |
| Infinity Home Services HoldCo, Inc., D&S Amalco and IHS Parent Holdings, L.P. (10) | | First lien senior secured revolving loan | | 13.75% | | Base Rate (Q) | | 5.75% | | | | 12/2028 | | | | 68.2 | | | 58.5 | | | 68.2 | | (2)(5)(7)(12) | | |
| | First lien senior secured loan | | 11.49% | | SOFR (Q) | | 6.75% | | | | 12/2028 | | | | 4,387.0 | | | 4,294.0 | | | 4,387.0 | | (2)(5)(7)(12) | | |
| | First lien senior secured loan | | 11.41% | | SOFR (Q) | | 6.00% | | | | 12/2028 | | | | 1,538.6 | | | 1,456.7 | | | 1,540.7 | | (2)(5)(7)(12) | | |
| | First lien senior secured loan | | 10.35% | | CORRA (Q) | | 6.00% | | | | 12/2028 | | | | 1,021.9 | | | 967.5 | | | 1,023.3 | | (2)(5)(7)(12) | | |
| | First lien senior secured loan | | 10.59% | | CDOR (M) | | 6.00% | | | | 12/2028 | | | | 160.3 | | | 151.8 | | | 160.6 | | (2)(5)(7)(12) | | |
| | Class A units | | | | | | | | 12/2022 | | | | 50,000 | | | | 50.0 | | | 54.5 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 6,978.5 | | | 7,234.3 | | | | |
| IRB Holding Corp. | | First lien senior secured loan | | 7.70% | | SOFR (M) | | 2.75% | | | | 12/2027 | | | | 18,112.1 | | | 18,107.2 | | | 18,084.9 | | (2)(7) | | |
| KUEHG Corp | | First lien senior secured loan | | 9.10% | | SOFR (Q) | | 4.50% | | | | 06/2030 | | | | 8,807.6 | | | 8,822.6 | | | 8,827.2 | | (2)(7) | | |
| Learning Care Group (US) No. 2 Inc. | | First lien senior secured loan | | 9.21% | | SOFR (S) | | 4.00% | | | | 08/2028 | | | | 5,928.1 | | | 5,902.5 | | | 5,954.0 | | (2)(7) | | |
| Leviathan Intermediate Holdco, LLC and Leviathan Holdings, L.P. (10) | | First lien senior secured loan | | 12.25% | | SOFR (Q) | | 7.50% | | | | 12/2027 | | | | 16,445.1 | | | 16,148.5 | | | 16,445.1 | | (2)(7)(12) | | |
| | Limited partnership interests | | | | | | | | 12/2022 | | | | 133,000 | | | | 133.0 | | | 169.6 | | (12) | | |
| | | | | | | | | | | | | | | | | | 16,281.5 | | | 16,614.7 | | | | |
| Mister Car Wash Holdings, Inc. | | First lien senior secured loan | | 7.85% | | SOFR (M) | | 3.00% | | | | 03/2031 | | | | 8,279.3 | | | 8,289.8 | | | 8,282.2 | | (2)(5) | | |
| Northwinds Holding, Inc. and Northwinds Services Group LLC (10) | | First lien senior secured loan | | 10.64% | | SOFR (Q) | | 5.25% | | | | 05/2029 | | | | 12,077.5 | | | 11,775.4 | | | 12,077.5 | | (2)(7)(12) | | |
| | Common units | | | | | | | | 05/2023 | | | | 121,368 | | | | 166.7 | | | 170.5 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 11,942.1 | | | 12,248.0 | | | | |
| Ontario Gaming GTA LP | | First lien senior secured loan | | 8.89% | | SOFR (Q) | | 4.25% | | | | 08/2030 | | | | 5,210.0 | | | 5,203.5 | | | 5,201.3 | | (2)(5)(7) | | |
| PCI Gaming Authority | | First lien senior secured loan | | 6.85% | | SOFR (M) | | 2.00% | | | | 07/2031 | | | | 5,985.0 | | | 5,977.7 | | | 5,945.5 | | (2) | | |
| PestCo Holdings, LLC and PestCo, LLC (10) | | First lien senior secured loan | | 11.41% | | SOFR (Q) | | 6.00% | | | | 02/2028 | | | | 11,256.0 | | | 11,009.2 | | | 11,256.0 | | (2)(7)(12) | | |
| | Class A units | | | | | | | | 01/2023 | | | | 8 | | | | 106.0 | | | 126.8 | | (12) | | |
| | | | | | | | | | | | | | | | | | 11,115.2 | | | 11,382.8 | | | | |
| PG Investment Company 59 S.a r.l. | | First lien senior secured loan | | 8.10% | | SOFR (Q) | | 3.50% | | | | 03/2031 | | | | 135.1 | | | 134.8 | | | 135.2 | | (2)(5) | | |
| Premiere Buyer, LLC (10) | | First lien senior secured loan | | 10.00% | | SOFR (Q) | | 4.75% | | | | 05/2031 | | | | 24,533.1 | | | 24,187.1 | | | 24,165.1 | | (2)(7)(12) | | |
| Quick Quack Car Wash Holdings, LLC and KKR Game Changer Co-Invest Feeder II L.P. (10) | | First lien senior secured loan | | 9.60% | | SOFR (M) | | 4.75% | | | | 06/2031 | | | | 47,209.0 | | | 46,457.8 | | | 46,361.0 | | (2)(7)(12) | | |
| | Limited partnership interests | | | | | | | | 06/2024 | | | | 12,049,000 | | | | 12,049.0 | | | 12,614.5 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 58,506.8 | | | 58,975.5 | | | | |
| Radiant Intermediate Holding, LLC | | First lien senior secured loan | | 10.81% | | SOFR (M) | | 5.75% | | | | 11/2026 | | | | 898.6 | | | 884.0 | | | 781.8 | | (2)(7)(12) | | |
| Restaurant Brands International Inc. | | First lien senior secured loan | | 6.60% | | SOFR (M) | | 1.75% | | | | 09/2030 | | | | 11,670.8 | | | 11,642.7 | | | 11,541.6 | | (2)(5) | | |
| Service Logic Acquisition, Inc. and MSHC, Inc. | | First lien senior secured loan | | 8.31% | | SOFR (Q) | | 3.50% | | | | 10/2027 | | | | 28,500.9 | | | 28,511.0 | | | 28,554.5 | | (2)(7) | | |
| Simon & Schuster, Inc. | | First lien senior secured loan | | 9.26% | | SOFR (Q) | | 4.00% | | | | 10/2030 | | | | 17,954.9 | | | 17,939.8 | | | 17,902.5 | | (2) | | |
| Station Casinos LLC | | First lien senior secured loan | | 7.10% | | SOFR (M) | | 2.25% | | | | 03/2031 | | | | 5,279.8 | | | 5,267.1 | | | 5,254.3 | | (2)(5) | | |
See accompanying notes to consolidated financial statements.
15
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 30, 2024
(dollar amounts in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (3) | | Reference (6) | | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| TSS Buyer, LLC (10) | | First lien senior secured loan | | 10.45% | | SOFR (M) | | 5.50% | | | | 06/2029 | | | | 7,940.7 | | | 7,741.8 | | | 7,940.7 | | (2)(7)(12) | | |
| University Support Services LLC | | First lien senior secured loan | | 7.60% | | SOFR (M) | | 2.75% | | | | 02/2029 | | | | 13,367.4 | | | 13,348.2 | | | 13,317.3 | | (2)(5)(7) | | |
| Vertex Service Partners, LLC and Vertex Service Partners Holdings, LLC (10) | | First lien senior secured revolving loan | | 10.60% | | SOFR (M) | | 5.50% | | | | 11/2030 | | | | 422.0 | | | 357.6 | | | 422.0 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 10.86% | | SOFR (Q) | | 5.75% | | | | 11/2030 | | | | 25,594.2 | | | 25,198.2 | | | 25,594.2 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 10.53% | | SOFR (M) | | 5.50% | | | | 11/2030 | | | | 5,746.9 | | | 5,683.7 | | | 5,746.9 | | (2)(7)(12) | | |
| | Class B common units | | | | | | | | 11/2023 | | | | 351 | | | | 351.0 | | | 710.3 | | (12) | | |
| | | | | | | | | | | | | | | | | | 31,590.5 | | | 32,473.4 | | | | |
| Whatabrands LLC | | First lien senior secured loan | | 7.60% | | SOFR (M) | | 2.75% | | | | 08/2028 | | | | 13,403.6 | | | 13,402.5 | | | 13,377.9 | | (2)(7) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 568,732.9 | | | 575,503.9 | | | 12.48 | % | |
| Financial Services | | | | | | | | | | | | | | | | | | | | | | | |
| Aduro Advisors, LLC (10) | | First lien senior secured loan | | 9.60% | | SOFR (Q) | | 5.00% | | | | 07/2030 | | | | 18,813.3 | | | 18,632.2 | | | 18,625.2 | | (2)(7)(12) | | |
| Cliffwater LLC (10) | | First lien senior secured loan | | 9.35% | | SOFR (M) | | 4.50% | | | | 10/2030 | | | | 10,974.3 | | | 10,783.6 | | | 10,974.3 | | (2)(5)(7)(12) | | |
| Corient Holdings, Inc. | | Series A preferred stock | | | | | | | | 05/2023 | | | | 15,000 | | | | 15,000.0 | | | 18,271.9 | | (2)(12) | | |
| Endeavor Bidco LLC and Endeavor TopCo, Inc. | | First lien senior secured loan | | 9.38% | | SOFR (Q) | | 4.25% | | | | 08/2029 | | | | 8,393.8 | | | 8,229.7 | | | 8,225.9 | | (2)(7)(12) | | |
| | Class A common units | | | | | | | | 08/2024 | | | | 2,540,000 | | | | 2,540.0 | | | 2,540.0 | | (12) | | |
| | | | | | | | | | | | | | | | | | 10,769.7 | | | 10,765.9 | | | | |
| Envestnet, Inc. | | First lien senior secured loan | | 8.10% | | SOFR (Q) | | 3.50% | | | | 09/2031 | | | | 39,369.1 | | | 39,172.3 | | | 39,180.6 | | | | |
| Focus Financial Partners, LLC | | First lien senior secured loan | | 7.85% | | SOFR (Q) | | 3.25% | | | | 09/2031 | | | | 27,000.0 | | | 26,932.5 | | | 26,910.6 | | | | |
| GC Waves Holdings, Inc. (10) | | First lien senior secured loan | | 10.95% | | SOFR (M) | | 6.00% | | | | 08/2029 | | | | 4,508.4 | | | 4,227.5 | | | 4,508.4 | | (2)(5)(7)(12) | | |
| | First lien senior secured loan | | 10.20% | | SOFR (M) | | 5.25% | | | | 08/2029 | | | | 804.6 | | | 791.8 | | | 804.6 | | (2)(5)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 5,019.3 | | | 5,313.0 | | | | |
| GTCR Everest Borrower, LLC (10) | | First lien senior secured loan | | 7.60% | | SOFR (S) | | 3.00% | | | | 09/2031 | | | | 17,385.0 | | | 17,341.5 | | | 17,173.1 | | (5) | | |
| GTCR F Buyer Corp. and GTCR (D) Investors LP (10)(11) | | First lien senior secured loan | | 10.60% | | SOFR (Q) | | 6.00% | | | | 09/2030 | | | | 11,433.7 | | | 11,187.7 | | | 11,433.7 | | (2)(7)(12) | | |
| | Limited partnership interests | | | | | | | | 09/2023 | | | | 74,074 | | | | 74.7 | | | 85.3 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 11,262.4 | | | 11,519.0 | | | | |
| Harbourvest Global Private Equity Limited (10) | | Private asset backed investment | | 8.51% | | SOFR (Q) | | 3.50% | | | | 06/2029 | | | | 26,000.0 | | | 25,088.0 | | | 26,000.0 | | (12) | | |
| HighTower Holding, LLC | | First lien senior secured loan | | 8.75% | | SOFR (S) | | 3.50% | | | | 04/2028 | | | | 21,069.6 | | | 21,074.8 | | | 21,056.5 | | (2)(5) | | |
| HV Chimera LLC | | Private asset backed investment | | 7.60% | | SOFR (Q) | | 2.80% | | | | 08/2026 | | | | 1,946.3 | | | 1,926.3 | | | 1,946.3 | | (5)(12) | | |
| Isthmus Capital LLC | | Private asset backed investment | | 9.50% | | | | | | | | 06/2030 | | | | 1,591.5 | | | 1,575.3 | | | 1,591.5 | | (5)(12) | | |
| | Private asset backed investment | | | | | | | | 06/2023 | | | | 4 | | | | — | | | 20.1 | | (5)(12) | | |
| | | | | | | | | | | | | | | | | | 1,575.3 | | | 1,611.6 | | | | |
| Mai Capital Management Intermediate LLC (10) | | First lien senior secured loan | | 9.35% | | SOFR (Q) | | 4.75% | | | | 08/2031 | | | | 7,319.2 | | | 7,247.0 | | | 7,246.0 | | (2)(5)(7)(12) | | |
| Mars Downstop Loan Purchaser Trust | | Private asset backed investment | | 11.00% | | | | | | 02/2024 | | | | 29,990,339 | | | | 23,197.9 | | | 23,221.1 | | (5)(12) | | |
| Monroe Capital Income Plus Corporation | | Corporate bond | | 9.42% | | | | | | | | 11/2028 | | | | 10,000.0 | | | 10,000.0 | | | 10,933.9 | | (2)(5)(12) | | |
See accompanying notes to consolidated financial statements.
16
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 30, 2024
(dollar amounts in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (3) | | Reference (6) | | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| Nuvei Technologies Corp. | | First lien senior secured loan | | 7.25% | | SOFR (S) | | 3.00% | | | | 07/2031 | | | | 15,120.0 | | | 15,081.5 | | | 14,949.9 | | (5) | | |
| Paint Intermediate III, LLC | | First lien senior secured loan | | 7.60% | | SOFR (Q) | | 3.00% | | | | 09/2031 | | | | 16,115.0 | | | 16,045.0 | | | 16,074.7 | | (7) | | |
| Parexel International Inc. | | First lien senior secured loan | | 7.85% | | SOFR (M) | | 3.00% | | | | 11/2028 | | | | 5,432.5 | | | 5,432.5 | | | 5,431.5 | | (2)(7) | | |
| Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P. (10)(11) | | First lien senior secured revolving loan | | 10.19% | | SOFR (M) | | 5.00% | | | | 05/2028 | | | | 299.6 | | | 282.0 | | | 299.6 | | (2)(5)(7)(12) | | |
| | First lien senior secured loan | | 10.00% | | SOFR (M) | | 5.00% | | | | 05/2029 | | | | 14,381.3 | | | 14,036.4 | | | 14,381.3 | | (2)(5)(7)(12) | | |
| | Limited partnership interests | | | | | | | | 09/2023 | | | | 87,190 | | | | 87.2 | | | 92.9 | | (5)(12) | | |
| | | | | | | | | | | | | | | | | | 14,405.6 | | | 14,773.8 | | | | |
| PCIA SPV-3, LLC and ASE Royal Aggregator, LLC (10) | | First lien senior secured loan | | 10.35% | | SOFR (Q) | | 5.25% | | | | 08/2029 | | | | 9,330.3 | | | 9,081.5 | | | 9,330.3 | | (2)(5)(7)(12) | | |
| | Preferred units | | | | | | | | 07/2023 | | | | 1,333,333 | | | | 1,315.5 | | | 1,517.8 | | (5)(12) | | |
| | | | | | | | | | | | | | | | | | 10,397.0 | | | 10,848.1 | | | | |
| PCS MidCo, Inc. and PCS Parent, L.P. (10) | | First lien senior secured revolving loan | | 10.81% | | SOFR (Q) | | 5.75% | | | | 03/2030 | | | | 238.6 | | | 214.0 | | | 238.6 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 10.81% | | SOFR (Q) | | 5.75% | | | | 03/2030 | | | | 10,535.7 | | | 10,319.1 | | | 10,535.7 | | (2)(7)(12) | | |
| | Class A units | | | | | | | | 03/2024 | | | | 806,000 | | | | 806.0 | | | 813.5 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 11,339.1 | | | 11,587.8 | | | | |
| RFS Opco LLC | | First lien senior secured loan | | 9.60% | | SOFR (Q) | | 5.00% | | | | 04/2031 | | | | 42,500.0 | | | 42,104.9 | | | 42,500.0 | | (2)(5)(7)(12) | | |
| Steward Partners Global Advisory, LLC and Steward Partners Investment Advisory, LLC (10) | | First lien senior secured loan | | 10.36% | | SOFR (Q) | | 5.50% | | | | 10/2028 | | | | 2,343.0 | | | 2,287.0 | | | 2,343.0 | | (2)(5)(7)(12) | | |
| Sunbit Receivables Trust IV (10) | | Private asset backed investment | | 12.27% | | SOFR (M) | | 7.25% | | | | 12/2026 | | | | 1,620.0 | | | 1,600.0 | | | 1,620.0 | | (7)(12) | | |
| The Edelman Financial Center, LLC | | First lien senior secured loan | | 8.10% | | SOFR (M) | | 3.25% | | | | 04/2028 | | | | 3,032.6 | | | 3,032.6 | | | 3,026.1 | | (5) | | |
| | Second lien senior secured loan | | 10.10% | | SOFR (M) | | 5.25% | | | | 10/2028 | | | | 52,500.0 | | | 52,377.6 | | | 52,259.6 | | (2)(5) | | |
| | | | | | | | | | | | | | | | | | 55,410.2 | | | 55,285.7 | | | | |
| Wellington-Altus Financial Inc. (10)(11) | | First lien senior secured loan | | 9.58% | | CORRA (S) | | 5.00% | | | | 08/2030 | | | | 847.4 | | | 824.8 | | | 834.7 | | (2)(5)(7)(12) | | |
| | Common stock | | | | | | | | 08/2024 | | | | 35,520 | | | | 1,197.1 | | | 1,211.8 | | (2)(5)(12) | | |
| | | | | | | | | | | | | | | | | | 2,021.9 | | | 2,046.5 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 421,147.5 | | | 428,210.0 | | | 9.29 | % | |
| Insurance Services | | | | | | | | | | | | | | | | | | | | | | | |
| Accession Risk Management Group, Inc. and RSC Insurance Brokerage, Inc. (10) | | First lien senior secured loan | | 10.06% | | SOFR (Q) | | 4.75% | | | | 11/2029 | | | | 4,024.7 | | | 3,990.9 | | | 4,024.7 | | (2)(7)(12) | | |
| Acrisure, LLC | | First lien senior secured loan | | 8.21% | | SOFR (M) | | 3.25% | | | | 11/2030 | | | | 20,212.1 | | | 20,175.9 | | | 19,997.5 | | (2) | | |
| | First lien senior secured loan | | 7.96% | | SOFR (M) | | 3.00% | | | | 02/2027 | | | | 27,448.4 | | | 27,440.2 | | | 27,326.5 | | (2) | | |
| | | | | | | | | | | | | | | | | | 47,616.1 | | | 47,324.0 | | | | |
| Alliant Holdings Intermediate, LLC | | First lien senior secured loan | | 7.96% | | SOFR (M) | | 3.00% | | | | 09/2031 | | | | 15,044.3 | | | 15,006.6 | | | 14,954.9 | | | | |
| AssuredPartners, Inc. | | First lien senior secured loan | | 8.35% | | SOFR (M) | | 3.50% | | | | 02/2031 | | | | 12,555.4 | | | 12,540.2 | | | 12,540.6 | | (2)(7) | | |
| Broadstreet Partners, Inc. | | First lien senior secured loan | | 8.10% | | SOFR (M) | | 3.25% | | | | 06/2031 | | | | 22,911.1 | | | 22,910.5 | | | 22,811.0 | | (2) | | |
| Cross Financial Corp. | | First lien senior secured loan | | 8.35% | | SOFR (M) | | 3.50% | | | | 09/2027 | | | | 5,960.3 | | | 5,951.4 | | | 5,952.8 | | (2)(7)(12) | | |
See accompanying notes to consolidated financial statements.
17
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 30, 2024
(dollar amounts in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (3) | | Reference (6) | | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| DOXA Insurance Holdings LLC and Rocket Co-Invest, SLP (10)(11) | | First lien senior secured loan | | 10.09% | | SOFR (Q) | | 5.25% | | | | 12/2030 | | | | 29,712.5 | | | 29,160.6 | | | 29,712.5 | | (2)(5)(7)(12) | | |
| | First lien senior secured loan | | 10.56% | | SOFR (Q) | | 5.50% | | | | 12/2030 | | | | 8,070.1 | | | 7,905.2 | | | 8,070.1 | | (2)(5)(7)(12) | | |
| | Limited partnership interests | | | | | | | | 03/2024 | | | | 3,417,348 | | | | 3,417.3 | | | 4,705.0 | | (2)(5)(12) | | |
| | | | | | | | | | | | | | | | | | 40,483.1 | | | 42,487.6 | | | | |
| Gestion ABS Bidco Inc. / ABS Bidco Holdings Inc. (10) | | First lien senior secured loan | | 9.54% | | CORRA (Q) | | 5.25% | | | | 03/2031 | | | | 13,413.0 | | | 13,173.6 | | | 13,278.9 | | (2)(5)(7)(12) | | |
| HIG Finance 2 Limited | | First lien senior secured loan | | 8.35% | | SOFR (M) | | 3.50% | | | | 02/2031 | | | | 20,905.5 | | | 20,869.5 | | | 20,907.8 | | (2)(5)(7) | | |
| | First lien senior secured loan | | 8.35% | | SOFR (M) | | 3.50% | | | | 04/2030 | | | | 11,169.8 | | | 11,140.2 | | | 11,171.8 | | (2)(5)(7) | | |
| | | | | | | | | | | | | | | | | | 32,009.7 | | | 32,079.6 | | | | |
| Higginbotham Insurance Agency, Inc. (10) | | First lien senior secured loan | | 9.35% | | SOFR (M) | | 4.50% | | | | 11/2028 | | | | 2,567.0 | | | 2,556.8 | | | 2,567.0 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 9.60% | | SOFR (M) | | 4.75% | | | | 11/2028 | | | | 804.0 | | | 783.4 | | | 804.0 | | (2)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 3,340.2 | | | 3,371.0 | | | | |
| Hub International Limited | | First lien senior secured loan | | 8.26% | | SOFR (S) | | 3.00% | | | | 06/2030 | | | | 32,035.3 | | | 32,018.3 | | | 31,984.0 | | (2)(7) | | |
| Keystone Agency Partners LLC (10) | | First lien senior secured loan | | 9.60% | | SOFR (Q) | | 5.00% | | | | 05/2027 | | | | 42,876.2 | | | 42,380.5 | | | 42,876.2 | | (2)(7)(12) | | |
| OakBridge Insurance Agency LLC and Maple Acquisition Holdings, LP (10) | | First lien senior secured revolving loan | | 10.66% | | SOFR (M) | | 5.50% | | | | 11/2029 | | | | 419.6 | | | 397.0 | | | 419.6 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 10.66% | | SOFR (M) | | 5.50% | | | | 11/2029 | | | | 9,516.5 | | | 9,323.2 | | | 9,516.5 | | (2)(7)(12) | | |
| | Class A2 units | | | | | | | | 11/2023 | | | | 102,501 | | | | 2,050.0 | | | 2,062.9 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 11,770.2 | | | 11,999.0 | | | | |
| OneDigital Borrower LLC | | First lien senior secured loan | | 8.10% | | SOFR (M) | | 3.25% | | | | 07/2031 | | | | 36,009.8 | | | 35,866.2 | | | 35,664.8 | | (2)(7) | | |
| Ryan Specialty Group, LLC | | First lien senior secured loan | | 7.10% | | SOFR (M) | | 2.25% | | | | 09/2031 | | | | 17,325.5 | | | 17,282.3 | | | 17,287.5 | | (2)(5)(7) | | |
| SIG Parent Holdings, LLC (10) | | First lien senior secured loan | | 9.92% | | SOFR (M) | | 5.00% | | | | 08/2031 | | | | 25,174.2 | | | 24,926.5 | | | 24,922.5 | | (2)(7)(12) | | |
| Truist Insurance Holdings, LLC (10) | | First lien senior secured revolving loan | | 8.58% | | SOFR (Q) | | 3.25% | | | | 05/2029 | | | | 203.9 | | | 104.8 | | | 191.9 | | (2)(12) | | |
| USI, Inc. | | First lien senior secured loan | | 7.35% | | SOFR (Q) | | 2.75% | | | | 09/2030 | | | | 8,535.6 | | | 8,522.3 | | | 8,505.9 | | (2) | | |
| | First lien senior secured loan | | 7.35% | | SOFR (Q) | | 2.75% | | | | 11/2029 | | | | 30,789.2 | | | 30,779.2 | | | 30,686.7 | | (2) | | |
| | | | | | | | | | | | | | | | | | 39,301.5 | | | 39,192.6 | | | | |
| World Insurance Associates, LLC and World Associates Holdings, LLC (10) | | First lien senior secured loan | | 10.86% | | SOFR (Q) | | 5.75% | | | | 04/2028 | | | | 8,256.6 | | | 8,061.4 | | | 8,256.6 | | (2)(7)(12) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 408,734.0 | | | 411,200.2 | | | 8.92 | % | |
| Media and Entertainment | | | | | | | | | | | | | | | | | | | | | | | |
| 22 HoldCo Limited | | Senior subordinated loan | | 12.63% PIK | | SONIA (S) | | 7.50% | | | | 08/2033 | | | | 23,089.4 | | | 21,488.5 | | | 23,089.4 | | (2)(5)(7)(12) | | |
| 3 Step Sports LLC (10) | | First lien senior secured loan | | 12.64% (1.50% PIK) | | SOFR (Q) | | 8.00% | | | | 10/2029 | | | | 16,535.2 | | | 15,660.8 | | | 15,134.5 | | (2)(7)(12) | | |
| AVSC Holding Corp. | | First lien senior secured loan | | 8.45% (0.25% PIK) | | SOFR (M) | | 3.50% | | | | 03/2025 | | | | 50,307.8 | | | 50,174.7 | | | 50,014.5 | | (2)(7) | | |
| | First lien senior secured loan | | 10.85% (1.00% PIK) | | SOFR (M) | | 5.50% | | | | 10/2026 | | | | 11,729.8 | | | 11,630.6 | | | 11,726.1 | | (2)(7) | | |
| | | | | | | | | | | | | | | | | | 61,805.3 | | | 61,740.6 | | | | |
| Broadcast Music, Inc. (10) | | First lien senior secured loan | | 10.87% | | SOFR (M) | | 5.75% | | | | 02/2030 | | | | 29,541.3 | | | 28,882.3 | | | 29,541.3 | | (2)(7)(12) | | |
See accompanying notes to consolidated financial statements.
18
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 30, 2024
(dollar amounts in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (3) | | Reference (6) | | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| CFC Funding LLC | | Loan instrument units | | 9.75% PIK | | | | | | 07/2023 | | | | 5,300 | | | | 5,565.5 | | | 5,829.3 | | (5)(12) | | |
| Creative Artists Agency, LLC | | First lien senior secured loan | | 11.00% | | Base Rate (Q) | | 3.00% | | | | 11/2028 | | | | 14,002.8 | | | 14,007.0 | | | 13,987.8 | | (2) | | |
| | First lien senior secured loan | | 7.59% | | SOFR (Q) | | 2.75% | | | | 09/2031 | | | | 9,850.8 | | | 9,855.5 | | | 9,838.5 | | | | |
| | | | | | | | | | | | | | | | | | 23,862.5 | | | 23,826.3 | | | | |
| Fever Labs, Inc. (10) | | First lien senior secured revolving loan | | 11.00% | | | | | | | | 11/2028 | | | | 6,283.5 | | | 6,176.7 | | | 6,283.5 | | (2)(12) | | |
| | First lien senior secured loan | | 11.00% | | | | | | | | 11/2028 | | | | 20,625.7 | | | 18,934.1 | | | 20,625.7 | | (2)(12) | | |
| | Series E-5 Convertible Shares | | | | | | | | 08/2024 | | | | 318,631 | | | | 1,381.9 | | | 1,411.5 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 26,492.7 | | | 28,320.7 | | | | |
| League One Volleyball, Inc. | | Series B preferred stock | | | | | | | | 07/2023 | | | | 194 | | | | 1.0 | | | 2.3 | | (2)(12) | | |
| | Series C preferred stock | | | | | | | | 09/2024 | | | | 50 | | | | 0.4 | | | 0.4 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 1.4 | | | 2.7 | | | | |
| Legends Hospitality Holding Company, LLC and ASM Buyer, Inc. (10) | | First lien senior secured revolving loan | | | | | | | | | | 08/2030 | | | | — | | | — | | | — | | (2)(7)(8)(12) | | |
| | First lien senior secured loan | | 10.13% | | SOFR (Q) | | 5.00% | | | | 08/2031 | | | | 27,219.6 | | | 26,683.9 | | | 26,675.2 | | (2)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 26,683.9 | | | 26,675.2 | | | | |
| LiveBarn Inc. | | Middle preferred shares | | | | | | | | 08/2023 | | | | 2,838,691 | | | | 10,000.0 | | | 11,875.0 | | (2)(5)(12) | | |
| NEP Group, Inc. | | First lien senior secured loan | | 9.62% (1.50% PIK) | | SOFR (Q) | | 4.75% | | | | 08/2026 | | | | 11,639.5 | | | 11,180.5 | | | 11,130.3 | | (2) | | |
| | First lien senior secured loan | | 10.37% (1.50% PIK) | | SOFR (Q) | | 5.50% | | | | 08/2026 | | | | 7,219.7 | | | 6,986.9 | | | 6,903.8 | | (2)(7) | | |
| | | | | | | | | | | | | | | | | | 18,167.4 | | | 18,034.1 | | | | |
| Orange Barrel Media, LLC/IKE Smart City, LLC (10) | | Private asset backed investment | | 10.60% | | SOFR (M) | | 5.75% | | | | 03/2027 | | | | 4,141.6 | | | 4,091.4 | | | 4,141.6 | | (7)(12) | | |
| OVG Business Services, LLC | | First lien senior secured loan | | 7.85% | | SOFR (M) | | 3.00% | | | | 06/2031 | | | | 6,175.0 | | | 6,145.3 | | | 6,136.4 | | (2) | | |
| Quartz Holding Company | | First lien senior secured loan | | 8.85% | | SOFR (M) | | 4.00% | | | | 10/2028 | | | | 6,450.3 | | | 6,429.3 | | | 6,450.3 | | (2)(7)(12) | | |
| Sandlot Action Sports, LLC | | Common units | | | | | | | | 05/2024 | | | | 3,384 | | | | 25.0 | | | 25.0 | | (12) | | |
| Summer (BC) Bidco B LLC | | First lien senior secured loan | | 9.36% | | SOFR (Q) | | 4.50% | | | | 12/2026 | | | | 1,009.6 | | | 1,009.6 | | | 1,009.6 | | (2)(5)(7) | | |
| | First lien senior secured loan | | 9.86% | | SOFR (Q) | | 5.00% | | | | 02/2029 | | | | 1,960.4 | | | 1,950.8 | | | 1,968.9 | | (2)(5) | | |
| | | | | | | | | | | | | | | | | | 2,960.4 | | | 2,978.5 | | | | |
| United Talent Agency LLC | | First lien senior secured loan | | 8.87% | | SOFR (M) | | 3.75% | | | | 07/2028 | | | | 11,956.0 | | | 11,924.0 | | | 11,970.9 | | (2)(7)(12) | | |
| Univision Communications Inc. | | First lien senior secured loan | | 8.20% | | SOFR (Q) | | 3.50% | | | | 06/2027 | | | | 3,540.0 | | | 3,540.0 | | | 3,486.9 | | (2) | | |
| | First lien senior secured loan | | 8.46% | | SOFR (M) | | 3.50% | | | | 01/2029 | | | | 1,995.0 | | | 1,976.3 | | | 1,948.5 | | (2)(7) | | |
| | | | | | | | | | | | | | | | | | 5,516.3 | | | 5,435.4 | | | | |
| William Morris Endeavor Entertainment, LLC (IMG Worldwide Holdings, LLC) | | First lien senior secured loan | | 7.71% | | SOFR (M) | | 2.75% | | | | 05/2025 | | | | 32,436.2 | | | 32,444.2 | | | 32,426.1 | | (2)(5) | | |
| WRE Sports Investments LLC (10) | | First lien senior secured loan | | 11.00% (5.50% PIK) | | | | | | | | 07/2031 | | | | 33,327.0 | | | 32,515.6 | | | 32,660.5 | | (2)(12) | | |
| Zuffa Guarantor LLC | | First lien senior secured loan | | 8.29% | | SOFR (Q) | | 2.75% | | | | 04/2026 | | | | 15,120.4 | | | 15,126.8 | | | 15,125.8 | | (2)(5)(7) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 355,788.6 | | | 361,419.6 | | | 7.84 | % | |
| Investment Funds and Vehicles | | | | | | | | | | | | | | | | | | | | | | | |
| ABPCI 2019-5A | | Collaterized loan obligation | | 11.03% | | SOFR (Q) | | 5.75% | | | | 01/2036 | | | | 1,100.0 | | | 1,100.0 | | | 1,131.2 | | (5)(12) | | |
See accompanying notes to consolidated financial statements.
19
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 30, 2024
(dollar amounts in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (3) | | Reference (6) | | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| ABPCI 2024-17 | | Collaterized loan obligation | | 13.25% | | SOFR (Q) | | 8.00% | | | | 08/2036 | | | | 3,000.0 | | | 3,000.0 | | | 2,972.8 | | (5)(12) | | |
| ATRM 14 | | Collaterized loan obligation | | 11.40% | | SOFR (Q) | | 6.50% | | | | 10/2037 | | | | 5,600.0 | | | 5,600.0 | | | 5,629.1 | | (5)(12) | | |
| | Collaterized loan obligation | | 16.20% | | | | | | | | 10/2037 | | | | 3,827.9 | | | 2,167.7 | | | 2,144.7 | | (5)(12) | | |
| | | | | | | | | | | | | | | | | | 7,767.7 | | | 7,773.8 | | | | |
| ATRM 15 | | Collaterized loan obligation | | 11.84% | | SOFR (Q) | | 6.50% | | | | 07/2037 | | | | 1,900.0 | | | 1,900.0 | | | 1,905.1 | | (5)(12) | | |
| AUDAX 2024-9 | | Collaterized loan obligation | | 10.48% | | SOFR (Q) | | 5.20% | | | | 04/2036 | | | | 2,000.0 | | | 2,000.0 | | | 2,035.1 | | (5)(12) | | |
| BABSN 2023-3 | | Collaterized loan obligation | | 12.63% | | SOFR (Q) | | 7.33% | | | | 10/2036 | | | | 562.5 | | | 578.0 | | | 581.9 | | (5)(12) | | |
| BALLY 2023-24 | | Collaterized loan obligation | | 10.35% | | SOFR (Q) | | 5.05% | | | | 07/2036 | | | | 1,500.0 | | | 1,500.0 | | | 1,528.0 | | (5)(12) | | |
| BALLY 2024-26 | | Collaterized loan obligation | | 11.43% | | SOFR (Q) | | 6.10% | | | | 07/2037 | | | | 1,500.0 | | | 1,500.0 | | | 1,503.2 | | (5)(12) | | |
| BCC 2020-1 | | Collaterized loan obligation | | 12.43% | | SOFR (Q) | | 7.15% | | | | 04/2033 | | | | 1,750.0 | | | 1,750.0 | | | 1,767.0 | | (5)(12) | | |
| BCC 2023-3 | | Collaterized loan obligation | | 10.53% | | SOFR (Q) | | 5.25% | | | | 07/2036 | | | | 1,500.0 | | | 1,500.0 | | | 1,531.4 | | (5)(12) | | |
| BERRY 2024-1 | | Collaterized loan obligation | | 12.50% | | | | | | | | 10/2037 | | | | 5,220.0 | | | 2,302.0 | | | 2,306.1 | | (5)(12) | | |
| BROOKP 2024-1 | | Collaterized loan obligation | | 11.79% | | SOFR (Q) | | 6.50% | | | | 04/2037 | | | | 1,000.0 | | | 1,000.0 | | | 1,010.4 | | (5)(12) | | |
| BSP 2018-14 | | Collaterized loan obligation | | 10.74% | | SOFR (Q) | | 6.15% | | | | 10/2037 | | | | 5,500.0 | | | 5,500.0 | | | 5,527.3 | | (5)(12) | | |
| BSP 2024-34 | | Collaterized loan obligation | | 11.98% | | SOFR (Q) | | 6.70% | | | | 07/2037 | | | | 1,250.0 | | | 1,250.0 | | | 1,264.3 | | (5)(12) | | |
| BSP 2024-35 | | Collaterized loan obligation | | 11.43% | | SOFR (Q) | | 6.10% | | | | 04/2037 | | | | 1,250.0 | | | 1,250.0 | | | 1,270.1 | | (5)(12) | | |
| BTCP 2023-1 | | Collaterized loan obligation | | 11.63% | | SOFR (M) | | 6.50% | | | | 09/2030 | | | | 6,100.0 | | | 6,105.7 | | | 6,100.0 | | (5)(12) | | |
| CAVU 2021-1 | | Collaterized loan obligation | | 12.28% | | SOFR (Q) | | 7.00% | | | | 07/2037 | | | | 1,000.0 | | | 1,000.0 | | | 999.2 | | (5)(12) | | |
| CGMS 2019-2 | | Collaterized loan obligation | | 11.83% | | SOFR (Q) | | 7.00% | | | | 10/2037 | | | | 4,387.5 | | | 4,387.5 | | | 4,410.3 | | (5)(12) | | |
| CGMS 2022-5 | | Collaterized loan obligation | | 12.20% | | SOFR (Q) | | 7.10% | | | | 10/2037 | | | | 4,190.0 | | | 4,190.0 | | | 4,201.0 | | (5)(12) | | |
| CGMS 2023-1 | | Collaterized loan obligation | | 10.38% | | SOFR (Q) | | 5.10% | | | | 07/2035 | | | | 1,250.0 | | | 1,250.0 | | | 1,275.1 | | (5)(12) | | |
| CGMS 2023-2 | | Collaterized loan obligation | | 10.28% | | SOFR (Q) | | 5.00% | | | | 07/2036 | | | | 2,000.0 | | | 2,000.0 | | | 2,050.5 | | (5)(12) | | |
| CGMS 2024-1 | | Collaterized loan obligation | | 12.21% | | SOFR (Q) | | 6.92% | | | | 04/2037 | | | | 1,096.0 | | | 1,119.3 | | | 1,117.2 | | (5)(12) | | |
| CGMS 2024-2 | | Collaterized loan obligation | | 12.17% | | SOFR (Q) | | 6.85% | | | | 04/2037 | | | | 1,500.0 | | | 1,500.0 | | | 1,511.7 | | (5)(12) | | |
| CGMS 2024-3 | | Collaterized loan obligation | | 11.70% | | SOFR (Q) | | 6.40% | | | | 07/2036 | | | | 2,600.0 | | | 2,600.0 | | | 2,628.9 | | (5)(12) | | |
| CGMS 2024-5 | | Collaterized loan obligation | | 10.25% | | SOFR (Q) | | 5.65% | | | | 10/2036 | | | | 1,500.0 | | | 1,500.0 | | | 1,507.5 | | (5)(12) | | |
| | Collaterized loan obligation | | 12.60% | | | | | | | | 10/2036 | | | | 2,700.0 | | | 2,409.8 | | | 2,409.8 | | (5)(12) | | |
| | | | | | | | | | | | | | | | | | 3,909.8 | | | 3,917.3 | | | | |
| CIFC 2021-1 | | Collaterized loan obligation | | 11.34% | | SOFR (Q) | | 6.00% | | | | 07/2037 | | | | 1,820.0 | | | 1,820.0 | | | 1,843.9 | | (5)(12) | | |
| CIFC 2021-4 | | Collaterized loan obligation | | 11.37% | | SOFR (Q) | | 6.20% | | | | 07/2037 | | | | 1,000.0 | | | 1,000.6 | | | 1,005.5 | | (5)(12) | | |
| CIFC 2022-5 | | Collaterized loan obligation | | 9.19% | | SOFR (Q) | | 3.90% | | | | 01/2037 | | | | 6,000.0 | | | 6,000.0 | | | 6,095.8 | | (5)(12) | | |
| CIFC 2022-6 | | Collaterized loan obligation | | 10.36% | | SOFR (Q) | | 5.75% | | | | 10/2038 | | | | 437.5 | | | 437.5 | | | 439.8 | | (5)(12) | | |
| CIFC 2024-2 | | Collaterized loan obligation | | 11.73% | | SOFR (Q) | | 6.40% | | | | 04/2037 | | | | 2,000.0 | | | 2,000.0 | | | 2,047.9 | | (5)(12) | | |
| CIFC 2024-4 | | Collaterized loan obligation | | 12.70% | | | | | | | | 10/2037 | | | | 2,600.0 | | | 2,373.1 | | | 2,435.8 | | (5)(12) | | |
| Constellation Wealth Capital Fund, L.P. (11) | | Limited partner interests | | | | | | | | 01/2024 | | | | 1,935,706 | | | | 1,935.5 | | | 1,809.2 | | (5) | | |
| CPTPK 2024-1 | | Collaterized loan obligation | | 11.33% | | SOFR (Q) | | 6.00% | | | | 07/2037 | | | | 1,400.0 | | | 1,400.0 | | | 1,426.2 | | (5)(12) | | |
See accompanying notes to consolidated financial statements.
20
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 30, 2024
(dollar amounts in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (3) | | Reference (6) | | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| CWC Fund I Co-Invest (ALTI) LP | | Limited partnership interests | | | | | | | | 03/2024 | | | | 6,653,000 | | | | 6,673.6 | | | 6,999.1 | | (2)(5)(12) | | |
| DRSLF 2022-104 | | Collaterized loan obligation | | 12.40% | | SOFR (Q) | | 7.40% | | | | 08/2034 | | | | 5,756.0 | | | 5,756.0 | | | 5,779.4 | | (5)(12) | | |
| ELM12 2021-5 | | Collaterized loan obligation | | 10.47% | | SOFR (Q) | | 5.90% | | | | 10/2037 | | | | 1,475.0 | | | 1,475.0 | | | 1,482.4 | | (5)(12) | | |
| ELM27 2024-3 | | Collaterized loan obligation | | 11.53% | | SOFR (Q) | | 6.25% | | | | 04/2037 | | | | 2,000.0 | | | 2,000.0 | | | 2,051.1 | | (5)(12) | | |
| ELM29 2024-5 | | Collaterized loan obligation | | 11.72% | | SOFR (Q) | | 6.40% | | | | 04/2037 | | | | 3,500.0 | | | 3,519.7 | | | 3,552.2 | | (5)(12) | | |
| ELM32 2024-8 | | Collaterized loan obligation | | 12.42% | | | | | | | | 10/2037 | | | | 2,520.0 | | | 2,268.0 | | | 2,319.8 | | (5)(12) | | |
| ELMW1 2019-1 | | Collaterized loan obligation | | 9.03% | | SOFR (Q) | | 3.75% | | | | 04/2037 | | | | 6,000.0 | | | 6,000.0 | | | 6,082.4 | | (5)(12) | | |
| ELMW4 2020-1 | | Collaterized loan obligation | | 11.47% | | SOFR (Q) | | 6.15% | | | | 04/2037 | | | | 2,514.0 | | | 2,539.1 | | | 2,538.9 | | (5)(12) | | |
| ELMW8 2021-1 | | Collaterized loan obligation | | 11.53% | | SOFR (Q) | | 6.25% | | | | 04/2037 | | | | 5,028.0 | | | 5,088.1 | | | 5,119.5 | | (5)(12) | | |
| GCBSL 2022-60 | | Collaterized loan obligation | | 11.28% | | SOFR (Q) | | 6.00% | | | | 10/2034 | | | | 2,375.0 | | | 2,375.0 | | | 2,346.8 | | (5)(12) | | |
| GNRT 2 | | Collaterized loan obligation | | 12.55% | | SOFR (Q) | | 7.35% | | | | 10/2037 | | | | 250.0 | | | 251.1 | | | 252.0 | | (5)(12) | | |
| GNRT 2022-10 | | Collaterized loan obligation | | 13.35% | | SOFR (Q) | | 8.07% | | | | 07/2035 | | | | 500.0 | | | 510.8 | | | 508.3 | | (5)(12) | | |
| GNRT 2023-11 | | Collaterized loan obligation | | 12.14% | | SOFR (Q) | | 7.30% | | | | 10/2037 | | | | 2,258.0 | | | 2,258.0 | | | 2,269.7 | | (5)(12) | | |
| GNRT 2024-15 | | Collaterized loan obligation | | 12.00% | | SOFR (Q) | | 6.70% | | | | 07/2037 | | | | 2,000.0 | | | 2,000.0 | | | 2,025.6 | | (5)(12) | | |
| GNRT 4 | | Collaterized loan obligation | | 12.18% | | SOFR (Q) | | 6.90% | | | | 07/2037 | | | | 2,000.0 | | | 2,000.0 | | | 2,013.2 | | (5)(12) | | |
| GNRT 6 | | Collaterized loan obligation | | 11.79% | | SOFR (Q) | | 7.25% | | | | 10/2037 | | | | 1,820.0 | | | 1,820.0 | | | 1,829.5 | | (5)(12) | | |
| GOCAP 2024-71 | | Collaterized loan obligation | | 10.20% | | SOFR (Q) | | 5.10% | | | | 02/2037 | | | | 4,500.0 | | | 4,500.0 | | | 4,590.6 | | (5)(12) | | |
| KKR 48 | | Collaterized loan obligation | | 9.58% | | SOFR (Q) | | 4.30% | | | | 10/2036 | | | | 2,000.0 | | | 2,000.0 | | | 2,023.8 | | (5)(12) | | |
| Linden Structured Capital Fund II-A LP (11) | | Limited partnership interests | | | | | | | | 07/2024 | | | | 1,292,057 | | | | 1,380.3 | | | 1,292.1 | | (2)(5) | | |
| MAGNE 2019-24 | | Collaterized loan obligation | | 11.70% | | SOFR (Q) | | 6.40% | | | | 04/2035 | | | | 500.0 | | | 500.1 | | | 501.9 | | (5)(12) | | |
| MAGNE 2022-33 | | Collaterized loan obligation | | 10.36% | | SOFR (Q) | | 5.55% | | | | 10/2037 | | | | 5,875.0 | | | 5,875.0 | | | 5,905.6 | | (5)(12) | | |
| MAGNE 2023-36 | | Collaterized loan obligation | | 10.18% | | SOFR (Q) | | 4.90% | | | | 04/2036 | | | | 1,750.0 | | | 1,750.0 | | | 1,784.5 | | (5)(12) | | |
| MAGNE 2024-44 | | Collaterized loan obligation | | 12.00% | | | | | | | | 10/2037 | | | | 4,100.0 | | | 3,690.0 | | | 3,690.0 | | (5)(12) | | |
| MDPK 2016-20 | | Collaterized loan obligation | | 11.15% | | SOFR (Q) | | 6.40% | | | | 10/2037 | | | | 2,727.5 | | | 2,727.5 | | | 2,741.7 | | (5)(12) | | |
| MDPK 2018-32 | | Collaterized loan obligation | | 11.68% | | SOFR (Q) | | 6.40% | | | | 07/2037 | | | | 4,850.0 | | | 4,850.0 | | | 4,869.7 | | (5)(12) | | |
| MDPK 2019-34 | | Collaterized loan obligation | | 11.61% | | SOFR (Q) | | 6.50% | | | | 10/2037 | | | | 1,700.0 | | | 1,700.0 | | | 1,709.1 | | (5)(12) | | |
| MDPK 2019-37 | | Collaterized loan obligation | | 11.90% | | SOFR (Q) | | 6.60% | | | | 04/2037 | | | | 1,000.0 | | | 1,000.0 | | | 1,004.7 | | (5)(12) | | |
| MDPK 2021-59 | | Collaterized loan obligation | | 11.68% | | SOFR (Q) | | 6.40% | | | | 04/2037 | | | | 2,250.0 | | | 2,250.0 | | | 2,259.3 | | (5)(12) | | |
| MDPK 2022-55 | | Collaterized loan obligation | | 11.28% | | SOFR (Q) | | 6.00% | | | | 07/2037 | | | | 1,680.0 | | | 1,680.0 | | | 1,690.3 | | (5)(12) | | |
| MDPK 2024-67 | | Collaterized loan obligation | | 12.09% | | SOFR (Q) | | 6.80% | | | | 04/2037 | | | | 2,500.0 | | | 2,500.0 | | | 2,551.7 | | (5)(12) | | |
| MDPK 2024-69 | | Collaterized loan obligation | | 11.58% | | SOFR (Q) | | 6.25% | | | | 07/2037 | | | | 1,500.0 | | | 1,500.0 | | | 1,523.5 | | (5)(12) | | |
| OAKC 2016-13 | | Collaterized loan obligation | | 10.83% | | SOFR (Q) | | 5.75% | | | | 10/2037 | | | | 1,220.0 | | | 1,220.0 | | | 1,226.7 | | (5)(12) | | |
| OAKC 2021-9 | | Collaterized loan obligation | | 10.34% | | SOFR (Q) | | 5.50% | | | | 10/2037 | | | | 2,050.0 | | | 2,050.0 | | | 2,060.7 | | (5)(12) | | |
| OAKC 2022-12 | | Collaterized loan obligation | | 10.28% | | SOFR (Q) | | 5.00% | | | | 07/2036 | | | | 2,000.0 | | | 2,000.0 | | | 2,042.8 | | (5)(12) | | |
| OAKC 2023-15 | | Collaterized loan obligation | | 10.28% | | SOFR (Q) | | 5.00% | | | | 04/2035 | | | | 2,000.0 | | | 2,000.0 | | | 2,040.3 | | (5)(12) | | |
See accompanying notes to consolidated financial statements.
21
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 30, 2024
(dollar amounts in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (3) | | Reference (6) | | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| OAKC 2023-16 | | Collaterized loan obligation | | 9.28% | | SOFR (Q) | | 4.00% | | | | 10/2036 | | | | 2,000.0 | | | 2,000.0 | | | 2,040.9 | | (5)(12) | | |
| PLMRS 2022-4 | | Collaterized loan obligation | | 13.86% | | SOFR (Q) | | 8.58% | | | | 10/2035 | | | | 562.5 | | | 569.8 | | | 568.6 | | (5)(12) | | |
| RRAM 2019-6 | | Collaterized loan obligation | | 11.41% | | SOFR (Q) | | 6.11% | | | | 04/2036 | | | | 1,500.0 | | | 1,456.9 | | | 1,452.2 | | (5)(12) | | |
| RRAM 2022-21 | | Collaterized loan obligation | | 12.90% | | | | | | | | 01/2123 | | | | 13,070.0 | | | 9,835.2 | | | 10,013.4 | | (5)(12) | | |
| RRAM 2024-30 | | Collaterized loan obligation | | 12.46% | | | | | | | | 07/2036 | | | | 7,000.0 | | | 6,457.5 | | | 6,349.4 | | (5)(12) | | |
| SIXST 2022-21 | | Collaterized loan obligation | | 10.68% | | SOFR (Q) | | 5.75% | | | | 10/2037 | | | | 2,025.0 | | | 2,025.0 | | | 2,035.5 | | (5)(12) | | |
| SPEAK 2024-11 | | Collaterized loan obligation | | 13.48% | | | | | | | | 07/2037 | | | | 4,000.0 | | | 3,468.4 | | | 3,675.9 | | (5)(12) | | |
| STKPK 2022-1 | | Collaterized loan obligation | | 11.09% | | SOFR (Q) | | 6.15% | | | | 10/2037 | | | | 3,375.0 | | | 3,375.0 | | | 3,392.6 | | (5)(12) | | |
| SYMP 2022-36 | | Collaterized loan obligation | | 11.64% | | SOFR (Q) | | 7.00% | | | | 10/2037 | | | | 1,120.0 | | | 1,120.0 | | | 1,125.8 | | (5)(12) | | |
| THPT 2023-THL | | Commercial mortgage-backed security | | 10.74% | | | | | | | | 12/2034 | | | | 5,000.0 | | | 4,987.9 | | | 5,137.8 | | (5)(12) | | |
| Tikehau Ruby CLO Equity LP (10)(11) | | Private asset backed investment | | 13.28% | | Euribor (Q) | | 10.00% | | 03/2024 | | | | 1,613,487 | | | | 1,515.1 | | | 1,462.8 | | (5)(7)(12) | | |
| Tikehau Topaz LP (10)(11) | | Private asset backed investment | | 13.60% | | SOFR (Q) | | 9.00% | | 06/2024 | | | | 2,562,960 | | | | 2,366.7 | | | 2,361.0 | | (5)(7)(12) | | |
| VOYA 2022-3 | | Collaterized loan obligation | | 9.78% | | SOFR (Q) | | 4.50% | | | | 10/2036 | | | | 2,000.0 | | | 2,000.0 | | | 2,023.8 | | (5)(12) | | |
| WILDPK 2024-1 | | Collaterized loan obligation | | 10.70% | | SOFR (Q) | | 5.75% | | | | 10/2037 | | | | 1,117.5 | | | 1,117.5 | | | 1,123.3 | | (5)(12) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 212,929.0 | | | 214,864.9 | | | 4.66 | % | |
| Materials | | | | | | | | | | | | | | | | | | | | | | | |
| A-AP Buyer, Inc. | | First lien senior secured loan | | 7.85% | | SOFR (Q) | | 3.25% | | | | 09/2031 | | | | 6,032.8 | | | 6,027.3 | | | 6,055.4 | | (2)(12) | | |
| Altium Packaging LLC | | First lien senior secured loan | | 7.35% | | SOFR (M) | | 2.50% | | | | 06/2031 | | | | 2,333.4 | | | 2,333.4 | | | 2,317.4 | | (2) | | |
| Berlin Packaging L.L.C. | | First lien senior secured loan | | 8.89% | | SOFR (Q) | | 3.75% | | | | 06/2031 | | | | 5,985.0 | | | 5,988.7 | | | 5,978.6 | | | | |
| BW Holding, Inc. | | First lien senior secured loan | | 9.21% | | SOFR (Q) | | 4.00% | | | | 12/2028 | | | | 9,672.9 | | | 8,869.2 | | | 8,854.2 | | (7) | | |
| Charter Next Generation, Inc. | | First lien senior secured loan | | 8.10% | | SOFR (M) | | 3.25% | | | | 12/2027 | | | | 30,352.1 | | | 30,360.1 | | | 30,349.1 | | (2)(7) | | |
| Derby Buyer LLC | | First lien senior secured loan | | 8.70% | | SOFR (M) | | 3.50% | | | | 11/2030 | | | | 3,742.2 | | | 3,726.2 | | | 3,743.2 | | (2)(7) | | |
| Flexsys Holdings, Inc. | | First lien senior secured loan | | 10.12% | | SOFR (Q) | | 5.25% | | | | 11/2028 | | | | 9,445.4 | | | 8,772.3 | | | 7,928.3 | | (2)(7) | | |
| Meyer Laboratory, LLC and Meyer Parent, LLC (10) | | First lien senior secured loan | | 10.10% | | SOFR (M) | | 5.25% | | | | 02/2030 | | | | 9,872.3 | | | 9,694.3 | | | 9,872.3 | | (2)(7)(12) | | |
| | Common units | | | | | | | | 02/2024 | | | | 169,000 | | | | 169.0 | | | 193.3 | | (12) | | |
| | | | | | | | | | | | | | | | | | 9,863.3 | | | 10,065.6 | | | | |
| Pregis TopCo LLC | | First lien senior secured loan | | 8.85% | | SOFR (M) | | 4.00% | | | | 07/2026 | | | | 18,641.4 | | | 18,637.6 | | | 18,658.0 | | (2) | | |
| Reagent Chemical & Research, LLC (10) | | First lien senior secured loan | | 10.10% | | SOFR (M) | | 5.25% | | | | 04/2031 | | | | 53,264.9 | | | 52,263.8 | | | 52,199.6 | | (2)(7)(12) | | |
| Ring Container Technologies Group, LLC | | First lien senior secured loan | | 7.60% | | SOFR (M) | | 2.75% | | | | 08/2028 | | | | 6,077.2 | | | 6,084.5 | | | 6,068.3 | | (2)(7) | | |
| Touchdown Acquirer Inc. | | First lien senior secured loan | | 7.85% | | SOFR (Q) | | 3.25% | | | | 02/2031 | | | | 2,181.8 | | | 2,176.4 | | | 2,177.0 | | (2)(5) | | |
| Trident TPI Holdings, Inc. | | First lien senior secured loan | | 8.60% | | SOFR (Q) | | 4.00% | | | | 09/2028 | | | | 25,690.7 | | | 25,650.2 | | | 25,707.9 | | (2)(7) | | |
| USALCO, LLC | | First lien senior secured loan | | 8.60% | | SOFR (Q) | | 4.00% | | | | 09/2031 | | | | 20,941.5 | | | 20,844.5 | | | 20,993.9 | | (7) | | |
| Vobev, LLC and Vobev Holdings, LLC (10) | | First lien senior secured revolving loan | | 9.69% | | SOFR (S) | | 5.00% | | | | 04/2028 | | | | 0.8 | | | 0.8 | | | 0.7 | | (2)(12) | | |
| | First lien senior secured loan | | | | | | | | | | 04/2028 | | | | 7,209.8 | | | 6,969.5 | | | 3,735.2 | | (2)(12)(13) | | |
See accompanying notes to consolidated financial statements.
22
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 30, 2024
(dollar amounts in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (3) | | Reference (6) | | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| | Warrant to purchase ordinary shares | | | | | | | | 04/2023 | | 11/2033 | | 398 | | | | — | | | — | | (12) | | |
| | Warrant to purchase Class B units | | | | | | | | 11/2023 | | 04/2028 | | 5,403 | | | | — | | | — | | (12) | | |
| | | | | | | | | | | | | | | | | | 6,970.3 | | | 3,735.9 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 208,567.8 | | | 204,832.4 | | | 4.44 | % | |
| Retailing and Distribution | | | | | | | | | | | | | | | | | | | | | | | |
| Amazon Holdco Inc. | | First lien senior secured loan | | 7.11% | | SOFR (Q) | | 2.25% | | | | 07/2031 | | | | 17,133.6 | | | 17,090.8 | | | 17,069.4 | | (5) | | |
| BradyPlus Holdings, LLC (10) | | First lien senior secured loan | | 11.25% | | SOFR (Q) | | 6.00% | | | | 10/2029 | | | | 31,365.5 | | | 30,844.2 | | | 31,365.5 | | (2)(7)(12) | | |
| Harbor Freight Tools USA, Inc. | | First lien senior secured loan | | 7.33% | | SOFR (Q) | | 2.50% | | | | 06/2031 | | | | 679.9 | | | 678.2 | | | 668.9 | | (2) | | |
| Hills Distribution, Inc., Hills Intermediate FT Holdings, LLC and GMP Hills, LP (10) | | First lien senior secured revolving loan | | 9.61% | | SOFR (M) | | 4.50% | | | | 11/2029 | | | | 0.6 | | | 0.6 | | | 0.6 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 11.11% | | SOFR (M) | | 6.00% | | | | 11/2029 | | | | 3,079.4 | | | 3,026.8 | | | 3,079.4 | | (2)(7)(12) | | |
| | Limited partnership interests | | 8.00% PIK | | | | | | 11/2023 | | | | 3,544,000 | | | | 3,544.0 | | | 3,325.5 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 6,571.4 | | | 6,405.5 | | | | |
| LS Group Opco Acquisition LLC (LS Group PropCo Acquisition LLC) | | First lien senior secured loan | | 7.85% | | SOFR (M) | | 3.00% | | | | 04/2031 | | | | 12,921.9 | | | 12,912.0 | | | 12,913.9 | | (2) | | |
| Madison Safety & Flow LLC | | First lien senior secured loan | | 7.85% | | SOFR (Q) | | 3.25% | | | | 09/2031 | | | | 10,466.1 | | | 10,457.3 | | | 10,453.1 | | | | |
| Phoenix YW Buyer, Inc. and Phoenix YW Parent, Inc. (10) | | First lien senior secured loan | | 9.85% | | SOFR (M) | | 5.00% | | | | 05/2030 | | | | 55,546.6 | | | 54,165.3 | | | 54,435.6 | | (2)(5)(7)(12) | | |
| | Class B common stock | | 8.00% PIK | | | | | | 05/2024 | | | | 2,158 | | | | 2,158.0 | | | 3,713.3 | | (2)(5)(12) | | |
| | | | | | | | | | | | | | | | | | 56,323.3 | | | 58,148.9 | | | | |
| SCIH Salt Holdings Inc. | | First lien senior secured loan | | 8.76% | | SOFR (Q) | | 3.50% | | | | 03/2027 | | | | 38,955.4 | | | 38,927.9 | | | 38,919.9 | | (2)(7) | | |
| Wrench Group LLC | | First lien senior secured loan | | 8.87% | | SOFR (Q) | | 4.00% | | | | 10/2028 | | | | 11,030.5 | | | 11,046.9 | | | 11,021.3 | | (2) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 184,852.0 | | | 186,966.4 | | | 4.06 | % | |
| Pharmaceuticals, Biotechnology and Life Sciences | | | | | | | | | | | | | | | | | | | | | | | |
| ADMA Biologics Inc. (10) | | First lien senior secured revolving loan | | 9.08% | | SOFR (Q) | | 3.75% | | | | 12/2027 | | | | 0.6 | | | 0.6 | | | 0.6 | | (2)(5)(7)(12) | | |
| | First lien senior secured loan | | 11.36% | | SOFR (Q) | | 6.50% | | | | 12/2027 | | | | 4,308.0 | | | 4,221.5 | | | 4,308.0 | | (2)(5)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 4,222.1 | | | 4,308.6 | | | | |
| Alcami Corporation (10) | | First lien senior secured loan | | 12.21% | | SOFR (Q) | | 7.00% | | | | 12/2028 | | | | 4,334.8 | | | 4,167.1 | | | 4,334.8 | | (2)(7)(12) | | |
| Bamboo US BidCo LLC (10) | | First lien senior secured revolving loan | | | | | | | | | | 10/2029 | | | | — | | | — | | | — | | (2)(8)(12) | | |
| | First lien senior secured loan | | 12.00% (3.38% PIK) | | SOFR (Q) | | 6.75% | | | | 09/2030 | | | | 13,766.4 | | | 13,419.2 | | | 13,766.4 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 10.39% (3.38% PIK) | | Euribor (Q) | | 6.75% | | | | 09/2030 | | | | 8,873.5 | | | 8,290.1 | | | 8,873.5 | | (2)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 21,709.3 | | | 22,639.9 | | | | |
| Cambrex Corporation | | First lien senior secured loan | | 8.45% | | SOFR (M) | | 3.50% | | | | 12/2026 | | | | 13,198.8 | | | 13,059.1 | | | 13,109.2 | | (2)(7) | | |
| Catalent Pharma Solutions, Inc. | | First lien senior secured loan | | 7.92% | | SOFR (M) | | 3.00% | | | | 02/2028 | | | | 7,960.0 | | | 7,911.4 | | | 7,960.0 | | (2)(5)(7)(12) | | |
| Curia Global, INC. | | First lien senior secured loan | | 9.10% | | SOFR (Q) | | 3.75% | | | | 08/2026 | | | | 19,383.1 | | | 18,498.6 | | | 18,395.8 | | (2)(7) | | |
See accompanying notes to consolidated financial statements.
23
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 30, 2024
(dollar amounts in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (3) | | Reference (6) | | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| Curium BidCo S.a r.l. | | First lien senior secured loan | | 8.60% | | SOFR (Q) | | 4.00% | | | | 07/2029 | | | | 8,856.6 | | | 8,848.2 | | | 8,875.0 | | (2)(5) | | |
| Da Vinci Purchaser Corp. | | First lien senior secured loan | | 8.35% | | SOFR (M) | | 3.50% | | | | 01/2027 | | | | 34,798.3 | | | 34,802.6 | | | 34,776.7 | | (2)(7) | | |
| Grifols Worldwide Operations USA, Inc. | | First lien senior secured loan | | 7.40% | | SOFR (Q) | | 2.00% | | | | 11/2027 | | | | 10,917.7 | | | 10,702.0 | | | 10,595.3 | | (2)(5) | | |
| Packaging Coordinators Midco, Inc. | | First lien senior secured loan | | 8.10% | | SOFR (M) | | 3.25% | | | | 11/2027 | | | | 32,207.0 | | | 32,195.3 | | | 32,176.7 | | (2)(7) | | |
| Precision Medicine Group, LLC | | First lien senior secured loan | | 7.70% | | SOFR (Q) | | 3.00% | | | | 11/2027 | | | | 11,407.3 | | | 11,351.5 | | | 11,339.6 | | (2)(7) | | |
| Solar Bidco Limited (10) | | First lien senior secured loan | | 9.10% | | Euribor (Q) | | 5.75% | | | | 11/2029 | | | | 3,970.5 | | | 3,574.3 | | | 3,859.7 | | (2)(5)(7)(12) | | |
| WCI-BXC Purchaser, LLC and WCI-BXC Investment Holdings, L.P. (10) | | First lien senior secured loan | | 11.48% | | SOFR (Q) | | 6.25% | | | | 11/2030 | | | | 4,425.4 | | | 4,328.6 | | | 4,425.4 | | (2)(7)(12) | | |
| | Limited partnership interests | | | | | | | | 11/2023 | | | | 731,000 | | | | 731.6 | | | 720.4 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 5,060.2 | | | 5,145.8 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 176,101.7 | | | 177,517.1 | | | 3.85 | % | |
| Automobiles and Components | | | | | | | | | | | | | | | | | | | | | | | |
| Clarios Global LP | | First lien senior secured loan | | 7.35% | | SOFR (M) | | 2.50% | | | | 05/2030 | | | | 8,143.0 | | | 8,124.9 | | | 8,134.6 | | (2) | | |
| Collision SP Subco, LLC (10) | | First lien senior secured revolving loan | | 10.75% | | SOFR (Q) | | 5.50% | | | | 01/2030 | | | | 52.9 | | | 46.5 | | | 52.9 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 10.69% | | SOFR (Q) | | 5.50% | | | | 01/2030 | | | | 4,211.4 | | | 4,129.8 | | | 4,211.4 | | (2)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 4,176.3 | | | 4,264.3 | | | | |
| Dynamo US Bidco Inc. | | First lien senior secured loan | | 8.60% | | SOFR (Q) | | 4.00% | | | | 09/2031 | | | | 9,000.0 | | | 8,955.0 | | | 9,000.0 | | (5)(12) | | |
| LTI Holdings, Inc. | | First lien senior secured loan | | 9.60% | | SOFR (M) | | 4.75% | | | | 07/2029 | | | | 16,771.4 | | | 16,528.5 | | | 16,483.1 | | (2) | | |
| New ChurcHill HoldCo LLC and Victory Topco, LP (10) | | First lien senior secured loan | | 10.11% | | SOFR (Q) | | 5.50% | | | | 11/2029 | | | | 18,973.7 | | | 18,626.2 | | | 18,973.7 | | (2)(7)(12) | | |
| | Class A-2 common units | | | | | | | | 11/2023 | | | | 23,290 | | | | 2,329.0 | | | 3,744.3 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 20,955.2 | | | 22,718.0 | | | | |
| Truck-Lite Co., LLC, Ecco Holdings Corp. and Clarience Technologies, LLC (10) | | First lien senior secured revolving loan | | 10.85% | | SOFR (Q) | | 5.75% | | | | 02/2030 | | | | 37.7 | | | — | | | 37.7 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 10.86% | | SOFR (Q) | | 5.75% | | | | 02/2031 | | | | 34,658.5 | | | 33,949.1 | | | 34,658.5 | | (2)(7)(12) | | |
| | Class A common units | | | | | | | | 02/2024 | | | | 1,072 | | | | 2,636.0 | | | 2,656.4 | | (12) | | |
| | | | | | | | | | | | | | | | | | 36,585.1 | | | 37,352.6 | | | | |
| Wand Newco 3, Inc. | | First lien senior secured loan | | 8.01% | | SOFR (Q) | | 3.25% | | | | 01/2031 | | | | 47,133.6 | | | 47,110.8 | | | 47,053.4 | | (2) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 142,435.8 | | | 145,006.0 | | | 3.14 | % | |
| Consumer Durables and Apparel | | | | | | | | | | | | | | | | | | | | | | | |
| Lakeshore Learning Materials, LLC | | First lien senior secured loan | | 8.46% | | SOFR (M) | | 3.50% | | | | 09/2028 | | | | 1,496.2 | | | 1,499.8 | | | 1,496.5 | | (2)(7) | | |
| Recess Holdings, Inc. | | First lien senior secured loan | | 9.75% | | SOFR (Q) | | 4.50% | | | | 02/2030 | | | | 20,951.5 | | | 20,980.7 | | | 21,009.1 | | (2)(7) | | |
| St Athena Global LLC and St Athena Global Holdings Limited (10) | | First lien senior secured loan | | 10.43% | | SOFR (Q) | | 5.25% | | | | 06/2030 | | | | 31,968.4 | | | 31,518.5 | | | 31,488.9 | | (2)(5)(7)(12) | | |
| | First lien senior secured loan | | 10.20% | | SONIA (M) | | 5.25% | | | | 06/2030 | | | | 19,594.5 | | | 18,223.6 | | | 19,300.6 | | (2)(5)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 49,742.1 | | | 50,789.5 | | | | |
| Varsity Brands Holding Co., Inc., Hercules Achievement, Inc. and BCPE Hercules Holdings, LP | | First lien senior secured loan | | 8.82% | | SOFR (Q) | | 3.75% | | | | 08/2031 | | | | 65,448.4 | | | 65,132.0 | | | 64,971.3 | | (2) | | |
See accompanying notes to consolidated financial statements.
24
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 30, 2024
(dollar amounts in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (3) | | Reference (6) | | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 137,354.6 | | | 138,266.4 | | | 3.00 | % | |
| Technology Hardware and Equipment | | | | | | | | | | | | | | | | | | | | | | | |
| ConnectWise, LLC | | First lien senior secured loan | | 8.37% | | SOFR (Q) | | 3.50% | | | | 09/2028 | | | | 34,416.1 | | | 34,368.7 | | | 34,330.1 | | (7) | | |
| Emerald Debt Merger Sub LLC | | First lien senior secured loan | | 7.56% | | SOFR (Q) | | 2.50% | | | | 05/2030 | | | | 19,335.1 | | | 19,314.3 | | | 19,286.7 | | (2) | | |
| | First lien senior secured loan | | 7.56% | | SOFR (Q) | | 2.50% | | | | 08/2031 | | | | 13,545.0 | | | 13,511.7 | | | 13,508.7 | | (2) | | |
| | | | | | | | | | | | | | | | | | 32,826.0 | | | 32,795.4 | | | | |
| Excelitas Technologies Corp. (10) | | First lien senior secured loan | | 9.85% | | SOFR (Q) | | 5.25% | | | | 08/2029 | | | | 32,500.0 | | | 32,500.0 | | | 32,500.0 | | (2)(7)(12) | | |
| Mirion Technologies, Inc. | | First lien senior secured loan | | 6.85% | | SOFR (Q) | | 2.25% | | | | 10/2028 | | | | 3,149.7 | | | 3,151.6 | | | 3,143.8 | | (2)(5)(7) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 102,846.3 | | | 102,769.3 | | | 2.23 | % | |
| Telecommunication Services | | | | | | | | | | | | | | | | | | | | | | | |
| Delta Topco, Inc. | | First lien senior secured loan | | 8.20% | | SOFR (Q) | | 3.50% | | | | 11/2029 | | | | 22,942.3 | | | 22,934.3 | | | 22,884.9 | | (2) | | |
| Iridium Communications Inc | | First lien senior secured loan | | 7.10% | | SOFR (M) | | 2.25% | | | | 09/2030 | | | | 7,766.1 | | | 7,715.6 | | | 7,619.2 | | (2)(5)(7) | | |
| Switch Master Holdco LLC | | Private asset backed investment | | 7.84% | | SOFR (S) | | 2.50% | | | | 12/2025 | | | | 20,052.0 | | | 20,052.0 | | | 20,052.0 | | (12) | | |
| | Private asset backed investment | | 8.10% | | SOFR (M) | | 3.00% | | | | 12/2025 | | | | 14,357.8 | | | 13,825.7 | | | 13,711.7 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 33,877.7 | | | 33,763.7 | | | | |
| Zayo Group Holdings, Inc. | | First lien senior secured loan | | 7.96% | | SOFR (M) | | 3.00% | | | | 03/2027 | | | | 30,285.5 | | | 27,103.8 | | | 27,616.7 | | (2) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 91,631.4 | | | 91,884.5 | | | 1.99 | % | |
| Consumer Staples Distribution and Retail | | | | | | | | | | | | | | | | | | | | | | | |
| BGI Purchaser, Inc. (10) | | First lien senior secured revolving loan | | 9.06% | | SOFR (Q) | | 4.00% | | | | 05/2030 | | | | 11,109.8 | | | 10,952.5 | | | 10,943.2 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 10.06% | | SOFR (Q) | | 5.00% | | | | 05/2031 | | | | 34,440.5 | | | 33,948.8 | | | 33,923.9 | | (2)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 44,901.3 | | | 44,867.1 | | | | |
| BR PJK Produce, LLC (10) | | First lien senior secured loan | | 11.62% | | SOFR (Q) | | 6.25% | | | | 11/2027 | | | | 1,704.9 | | | 1,662.0 | | | 1,704.9 | | (2)(7)(12) | | |
| City Line Distributors LLC and City Line Investments LLC (10) | | First lien senior secured loan | | 11.04% | | SOFR (M) | | 6.00% | | | | 08/2028 | | | | 2,774.2 | | | 2,719.4 | | | 2,774.2 | | (2)(7)(12) | | |
| | Class A units | | 8.00% PIK | | | | | | 08/2023 | | | | 120,151 | | | | 129.2 | | | 129.2 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 2,848.6 | | | 2,903.4 | | | | |
| Mr. Greens Intermediate, LLC, Florida Veg Investments LLC, MRG Texas, LLC and Restaurant Produce and Services Blocker, LLC (10) | | First lien senior secured revolving loan | | | | | | | | | | 05/2029 | | | | — | | | — | | | — | | (2)(8)(12) | | |
| | First lien senior secured loan | | 11.46% | | SOFR (M) | | 6.25% | | | | 05/2029 | | | | 9,355.3 | | | 9,141.1 | | | 9,355.3 | | (2)(7)(12) | | |
| | Class B limited liability company interest | | | | | | | | 05/2023 | | | | 0.04 | % | | | | 100.0 | | | 82.3 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 9,241.1 | | | 9,437.6 | | | | |
| Royal Borrower, LLC and Royal Parent, LP (10) | | First lien senior secured revolving loan | | | | | | | | | | 07/2030 | | | | — | | | — | | | — | | (2)(8)(12) | | |
| | First lien senior secured loan | | 10.45% | | SOFR (M) | | 5.25% | | | | 07/2030 | | | | 18,651.7 | | | 18,383.6 | | | 18,371.9 | | (2)(7)(12) | | |
| | Class A preferred units | | 10.00% PIK | | | | | | 07/2024 | | | | 2,124,000 | | | | 2,176.8 | | | 2,124.0 | | (12) | | |
| | | | | | | | | | | | | | | | | | 20,560.4 | | | 20,495.9 | | | | |
See accompanying notes to consolidated financial statements.
25
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 30, 2024
(dollar amounts in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (3) | | Reference (6) | | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P. (10)(11) | | First lien senior secured revolving loan | | | | | | | | | | 01/2029 | | | | — | | | — | | | — | | (2)(8)(12) | | |
| | First lien senior secured loan | | 10.50% | | SOFR (S) | | 6.25% | | | | 01/2029 | | | | 7,713.4 | | | 7,547.7 | | | 7,636.3 | | (2)(7)(12) | | |
| | Common units | | | | | | | | 01/2023 | | | | 50,000 | | | | 50.3 | | | 28.9 | | (12) | | |
| | | | | | | | | | | | | | | | | | 7,598.0 | | | 7,665.2 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 86,811.4 | | | 87,074.1 | | | 1.89 | % | |
| Food and Beverage | | | | | | | | | | | | | | | | | | | | | | | |
| 8th Avenue Food & Provisions, Inc. | | First lien senior secured loan | | 8.71% | | SOFR (M) | | 3.75% | | | | 10/2025 | | | | 11,865.5 | | | 11,596.6 | | | 11,467.6 | | (2) | | |
| | First lien senior secured loan | | 9.71% | | SOFR (M) | | 4.75% | | | | 10/2025 | | | | 2,792.8 | | | 2,672.7 | | | 2,702.0 | | (7) | | |
| | | | | | | | | | | | | | | | | | 14,269.3 | | | 14,169.6 | | | | |
| Chobani, LLC | | First lien senior secured loan | | 8.21% | | SOFR (M) | | 3.25% | | | | 10/2027 | | | | 10,663.5 | | | 10,677.9 | | | 10,682.1 | | (2)(7) | | |
| | First lien senior secured loan | | 8.60% | | SOFR (M) | | 3.75% | | | | 10/2027 | | | | 7,249.6 | | | 7,227.6 | | | 7,266.0 | | (2) | | |
| | | | | | | | | | | | | | | | | | 17,905.5 | | | 17,948.1 | | | | |
| Demakes Borrower, LLC (10) | | First lien senior secured loan | | 11.55% | | SOFR (Q) | | 6.25% | | | | 12/2029 | | | | 11,648.8 | | | 11,395.7 | | | 11,648.8 | | (2)(7)(12) | | |
| Sugar PPC Buyer LLC (10) | | First lien senior secured loan | | 10.37% | | SOFR (M) | | 5.25% | | | | 10/2030 | | | | 24,875.0 | | | 24,441.8 | | | 24,875.0 | | (2)(7)(12) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 68,012.3 | | | 68,641.5 | | | 1.49 | % | |
| Real Estate Management and Development | | | | | | | | | | | | | | | | | | | | | | | |
| OPH NEP Investment, LLC (4) | | Senior subordinated loan | | 10.00% (7.00% PIK) | | | | | | | | 05/2032 | | | | 32,493.8 | | | 30,162.4 | | | 31,681.5 | | (2)(12) | | |
| | Class B common units | | | | | | | | 05/2024 | | | | 7 | | | | 1,669.5 | | | 2,064.3 | | (12) | | |
| | | | | | | | | | | | | | | | | | 31,831.9 | | | 33,745.8 | | | | |
| Pallas Funding Trust No.2 (10) | | Private asset backed investment | | 7.05% | | BBSY (M) | | 2.75% | | | | 02/2027 | | | | 2,931.6 | | | 2,746.3 | | | 2,931.8 | | (5)(12) | | |
| | Private asset backed investment | | 12.15% | | BBSY (M) | | 7.85% | | | | 02/2027 | | | | 1,175.9 | | | 1,104.1 | | | 1,176.1 | | (5)(12) | | |
| | Private asset backed investment | | 10.80% | | BBSY (S) | | 6.50% | | | | 02/2027 | | | | 2,131.7 | | | 2,000.8 | | | 2,131.9 | | (5)(12) | | |
| | | | | | | | | | | | | | | | | | 5,851.2 | | | 6,239.8 | | | | |
| Pallas NZ Funding Trust No. 1 | | Private asset backed investment | | 11.49% | | BBSY (M) | | 6.15% | | | | 07/2026 | | | | 1,169.0 | | | 1,108.7 | | | 1,163.2 | | (5)(12) | | |
| Quintain Investments Holdings Limited (10)(11) | | Private asset backed investment | | 11.00% | | | | | | 08/2024 | | 08/2031 | | 19,338,758 | | | | 25,198.4 | | | 25,870.4 | | (5)(12) | | |
| | Private asset backed investment | | | | | | | | 08/2024 | | | | 54,289 | | | | — | | | — | | (5)(12) | | |
| | | | | | | | | | | | | | | | | | 25,198.4 | | | 25,870.4 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 63,990.2 | | | 67,019.2 | | | 1.45 | % | |
| Power Generation | | | | | | | | | | | | | | | | | | | | | | | |
| Alpha Generation LLC | | First lien senior secured loan | | 7.60% | | SOFR (M) | | 2.75% | | | | 09/2031 | | | | 15,000.0 | | | 14,962.5 | | | 14,997.3 | | | | |
| EFS Cogen Holdings I LLC | | First lien senior secured loan | | 9.10% | | SOFR (Q) | | 3.50% | | | | 10/2027 | | | | 10,122.7 | | | 10,098.4 | | | 10,124.8 | | (2)(7) | | |
| Hamilton Projects Acquiror, LLC | | First lien senior secured loan | | 8.60% | | SOFR (M) | | 3.75% | | | | 05/2031 | | | | 4,987.5 | | | 4,975.6 | | | 5,017.4 | | (2)(7) | | |
| South Field, LLC | | First lien senior secured loan | | 8.35% | | SOFR (Q) | | 3.75% | | | | 08/2031 | | | | 10,000.0 | | | 9,980.3 | | | 10,033.3 | | (2) | | |
| Thunder Generation | | First lien senior secured loan | | 7.61% | | SOFR (Q) | | 3.00% | | | | 10/2031 | | | | 16,800.0 | | | 16,721.0 | | | 16,779.0 | | (12) | | |
See accompanying notes to consolidated financial statements.
26
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 30, 2024
(dollar amounts in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (3) | | Reference (6) | | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| Watt Holdco Limited (10) | | First lien senior secured loan | | 10.95% | | SONIA (Q) | | 6.00% | | | | 09/2031 | | | | 1,469.6 | | | 1,421.7 | | | 1,474.5 | | (2)(5)(7)(12) | | |
| | First lien senior secured loan | | 9.43% | | Euribor (Q) | | 6.00% | | | | 09/2031 | | | | 2,983.8 | | | 2,886.4 | | | 2,993.7 | | (2)(5)(7)(12) | | |
| | | | | | | | | | | | | | | | | | 4,308.1 | | | 4,468.2 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 61,045.9 | | | 61,420.0 | | | 1.33 | % | |
| Energy | | | | | | | | | | | | | | | | | | | | | | | |
| CPPIB OVM Member U.S. LLC | | First lien senior secured loan | | 7.85% | | SOFR (Q) | | 3.25% | | | | 08/2031 | | | | 11,242.0 | | | 11,194.8 | | | 11,237.3 | | (2) | | |
| HighPeak Energy, Inc. | | First lien senior secured loan | | 12.25% | | SOFR (Q) | | 7.50% | | | | 09/2026 | | | | 23,125.0 | | | 22,746.3 | | | 23,125.0 | | (2)(5)(7)(12) | | |
| M6 Etx Holdings II Midco LLC (10) | | First lien senior secured loan | | 9.45% | | SOFR (M) | | 4.50% | | | | 09/2029 | | | | 7,051.4 | | | 7,057.5 | | | 7,039.7 | | (2)(7) | | |
| Prairie ECI Acquiror LP | | First lien senior secured loan | | 9.60% | | SOFR (M) | | 4.75% | | | | 08/2029 | | | | 11,016.1 | | | 10,994.5 | | | 10,988.5 | | (2) | | |
| TransMontaigne Operating Company L.P. | | First lien senior secured loan | | 8.46% | | SOFR (M) | | 3.50% | | | | 11/2028 | | | | 6,964.2 | | | 6,932.8 | | | 6,966.7 | | (2)(7) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 58,925.9 | | | 59,357.2 | | | 1.29 | % | |
| Household and Personal Products | | | | | | | | | | | | | | | | | | | | | | | |
| Silk Holdings III Corp. and Silk Holdings I Corp. (10) | | First lien senior secured revolving loan | | 9.26% | | SOFR (S) | | 4.00% | | | | 05/2029 | | | | 3,300.3 | | | 3,238.8 | | | 3,300.3 | | (2)(7)(12) | | |
| | First lien senior secured loan | | 10.76% | | SOFR (S) | | 5.50% | | | | 05/2029 | | | | 38,848.9 | | | 38,062.2 | | | 38,849.0 | | (2)(7)(12) | | |
| | Common stock | | | | | | | | 05/2023 | | | | 100 | | | | 100.0 | | | 270.9 | | (2)(12) | | |
| | | | | | | | | | | | | | | | | | 41,401.0 | | | 42,420.2 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 41,401.0 | | | 42,420.2 | | | 0.92 | % | |
| Equity Real Estate Investment Trusts (REITs) | | | | | | | | | | | | | | | | | | | | | | | |
| Iron Mountain Information Management, LLC | | First lien senior secured loan | | 6.85% | | SOFR (M) | | 2.00% | | | | 01/2031 | | | | 11,230.5 | | | 11,189.0 | | | 11,146.3 | | (2)(5) | | |
| Vantage Data Centers Europe S.a r.l. (10) | | Private asset backed investment | | 10.13% | | Euribor (M) | | 6.75% | | | | 05/2029 | | | | 1,690.4 | | | 1,595.1 | | | 1,611.8 | | (5)(12) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 12,784.1 | | | 12,758.1 | | | 0.28 | % | |
| Semiconductors and Semiconductor Equipment | | | | | | | | | | | | | | | | | | | | | | | |
| Ultra Clean Holdings, Inc. | | First lien senior secured loan | | 8.35% | | SOFR (M) | | 3.50% | | | | 02/2028 | | | | 5,929.1 | | | 5,929.4 | | | 5,943.9 | | (2)(5) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 5,929.4 | | | 5,943.9 | | | 0.13 | % | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total Investments | | | | | | | | | | | | | | | | | | $ | 7,268,364.9 | | | $ | 7,316,022.9 | | (14) | 158.67 | % | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
See accompanying notes to consolidated financial statements.
27
Derivative Instruments
Foreign currency forward contracts
| | | | | | | | | | | | | | | | | | | | | | | | |
| Description | Notional Amount to be Purchased | Notional Amount to be Sold | Counterparty | Settlement Date | Unrealized Appreciation / (Depreciation) | |
| Foreign currency forward contract | $ | 60,284 | | £ | 47,367 | | Canadian Imperial Bank of Commerce | August 16, 2027 | $ | (1,225) | | |
| Foreign currency forward contract | $ | 41,019 | | CAD | 55,062 | | Canadian Imperial Bank of Commerce | November 16, 2026 | (176) | | |
| Foreign currency forward contract | $ | 39,996 | | £ | 31,468 | | Canadian Imperial Bank of Commerce | June 11, 2027 | (888) | | |
| Foreign currency forward contract | $ | 37,777 | | £ | 30,369 | | Wells Fargo Bank, N.A. | August 21, 2026 | (1,277) | | |
| Foreign currency forward contract | $ | 16,084 | | € | 14,761 | | Wells Fargo Bank, N.A. | October 25, 2024 | (184) | | |
| Foreign currency forward contract | $ | 12,330 | | AUD | 19,036 | | Wells Fargo Bank, N.A. | November 17, 2026 | (387) | | |
| Foreign currency forward contract | $ | 11,407 | | € | 10,143 | | Wells Fargo Bank, N.A. | March 30, 2027 | (177) | | |
| Foreign currency forward contract | $ | 11,370 | | £ | 9,005 | | Canadian Imperial Bank of Commerce | March 31, 2026 | (303) | | |
| Foreign currency forward contract | $ | 10,169 | | AUD | 15,394 | | Canadian Imperial Bank of Commerce | October 18, 2024 | (235) | | |
| Foreign currency forward contract | $ | 9,007 | | CAD | 12,123 | | Canadian Imperial Bank of Commerce | June 11, 2027 | (70) | | |
| Foreign currency forward contract | $ | 8,433 | | £ | 6,695 | | Canadian Imperial Bank of Commerce | August 21, 2026 | (229) | | |
| Foreign currency forward contract | $ | 5,448 | | € | 4,911 | | Canadian Imperial Bank of Commerce | March 26, 2026 | (66) | | |
| Foreign currency forward contract | $ | 5,004 | | NOK | 54,034 | | Canadian Imperial Bank of Commerce | March 31, 2026 | (56) | | |
| Foreign currency forward contract | $ | 3,966 | | £ | 3,090 | | Wells Fargo Bank, N.A. | October 25, 2024 | (83) | | |
| Foreign currency forward contract | $ | 3,440 | | € | 3,057 | | Canadian Imperial Bank of Commerce | May 22, 2026 | (21) | | |
| Foreign currency forward contract | $ | 2,640 | | AUD | 3,991 | | Canadian Imperial Bank of Commerce | February 18, 2026 | (60) | | |
| Foreign currency forward contract | $ | 2,303 | | NZD | 3,773 | | Canadian Imperial Bank of Commerce | July 17, 2026 | (47) | | |
| Foreign currency forward contract | $ | 2,035 | | CAD | 2,782 | | Wells Fargo Bank, N.A. | November 16, 2026 | (28) | | |
| Foreign currency forward contract | $ | 1,944 | | € | 1,716 | | Canadian Imperial Bank of Commerce | March 30, 2027 | (16) | | |
| Foreign currency forward contract | $ | 1,747 | | £ | 1,440 | | Wells Fargo Bank, N.A. | March 31, 2026 | (84) | | |
| Foreign currency forward contract | $ | 1,167 | | £ | 960 | | Wells Fargo Bank, N.A. | March 31, 2025 | (58) | | |
| Foreign currency forward contract | $ | 966 | | € | 880 | | Canadian Imperial Bank of Commerce | March 26, 2025 | (10) | | |
| Foreign currency forward contract | $ | 322 | | € | 296 | | Canadian Imperial Bank of Commerce | October 25, 2024 | (4) | | |
| Foreign currency forward contract | $ | 130 | | € | 116 | | Canadian Imperial Bank of Commerce | March 31, 2026 | — | | |
| Foreign currency forward contract | $ | 85 | | € | 77 | | Canadian Imperial Bank of Commerce | December 27, 2024 | — | | |
| Foreign currency forward contract | $ | 82 | | € | 74 | | Canadian Imperial Bank of Commerce | March 31, 2025 | — | | |
| Foreign currency forward contract | $ | 81 | | € | 72 | | Canadian Imperial Bank of Commerce | September 30, 2025 | — | | |
| Foreign currency forward contract | $ | 80 | | € | 72 | | Canadian Imperial Bank of Commerce | June 30, 2025 | — | | |
| Foreign currency forward contract | $ | 79 | | € | 70 | | Canadian Imperial Bank of Commerce | December 29, 2025 | — | | |
| Foreign currency forward contract | $ | 68 | | NZD | 110 | | Canadian Imperial Bank of Commerce | January 17, 2025 | (1) | | |
| Foreign currency forward contract | $ | 67 | | NZD | 109 | | Canadian Imperial Bank of Commerce | October 17, 2024 | (1) | | |
| Foreign currency forward contract | $ | 64 | | NZD | 104 | | Canadian Imperial Bank of Commerce | April 17, 2025 | (1) | | |
| Foreign currency forward contract | $ | 63 | | NZD | 102 | | Canadian Imperial Bank of Commerce | July 17, 2025 | (1) | | |
| Foreign currency forward contract | $ | 58 | | NZD | 95 | | Canadian Imperial Bank of Commerce | October 17, 2025 | (1) | | |
| Foreign currency forward contract | $ | 57 | | NZD | 93 | | Canadian Imperial Bank of Commerce | January 20, 2026 | (1) | | |
| Foreign currency forward contract | $ | 56 | | NZD | 92 | | Canadian Imperial Bank of Commerce | April 17, 2026 | (1) | | |
| Total | | | | | | | $ | (5,691) | | |
Interest rate swap
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Description | Hedged Item | Company Receives | Company Pays | Counterparty | Maturity Date | Notional Amount | Fair Value | Upfront Payments/Receipts | Change in Unrealized Appreciation / (Depreciation) | |
| Interest rate swap | August 2029 Notes | 6.350 | % | SOFR +2.208% | Wells Fargo Bank, N.A. | 08/15/2029 | $ | 700,000 | | $ | 25,436 | | $ | — | | $ | 25,436 | | |
| | | | | | | | | | |
| | | | | | | | | | |
| Total | | | | | | $ | 700,000 | | $ | 25,436 | | $ | — | | $ | 25,436 | | |
________________________________________
(1)Ares Strategic Income Fund’s (together with its consolidated wholly owned subsidiaries, the “Fund”) portfolio company investments, which as of September 30, 2024 represented 159% of the Fund’s net assets or 95% of the Fund’s total assets, may be subject to legal restrictions on sales.
(2)These assets are pledged as collateral under the Fund’s or the Fund’s consolidated subsidiaries’ various revolving credit facilities and, as a result, are not directly available to the creditors of the Fund to satisfy any obligations of the Fund other than the obligations under each of the respective facilities (see Note 5).
(3)Investments without an interest rate are non-income producing.
See accompanying notes to consolidated financial statements.
28
(4)As defined in the Investment Company Act, the Fund is deemed to be an “Affiliated Person” because it owns 5% or more of the portfolio company’s outstanding voting securities or it has the power to exercise control over the management or policies of such portfolio company (including through a management agreement). Transactions as of and during the nine months ended September 30, 2024 in which the issuer was an Affiliated Person of the Fund (but not a portfolio company that the Fund is deemed to Control) are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the Nine Months Ended September 30, 2024 | | As of September 30, 2024 |
(in thousands)
Company | | Purchases (cost) | | Redemptions (cost) | | Sales (cost) | | Interest income | | Dividend income | | Other income | | Net realized gains (losses) | | Net
unrealized gains (losses) | | Fair Value |
| Fitness Ventures Holdings, Inc. and Meaningful Partners Fitness Ventures Co-Investment LP | | $ | 47,659.7 | | | $ | — | | | $ | — | | | $ | 677.1 | | | $ | — | | | $ | 18.8 | | | $ | — | | | $ | (50.0) | | | $ | 47,626.8 | |
| OPH NEP Investment, LLC | | 30,771.7 | | | — | | | — | | | 1,460.0 | | | — | | | — | | | — | | | 1,913.9 | | | 33,745.8 | |
| | $ | 78,431.4 | | | $ | — | | | $ | — | | | $ | 2,137.1 | | | $ | — | | | $ | 18.8 | | | $ | — | | | $ | 1,863.9 | | | $ | 81,372.6 | |
(5)This portfolio company is not a qualifying asset under Section 55(a) of the Investment Company Act of 1940, as amended (together with the rules and regulations promulgated thereunder, the “Investment Company Act”). Under the Investment Company Act, the Fund may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Fund's total assets. Pursuant to Section 55(a) of the Investment Company Act, 20% of the Fund's total assets are represented by investments at fair value and other assets that are considered “non-qualifying assets” as of September 30, 2024.
(6)Variable rate loans to the Fund’s portfolio companies bear interest at a rate that may be determined by reference to the Secured Overnight Financing Rate (“SOFR”) or an alternate base rate (commonly based on the Federal Funds Rate or the Prime Rate), at the borrower’s option, which reset annually (A), semi-annually (S), quarterly (Q), bi-monthly (B), monthly (M) or daily (D). For each such loan, the Fund has provided the interest rate in effect on the date presented.
(7)Loan includes interest rate floor feature.
(8)As of September 30, 2024, no amounts were funded by the Fund under this first lien senior secured revolving loan; however, there were letters of credit issued and outstanding through a financial intermediary under the loan. See Note 7 for further information on letters of credit commitments related to certain portfolio companies.
(9)As of September 30, 2024, in addition to the amounts funded by the Fund under this first lien senior secured revolving loan, there were also letters of credit issued and outstanding through a financial intermediary under the loan. See Note 7 for further information on letters of credit commitments related to certain portfolio companies.
(10)As of September 30, 2024, the Fund had the following commitments to fund various revolving and delayed draw senior secured loans, including commitments to issue letters of credit through a financial intermediary on behalf of certain portfolio companies. Such commitments are subject to the satisfaction of certain conditions set forth in the documents governing these loans and letters of credit and there can be no assurance that such conditions will be satisfied. See Note 7 for further information on revolving and delayed draw loan commitments related to certain portfolio companies.
| | | | | | | | | | | | | | | | | | | | |
(in thousands)
Portfolio Company | Total revolving and delayed draw loan commitments | Less: funded commitments | Total unfunded commitments | Less: commitments substantially at discretion of the Fund | Less: unavailable commitments due to borrowing base or other covenant restrictions | Total net unfunded revolving and delayed draw commitments |
| 3 Step Sports LLC | $ | 13,584.9 | | $ | — | | $ | 13,584.9 | | $ | — | | $ | — | | $ | 13,584.9 | |
| Accession Risk Management Group, Inc. and RSC Insurance Brokerage, Inc. | 1,203.7 | | — | | 1,203.7 | | — | | — | | 1,203.7 | |
| Actfy Buyer, Inc. | 15,000.0 | | — | | 15,000.0 | | — | | — | | 15,000.0 | |
| Activate Holdings (US) Corp. and CrossPoint Capital AS SPV, LP | 1,056.3 | | — | | 1,056.3 | | — | | — | | 1,056.3 | |
| ADMA Biologics Inc. | 1.0 | | (0.6) | | 0.4 | | — | | — | | 0.4 | |
| Aduro Advisors, LLC | 16,461.7 | | — | | 16,461.7 | | — | | — | | 16,461.7 | |
| AI Titan Parent, Inc. | 17,304.7 | | — | | 17,304.7 | | — | | — | | 17,304.7 | |
| Airx Climate Solutions, Inc. | 16,585.8 | | — | | 16,585.8 | | — | | — | | 16,585.8 | |
| Alcami Corporation | 547.9 | | — | | 547.9 | | — | | — | | 547.9 | |
| Aldinger Company Inc | 6,664.7 | | — | | 6,664.7 | | — | | — | | 6,664.7 | |
| Amerivet Partners Management, Inc. and AVE Holdings LP | 3,393.9 | | — | | 3,393.9 | | — | | — | | 3,393.9 | |
See accompanying notes to consolidated financial statements.
29
| | | | | | | | | | | | | | | | | | | | |
(in thousands)
Portfolio Company | Total revolving and delayed draw loan commitments | Less: funded commitments | Total unfunded commitments | Less: commitments substantially at discretion of the Fund | Less: unavailable commitments due to borrowing base or other covenant restrictions | Total net unfunded revolving and delayed draw commitments |
| Amethyst Radiotherapy Group B.V. | 2,226.7 | | — | | 2,226.7 | | — | | — | | 2,226.7 | |
| Apex Service Partners, LLC and Apex Service Partners Holdings, LLC | 47,510.1 | | (979.0) | | 46,531.1 | | — | | — | | 46,531.1 | |
| Aptean, Inc. and Aptean Acquiror Inc. | 8,447.1 | | — | | 8,447.1 | | — | | — | | 8,447.1 | |
| Artifact Bidco, Inc. | 10,426.1 | | — | | 10,426.1 | | — | | — | | 10,426.1 | |
| Artivion, Inc. | 18,115.7 | | (1,983.0) | | 16,132.7 | | — | | — | | 16,132.7 | |
| Avalign Holdings, Inc. and Avalign Technologies, Inc. | 3,440.4 | | — | | 3,440.4 | | — | | — | | 3,440.4 | |
| Bamboo US BidCo LLC | 3,640.5 | | (0.7) | | 3,639.8 | | — | | — | | 3,639.8 | |
| BGI Purchaser, Inc. | 33,329.5 | | (11,109.8) | | 22,219.7 | | — | | — | | 22,219.7 | |
| BGIF IV Fearless Utility Services, Inc. | 22,688.7 | | (641.5) | | 22,047.2 | | — | | — | | 22,047.2 | |
| Bizzdesign Holding BV | 1,113.4 | | — | | 1,113.4 | | — | | — | | 1,113.4 | |
| Bobcat Purchaser, LLC and Bobcat Topco, L.P. | 1,595.7 | | — | | 1,595.7 | | — | | — | | 1,595.7 | |
| BR PJK Produce, LLC | 1,453.9 | | — | | 1,453.9 | | — | | — | | 1,453.9 | |
| BradyPlus Holdings, LLC | 921.2 | | — | | 921.2 | | — | | — | | 921.2 | |
| Broadcast Music, Inc. | 5,384.6 | | — | | 5,384.6 | | — | | — | | 5,384.6 | |
| Celnor Group Limited | 228.0 | | — | | 228.0 | | — | | — | | 228.0 | |
| Centralsquare Technologies, LLC and Supermoose Newco, Inc. | 4,310.3 | | — | | 4,310.3 | | — | | — | | 4,310.3 | |
| Chillaton Bidco Limited | 4,179.1 | | — | | 4,179.1 | | — | | — | | 4,179.1 | |
| City Line Distributors LLC and City Line Investments LLC | 1.5 | | — | | 1.5 | | — | | — | | 1.5 | |
| Cliffwater LLC | 1,470.6 | | — | | 1,470.6 | | — | | — | | 1,470.6 | |
| Collision SP Subco, LLC | 1,775.4 | | (52.9) | | 1,722.5 | | — | | — | | 1,722.5 | |
| Coupa Holdings, LLC and Coupa Software Incorporated | 410.8 | | — | | 410.8 | | — | | — | | 410.8 | |
| CPIG Holdco Inc. | 1.0 | | (0.5) | | 0.5 | | — | | — | | 0.5 | |
| Cube Industrials Buyer, Inc. and Cube A&D Buyer Inc. | 2,586.2 | | (336.8) | | 2,249.4 | | — | | — | | 2,249.4 | |
| Demakes Borrower, LLC | 3,292.7 | | — | | 3,292.7 | | — | | — | | 3,292.7 | |
| Diligent Corporation | 12,896.5 | | (53.5) | | 12,843.0 | | — | | — | | 12,843.0 | |
| Dorado Bidco, Inc. | 7,519.8 | | — | | 7,519.8 | | — | | — | | 7,519.8 | |
| DOXA Insurance Holdings LLC and Rocket Co-Invest, SLP | 25,225.6 | | — | | 25,225.6 | | — | | — | | 25,225.6 | |
| DP Flores Holdings, LLC | 22,210.7 | | — | | 22,210.7 | | — | | — | | 22,210.7 | |
| DriveCentric Holdings, LLC | 2,346.3 | | — | | 2,346.3 | | — | | — | | 2,346.3 | |
| Drogon Bidco Inc. & Drogon Aggregator LP | 22,779.3 | | — | | 22,779.3 | | — | | — | | 22,779.3 | |
| Duraserv LLC | 12,015.9 | | — | | 12,015.9 | | — | | — | | 12,015.9 | |
| Echo Purchaser, Inc. | 8,750.0 | | (159.1) | | 8,590.9 | | — | | — | | 8,590.9 | |
| Eclipse Topco, Inc., Eclipse Investor Parent, L.P. and Eclipse Buyer, Inc. | 30,382.5 | | — | | 30,382.5 | | — | | — | | 30,382.5 | |
| Edmunds Govtech, Inc. | 4,224.4 | | (301.4) | | 3,923.0 | | — | | — | | 3,923.0 | |
| Empower Payments Investor, LLC | 2,674.4 | | — | | 2,674.4 | | — | | — | | 2,674.4 | |
| Envisage Management Ltd | 329.7 | | — | | 329.7 | | — | | — | | 329.7 | |
| Epicor Software Corporation | 3,556.0 | | — | | 3,556.0 | | — | | — | | 3,556.0 | |
| Eternal Aus Bidco Pty Ltd | 1,311.6 | | — | | 1,311.6 | | — | | — | | 1,311.6 | |
| Excel Fitness Consolidator LLC | 2,002.4 | | — | | 2,002.4 | | — | | — | | 2,002.4 | |
| Excelitas Technologies Corp. | 32,500.0 | | — | | 32,500.0 | | — | | — | | 32,500.0 | |
| Fever Labs, Inc. | 20,625.7 | | (6,283.5) | | 14,342.2 | | — | | — | | 14,342.2 | |
| Finastra USA, Inc., DH Corporation/Societe DH, and Finastra Europe S.A R.L. | 2,349.6 | | — | | 2,349.6 | | — | | — | | 2,349.6 | |
| Fitness Ventures Holdings, Inc. and Meaningful Partners Fitness Ventures Co-Investment LP | 24,010.9 | | (1,907.9) | | 22,103.0 | | — | | — | | 22,103.0 | |
| Flint OpCo, LLC | 5,191.2 | | — | | 5,191.2 | | — | | — | | 5,191.2 | |
| FlyWheel Acquireco, Inc. | 1,607.1 | | (1,071.4) | | 535.7 | | — | | — | | 535.7 | |
| GC Waves Holdings, Inc. | 9,645.5 | | — | | 9,645.5 | | — | | — | | 9,645.5 | |
| Generator Buyer, Inc. | 2,715.6 | | — | | 2,715.6 | | — | | — | | 2,715.6 | |
| Gestion ABS Bidco Inc. / ABS Bidco Holdings Inc. | 8,740.3 | | — | | 8,740.3 | | — | | — | | 8,740.3 | |
| GS SEER Group Borrower LLC and GS SEER Group Holdings LLC | 3,427.0 | | — | | 3,427.0 | | — | | — | | 3,427.0 | |
| GSV Purchaser, Inc. | 30,943.0 | | — | | 30,943.0 | | — | | — | | 30,943.0 | |
| GTCR Everest Borrower, LLC | 1,659.6 | | — | | 1,659.6 | | — | | — | | 1,659.6 | |
See accompanying notes to consolidated financial statements.
30
| | | | | | | | | | | | | | | | | | | | |
(in thousands)
Portfolio Company | Total revolving and delayed draw loan commitments | Less: funded commitments | Total unfunded commitments | Less: commitments substantially at discretion of the Fund | Less: unavailable commitments due to borrowing base or other covenant restrictions | Total net unfunded revolving and delayed draw commitments |
| GTCR F Buyer Corp. and GTCR (D) Investors LP | 3,487.5 | | — | | 3,487.5 | | — | | — | | 3,487.5 | |
| Guidepoint Security Holdings, LLC | 2,659.5 | | — | | 2,659.5 | | — | | — | | 2,659.5 | |
| Hakken Midco B.V. | 873.6 | | — | | 873.6 | | — | | — | | 873.6 | |
| Harbourvest Global Private Equity Limited | 65,000.0 | | (26,000.0) | | 39,000.0 | | — | | — | | 39,000.0 | |
| Helios Service Partners, LLC and Astra Service Partners, LLC | 4,737.6 | | (0.2) | | 4,737.4 | | — | | — | | 4,737.4 | |
| Higginbotham Insurance Agency, Inc. | 3,812.7 | | — | | 3,812.7 | | — | | — | | 3,812.7 | |
| Hills Distribution, Inc., Hills Intermediate FT Holdings, LLC and GMP Hills, LP | 1,826.1 | | (0.6) | | 1,825.5 | | — | | — | | 1,825.5 | |
| HP RSS Buyer, Inc. | 5,359.3 | | — | | 5,359.3 | | — | | — | | 5,359.3 | |
| HPCC Parent, Inc. and Patriot Container Corp. | 6,155.1 | | — | | 6,155.1 | | — | | — | | 6,155.1 | |
| HuFriedy Group Acquisition LLC | 15,983.6 | | — | | 15,983.6 | | — | | — | | 15,983.6 | |
| Hyland Software, Inc. | 1,102.9 | | (58.8) | | 1,044.1 | | — | | — | | 1,044.1 | |
| Icefall Parent, Inc. | 735.5 | | — | | 735.5 | | — | | — | | 735.5 | |
| IGEA Bidco S.P.A | 5,213.3 | | — | | 5,213.3 | | — | | — | | 5,213.3 | |
| Indigo Acquisition B.V. | 1,215.2 | | — | | 1,215.2 | | — | | — | | 1,215.2 | |
| Infinity Home Services HoldCo, Inc., D&S Amalco and IHS Parent Holdings, L.P. | 4,614.6 | | (68.2) | | 4,546.4 | | — | | — | | 4,546.4 | |
| Internet Truckstop Group LLC | 1,990.0 | | — | | 1,990.0 | | — | | — | | 1,990.0 | |
| Keystone Agency Partners LLC | 9,242.4 | | — | | 9,242.4 | | — | | — | | 9,242.4 | |
| Kings Buyer, LLC | 1,529.3 | | (611.7) | | 917.6 | | — | | — | | 917.6 | |
| KPS Global LLC and Cool Group LLC | 3,073.6 | | — | | 3,073.6 | | — | | — | | 3,073.6 | |
| LBC Woodlands Purchaser LLC and LBC Woodlands Holdings LP | 14,513.1 | | — | | 14,513.1 | | — | | — | | 14,513.1 | |
| Legends Hospitality Holding Company, LLC and ASM Buyer, Inc. | 4,803.5 | | (486.2) | | 4,317.3 | | — | | — | | 4,317.3 | |
| Leviathan Intermediate Holdco, LLC and Leviathan Holdings, L.P. | 182.2 | | — | | 182.2 | | — | | — | | 182.2 | |
| Lightbeam Bidco, Inc. | 2,150.8 | | (0.3) | | 2,150.5 | | — | | — | | 2,150.5 | |
| Mai Capital Management Intermediate LLC | 5,973.5 | | — | | 5,973.5 | | — | | — | | 5,973.5 | |
| Meyer Laboratory, LLC and Meyer Parent, LLC | 5,027.9 | | — | | 5,027.9 | | — | | — | | 5,027.9 | |
| Mr. Greens Intermediate, LLC, Florida Veg Investments LLC, MRG Texas, LLC and Restaurant Produce and Services Blocker, LLC | 5,526.3 | | (139.4) | | 5,386.9 | | — | | — | | 5,386.9 | |
| Mustang Prospects Holdco, LLC, Mustang Prospects Purchaser, LLC and Senske Acquisition, Inc. | 8,736.3 | | — | | 8,736.3 | | — | | — | | 8,736.3 | |
| Netsmart, Inc. and Netsmart Technologies, Inc. | 22,120.1 | | — | | 22,120.1 | | — | | — | | 22,120.1 | |
| New ChurcHill HoldCo LLC and Victory Topco, LP | 13,570.0 | | — | | 13,570.0 | | — | | — | | 13,570.0 | |
| Next Holdco, LLC | 1,697.6 | | — | | 1,697.6 | | — | | — | | 1,697.6 | |
| North Haven Fairway Buyer, LLC, Fairway Lawns, LLC and Command Pest Control, LLC | 8,375.0 | | (252.5) | | 8,122.5 | | — | | — | | 8,122.5 | |
| North Haven Stack Buyer, LLC | 5.8 | | — | | 5.8 | | — | | — | | 5.8 | |
| North Star Acquisitionco, LLC and Toucan Bidco Limited | 4,956.6 | | (363.9) | | 4,592.7 | | — | | — | | 4,592.7 | |
| Northwinds Holding, Inc. and Northwinds Services Group LLC | 11,270.2 | | — | | 11,270.2 | | — | | — | | 11,270.2 | |
| OakBridge Insurance Agency LLC and Maple Acquisition Holdings, LP | 5,437.5 | | (419.6) | | 5,017.9 | | — | | — | | 5,017.9 | |
| Orange Barrel Media, LLC/IKE Smart City, LLC | 2,058.4 | | — | | 2,058.4 | | — | | — | | 2,058.4 | |
| Pallas Funding Trust No.2 | 609.8 | | — | | 609.8 | | — | | — | | 609.8 | |
| Pallas NZ Funding Trust No. 1 | 1,169.0 | | (1,169.0) | | — | | — | | — | | — | |
| Paragon 28, Inc. and Paragon Advanced Technologies, Inc. | 7,072.4 | | (0.5) | | 7,071.9 | | — | | — | | 7,071.9 | |
| Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P. | 3,417.1 | | (299.6) | | 3,117.5 | | — | | — | | 3,117.5 | |
| PCIA SPV-3, LLC and ASE Royal Aggregator, LLC | 4,266.7 | | — | | 4,266.7 | | — | | — | | 4,266.7 | |
| PCS MidCo, Inc. and PCS Parent, L.P. | 4,411.4 | | (238.6) | | 4,172.8 | | — | | — | | 4,172.8 | |
| PestCo Holdings, LLC and PestCo, LLC | 993.0 | | — | | 993.0 | | — | | — | | 993.0 | |
| Phoenix YW Buyer, Inc. and Phoenix YW Parent, Inc. | 7,139.2 | | — | | 7,139.2 | | — | | — | | 7,139.2 | |
| Premiere Buyer, LLC | 7,905.4 | | — | | 7,905.4 | | — | | — | | 7,905.4 | |
| Priority Waste Holdings LLC, Priority Waste Holdings Indiana LLC and Priority Waste Super Holdings, LLC | 2.0 | | (1.8) | | 0.2 | | — | | — | | 0.2 | |
See accompanying notes to consolidated financial statements.
31
| | | | | | | | | | | | | | | | | | | | |
(in thousands)
Portfolio Company | Total revolving and delayed draw loan commitments | Less: funded commitments | Total unfunded commitments | Less: commitments substantially at discretion of the Fund | Less: unavailable commitments due to borrowing base or other covenant restrictions | Total net unfunded revolving and delayed draw commitments |
| PSC Parent, Inc. | 17,758.5 | | (4,827.1) | | 12,931.4 | | — | | — | | 12,931.4 | |
| PYE-Barker Fire & Safety, LLC | 52,758.3 | | (1,085.7) | | 51,672.6 | | — | | — | | 51,672.6 | |
| Quick Quack Car Wash Holdings, LLC and KKR Game Changer Co-Invest Feeder II L.P. | 23,222.7 | | — | | 23,222.7 | | — | | — | | 23,222.7 | |
| Reagent Chemical & Research, LLC | 8,783.8 | | — | | 8,783.8 | | — | | — | | 8,783.8 | |
| Royal Borrower, LLC and Royal Parent, LP | 14,506.8 | | (282.5) | | 14,224.3 | | — | | — | | 14,224.3 | |
| Sapphire Software Buyer, Inc. | 6,818.3 | | — | | 6,818.3 | | — | | — | | 6,818.3 | |
| Severin Acquisition, LLC | 38,323.2 | | — | | 38,323.2 | | — | | — | | 38,323.2 | |
| SIG Parent Holdings, LLC | 17,428.3 | | — | | 17,428.3 | | — | | — | | 17,428.3 | |
| Silk Holdings III Corp. and Silk Holdings I Corp. | 5,940.6 | | (3,300.3) | | 2,640.3 | | — | | — | | 2,640.3 | |
| Solar Bidco Limited | 1,112.9 | | — | | 1,112.9 | | — | | — | | 1,112.9 | |
| Spark Purchaser, Inc. | 2,702.7 | | — | | 2,702.7 | | — | | — | | 2,702.7 | |
| St Athena Global LLC and St Athena Global Holdings Limited | 6,179.9 | | — | | 6,179.9 | | — | | — | | 6,179.9 | |
| Steward Partners Global Advisory, LLC and Steward Partners Investment Advisory, LLC | 2,435.5 | | — | | 2,435.5 | | — | | — | | 2,435.5 | |
| Sugar PPC Buyer LLC | 5,314.4 | | — | | 5,314.4 | | — | | — | | 5,314.4 | |
| Sunbit Receivables Trust IV | 2,700.0 | | (1,620.0) | | 1,080.0 | | — | | — | | 1,080.0 | |
| Sunvair Aerospace Group, Inc. and GB Helios Holdings, L.P. | 38,101.9 | | — | | 38,101.9 | | — | | — | | 38,101.9 | |
| Superman Holdings, LLC | 18,589.5 | | — | | 18,589.5 | | — | | — | | 18,589.5 | |
| SV Newco 2, Inc. | 16,259.6 | | — | | 16,259.6 | | — | | — | | 16,259.6 | |
| The Hiller Companies, LLC | 9,598.3 | | — | | 9,598.3 | | — | | — | | 9,598.3 | |
| Transit Technologies LLC | 6,332.0 | | — | | 6,332.0 | | — | | — | | 6,332.0 | |
| Truck-Lite Co., LLC, Ecco Holdings Corp. and Clarience Technologies, LLC | 7,531.4 | | (37.7) | | 7,493.7 | | — | | — | | 7,493.7 | |
| Truist Insurance Holdings, LLC | 4,792.2 | | (203.9) | | 4,588.3 | | — | | — | | 4,588.3 | |
| TSS Buyer, LLC | 1,985.1 | | — | | 1,985.1 | | — | | — | | 1,985.1 | |
| United Digestive MSO Parent, LLC and Koln Co-Invest Unblocked, LP | 4,245.3 | | (283.0) | | 3,962.3 | | — | | — | | 3,962.3 | |
| UP Intermediate II LLC and UPBW Blocker LLC | 2,210.2 | | (954.8) | | 1,255.4 | | — | | — | | 1,255.4 | |
| Vantage Data Centers Europe S.a r.l. | 2,239.8 | | — | | 2,239.8 | | — | | — | | 2,239.8 | |
| Vertex Service Partners, LLC and Vertex Service Partners Holdings, LLC | 3,115.9 | | (422.0) | | 2,693.9 | | — | | — | | 2,693.9 | |
| Victors Purchaser, LLC and WP Victors Co-Investment, L.P. | 18,651.0 | | — | | 18,651.0 | | — | | — | | 18,651.0 | |
| Vobev, LLC and Vobev Holdings, LLC | 183.9 | | (0.8) | | 183.1 | | — | | — | | 183.1 | |
| W.S. Connelly & Co., LLC and WSC Ultimate Holdings, LLC | 26,174.6 | | (7,039.3) | | 19,135.3 | | — | | — | | 19,135.3 | |
| Watt Holdco Limited | 652.4 | | — | | 652.4 | | — | | — | | 652.4 | |
| WCI-BXC Purchaser, LLC and WCI-BXC Investment Holdings, L.P. | 194.6 | | — | | 194.6 | | — | | — | | 194.6 | |
| Wellington Bidco Inc. and Wellington TopCo LP | 18,826.7 | | (1,189.7) | | 17,637.0 | | — | | — | | 17,637.0 | |
| Wellington-Altus Financial Inc. | 1,186.4 | | — | | 1,186.4 | | — | | — | | 1,186.4 | |
| World Insurance Associates, LLC and World Associates Holdings, LLC | 16,743.4 | | — | | 16,743.4 | | — | | — | | 16,743.4 | |
| Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P. | 847.5 | | (56.8) | | 790.7 | | — | | — | | 790.7 | |
| WRE Sports Investments LLC | 9,276.0 | | — | | 9,276.0 | | — | | — | | 9,276.0 | |
| Zinc Buyer Corporation | 27,840.1 | | (510.7) | | 27,329.4 | | — | | — | | 27,329.4 | |
| $ | 1,305,560.7 | | $ | (76,806.8) | | $ | 1,228,753.9 | | $ | — | | $ | — | | $ | 1,228,753.9 | |
(11)As of September 30, 2024, the Fund was party to agreements to fund equity investment commitments as follows:
See accompanying notes to consolidated financial statements.
32
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(in thousands)
Portfolio Company | Total equity commitments | Less: funded equity commitments | Total unfunded equity commitments | Less: equity commitments substantially at discretion of the Fund | | Total net unfunded equity commitments |
| Constellation Wealth Capital Fund, L.P. | $ | 3,693.2 | | $ | (1,935.7) | | $ | 1,757.5 | | $ | — | | | $ | 1,757.5 | |
| DOXA Insurance Holdings LLC and Rocket Co-Invest, SLP | 213.5 | | — | | 213.5 | | — | | | 213.5 | |
| GTCR F Buyer Corp. and GTCR (D) Investors LP | 25.9 | | — | | 25.9 | | — | | | 25.9 | |
| Linden Structured Capital Fund II-A LP | 2,572.9 | | (1,292.1) | | 1,280.8 | | — | | | 1,280.8 | |
| Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P. | 12.8 | | — | | 12.8 | | — | | | 12.8 | |
| Quintain Investments Holdings Limited | 22,041.2 | | — | | 22,041.2 | | — | | | 22,041.2 | |
| Tikehau Ruby CLO Equity LP | 247.5 | | — | | 247.5 | | — | | | 247.5 | |
| Tikehau Topaz LP | 977.0 | | — | | 977.0 | | — | | | 977.0 | |
| Wellington-Altus Financial Inc. | 3,277.1 | | — | | 3,277.1 | | — | | | 3,277.1 | |
| Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P. | 5.6 | | — | | 5.6 | | — | | | 5.6 | |
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| $ | 33,066.7 | | $ | (3,227.8) | | $ | 29,838.9 | | $ | — | | | $ | 29,838.9 | |
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(12)These investments were valued using unobservable inputs and are considered Level 3 investments. See Note 8 for more information regarding the fair value of the Fund’s investments.
(13)Loan was on non-accrual status as of September 30, 2024.
(14)As of September 30, 2024, the estimated net unrealized gain for federal tax purposes was $50.8 million based on a tax cost basis of $7.3 billion. As of September 30, 2024, the estimated aggregate gross unrealized gain for federal income tax purposes was $71.2 million and the estimated aggregate gross unrealized loss for federal income tax purposes was $20.4 million.
See accompanying notes to consolidated financial statements.
33
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (2) | | Reference (4) | | Spread (2) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| Software and Services | | | | | | | | | | | | | | | | | | | | | | | |
| Access CIG, LLC | | First lien senior secured loan | | 10.39% | | SOFR (Q) | | 5.00% | | | | 08/2028 | | | | $ | 10,972.5 | | | $ | 10,770.5 | | | $ | 10,979.4 | | (5) | | |
| Applied Systems, Inc. | | First lien senior secured loan | | 9.85% | | SOFR (Q) | | 4.50% | | | | 09/2026 | | | | 9,397.3 | | | 9,399.8 | | | 9,430.3 | | (5) | | |
| Aptean, Inc. and Aptean Acquiror Inc. | | First lien senior secured loan | | 9.71% | | SOFR (M) | | 4.25% | | | | 04/2026 | | | | 5,953.1 | | | 5,858.6 | | | 5,935.7 | | | | |
| BCTO Ignition Purchaser, Inc. | | First lien senior secured loan | | 14.40% PIK | | SOFR (Q) | | 9.00% | | | | 10/2030 | | | | 15,967.5 | | | 15,559.9 | | | 15,648.2 | | (3)(5)(6) | | |
| Bobcat Purchaser, LLC and Bobcat Topco, L.P. (8) | | First lien senior secured loan | | 11.59% | | SOFR (Q) | | 6.25% | | | | 06/2030 | | | | 13,370.7 | | | 13,062.5 | | | 13,370.7 | | (5)(6) | | |
| | Class A-1 units | | | | | | | | 06/2023 | | | | 100,000 | | | | 100.0 | | | 100.0 | | (6) | | |
| | | | | | | | | | | | | | | | | | 13,162.5 | | | 13,470.7 | | | | |
| Boxer Parent Company Inc. | | First lien senior secured loan | | 9.61% | | SOFR (S) | | 4.25% | | | | 12/2028 | | | | 9,157.3 | | | 9,132.1 | | | 9,210.0 | | (3) | | |
| CCC Intelligent Solutions Inc. | | First lien senior secured loan | | 7.72% | | SOFR (M) | | 2.25% | | | | 09/2028 | | | | 3,816.6 | | | 3,817.7 | | | 3,814.3 | | (3)(5) | | |
| Cloud Software Group, Inc. and Picard Parent, Inc. | | First lien senior secured loan | | 9.95% | | SOFR (B) | | 4.50% | | | | 09/2028 | | | | 31,676.7 | | | 30,255.7 | | | 30,820.5 | | (5) | | |
| | First lien senior secured loan | | 9.99% | | SOFR (Q) | | 4.50% | | | | 03/2029 | | | | 6,613.4 | | | 6,255.0 | | | 6,447.3 | | (5) | | |
| | Second lien senior secured notes | | 9.00% | | Fixed | | | | | | 09/2029 | | | | 100.0 | | | 80.5 | | | 95.3 | | | | |
| | | | | | | | | | | | | | | | | | 36,591.2 | | | 37,363.1 | | | | |
| Conservice Midco, LLC | | First lien senior secured loan | | 9.71% | | SOFR (M) | | 4.25% | | | | 05/2027 | | | | 3,989.7 | | | 3,958.3 | | | 3,991.4 | | | | |
| Coupa Holdings, LLC and Coupa Software Incorporated (8) | | First lien senior secured loan | | 12.86% | | SOFR (M) | | 7.50% | | | | 02/2030 | | | | 4,590.2 | | | 4,489.1 | | | 4,590.2 | | (5)(6) | | |
| Crosspoint Capital AS SPV, LP (8) | | First lien senior secured revolving loan | | 12.10% | | SOFR (Q) | | 6.75% | | | | 07/2029 | | | | 211.3 | | | 184.3 | | | 182.2 | | (3)(5)(6) | | |
| | First lien senior secured loan | | 12.10% | | SOFR (Q) | | 6.75% | | | | 07/2030 | | | | 13,908.8 | | | 13,548.7 | | | 13,769.7 | | (3)(5)(6) | | |
| | Limited partnership interest | | 8.00% PIK | | | | | | 10/2023 | | | | 100,000 | | | | 102.5 | | | 96.7 | | (3)(6) | | |
| | | | | | | | | | | | | | | | | | 13,835.5 | | | 14,048.6 | | | | |
| Echo Purchaser, Inc. (8) | | First lien senior secured revolving loan | | 10.87% | | SOFR (Q) | | 5.50% | | | | 11/2029 | | | | 159.1 | | | 81.2 | | | 79.5 | | (5)(6) | | |
| | First lien senior secured loan | | 10.87% | | SOFR (S) | | 5.50% | | | | 11/2029 | | | | 26,250.0 | | | 25,735.8 | | | 25,725.0 | | (5)(6) | | |
| | | | | | | | | | | | | | | | | | 25,817.0 | | | 25,804.5 | | | | |
| Epicor Software Corporation | | First lien senior secured loan | | 9.11% | | SOFR (M) | | 3.75% | | | | 07/2027 | | | | 6,500.0 | | | 6,450.7 | | | 6,552.0 | | (5) | | |
| | First lien senior secured loan | | 8.72% | | SOFR (M) | | 3.25% | | | | 07/2027 | | | | 5,256.0 | | | 5,214.6 | | | 5,269.6 | | (5) | | |
| | | | | | | | | | | | | | | | | | 11,665.3 | | | 11,821.6 | | | | |
| eResearch Technology, Inc. | | First lien senior secured loan | | 9.97% | | SOFR (M) | | 4.50% | | | | 02/2027 | | | | 29,922.5 | | | 28,708.8 | | | 29,847.7 | | (5) | | |
| Finastra USA, Inc., DH Corporation/Societe DH, and Finastra Europe S.A R.L. (8) | | First lien senior secured loan | | 12.71% | | SOFR (Q) | | 7.25% | | | | 09/2029 | | | | 22,650.4 | | | 22,218.3 | | | 22,423.9 | | (3)(5)(6) | | |
| Flexera Software LLC | | First lien senior secured loan | | 9.22% | | SOFR (M) | | 3.75% | | | | 03/2028 | | | | 8,677.5 | | | 8,663.7 | | | 8,659.8 | | (5) | | |
| Gainwell Acquisition Corp. | | First lien senior secured loan | | 9.45% | | SOFR (Q) | | 4.00% | | | | 10/2027 | | | | 8,451.3 | | | 8,293.4 | | | 8,197.8 | | (5) | | |
| Genesys Cloud Services Holdings I, LLC | | First lien senior secured loan | | 9.47% | | SOFR (M) | | 4.00% | | | | 12/2027 | | | | 7,040.9 | | | 7,055.5 | | | 7,063.5 | | (5) | | |
| Go Daddy Operating Company, LLC (GD Finance Co, Inc.) | | First lien senior secured loan | | 7.86% | | SOFR (M) | | 2.50% | | | | 11/2029 | | | | 8,569.4 | | | 8,566.2 | | | 8,591.6 | | (3) | | |
| Guidepoint Security Holdings, LLC (8) | | First lien senior secured loan | | 11.38% | | SOFR (Q) | | 6.00% | | | | 10/2029 | | | | 6,131.5 | | | 6,013.5 | | | 6,008.9 | | (5)(6) | | |
| Hakken Midco B.V. (8) | | First lien senior secured loan | | 10.94% | | Euribor (Q) | | 7.00% | | | | 01/2030 | | | | 4,222.6 | | | 4,118.8 | | | 4,222.6 | | (3)(5)(6) | | |
| | First lien senior secured loan | | 10.94% | | Euribor (Q) | | 7.00% | | | | 07/2030 | | | | 493.8 | | | 424.8 | | | 493.8 | | (3)(5)(6) | | |
| | | | | | | | | | | | | | | | | | 4,543.6 | | | 4,716.4 | | | | |
See accompanying notes to consolidated financial statements.
34
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (2) | | Reference (4) | | Spread (2) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| Hyland Software, Inc. (8) | | First lien senior secured loan | | 11.36% | | SOFR (M) | | 6.00% | | | | 09/2030 | | | | 23,897.1 | | | 23,551.9 | | | 23,538.6 | | (5)(6) | | |
| Idemia Group S.A.S. | | First lien senior secured loan | | 10.10% | | SOFR (Q) | | 4.75% | | | | 09/2028 | | | | 3,980.0 | | | 3,943.4 | | | 3,987.5 | | (3)(5) | | |
| Instructure Holdings, INC. | | First lien senior secured loan | | 8.68% | | SOFR (S) | | 2.75% | | | | 10/2028 | | | | 9,176.6 | | | 9,112.0 | | | 9,211.1 | | (3)(5) | | |
| ISolved, Inc. | | First lien senior secured loan | | 9.48% | | SOFR (S) | | 4.00% | | | | 10/2030 | | | | 5,770.7 | | | 5,719.1 | | | 5,770.7 | | (5) | | |
| Marcel Bidco GmbH | | First lien senior secured loan | | 9.81% | | SOFR (M) | | 4.50% | | | | 11/2030 | | | | 10,312.9 | | | 10,255.5 | | | 10,355.9 | | (3)(5) | | |
| Mitchell International, Inc. | | First lien senior secured loan | | 9.40% | | SOFR (Q) | | 3.75% | | | | 10/2028 | | | | 15,000.0 | | | 14,647.0 | | | 14,974.1 | | (5) | | |
| | First lien senior secured loan | | 9.40% | | SOFR (Q) | | 3.75% | | | | 10/2028 | | | | 99.7 | | | 97.4 | | | 99.6 | | (5) | | |
| | Second lien senior secured loan | | 12.15% | | SOFR (Q) | | 6.50% | | | | 10/2029 | | | | 145.8 | | | 134.7 | | | 142.8 | | (5) | | |
| | | | | | | | | | | | | | | | | | 14,879.1 | | | 15,216.5 | | | | |
| Mosel Bidco SE | | First lien senior secured loan | | 10.10% | | SOFR (Q) | | 4.75% | | | | 09/2030 | | | | 8,112.1 | | | 8,108.6 | | | 8,112.1 | | (3)(5)(6) | | |
| Netsmart, Inc. and Netsmart Technologies, Inc. | | First lien senior secured loan | | 9.22% | | SOFR (M) | | 3.75% | | | | 10/2027 | | | | 34,874.8 | | | 34,649.1 | | | 34,891.2 | | (5) | | |
| Open Text Corporation | | First lien senior secured loan | | 8.21% | | SOFR (M) | | 2.75% | | | | 01/2030 | | | | 7,533.0 | | | 7,515.6 | | | 7,545.3 | | (3)(5) | | |
| Particle Luxembourg S.a.r.l. | | First lien senior secured loan | | 10.72% | | SOFR (M) | | 5.25% | | | | 02/2027 | | | | 1,447.7 | | | 1,427.5 | | | 1,440.5 | | (3)(5) | | |
| Polaris Newco, LLC | | First lien senior secured loan | | 9.47% | | SOFR (M) | | 4.00% | | | | 06/2028 | | | | 4,481.3 | | | 4,284.8 | | | 4,415.2 | | (5) | | |
| Project Accelerate Parent, LLC | | First lien senior secured loan | | 9.89% | | SOFR (Q) | | 4.25% | | | | 01/2025 | | | | 17,094.9 | | | 17,005.7 | | | 17,052.2 | | (5) | | |
| Project Boost Purchaser, LLC | | First lien senior secured loan | | 8.97% | | SOFR (M) | | 3.50% | | | | 06/2026 | | | | 11,065.7 | | | 10,954.3 | | | 11,063.2 | | | | |
| | First lien senior secured loan | | 8.97% | | SOFR (M) | | 3.50% | | | | 05/2026 | | | | 10,168.0 | | | 10,142.9 | | | 10,159.5 | | (5) | | |
| | | | | | | | | | | | | | | | | | 21,097.2 | | | 21,222.7 | | | | |
| Proofpoint, Inc. | | First lien senior secured loan | | 8.72% | | SOFR (M) | | 3.25% | | | | 08/2028 | | | | 17,676.6 | | | 17,529.5 | | | 17,658.2 | | (5) | | |
| PushPay USA Inc. (8) | | First lien senior secured loan | | 12.28% | | SOFR (Q) | | 6.75% | | | | 05/2030 | | | | 4,631.2 | | | 4,505.1 | | | 4,584.9 | | (5)(6) | | |
| Quartz AcquireCo, LLC | | First lien senior secured loan | | 8.86% | | SOFR (M) | | 3.50% | | | | 06/2030 | | | | 6,483.8 | | | 6,472.5 | | | 6,500.0 | | (6) | | |
| Quest Software US Holdings Inc. | | First lien senior secured loan | | 9.78% | | SOFR (Q) | | 4.25% | | | | 02/2029 | | | | 1,994.9 | | | 1,687.0 | | | 1,515.6 | | (5) | | |
| RealPage, Inc. | | First lien senior secured loan | | 8.47% | | SOFR (M) | | 3.00% | | | | 04/2028 | | | | 14,683.0 | | | 14,572.6 | | | 14,549.0 | | (5) | | |
| | Second lien senior secured loan | | 11.97% | | SOFR (M) | | 6.50% | | | | 04/2029 | | | | 10,535.0 | | | 10,456.4 | | | 10,535.0 | | (5)(6) | | |
| | | | | | | | | | | | | | | | | | 25,029.0 | | | 25,084.0 | | | | |
| Severin Acquisition, LLC | | First lien senior secured loan | | 8.60% | | SOFR (Q) | | 3.25% | | | | 08/2027 | | | | 10,461.9 | | | 10,441.6 | | | 10,494.6 | | (3) | | |
| Sophia, L.P. | | First lien senior secured loan | | 8.96% | | SOFR (M) | | 3.50% | | | | 10/2027 | | | | 12,330.9 | | | 12,234.1 | | | 12,342.5 | | (5) | | |
| | First lien senior secured loan | | 9.61% | | SOFR (M) | | 4.25% | | | | 10/2027 | | | | 916.8 | | | 906.2 | | | 914.7 | | (5) | | |
| | | | | | | | | | | | | | | | | | 13,140.3 | | | 13,257.2 | | | | |
| Tenable Holdings, Inc. | | First lien senior secured loan | | 8.22% | | SOFR (M) | | 2.75% | | | | 07/2028 | | | | 3,430.0 | | | 3,430.0 | | | 3,421.4 | | (3)(5) | | |
| UserZoom Technologies, Inc. | | First lien senior secured loan | | 12.99% | | SOFR (Q) | | 7.50% | | | | 04/2029 | | | | 634.4 | | | 618.3 | | | 628.1 | | (5)(6) | | |
| Verscend Holding Corp. | | First lien senior secured loan | | 9.47% | | SOFR (M) | | 4.00% | | | | 08/2025 | | | | 17,051.2 | | | 17,039.2 | | | 17,065.4 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 519,562.5 | | | 524,586.5 | | | 29.78 | % | |
| Health Care Services | | | | | | | | | | | | | | | | | | | | | | | |
| Agiliti Health, Inc. | | First lien senior secured loan | | 8.39% | | SOFR (Q) | | 3.00% | | | | 05/2030 | | | | 4,381.9 | | | 4,368.8 | | | 4,376.4 | | (3) | | |
See accompanying notes to consolidated financial statements.
35
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (2) | | Reference (4) | | Spread (2) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| Amerivet Partners Management, Inc. and AVE Holdings LP (8) | | Subordinated loan | | 16.50% PIK | | Fixed | | | | | | 12/2030 | | | | 26,053.3 | | | 24,532.8 | | | 24,490.1 | | (6) | | |
| | Class C units | | | | | | | | 11/2023 | | | | 3,849 | | | | 768.4 | | | 768.4 | | (6) | | |
| | | | | | | | | | | | | | | | | | 25,301.2 | | | 25,258.5 | | | | |
| athenahealth Group Inc. | | First lien senior secured loan | | 8.61% | | SOFR (M) | | 3.25% | | | | 02/2029 | | | | 33,486.8 | | | 32,537.2 | | | 33,302.7 | | (5) | | |
| Bausch + Lomb Corporation | | First lien senior secured loan | | 9.36% | | SOFR (M) | | 4.00% | | | | 09/2028 | | | | 4,987.5 | | | 4,939.7 | | | 4,968.8 | | (3) | | |
| Bracket Intermediate Holding Corp. | | First lien senior secured loan | | 10.45% | | SOFR (Q) | | 5.00% | | | | 05/2028 | | | | 11,316.4 | | | 11,129.9 | | | 11,299.9 | | (5) | | |
| Confluent Medical Technologies, Inc. | | First lien senior secured loan | | 9.10% | | SOFR (Q) | | 3.75% | | | | 02/2029 | | | | 4,608.2 | | | 4,543.4 | | | 4,596.7 | | (5)(6) | | |
| Electron Bidco Inc. | | First lien senior secured loan | | 8.47% | | SOFR (M) | | 3.00% | | | | 11/2028 | | | | 10,480.7 | | | 10,408.7 | | | 10,495.2 | | (5) | | |
| Ensemble RCM, LLC | | First lien senior secured loan | | 9.23% | | SOFR (Q) | | 3.75% | | | | 08/2026 | | | | 19,267.8 | | | 19,254.5 | | | 19,288.4 | | | | |
| Financiere Mendel | | First lien senior secured loan | | 9.62% | | SOFR (S) | | 4.25% | | | | 11/2030 | | | | 8,000.0 | | | 7,926.7 | | | 7,992.5 | | (3) | | |
| Lifepoint Health Inc | | First lien senior secured loan | | 11.17% | | SOFR (S) | | 5.50% | | | | 11/2028 | | | | 7,805.1 | | | 7,573.6 | | | 7,771.9 | | | | |
| Mamba Purchaser, Inc. | | First lien senior secured loan | | 8.97% | | SOFR (M) | | 3.50% | | | | 10/2028 | | | | 13,358.9 | | | 13,266.3 | | | 13,334.0 | | (5) | | |
| Medline Borrower, LP | | First lien senior secured loan | | 8.47% | | SOFR (M) | | 3.00% | | | | 10/2028 | | | | 12,972.6 | | | 12,919.4 | | | 13,025.3 | | (5) | | |
| Next Holdco, LLC (8) | | First lien senior secured loan | | 11.37% | | SOFR (M) | | 6.00% | | | | 11/2030 | | | | 5,786.1 | | | 5,700.9 | | | 5,699.4 | | (5)(6) | | |
| Nomi Health, Inc. | | First lien senior secured loan | | 13.64% | | SOFR (S) | | 8.25% | | | | 07/2028 | | | | 11,639.2 | | | 11,319.6 | | | 11,290.0 | | (5)(6) | | |
| Option Care Health Inc | | First lien senior secured loan | | 8.22% | | SOFR (M) | | 2.75% | | | | 10/2028 | | | | 5,894.9 | | | 5,893.5 | | | 5,914.5 | | (3)(5) | | |
| Paragon 28, Inc. and Paragon Advanced Technologies, Inc. (8) | | First lien senior secured revolving loan | | 9.38% | | SOFR (M) | | 4.00% | | | | 11/2028 | | | | 0.5 | | | 0.5 | | | 0.5 | | (3)(5)(6) | | |
| | First lien senior secured loan | | 12.13% (3.38% PIK) | | SOFR (Q) | | 6.75% | | | | 11/2028 | | | | 21,214.9 | | | 20,699.7 | | | 20,684.5 | | (3)(5)(6) | | |
| | | | | | | | | | | | | | | | | | 20,700.2 | | | 20,685.0 | | | | |
| PointClickCare Technologies Inc. | | First lien senior secured loan | | 8.61% | | SOFR (Q) | | 3.00% | | | | 12/2027 | | | | 5,975.5 | | | 5,964.3 | | | 5,968.0 | | (3)(5) | | |
| R1 RCM Inc. | | First lien senior secured loan | | 10.33% | | SOFR (S) | | 5.00% | | | | 06/2029 | | | | 1,180.0 | | | 1,165.7 | | | 1,178.9 | | (3) | | |
| Radnet Management, Inc. | | First lien senior secured loan | | 8.64% | | SOFR (Q) | | 3.00% | | | | 04/2028 | | | | 14,165.5 | | | 14,165.2 | | | 14,195.7 | | (3)(5) | | |
| Select Medical Corporation | | First lien senior secured loan | | 8.36% | | SOFR (M) | | 3.00% | | | | 03/2027 | | | | 5,563.5 | | | 5,538.8 | | | 5,558.2 | | (3) | | |
| Sharp Midco LLC | | First lien senior secured loan | | 9.45% | | SOFR (Q) | | 4.00% | | | | 12/2028 | | | | 1,989.9 | | | 1,989.9 | | | 1,992.4 | | (5)(6) | | |
| | First lien senior secured loan | | 9.85% | | SOFR (Q) | | 4.50% | | | | 12/2028 | | | | 3,350.0 | | | 3,301.9 | | | 3,345.8 | | (5) | | |
| | | | | | | | | | | | | | | | | | 5,291.8 | | | 5,338.2 | | | | |
| Sotera Health Holdings, LLC | | First lien senior secured loan | | 9.11% | | SOFR (M) | | 3.75% | | | | 12/2026 | | | | 2,985.0 | | | 2,985.0 | | | 2,983.1 | | (3)(5) | | |
| | First lien senior secured loan | | 8.39% | | SOFR (Q) | | 2.75% | | | | 12/2026 | | | | 6,500.0 | | | 6,481.7 | | | 6,489.1 | | (3)(5) | | |
| | | | | | | | | | | | | | | | | | 9,466.7 | | | 9,472.2 | | | | |
| Surgery Center Holdings, Inc. | | First lien senior secured loan | | 8.86% | | SOFR (S) | | 3.50% | | | | 12/2030 | | | | 9,528.2 | | | 9,518.1 | | | 9,556.0 | | (3) | | |
| United Digestive MSO Parent, LLC and Koln Co-Invest Unblocked, LP (8) | | First lien senior secured loan | | 12.25% | | SOFR (Q) | | 6.75% | | | | 03/2029 | | | | 10,674.1 | | | 10,394.3 | | | 10,674.1 | | (5)(6) | | |
| | Class A interests | | | | | | | | 03/2023 | | | | 100 | | | | 100.0 | | | 97.2 | | (6) | | |
| | | | | | | | | | | | | | | | | | 10,494.3 | | | 10,771.3 | | | | |
| Viant Medical Holdings, Inc. | | First lien senior secured loan | | 9.22% | | SOFR (M) | | 3.75% | | | | 07/2025 | | | | 31,797.2 | | | 31,033.3 | | | 31,360.0 | | | | |
| | Second lien senior secured loan | | 13.22% | | SOFR (M) | | 7.75% | | | | 07/2026 | | | | 40.4 | | | 37.7 | | | 38.7 | | | | |
| | | | | | | | | | | | | | | | | | 31,071.0 | | | 31,398.7 | | | | |
See accompanying notes to consolidated financial statements.
36
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (2) | | Reference (4) | | Spread (2) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| Waystar Technologies, Inc. | | First lien senior secured loan | | 9.47% | | SOFR (M) | | 4.00% | | | | 10/2026 | | | | 10,867.5 | | | 10,848.3 | | | 10,894.7 | | | | |
| Zelis Cost Management Buyer, Inc. | | First lien senior secured loan | | 8.97% | | SOFR (M) | | 3.50% | | | | 09/2026 | | | | 10,614.8 | | | 10,634.5 | | | 10,625.7 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 311,942.3 | | | 314,256.8 | | | 17.84 | % | |
| Consumer Services | | | | | | | | | | | | | | | | | | | | | | | |
| Alterra Mountain Company | | First lien senior secured loan | | 9.21% | | SOFR (M) | | 3.75% | | | | 05/2030 | | | | 7,887.4 | | | 7,881.8 | | | 7,926.9 | | (6) | | |
| | First lien senior secured loan | | 8.97% | | SOFR (M) | | 3.50% | | | | 08/2028 | | | | 1,283.6 | | | 1,272.9 | | | 1,283.6 | | (5) | | |
| | | | | | | | | | | | | | | | | | 9,154.7 | | | 9,210.5 | | | | |
| Apex Service Partners, LLC and Apex Service Partners Holdings, LLC (8) | | First lien senior secured revolving loan | | 14.00% | | Base Rate (Q) | | 5.50% | | | | 10/2029 | | | | 68.0 | | | 47.4 | | | 46.7 | | (5)(6) | | |
| | First lien senior secured revolving loan | | 11.87% | | SOFR (Q) | | 6.50% | | | | 10/2029 | | | | 95.2 | | | 66.4 | | | 65.4 | | (5)(6) | | |
| | First lien senior secured loan | | 12.40% (2.00% PIK) | | SOFR (Q) | | 7.00% | | | | 10/2030 | | | | 26,941.4 | | | 26,170.3 | | | 26,148.9 | | (5)(6) | | |
| | Series B common units | | | | | | | | 10/2023 | | | | 45,351 | | | | 1,250.0 | | | 1,250.0 | | (6) | | |
| | | | | | | | | | | | | | | | | | 27,534.1 | | | 27,511.0 | | | | |
| Belfor Holdings, Inc. | | First lien senior secured loan | | 9.11% | | SOFR (M) | | 3.75% | | | | 11/2030 | | | | 16,434.2 | | | 16,298.0 | | | 16,465.1 | | (5) | | |
| Caesars Entertainment Inc | | First lien senior secured loan | | 8.71% | | SOFR (M) | | 3.25% | | | | 02/2030 | | | | 8,465.3 | | | 8,453.6 | | | 8,477.2 | | (3)(5) | | |
| ClubCorp Holdings, Inc. | | First lien senior secured loan | | 10.61% | | SOFR (Q) | | 5.00% | | | | 09/2026 | | | | 2,710.5 | | | 2,599.6 | | | 2,607.2 | | | | |
| | First lien senior secured loan | | 8.18% | | LIBOR (Q) | | 2.75% | | | | 09/2024 | | | | 1,542.5 | | | 1,523.2 | | | 1,480.8 | | | | |
| | | | | | | | | | | | | | | | | | 4,122.8 | | | 4,088.0 | | | | |
| Eternal Aus Bidco Pty Ltd (8) | | First lien senior secured loan | | 10.70% (2.50% PIK) | | BBSY (S) | | 6.25% | | | | 10/2029 | | | | 6,708.0 | | | 6,266.5 | | | 6,708.0 | | (3)(5)(6) | | |
| Excel Fitness Consolidator LLC (8) | | First lien senior secured loan | | 11.00% | | SOFR (Q) | | 5.50% | | | | 04/2029 | | | | 6,650.0 | | | 6,494.2 | | | 6,483.8 | | (5)(6) | | |
| Fertitta Entertainment, LLC | | First lien senior secured loan | | 9.36% | | SOFR (M) | | 4.00% | | | | 01/2029 | | | | 7,850.8 | | | 7,811.3 | | | 7,849.1 | | (5) | | |
| Flint OpCo, LLC (8) | | First lien senior secured loan | | 10.60% | | SOFR (Q) | | 5.25% | | | | 08/2030 | | | | 7,812.9 | | | 7,609.3 | | | 7,562.9 | | (5)(6) | | |
| Four Seasons Holdings Inc. | | First lien senior secured loan | | 7.96% | | SOFR (M) | | 2.50% | | | | 11/2029 | | | | 11,110.3 | | | 11,123.6 | | | 11,140.9 | | (3)(5) | | |
| Gems Menasa (Cayman) Limited | | First lien senior secured loan | | 10.40% | | SOFR (Q) | | 4.75% | | | | 07/2026 | | | | 7,450.6 | | | 7,471.0 | | | 7,464.6 | | (3)(5) | | |
| GroundWorks, LLC (8) | | First lien senior secured loan | | 11.90% | | SOFR (Q) | | 6.50% | | | | 03/2030 | | | | 11,938.8 | | | 11,631.4 | | | 11,938.8 | | (5)(6) | | |
| GS SEER Group Borrower LLC and GS SEER Group Holdings LLC (8) | | First lien senior secured loan | | 12.10% | | SOFR (Q) | | 6.75% | | | | 04/2030 | | | | 10,381.2 | | | 10,006.0 | | | 10,381.2 | | (5)(6) | | |
| | Class A common units | | | | | | | | 04/2023 | | | | 100 | | | | 100.0 | | | 90.8 | | (6) | | |
| | | | | | | | | | | | | | | | | | 10,106.0 | | | 10,472.0 | | | | |
| Helios Service Partners, LLC and Astra Service Partners, LLC (8) | | First lien senior secured revolving loan | | 11.62% | | SOFR (Q) | | 6.00% | | | | 03/2027 | | | | 0.6 | | | 0.6 | | | 0.6 | | (5)(6) | | |
| | First lien senior secured loan | | 11.87% | | SOFR (Q) | | 6.25% | | | | 03/2027 | | | | 6,989.6 | | | 6,838.9 | | | 6,739.8 | | (5)(6) | | |
| | | | | | | | | | | | | | | | | | 6,839.5 | | | 6,740.4 | | | | |
| Hilton Domestic Operating Company Inc. | | First lien senior secured loan | | 7.46% | | SOFR (M) | | 2.00% | | | | 11/2030 | | | | 3,500.0 | | | 3,491.4 | | | 3,510.6 | | (3) | | |
| Infinity Home Services HoldCo, Inc., D&S Amalco and IHS Parent Holdings, L.P. (8) | | First lien senior secured loan | | 12.20% | | SOFR (Q) | | 6.75% | | | | 12/2028 | | | | 4,108.3 | | | 3,995.8 | | | 4,108.3 | | (3)(5)(6) | | |
| | First lien senior secured loan | | 11.50% | | CDOR (Q) | | 6.00% | | | | 12/2028 | | | | 1,013.4 | | | 842.9 | | | 1,050.8 | | (3)(5)(6) | | |
| | Class A units | | | | | | | | 12/2022 | | | | 50,000 | | | | 50.0 | | | 65.2 | | (6) | | |
| | | | | | | | | | | | | | | | | | 4,888.7 | | | 5,224.3 | | | | |
See accompanying notes to consolidated financial statements.
37
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (2) | | Reference (4) | | Spread (2) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| IRB Holding Corp. | | First lien senior secured loan | | 8.46% | | SOFR (M) | | 3.00% | | | | 12/2027 | | | | 12,692.5 | | | 12,617.7 | | | 12,701.5 | | (5) | | |
| Learning Care Group (US) No. 2 Inc. | | First lien senior secured loan | | 10.13% | | SOFR (Q) | | 4.75% | | | | 08/2028 | | | | 5,972.8 | | | 5,942.1 | | | 5,999.7 | | (5) | | |
| Leviathan Intermediate Holdco, LLC and Leviathan Holdings, L.P. (8) | | First lien senior secured loan | | 13.00% | | SOFR (Q) | | 7.50% | | | | 12/2027 | | | | 9,719.6 | | | 9,487.1 | | | 9,719.6 | | (5)(6) | | |
| | Limited partnership interests | | | | | | | | 12/2022 | | | | 50,000 | | | | 50.0 | | | 48.8 | | (6) | | |
| | | | | | | | | | | | | | | | | | 9,537.1 | | | 9,768.4 | | | | |
| Motion Acquisition Limited | | First lien senior secured loan | | 8.86% | | SOFR (Q) | | 3.25% | | | | 11/2026 | | | | 11,081.5 | | | 11,030.8 | | | 11,081.5 | | (3) | | |
| Northwinds Holding, Inc. and Northwinds Services Group LLC (8) | | First lien senior secured loan | | 12.18% | | SOFR (Q) | | 6.50% | | | | 05/2029 | | | | 11,499.1 | | | 11,145.2 | | | 11,499.1 | | (5)(6) | | |
| | Common units | | | | | | | | 05/2023 | | | | 76,923 | | | | 100.0 | | | 109.4 | | (6) | | |
| | | | | | | | | | | | | | | | | | 11,245.2 | | | 11,608.5 | | | | |
| PestCo Holdings, LLC and PestCo, LLC (8) | | First lien senior secured loan | | 12.03% | | SOFR (Q) | | 6.50% | | | | 02/2028 | | | | 9,845.6 | | | 9,603.1 | | | 9,845.6 | | (5)(6) | | |
| | Class A units | | | | | | | | 01/2023 | | | | 8 | | | | 100.0 | | | 128.0 | | (6) | | |
| | | | | | | | | | | | | | | | | | 9,703.1 | | | 9,973.6 | | | | |
| Radiant Intermediate Holding, LLC | | First lien senior secured loan | | 11.24% | | SOFR (Q) | | 5.75% | | | | 11/2026 | | | | 905.4 | | | 885.6 | | | 869.2 | | (5)(6) | | |
| Restaurant Brands International Inc. | | First lien senior secured loan | | 7.61% | | SOFR (M) | | 2.25% | | | | 09/2030 | | | | 12,000.0 | | | 11,966.2 | | | 11,995.7 | | (3) | | |
| Service Logic Acquisition, Inc. and MSHC, Inc. | | First lien senior secured loan | | 9.64% | | SOFR (Q) | | 4.00% | | | | 10/2027 | | | | 5,361.4 | | | 5,331.9 | | | 5,352.5 | | (5) | | |
| | First lien senior secured loan | | 11.14% | | SOFR (M) | | 5.50% | | | | 10/2027 | | | | 14,113.9 | | | 13,897.0 | | | 14,113.9 | | (5)(6) | | |
| | | | | | | | | | | | | | | | | | 19,228.9 | | | 19,466.4 | | | | |
| TSS Buyer, LLC (8) | | First lien senior secured loan | | 11.00% | | SOFR (S) | | 5.50% | | | | 06/2029 | | | | 7,026.1 | | | 6,794.3 | | | 6,776.5 | | (5)(6) | | |
| Vertex Service Partners, LLC and Vertex Service Partners Holdings, LLC (8) | | First lien senior secured loan | | 10.89% | | SOFR (S) | | 5.50% | | | | 11/2030 | | | | 15,823.2 | | | 15,305.2 | | | 15,032.0 | | (5)(6) | | |
| | Class B common units | | | | | | | | 11/2023 | | | | 351 | | | | 351.0 | | | 351.0 | | (6) | | |
| | | | | | | | | | | | | | | | | | 15,656.2 | | | 15,383.0 | | | | |
| Whatabrands LLC | | First lien senior secured loan | | 8.47% | | SOFR (M) | | 3.00% | | | | 08/2028 | | | | 5,221.5 | | | 5,217.6 | | | 5,223.8 | | (5) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 269,120.9 | | | 271,695.0 | | | 15.43 | % | |
| Capital Goods | | | | | | | | | | | | | | | | | | | | | | | |
| AI Aqua Merger Sub, Inc. (8) | | First lien senior secured loan | | 9.58% | | SOFR (S) | | 4.25% | | | | 07/2028 | | | | 5,782.6 | | | 5,782.6 | | | 5,806.7 | | (5) | | |
| | First lien senior secured loan | | 9.09% | | SOFR (M) | | 3.75% | | | | 07/2028 | | | | 9,005.2 | | | 8,989.6 | | | 9,000.1 | | (5) | | |
| | | | | | | | | | | | | | | | | | 14,772.2 | | | 14,806.8 | | | | |
| Airx Climate Solutions, Inc. (8) | | First lien senior secured loan | | 11.68% | | SOFR (Q) | | 6.25% | | | | 11/2029 | | | | 23,564.8 | | | 22,990.4 | | | 22,975.7 | | (5)(6) | | |
| Artera Services, LLC | | First lien senior secured loan | | 8.70% | | SOFR (Q) | | 3.25% | | | | 03/2025 | | | | 3,941.2 | | | 3,696.4 | | | 3,699.1 | | (5) | | |
| | First lien senior secured loan | | 8.95% | | SOFR (Q) | | 3.50% | | | | 03/2025 | | | | 2,058.2 | | | 1,912.1 | | | 1,931.5 | | (5) | | |
| | | | | | | | | | | | | | | | | | 5,608.5 | | | 5,630.6 | | | | |
| Brookfield WEC Holdings Inc. | | First lien senior secured loan | | 9.11% | | SOFR (M) | | 3.75% | | | | 08/2025 | | | | 2,806.5 | | | 2,806.5 | | | 2,813.6 | | (5) | | |
| | First lien senior secured loan | | 8.22% | | SOFR (M) | | 2.75% | | | | 08/2025 | | | | 13,366.9 | | | 13,338.3 | | | 13,392.6 | | (5) | | |
| | | | | | | | | | | | | | | | | | 16,144.8 | | | 16,206.2 | | | | |
| Brown Group Holding, LLC | | First lien senior secured loan | | 9.13% | | SOFR (Q) | | 3.75% | | | | 07/2029 | | | | 5,942.2 | | | 5,936.3 | | | 5,957.1 | | (5) | | |
| | First lien senior secured loan | | 8.21% | | SOFR (M) | | 2.75% | | | | 06/2028 | | | | 1,989.1 | | | 1,986.7 | | | 1,989.8 | | (5) | | |
| | | | | | | | | | | | | | | | | | 7,923.0 | | | 7,946.9 | | | | |
| Burgess Point Purchaser Corporation | | First lien senior secured loan | | 10.71% | | SOFR (M) | | 5.25% | | | | 07/2029 | | | | 34,850.0 | | | 32,837.9 | | | 32,795.3 | | (5) | | |
See accompanying notes to consolidated financial statements.
38
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (2) | | Reference (4) | | Spread (2) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| Chart Industries, Inc. | | First lien senior secured loan | | 8.69% | | SOFR (M) | | 3.25% | | | | 03/2030 | | | | 13,277.4 | | | 13,227.6 | | | 13,288.4 | | (3)(5) | | |
| Clarios Global LP | | First lien senior secured loan | | 9.11% | | SOFR (M) | | 3.75% | | | | 05/2030 | | | | 6,733.1 | | | 6,712.6 | | | 6,741.5 | | | | |
| CPIG Holdco Inc. (8) | | First lien senior secured revolving loan | | 10.24% | | SOFR (Q) | | 4.75% | | | | 04/2028 | | | | 0.5 | | | 0.5 | | | 0.5 | | (5)(6) | | |
| | First lien senior secured loan | | 12.49% | | SOFR (Q) | | 7.00% | | | | 04/2028 | | | | 14,962.5 | | | 14,574.6 | | | 14,962.5 | | (5)(6) | | |
| | | | | | | | | | | | | | | | | | 14,575.1 | | | 14,963.0 | | | | |
| Cube Industrials Buyer, Inc. and Cube A&D Buyer Inc. (8) | | First lien senior secured loan | | 11.40% | | SOFR (Q) | | 6.00% | | | | 10/2030 | | | | 22,413.8 | | | 21,868.1 | | | 21,853.4 | | (5)(6) | | |
| Dynasty Acquisition Co., Inc. | | First lien senior secured loan | | 9.36% | | SOFR (M) | | 4.00% | | | | 08/2028 | | | | 12,037.8 | | | 11,907.7 | | | 12,061.8 | | | | |
| Gates Global LLC | | First lien senior secured loan | | 8.36% | | SOFR (M) | | 3.00% | | | | 11/2029 | | | | 790.0 | | | 790.9 | | | 791.7 | | (3)(5) | | |
| | First lien senior secured loan | | 7.96% | | SOFR (M) | | 2.50% | | | | 03/2027 | | | | 2,880.5 | | | 2,880.0 | | | 2,882.3 | | (3)(5) | | |
| | | | | | | | | | | | | | | | | | 3,670.9 | | | 3,674.0 | | | | |
| Helix Acquisition Holdings, Inc. | | First lien senior secured loan | | 12.45% | | SOFR (Q) | | 7.00% | | | | 03/2030 | | | | 14,188.7 | | | 13,808.9 | | | 14,188.7 | | (5)(6) | | |
| Husky Injection Molding Systems Ltd. | | First lien senior secured loan | | 8.47% | | SOFR (M) | | 3.00% | | | | 03/2025 | | | | 16,906.3 | | | 16,815.6 | | | 16,871.2 | | (3) | | |
| Pike Corporation | | First lien senior secured loan | | 8.47% | | SOFR (M) | | 3.00% | | | | 01/2028 | | | | 7,535.6 | | | 7,535.6 | | | 7,551.3 | | | | |
| Propulsion (BC) Newco LLC | | First lien senior secured loan | | 9.10% | | SOFR (Q) | | 3.75% | | | | 09/2029 | | | | 7,841.3 | | | 7,819.9 | | | 7,842.8 | | (3)(5) | | |
| Specialty Building Products Holdings, LLC | | First lien senior secured loan | | 9.21% | | SOFR (M) | | 3.75% | | | | 10/2028 | | | | 5,965.9 | | | 5,905.1 | | | 5,950.9 | | (5) | | |
| SRS Distribution Inc. | | First lien senior secured loan | | 8.96% | | SOFR (M) | | 3.50% | | | | 06/2028 | | | | 1,877.7 | | | 1,870.9 | | | 1,875.4 | | (5) | | |
| Star US Bidco LLC | | First lien senior secured loan | | 9.71% | | SOFR (M) | | 4.25% | | | | 03/2027 | | | | 6,500.0 | | | 6,452.6 | | | 6,488.6 | | (5) | | |
| TransDigm Inc. | | First lien senior secured loan | | 8.60% | | SOFR (Q) | | 3.25% | | | | 02/2031 | | | | 2,000.0 | | | 1,995.0 | | | 2,007.5 | | (3)(5) | | |
| | First lien senior secured loan | | 8.60% | | SOFR (Q) | | 3.25% | | | | 02/2027 | | | | 1,989.9 | | | 1,994.9 | | | 1,996.9 | | (3) | | |
| | First lien senior secured loan | | 8.60% | | SOFR (Q) | | 3.25% | | | | 08/2028 | | | | 16,894.2 | | | 16,888.0 | | | 16,957.6 | | (3) | | |
| | | | | | | | | | | | | | | | | | 20,877.9 | | | 20,962.0 | | | | |
| Wilsonart LLC | | First lien senior secured loan | | 8.70% | | SOFR (Q) | | 3.25% | | | | 12/2026 | | | | 13,407.1 | | | 13,261.4 | | | 13,423.8 | | (5) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 266,586.7 | | | 268,098.3 | | | 15.22 | % | |
| Insurance Services | | | | | | | | | | | | | | | | | | | | | | | |
| Accession Risk Management Group, Inc. and RSC Insurance Brokerage, Inc. (8) | | First lien senior secured loan | | 11.03% | | SOFR (Q) | | 5.50% | | | | 11/2029 | | | | 4,032.9 | | | 3,993.1 | | | 3,952.3 | | (5)(6) | | |
| | First lien senior secured loan | | 11.35% | | SOFR (Q) | | 6.00% | | | | 11/2029 | | | | 1.4 | | | 1.1 | | | 1.2 | | (5)(6) | | |
| | First lien senior secured loan | | 11.41% | | SOFR (M) | | 6.00% | | | | 11/2029 | | | | 3.1 | | | 3.1 | | | 3.1 | | (5)(6) | | |
| | | | | | | | | | | | | | | | | | 3,997.3 | | | 3,956.6 | | | | |
| Acrisure, LLC | | First lien senior secured loan | | 9.89% | | SOFR (Q) | | 4.50% | | | | 11/2030 | | | | 30,000.0 | | | 29,706.2 | | | 30,024.9 | | | | |
| | Senior subordinated loan | | 7.00% | | Fixed | | | | | | 11/2025 | | | | 3,700.0 | | | 3,611.2 | | | 3,690.8 | | | | |
| | | | | | | | | | | | | | | | | | 33,317.4 | | | 33,715.7 | | | | |
| Alliant Holdings Intermediate, LLC | | First lien senior secured loan | | 8.86% | | SOFR (M) | | 3.50% | | | | 11/2030 | | | | 2,558.1 | | | 2,534.4 | | | 2,566.4 | | (5) | | |
| AMWINS Group, Inc. | | First lien senior secured loan | | 7.72% | | SOFR (M) | | 2.25% | | | | 02/2028 | | | | 7,246.6 | | | 7,235.8 | | | 7,248.6 | | (5) | | |
| Asurion, LLC | | First lien senior secured loan | | 8.72% | | SOFR (M) | | 3.25% | | | | 12/2026 | | | | 11,461.4 | | | 11,258.5 | | | 11,423.2 | | | | |
| | First lien senior secured loan | | 9.71% | | SOFR (M) | | 4.25% | | | | 08/2028 | | | | 3,279.4 | | | 3,153.7 | | | 3,263.6 | | | | |
| | | | | | | | | | | | | | | | | | 14,412.2 | | | 14,686.8 | | | | |
See accompanying notes to consolidated financial statements.
39
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (2) | | Reference (4) | | Spread (2) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| Broadstreet Partners, Inc. | | First lien senior secured loan | | 9.10% | | SOFR (M) | | 3.75% | | | | 01/2029 | | | | 13,637.8 | | | 13,579.9 | | | 13,659.1 | | | | |
| Cross Financial Corp. | | First lien senior secured loan | | 9.47% | | SOFR (M) | | 4.00% | | | | 09/2027 | | | | 5,116.7 | | | 5,103.7 | | | 5,116.7 | | (5) | | |
| DOXA Insurance Holdings LLC (8) | | First lien senior secured loan | | 10.87% | | SOFR (S) | | 5.50% | | | | 12/2030 | | | | 20,789.1 | | | 20,375.3 | | | 20,373.3 | | (5)(6) | | |
| HIG Finance 2 Limited | | First lien senior secured loan | | 9.36% | | SOFR (M) | | 4.00% | | | | 04/2030 | | | | 10,473.7 | | | 10,440.0 | | | 10,484.6 | | (3)(5) | | |
| Higginbotham Insurance Agency, Inc. (8) | | First lien senior secured loan | | 10.96% | | SOFR (M) | | 5.50% | | | | 11/2028 | | | | 1,721.1 | | | 1,709.0 | | | 1,695.2 | | (5)(6) | | |
| Hub International Limited | | First lien senior secured loan | | 9.66% | | SOFR (Q) | | 4.25% | | | | 06/2030 | | | | 9,314.6 | | | 9,305.6 | | | 9,349.8 | | (5) | | |
| | First lien senior secured loan | | 9.37% | | SOFR (Q) | | 4.00% | | | | 11/2029 | | | | 4,070.0 | | | 4,067.7 | | | 4,082.9 | | (5) | | |
| | | | | | | | | | | | | | | | | | 13,373.3 | | | 13,432.7 | | | | |
| Hyperion Refinance S.a r.l. | | First lien senior secured loan | | 8.75% | | SOFR (M) | | 3.25% | | | | 11/2027 | | | | 7,829.2 | | | 7,827.5 | | | 7,836.4 | | (3)(5) | | |
| Keystone Agency Partners LLC (8) | | First lien senior secured loan | | 10.96% | | SOFR (S) | | 5.50% | | | | 05/2027 | | | | 10,690.9 | | | 10,477.5 | | | 10,477.1 | | (5)(6) | | |
| NFP Corp. | | First lien senior secured loan | | 8.72% | | SOFR (M) | | 3.25% | | | | 02/2027 | | | | 8,274.2 | | | 8,177.9 | | | 8,309.1 | | | | |
| OakBridge Insurance Agency LLC and Maple Acquisition Holdings, LP (8) | | First lien senior secured loan | | 11.09% | | SOFR (M) | | 5.75% | | | | 11/2029 | | | | 9,196.4 | | | 9,017.0 | | | 9,012.5 | | (5)(6) | | |
| | Class A2 units | | | | | | | | 11/2023 | | | | 102,501 | | | | 2,050.0 | | | 2,050.0 | | (6) | | |
| | | | | | | | | | | | | | | | | | 11,067.0 | | | 11,062.5 | | | | |
| OneDigital Borrower LLC | | First lien senior secured loan | | 9.71% | | SOFR (M) | | 4.25% | | | | 11/2027 | | | | 4,987.3 | | | 4,950.9 | | | 4,987.3 | | (5)(6) | | |
| Sedgwick Claims Management Services, Inc. (Lightning Cayman Merger Sub, Ltd.) | | First lien senior secured loan | | 9.11% | | SOFR (M) | | 3.75% | | | | 02/2028 | | | | 8,076.9 | | | 8,049.7 | | | 8,095.9 | | | | |
| USI, Inc. | | First lien senior secured loan | | 8.35% | | SOFR (Q) | | 3.00% | | | | 11/2029 | | | | 8,301.7 | | | 8,291.9 | | | 8,308.2 | | | | |
| | First lien senior secured loan | | 8.63% | | SOFR (Q) | | 3.25% | | | | 09/2030 | | | | 8,471.0 | | | 8,452.7 | | | 8,473.7 | | | | |
| | | | | | | | | | | | | | | | | | 16,744.6 | | | 16,781.9 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 193,373.4 | | | 194,485.9 | | | 11.04 | % | |
| Financial Services | | | | | | | | | | | | | | | | | | | | | | | |
| BIFM CA Buyer Inc. | | First lien senior secured loan | | 8.97% | | SOFR (M) | | 3.50% | | | | 06/2026 | | | | 2,611.3 | | | 2,616.1 | | | 2,611.7 | | (3) | | |
| Bleriot US Bidco Inc. | | First lien senior secured loan | | 9.61% | | SOFR (Q) | | 4.00% | | | | 10/2028 | | | | 2,481.4 | | | 2,479.1 | | | 2,489.4 | | | | |
| Citco Funding LLC | | First lien senior secured loan | | 8.64% | | SOFR (Q) | | 3.25% | | | | 04/2028 | | | | 7,980.0 | | | 7,956.0 | | | 8,000.0 | | (5) | | |
| Cliffwater LLC (8) | | First lien senior secured loan | | 11.36% | | SOFR (M) | | 6.00% | | | | 10/2030 | | | | 11,029.4 | | | 10,813.9 | | | 10,808.8 | | (3)(5)(6) | | |
| Corient Holdings, Inc. | | Series A preferred stock | | | | | | | | 05/2023 | | | | 15,000 | | | | 15,000.0 | | | 16,424.0 | | (6) | | |
| Delta Topco, Inc. | | First lien senior secured loan | | 9.12% | | SOFR (Q) | | 3.75% | | | | 12/2027 | | | | 4,896.1 | | | 4,877.2 | | | 4,883.8 | | (5) | | |
| Focus Financial Partners, LLC | | First lien senior secured loan | | 8.86% | | SOFR (M) | | 3.50% | | | | 06/2028 | | | | 3,990.0 | | | 3,990.0 | | | 3,995.0 | | (5) | | |
| | First lien senior secured loan | | 8.61% | | SOFR (M) | | 3.25% | | | | 06/2028 | | | | 7,551.5 | | | 7,549.7 | | | 7,557.8 | | (5) | | |
| | First lien senior secured loan | | 7.86% | | SOFR (M) | | 2.50% | | | | 06/2028 | | | | 1,989.8 | | | 1,989.8 | | | 1,987.8 | | (5) | | |
| | | | | | | | | | | | | | | | | | 13,529.5 | | | 13,540.6 | | | | |
| GC Waves Holdings, Inc. (8) | | First lien senior secured loan | | 11.46% | | SOFR (M) | | 6.00% | | | | 08/2028 | | | | 2,092.5 | | | 1,758.0 | | | 1,724.7 | | (3)(5)(6) | | |
| GIP Pilot Acquisition Partners, L.P. | | First lien senior secured loan | | 8.39% | | SOFR (Q) | | 3.00% | | | | 10/2030 | | | | 4,350.0 | | | 4,336.2 | | | 4,346.4 | | | | |
| GTCR F Buyer Corp. and GTCR (D) Investors LP (8)(9) | | First lien senior secured loan | | 11.36% | | SOFR (M) | | 6.00% | | | | 09/2030 | | | | 10,000.0 | | | 9,759.0 | | | 9,750.0 | | (5)(6) | | |
| | Limited partnership interests | | | | | | | | 09/2023 | | | | 74,074 | | | | 74.7 | | | 77.7 | | (6) | | |
See accompanying notes to consolidated financial statements.
40
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (2) | | Reference (4) | | Spread (2) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| | | | | | | | | | | | | | | | | | 9,833.7 | | | 9,827.7 | | | | |
| GTCR W Merger Sub LLC | | First lien senior secured loan | | 9.08% | | SOFR (S) | | 3.75% | | | | 09/2030 | | | | 17,900.0 | | | 17,843.9 | | | 17,967.1 | | (5) | | |
| Hg Saturn LuchaCo Limited | | Private asset-backed investment | | 12.69% | | SONIA (S) | | 7.50% | | | | 03/2026 | | | | 1,529.5 | | | 1,434.6 | | | 1,512.3 | | (3)(5)(6) | | |
| HV Chimera LLC | | Private asset-backed investment | | 8.39% | | SOFR (Q) | | 2.80% | | | | 08/2026 | | | | 2,397.3 | | | 2,362.8 | | | 2,361.3 | | (3)(6) | | |
| Isthmus Capital LLC | | Private asset-backed investment | | 9.50% | | Fixed | | | | | | 06/2030 | | | | 1,905.1 | | | 1,883.2 | | | 1,905.1 | | (3)(6) | | |
| | Private asset-backed investment | | | | | | | | 06/2023 | | | | 4 | | | | — | | | 22.1 | | (3)(6) | | |
| | | | | | | | | | | | | | | | | | 1,883.2 | | | 1,927.2 | | | | |
| LBM Acquisition LLC | | First lien senior secured loan | | 9.21% | | SOFR (M) | | 3.75% | | | | 12/2027 | | | | 5,765.3 | | | 5,659.4 | | | 5,689.7 | | (5) | | |
| Midcap Financial Issuer Trust | | Senior subordinated loan | | 6.50% | | Fixed | | | | | | 05/2028 | | | | 5,000.0 | | | 4,438.1 | | | 4,688.8 | | (3) | | |
| Monroe Capital Income Plus Corporation | | Senior subordinated loan | | 9.42% | | Fixed | | | | | | 11/2028 | | | | 10,000.0 | | | 10,000.0 | | | 10,506.9 | | (3)(6) | | |
| NEP Group, Inc. | | First lien senior secured loan | | 10.22% (1.50% PIK) | | SOFR (M) | | 4.75% | | | | 08/2026 | | | | 6,038.5 | | | 5,871.2 | | | 5,736.6 | | (6) | | |
| Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P. (8)(9) | | First lien senior secured revolving loan | | 12.21% | | SOFR (M) | | 6.75% | | | | 05/2028 | | | | 166.1 | | | 144.9 | | | 166.1 | | (3)(5)(6) | | |
| | First lien senior secured loan | | 14.25% | | Base Rate (Q) | | 5.75% | | | | 05/2029 | | | | 32.4 | | | 31.5 | | | 32.4 | | (3)(5)(6) | | |
| | First lien senior secured loan | | 12.21% | | SOFR (M) | | 6.75% | | | | 05/2029 | | | | 13,779.8 | | | 13,386.2 | | | 13,779.8 | | (3)(5)(6) | | |
| | Limited partnership interests | | | | | | | | 09/2023 | | | | 80,390 | | | | 80.4 | | | 79.4 | | (3)(6) | | |
| | | | | | | | | | | | | | | | | | 13,643.0 | | | 14,057.7 | | | | |
| PCIA SPV-3, LLC and ASE Royal Aggregator, LLC (8) | | First lien senior secured loan | | 11.62% | | SOFR (Q) | | 6.25% | | | | 08/2029 | | | | 9,066.7 | | | 8,777.4 | | | 9,066.7 | | (3)(5)(6) | | |
| | Preferred units | | | | | | | | 07/2023 | | | | 1,333,333 | | | | 1,315.5 | | | 1,333.3 | | (3)(6) | | |
| | | | | | | | | | | | | | | | | | 10,092.9 | | | 10,400.0 | | | | |
| Steward Partners Global Advisory, LLC and Steward Partners Investment Advisory, LLC (8) | | First lien senior secured loan | | 10.78% | | SOFR (S) | | 5.25% | | | | 10/2028 | | | | 1,917.7 | | | 1,879.6 | | | 1,879.3 | | (3)(5)(6) | | |
| The Edelman Financial Center, LLC | | Second lien senior secured loan | | 12.22% | | SOFR (M) | | 6.75% | | | | 07/2026 | | | | 33,000.0 | | | 32,527.4 | | | 32,958.8 | | (3) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 180,835.8 | | | 184,342.8 | | | 10.47 | % | |
| Commercial and Professional Services | | | | | | | | | | | | | | | | | | | | | | | |
| AlixPartners, LLP | | First lien senior secured loan | | 8.22% | | SOFR (M) | | 2.75% | | | | 02/2028 | | | | 17,173.1 | | | 17,137.0 | | | 17,206.4 | | (5) | | |
| Clean Harbors, Inc. | | First lien senior secured loan | | 7.22% | | SOFR (S) | | 1.75% | | | | 10/2028 | | | | 997.5 | | | 997.5 | | | 998.9 | | (3) | | |
| Corporation Service Company | | First lien senior secured loan | | 8.71% | | SOFR (M) | | 3.25% | | | | 11/2029 | | | | 6,838.5 | | | 6,840.4 | | | 6,847.0 | | (5) | | |
| Dun & Bradstreet Corporation, The | | First lien senior secured loan | | 8.21% | | SOFR (M) | | 2.75% | | | | 02/2026 | | | | 19,419.1 | | | 19,417.7 | | | 19,446.5 | | (3) | | |
| FlyWheel Acquireco, Inc. (8) | | First lien senior secured revolving loan | | 11.86% | | SOFR (M) | | 6.50% | | | | 05/2028 | | | | 1,071.4 | | | 1,029.4 | | | 1,055.4 | | (5)(6) | | |
| | First lien senior secured loan | | 11.86% | | SOFR (M) | | 6.50% | | | | 05/2030 | | | | 13,359.4 | | | 12,995.3 | | | 13,225.8 | | (5)(6) | | |
| | | | | | | | | | | | | | | | | | 14,024.7 | | | 14,281.2 | | | | |
| HP RSS Buyer, Inc. (8) | | First lien senior secured loan | | 10.37% | | SOFR (Q) | | 5.00% | | | | 12/2029 | | | | 8,297.1 | | | 8,116.8 | | | 8,060.5 | | (5)(6) | | |
| Kings Buyer, LLC (8) | | First lien senior secured loan | | 11.99% | | SOFR (S) | | 6.50% | | | | 10/2027 | | | | 18,424.6 | | | 18,161.7 | | | 18,148.2 | | (5)(6) | | |
See accompanying notes to consolidated financial statements.
41
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (2) | | Reference (4) | | Spread (2) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| Lightbeam Bidco, Inc. (8) | | First lien senior secured loan | | 11.70% | | SOFR (Q) | | 6.25% | | | | 05/2030 | | | | 15,000.0 | | | 14,746.2 | | | 15,000.0 | | (5)(6) | | |
| | First lien senior secured loan | | 10.86% | | SOFR (Q) | | 5.50% | | | | 05/2030 | | | | 1,254.0 | | | 1,228.4 | | | 1,209.3 | | (5)(6) | | |
| | | | | | | | | | | | | | | | | | 15,974.6 | | | 16,209.3 | | | | |
| North Haven Fairway Buyer, LLC, Fairway Lawns, LLC and Command Pest Control, LLC (8) | | First lien senior secured loan | | 11.86% | | SOFR (Q) | | 6.50% | | | | 05/2028 | | | | 3,413.4 | | | 3,312.0 | | | 3,413.4 | | (5)(6) | | |
| North Haven Stack Buyer, LLC (8) | | First lien senior secured loan | | 11.01% | | SOFR (Q) | | 5.50% | | | | 07/2027 | | | | 7.1 | | | 6.5 | | | 7.1 | | (5)(6) | | |
| Omnia Partners, LLC (8) | | First lien senior secured loan | | 9.63% | | SOFR (Q) | | 4.25% | | | | 07/2030 | | | | 4,570.6 | | | 4,527.6 | | | 4,596.4 | | | | |
| Priority Waste Holdings LLC, Priority Waste Holdings Indiana LLC and Priority Waste Super Holdings, LLC (8) | | First lien senior secured revolving loan | | 10.89% | | SOFR (Q) | | 5.50% | | | | 08/2029 | | | | 0.5 | | | 0.5 | | | 0.5 | | (5)(6) | | |
| | First lien senior secured loan | | 13.40% (4.00% PIK) | | SOFR (Q) | | 8.00% | | | | 08/2029 | | | | 19,060.0 | | | 18,152.9 | | | 18,699.2 | | (5)(6) | | |
| | Warrant to purchase units of Class A common units | | | | | | | | 08/2023 | | 08/2036 | | 26,353 | | | | 449.6 | | | 809.3 | | (6) | | |
| | | | | | | | | | | | | | | | | | 18,603.0 | | | 19,509.0 | | | | |
| Saturn Purchaser Corp. | | First lien senior secured loan | | 10.71% | | SOFR (M) | | 5.25% | | | | 07/2029 | | | | 537.6 | | | 535.1 | | | 534.9 | | (5)(6) | | |
| | First lien senior secured loan | | 11.01% | | SOFR (Q) | | 5.50% | | | | 07/2029 | | | | 7,765.2 | | | 7,729.3 | | | 7,726.4 | | (5)(6) | | |
| | | | | | | | | | | | | | | | | | 8,264.4 | | | 8,261.3 | | | | |
| Tempo Acquisition, LLC | | First lien senior secured loan | | 8.11% | | SOFR (M) | | 2.75% | | | | 08/2028 | | | | 4,987.5 | | | 4,986.5 | | | 5,005.3 | | (3)(5) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 140,370.4 | | | 141,990.5 | | | 8.06 | % | |
| Media and Entertainment | | | | | | | | | | | | | | | | | | | | | | | |
| 22 HoldCo Limited (8) | | Senior subordinated loan | | 12.96% PIK | | SONIA (S) | | 7.50% | | | | 08/2033 | | | | 14,698.0 | | | 14,049.2 | | | 14,097.2 | | (3)(5)(6) | | |
| 3 Step Sports LLC and 3 Step Holdings, LLC (8) | | First lien senior secured revolving loan | | 13.33% | | SOFR (Q) | | 8.00% | | | | 10/2028 | | | | 526.3 | | | 446.3 | | | 442.1 | | (5)(6) | | |
| | First lien senior secured loan | | 13.47% (1.50% PIK) | | SOFR (Q) | | 8.00% | | | | 10/2029 | | | | 16,415.1 | | | 15,404.9 | | | 15,299.3 | | (5)(6) | | |
| | Series D preferred units | | | | | | | | 10/2023 | | | | 267,369 | | | | 4,400.0 | | | 4,400.0 | | (6) | | |
| | | | | | | | | | | | | | | | | | 20,251.2 | | | 20,141.4 | | | | |
| AVSC Holding Corp. | | First lien senior secured loan | | 8.96% (0.48% PIK) | | SOFR (M) | | 3.50% | | | | 03/2025 | | | | 5,508.6 | | | 5,318.8 | | | 5,383.0 | | (5) | | |
| | First lien senior secured loan | | 10.96% (1.61% PIK) | | SOFR (M) | | 5.50% | | | | 10/2026 | | | | 5,401.0 | | | 5,290.5 | | | 5,275.0 | | (5) | | |
| | | | | | | | | | | | | | | | | | 10,609.3 | | | 10,658.0 | | | | |
| CFC Funding LLC | | Loan instrument units | | 9.75% PIK | | | | | | 07/2023 | | | | 5,300 | | | | 5,035.3 | | | 5,141.0 | | (3)(6) | | |
| Creative Artists Agency, LLC | | First lien senior secured loan | | 8.86% | | SOFR (M) | | 3.50% | | | | 11/2028 | | | | 13,374.9 | | | 13,361.2 | | | 13,420.1 | | | | |
| League One Volleyball, Inc. | | Series B preferred stock | | | | | | | | 07/2023 | | | | 194 | | | | 1.0 | | | 1.0 | | (6) | | |
| LiveBarn Inc. | | Middle preferred shares | | | | | | | | 08/2023 | | | | 2,838,691 | | | | 10,000.0 | | | 10,000.0 | | (3)(6) | | |
| NASCAR Holdings, LLC | | First lien senior secured loan | | 7.97% | | SOFR (M) | | 2.50% | | | | 10/2026 | | | | 895.5 | | | 897.6 | | | 897.9 | | | | |
| United Talent Agency, LLC | | First lien senior secured loan | | 9.65% | | SOFR (Q) | | 4.00% | | | | 07/2028 | | | | 9,426.4 | | | 9,387.8 | | | 9,430.9 | | (5) | | |
| William Morris Endeavor Entertainment, LLC (IMG Worldwide Holdings, LLC) | | First lien senior secured loan | | 8.22% | | SOFR (M) | | 2.75% | | | | 05/2025 | | | | 19,025.3 | | | 18,998.4 | | | 19,061.1 | | (3) | | |
See accompanying notes to consolidated financial statements.
42
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (2) | | Reference (4) | | Spread (2) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| Zuffa Guarantor LLC | | First lien senior secured loan | | 8.40% | | SOFR (Q) | | 2.75% | | | | 04/2026 | | | | 10,945.4 | | | 10,939.2 | | | 10,974.3 | | (3)(5) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 113,530.2 | | | 113,822.9 | | | 6.46 | % | |
| Pharmaceuticals, Biotechnology and Life Sciences | | | | | | | | | | | | | | | | | | | | | | | |
| ADMA Biologics Inc. (8) | | First lien senior secured revolving loan | | 9.13% | | SOFR (Q) | | 3.75% | | | | 12/2027 | | | | 1.0 | | | 1.0 | | | 1.0 | | (3)(5)(6) | | |
| | First lien senior secured loan | | 11.88% | | SOFR (S) | | 6.50% | | | | 12/2027 | | | | 4,308.0 | | | 4,200.8 | | | 4,254.2 | | (3)(5)(6) | | |
| | | | | | | | | | | | | | | | | | 4,201.8 | | | 4,255.2 | | | | |
| Alcami Corporation (8) | | First lien senior secured loan | | 12.46% | | SOFR (M) | | 7.00% | | | | 12/2028 | | | | 4,068.5 | | | 3,883.1 | | | 4,068.5 | | (5)(6) | | |
| Bamboo US BidCo LLC (8) | | First lien senior secured loan | | 9.95% | | Euribor (Q) | | 6.00% | | | | 09/2030 | | | | 8,640.0 | | | 8,104.8 | | | 8,380.8 | | (5)(6) | | |
| | First lien senior secured loan | | 11.38% | | SOFR (Q) | | 6.00% | | | | 09/2030 | | | | 12,720.2 | | | 12,326.8 | | | 12,283.7 | | (5)(6) | | |
| | | | | | | | | | | | | | | | | | 20,431.6 | | | 20,664.5 | | | | |
| Cambrex Corporation | | First lien senior secured loan | | 8.96% | | SOFR (M) | | 3.50% | | | | 12/2026 | | | | 7,426.2 | | | 7,417.2 | | | 7,257.3 | | (5) | | |
| Catalent Pharma Solutions, Inc. | | First lien senior secured loan | | 8.36% | | SOFR (M) | | 3.00% | | | | 02/2028 | | | | 8,000.0 | | | 7,940.4 | | | 8,000.0 | | (3)(5)(6) | | |
| Curium BidCo S.a r.l. | | First lien senior secured loan | | 9.85% | | SOFR (Q) | | 4.50% | | | | 07/2029 | | | | 8,923.5 | | | 8,913.8 | | | 8,906.8 | | (3) | | |
| Da Vinci Purchaser Corp. | | First lien senior secured loan | | 9.47% | | SOFR (M) | | 4.00% | | | | 01/2027 | | | | 8,930.2 | | | 8,828.5 | | | 8,938.6 | | (5) | | |
| IQVIA Inc | | First lien senior secured loan | | 7.35% | | SOFR (Q) | | 2.00% | | | | 01/2031 | | | | 8,000.0 | | | 8,000.0 | | | 8,022.9 | | (3) | | |
| Maravai Intermediate Holdings, LLC | | First lien senior secured loan | | 8.40% | | SOFR (Q) | | 3.00% | | | | 10/2027 | | | | 10,372.5 | | | 10,349.9 | | | 10,078.6 | | (3)(5) | | |
| Packaging Coordinators Midco, Inc. | | First lien senior secured loan | | 9.11% | | SOFR (Q) | | 3.50% | | | | 11/2027 | | | | 9,279.6 | | | 9,245.0 | | | 9,274.4 | | (5) | | |
| Precision Medicine Group, LLC | | First lien senior secured loan | | 8.45% | | SOFR (Q) | | 3.00% | | | | 11/2027 | | | | 7,946.3 | | | 7,841.3 | | | 7,827.1 | | (5) | | |
| Solar Bidco Limited (8) | | First lien senior secured loan | | 9.69% | | Euribor (Q) | | 5.75% | | | | 11/2029 | | | | 667.1 | | | 581.8 | | | 665.5 | | (3)(5)(6) | | |
| WCI-BXC Purchaser, LLC and WCI-BXC Investment Holdings, L.P. (8) | | First lien senior secured loan | | 11.64% | | SOFR (S) | | 6.25% | | | | 11/2030 | | | | 4,458.8 | | | 4,349.4 | | | 4,347.3 | | (5)(6) | | |
| | Limited partnership interest | | | | | | | | 11/2023 | | | | 731,000 | | | | 731.6 | | | 731.0 | | (6) | | |
| | | | | | | | | | | | | | | | | | 5,081.0 | | | 5,078.3 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 102,715.4 | | | 103,037.7 | | | 5.85 | % | |
| Food and Beverage | | | | | | | | | | | | | | | | | | | | | | | |
| B&G Foods Inc | | First lien senior secured loan | | 7.86% | | SOFR (M) | | 2.50% | | | | 10/2026 | | | | 2,880.1 | | | 2,866.5 | | | 2,851.8 | | (3) | | |
| Chobani, LLC | | First lien senior secured loan | | 9.11% | | SOFR (S) | | 3.75% | | | | 10/2027 | | | | 6,500.0 | | | 6,467.6 | | | 6,505.4 | | | | |
| | First lien senior secured loan | | 8.97% | | SOFR (M) | | 3.50% | | | | 10/2027 | | | | 6,379.1 | | | 6,376.9 | | | 6,382.3 | | (5) | | |
| | | | | | | | | | | | | | | | | | 12,844.5 | | | 12,887.7 | | | | |
| Demakes Borrower, LLC (8) | | First lien senior secured loan | | 11.60% | | SOFR (S) | | 6.25% | | | | 12/2029 | | | | 11,707.3 | | | 11,417.3 | | | 11,414.6 | | (5)(6) | | |
| Max US Bidco Inc. | | First lien senior secured loan | | 10.35% | | SOFR (Q) | | 5.00% | | | | 10/2030 | | | | 25,000.0 | | | 22,981.3 | | | 23,287.5 | | | | |
| Sugar PPC Buyer LLC (8) | | First lien senior secured loan | | 11.34% | | SOFR (M) | | 6.00% | | | | 10/2030 | | | | 19,565.2 | | | 19,135.8 | | | 19,125.0 | | (5)(6) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 69,245.4 | | | 69,566.6 | | | 3.95 | % | |
| Retailing and Distribution | | | | | | | | | | | | | | | | | | | | | | | |
| BradyIFS Holdings, LLC (8) | | First lien senior secured loan | | 11.38% | | SOFR (Q) | | 6.00% | | | | 10/2029 | | | | 30,083.7 | | | 29,483.1 | | | 29,433.4 | | (5)(6) | | |
See accompanying notes to consolidated financial statements.
43
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (2) | | Reference (4) | | Spread (2) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| CNT Holdings I Corp | | First lien senior secured loan | | 8.93% | | SOFR (Q) | | 3.50% | | | | 11/2027 | | | | 8,945.5 | | | 8,874.4 | | | 8,955.4 | | (5) | | |
| Hills Distribution, Inc., Hills Intermediate FT Holdings, LLC and GMP Hills, LP (8) | | First lien senior secured revolving loan | | 9.87% | | SOFR (Q) | | 4.50% | | | | 11/2029 | | | | 0.6 | | | 0.6 | | | 0.6 | | (5)(6) | | |
| | First lien senior secured loan | | 11.37% | | SOFR (S) | | 6.00% | | | | 11/2029 | | | | 3,102.7 | | | 3,041.9 | | | 3,040.6 | | (5)(6) | | |
| | Limited partnership interest | | 8.00% PIK | | | | | | 11/2023 | | | | 3,544,000 | | | | 3,544.0 | | | 3,526.7 | | (6) | | |
| | | | | | | | | | | | | | | | | | 6,586.5 | | | 6,567.9 | | | | |
| LS Group Opco Acquisition LLC (LS Group PropCo Acquisition LLC) | | First lien senior secured loan | | 8.71% | | SOFR (M) | | 3.25% | | | | 11/2027 | | | | 9,007.8 | | | 8,982.7 | | | 8,996.6 | | (5) | | |
| Peer Holding III B.V. | | First lien senior secured loan | | 8.60% | | SOFR (Q) | | 3.25% | | | | 10/2030 | | | | 5,000.0 | | | 4,962.5 | | | 5,010.4 | | (3) | | |
| SCIH Salt Holdings Inc. | | First lien senior secured loan | | 9.45% | | SOFR (M) | | 4.00% | | | | 03/2027 | | | | 10,355.0 | | | 10,281.9 | | | 10,359.9 | | (5) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 69,171.1 | | | 69,323.6 | | | 3.94 | % | |
| Automobiles and Components | | | | | | | | | | | | | | | | | | | | | | | |
| First Brands Group, LLC | | First lien senior secured loan | | 10.88% | | SOFR (Q) | | 5.00% | | | | 03/2027 | | | | 6,930.8 | | | 6,781.0 | | | 6,865.9 | | (5) | | |
| New ChurcHill HoldCo LLC and Victory Topco, LP (8) | | First lien senior secured revolving loan | | 10.87% | | SOFR (Q) | | 5.50% | | | | 11/2029 | | | | 321.6 | | | 271.3 | | | 270.1 | | (5)(6) | | |
| | First lien senior secured loan | | 10.87% | | SOFR (Q) | | 5.50% | | | | 11/2029 | | | | 12,348.1 | | | 11,947.6 | | | 11,746.1 | | (5)(6) | | |
| | Class A-2 common units | | | | | | | | 11/2023 | | | | 23,290 | | | | 2,329.0 | | | 2,329.0 | | (6) | | |
| | | | | | | | | | | | | | | | | | 14,547.9 | | | 14,345.2 | | | | |
| Wand Newco 3, Inc. | | First lien senior secured loan | | 8.22% | | SOFR (M) | | 2.75% | | | | 02/2026 | | | | 22,691.3 | | | 22,587.2 | | | 22,739.7 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 43,916.1 | | | 43,950.8 | | | 2.50 | % | |
| Materials | | | | | | | | | | | | | | | | | | | | | | | |
| Charter Next Generation, Inc. | | First lien senior secured loan | | 9.22% | | SOFR (M) | | 3.75% | | | | 12/2027 | | | | 11,200.4 | | | 11,163.9 | | | 11,239.0 | | (5) | | |
| Derby Buyer LLC | | First lien senior secured loan | | 9.59% | | SOFR (M) | | 4.25% | | | | 11/2030 | | | | 6,445.0 | | | 6,350.1 | | | 6,445.0 | | (5) | | |
| Element Solutions Inc (Macdermid, Incorporated) | | First lien senior secured loan | | 7.36% | | SOFR (M) | | 2.00% | | | | 12/2030 | | | | 2,000.0 | | | 1,995.0 | | | 2,005.0 | | (3) | | |
| Summit Materials, LLC | | First lien senior secured loan | | 8.33% | | SOFR (S) | | 3.00% | | | | 11/2028 | | | | 4,000.0 | | | 3,990.0 | | | 4,012.5 | | (3) | | |
| Trident TPI Holdings, Inc. | | First lien senior secured loan | | 9.85% | | SOFR (Q) | | 4.50% | | | | 09/2028 | | | | 10,079.7 | | | 9,872.5 | | | 10,074.9 | | (5) | | |
| | First lien senior secured loan | | 9.61% | | SOFR (Q) | | 4.00% | | | | 09/2028 | | | | 1,895.2 | | | 1,897.6 | | | 1,886.1 | | (5) | | |
| | First lien senior secured loan | | 10.60% | | SOFR (Q) | | 5.25% | | | | 09/2028 | | | | 997.5 | | | 977.5 | | | 999.0 | | (5) | | |
| | | | | | | | | | | | | | | | | | 12,747.6 | | | 12,960.0 | | | | |
| Vobev, LLC and Vobev Holdings, LLC (8) | | First lien senior secured revolving loan | | 10.49% | | SOFR (S) | | 5.00% | | | | 04/2028 | | | | 0.7 | | | 0.7 | | | 0.7 | | (5)(6) | | |
| | First lien senior secured loan | | 13.23% (4.00% PIK) | | SOFR (Q) | | 7.75% | | | | 04/2028 | | | | 4,610.0 | | | 4,493.6 | | | 3,780.2 | | (5)(6) | | |
| | First lien senior secured loan | | 12.48% | | SOFR (M) | | 7.00% | | | | 04/2028 | | | | 809.8 | | | 793.6 | | | 634.1 | | (5)(6) | | |
| | Warrant to purchase Class B units | | | | | | | | 11/2023 | | 04/2028 | | 4,485 | | | | — | | | 287.5 | | (6) | | |
| | | | | | | | | | | | | | | | | | 5,287.9 | | | 4,702.5 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 41,534.5 | | | 41,364.0 | | | 2.35 | % | |
| Household and Personal Products | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying notes to consolidated financial statements.
44
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (2) | | Reference (4) | | Spread (2) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| Silk Holdings III Corp. and Silk Holdings I Corp. (8) | | First lien senior secured revolving loan | | 11.35% | | SOFR (Q) | | 6.00% | | | | 05/2029 | | | | 0.6 | | | 0.6 | | | 0.6 | | (5)(6) | | |
| | First lien senior secured loan | | 13.10% | | SOFR (Q) | | 7.75% | | | | 05/2029 | | | | 14,924.0 | | | 14,526.3 | | | 14,924.0 | | (5)(6) | | |
| | Common stock | | | | | | | | 05/2023 | | | | 100 | | | | 100.0 | | | 187.7 | | (6) | | |
| | | | | | | | | | | | | | | | | | 14,626.9 | | | 15,112.3 | | | | |
| Sunshine Luxembourg VII S.a r.l. | | First lien senior secured loan | | 8.95% | | SOFR (Q) | | 3.50% | | | | 10/2026 | | | | 21,165.9 | | | 21,061.9 | | | 21,256.7 | | (3)(5) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 35,688.8 | | | 36,369.0 | | | 2.06 | % | |
| Telecommunication Services | | | | | | | | | | | | | | | | | | | | | | | |
| Iridium Satellite LLC | | First lien senior secured loan | | 7.86% | | SOFR (M) | | 2.50% | | | | 09/2030 | | | | 6,570.6 | | | 6,562.4 | | | 6,581.5 | | (3)(5) | | |
| Switch Master Holdco LLC | | First lien senior secured loan | | 8.36% | | SOFR (M) | | 3.00% | | | | 12/2024 | | | | 27,355.9 | | | 26,498.9 | | | 26,398.5 | | (6) | | |
| Zayo Group Holdings, Inc. | | First lien senior secured loan | | 8.47% | | SOFR (M) | | 3.00% | | | | 03/2027 | | | | 3,000.0 | | | 2,578.1 | | | 2,568.1 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 35,639.4 | | | 35,548.1 | | | 2.02 | % | |
| Investment Funds and Vehicles | | | | | | | | | | | | | | | | | | | | | | | |
| BALLY 2023-24 | | Collaterized loan obligation | | 10.31% | | SOFR (Q) | | 5.05% | | | | 07/2036 | | | | 1,500.0 | | | 1,500.0 | | | 1,522.7 | | (3)(6) | | |
| BCC 2023-3 | | Collaterized loan obligation | | 10.61% | | SOFR (Q) | | 5.25% | | | | 07/2036 | | | | 1,500.0 | | | 1,500.0 | | | 1,528.8 | | (3)(6) | | |
| BTCP 2023-1 | | Private asset-backed investment | | 11.85% | | SOFR (M) | | 6.50% | | | | 09/2030 | | | | 6,100.0 | | | 6,105.7 | | | 6,100.0 | | (3)(6) | | |
| CGMS 2023-1 | | Collaterized loan obligation | | 10.45% | | SOFR (Q) | | 5.10% | | | | 07/2035 | | | | 1,250.0 | | | 1,250.0 | | | 1,275.7 | | (3)(6) | | |
| CGMS 2023-2 | | Collaterized loan obligation | | 10.26% | | SOFR (Q) | | 5.00% | | | | 07/2036 | | | | 2,000.0 | | | 2,000.0 | | | 2,030.0 | | (3)(6) | | |
| JNPPK 2023-1 | | Collaterized loan obligation | | 10.12% | | SOFR (Q) | | 4.70% | | | | 07/2035 | | | | 2,000.0 | | | 2,000.0 | | | 2,011.9 | | (3)(6) | | |
| KKR 48 | | Collaterized loan obligation | | 9.66% | | SOFR (Q) | | 4.30% | | | | 10/2036 | | | | 2,000.0 | | | 2,000.0 | | | 1,989.5 | | (3)(6) | | |
| MAGNE 2023-36 | | Collaterized loan obligation | | 10.31% | | SOFR (Q) | | 4.90% | | | | 04/2036 | | | | 1,750.0 | | | 1,750.0 | | | 1,765.9 | | (3)(6) | | |
| OAKC 2022-12 | | Collaterized loan obligation | | 10.42% | | SOFR (Q) | | 5.00% | | | | 07/2036 | | | | 2,000.0 | | | 2,000.0 | | | 1,992.2 | | (3)(6) | | |
| OAKC 2023-15 | | Collaterized loan obligation | | 10.12% | | SOFR (Q) | | 5.00% | | | | 04/2035 | | | | 2,000.0 | | | 2,000.0 | | | 2,047.4 | | (3)(6) | | |
| OAKC 2023-16 | | Collaterized loan obligation | | 9.36% | | SOFR (Q) | | 4.00% | | | | 10/2036 | | | | 2,000.0 | | | 2,000.0 | | | 1,994.6 | | (3)(6) | | |
| TCIFC 2023-2 | | Collaterized loan obligation | | 10.71% | | SOFR (Q) | | 5.30% | | | | 07/2035 | | | | 2,500.0 | | | 2,500.0 | | | 2,520.3 | | (3)(6) | | |
| THPT 2023-THL | | Commercial mortgage-backed security | | 10.40% | | SOFR (M) | | 5.00% | | | | 12/2034 | | | | 5,000.0 | | | 4,987.5 | | | 5,009.6 | | (3)(6) | | |
| VOYA 2022-3 | | Collaterized loan obligation | | 9.92% | | SOFR (Q) | | 4.50% | | | | 10/2036 | | | | 2,000.0 | | | 2,000.0 | | | 2,002.1 | | (3)(6) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 33,593.2 | | | 33,790.7 | | | 1.92 | % | |
| Technology Hardware and Equipment | | | | | | | | | | | | | | | | | | | | | | | |
| Emerald Debt Merger Sub LLC | | First lien senior secured loan | | 8.36% | | SOFR (M) | | 3.00% | | | | 05/2030 | | | | 19,481.2 | | | 19,457.5 | | | 19,537.3 | | | | |
| Mirion Technologies (US Holdings), Inc. | | First lien senior secured loan | | 8.36% | | SOFR (Q) | | 2.75% | | | | 10/2028 | | | | 3,671.4 | | | 3,673.6 | | | 3,681.5 | | (3)(5) | | |
| Safe Fleet Holdings LLC | | First lien senior secured loan | | 9.21% | | SOFR (M) | | 3.75% | | | | 02/2029 | | | | 2,782.7 | | | 2,727.5 | | | 2,786.8 | | (5) | | |
| TGG TS Acquisition Company | | First lien senior secured loan | | 11.97% | | SOFR (M) | | 6.50% | | | | 12/2025 | | | | 2,942.9 | | | 2,940.5 | | | 2,817.8 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 28,799.1 | | | 28,823.4 | | | 1.64 | % | |
See accompanying notes to consolidated financial statements.
45
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (2) | | Reference (4) | | Spread (2) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| Energy | | | | | | | | | | | | | | | | | | | | | | | |
| HighPeak Energy, Inc. | | First lien senior secured loan | | 13.00% | | SOFR (A) | | 7.50% | | | | 09/2026 | | | | 25,000.0 | | | 24,436.8 | | | 25,000.0 | | (3)(5)(6) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 24,436.8 | | | 25,000.0 | | | 1.42 | % | |
| Education | | | | | | | | | | | | | | | | | | | | | | | |
| Fugue Finance LLC | | First lien senior secured loan | | 9.39% | | SOFR (B) | | 4.00% | | | | 01/2028 | | | | 4,974.9 | | | 4,952.4 | | | 4,989.7 | | (3)(5) | | |
| Simon & Schuster, Inc. | | First lien senior secured loan | | 9.39% | | SOFR (Q) | | 4.00% | | | | 10/2030 | | | | 11,571.4 | | | 11,502.9 | | | 11,600.4 | | | | |
| University Support Services LLC | | First lien senior secured loan | | 8.71% | | SOFR (M) | | 3.25% | | | | 02/2029 | | | | 3,979.7 | | | 3,960.5 | | | 3,975.7 | | (3)(5) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 20,415.8 | | | 20,565.8 | | | 1.17 | % | |
| Consumer Staples Distribution and Retail | | | | | | | | | | | | | | | | | | | | | | | |
| BR PJK Produce, LLC (8) | | First lien senior secured loan | | 11.46% | | SOFR (Q) | | 6.00% | | | | 11/2027 | | | | 932.7 | | | 892.0 | | | 871.8 | | (5)(6) | | |
| City Line Distributors LLC and City Line Investments LLC (8) | | First lien senior secured loan | | 11.46% | | SOFR (M) | | 6.00% | | | | 08/2028 | | | | 1,993.7 | | | 1,946.6 | | | 1,943.8 | | (5)(6) | | |
| | Class A units | | 8.00% PIK | | | | | | 08/2023 | | | | 100,000 | | | | 102.0 | | | 110.1 | | (6) | | |
| | | | | | | | | | | | | | | | | | 2,048.6 | | | 2,053.9 | | | | |
| Mr. Greens Intermediate, LLC, Florida Veg Investments LLC, MRG Texas, LLC and Restaurant Produce and Services Blocker, LLC (8) | | First lien senior secured loan | | 11.70% | | SOFR (M) | | 6.25% | | | | 05/2029 | | | | 9,426.3 | | | 9,175.1 | | | 9,426.3 | | (5)(6) | | |
| | Class B limited liability company interest | | | | | | | | 05/2023 | | | | 0.18 | % | | | | 100.0 | | | 104.3 | | (6) | | |
| | | | | | | | | | | | | | | | | | 9,275.1 | | | 9,530.6 | | | | |
| Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P. (8)(9) | | First lien senior secured revolving loan | | 11.60% | | SOFR (Q) | | 6.25% | | | | 01/2029 | | | | 395.5 | | | 374.1 | | | 387.0 | | (5)(6) | | |
| | First lien senior secured loan | | 11.60% | | SOFR (Q) | | 6.25% | | | | 01/2029 | | | | 6,981.1 | | | 6,780.0 | | | 6,901.4 | | (5)(6) | | |
| | Common units | | | | | | | | 01/2023 | | | | 50,000 | | | | 50.0 | | | 53.3 | | (6) | | |
| | | | | | | | | | | | | | | | | | 7,204.1 | | | 7,341.7 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 19,419.8 | | | 19,798.0 | | | 1.12 | % | |
| Power Generation | | | | | | | | | | | | | | | | | | | | | | | |
| BIP PipeCo Holdings LLC | | First lien senior secured loan | | 8.62% | | SOFR (S) | | 3.25% | | | | 12/2030 | | | | 3,000.0 | | | 2,985.1 | | | 2,988.8 | | (6) | | |
| Terraform Power Operating, LLC | | First lien senior secured loan | | 7.85% | | SOFR (Q) | | 2.50% | | | | 05/2029 | | | | 8,324.3 | | | 8,275.4 | | | 8,306.0 | | (5) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 11,260.5 | | | 11,294.8 | | | 0.64 | % | |
| Consumer Durables and Apparel | | | | | | | | | | | | | | | | | | | | | | | |
| Lakeshore Learning Materials, LLC | | First lien senior secured loan | | 8.97% | | SOFR (M) | | 3.50% | | | | 09/2028 | | | | 10,267.0 | | | 10,164.4 | | | 10,247.8 | | (5) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 10,164.4 | | | 10,247.8 | | | 0.58 | % | |
| Transportation | | | | | | | | | | | | | | | | | | | | | | | |
| First Student Bidco Inc. | | First lien senior secured loan | | 8.62% | | SOFR (Q) | | 3.00% | | | | 07/2028 | | | | 5,664.2 | | | 5,531.3 | | | 5,615.8 | | (5) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 5,531.3 | | | 5,615.8 | | | 0.32 | % | |
| Real Estate | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying notes to consolidated financial statements.
46
ARES STRATEGIC INCOME FUND
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company (1) | | Investment | | Coupon (2) | | Reference (4) | | Spread (2) | | Acquisition Date | | Maturity Date | | Shares/ Units | | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | |
| Iron Mountain Information Management, LLC | | First lien senior secured loan | | 7.58% | | SOFR (S) | | 2.25% | | | | 01/2031 | | | | 5,500.0 | | | 5,458.8 | | | 5,496.6 | | (3) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 5,458.8 | | | 5,496.6 | | | 0.31 | % | |
| Semiconductors and Semiconductor Equipment | | | | | | | | | | | | | | | | | | | | | | | |
| MKS Instruments, Inc. | | First lien senior secured loan | | 7.84% | | SOFR (M) | | 2.50% | | | | 08/2029 | | | | 4,482.2 | | | 4,471.3 | | | 4,486.7 | | (3)(5) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 4,471.3 | | | 4,486.7 | | | 0.25 | % | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total Investments | | | | | | | | | | | | | | | | | | $ | 2,556,783.9 | | | $ | 2,577,558.1 | | (7)(10) | 146.34 | % | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
See accompanying notes to consolidated financial statements.
47
Derivative Instruments
Foreign currency forward contracts
| | | | | | | | | | | | | | | | | | | | | | | | |
| Description | Notional Amount to be Purchased | Notional Amount to be Sold | Counterparty | Settlement Date | Unrealized Appreciation / (Depreciation) | |
| Foreign currency forward contract | $ | 14,240 | | £ | 11,532 | | Wells Fargo Bank, N.A. | August 21, 2026 | $ | — | | |
| Foreign currency forward contract | $ | 8,380 | | € | 7,826 | | Wells Fargo Bank, N.A. | January 26, 2024 | — | | |
| Foreign currency forward contract | $ | 6,165 | | AUD | 9,518 | | Wells Fargo Bank, N.A. | November 17, 2026 | — | | |
| Foreign currency forward contract | $ | 1,017 | | CAD | 1,391 | | Wells Fargo Bank, N.A. | November 16, 2026 | — | | |
| Foreign currency forward contract | $ | 874 | | £ | 720 | | Wells Fargo Bank, N.A. | March 31, 2026 | — | | |
| Foreign currency forward contract | $ | 583 | | £ | 480 | | Wells Fargo Bank, N.A. | March 31, 2025 | — | | |
| | | | | | | | |
| | | | | | | | |
| Total | | | | | | | $ | — | | |
________________________________________
(1)All of the Fund’s portfolio company investments, which as of December 31, 2023 represented 146% of the Fund’s net assets or 95% of the Fund’s total assets, may be subject to legal restrictions on sales.
(2)Investments without an interest rate are non-income producing.
(3)This portfolio company is not a qualifying asset under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Fund may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Fund’s total assets. Pursuant to Section 55(a) of the Investment Company Act, 26% of the Fund's total assets are represented by investments at fair value and other assets that are considered “non-qualifying assets” as of December 31, 2023.
(4)Variable rate loans to the Fund’s portfolio companies bear interest at a rate that may be determined by reference to the SOFR or an alternate base rate (commonly based on the Federal Funds Rate or the Prime Rate), at the borrower’s option, which reset annually (A), semi-annually (S), quarterly (Q), bi-monthly (B), monthly (M) or daily (D). For each such loan, the Fund has provided the interest rate in effect on the date presented.
(5)Loan includes interest rate floor feature.
(6)These investments were valued using unobservable inputs and are considered Level 3 investments. See Note 8 for more information regarding the fair value of the Fund’s investments.
(7)As of December 31, 2023, the estimated net unrealized gain for federal tax purposes was $20.8 million based on a tax cost basis of $2.6 billion. As of December 31, 2023, the estimated aggregate gross unrealized gain for federal income tax purposes was $24.3 million and the estimated aggregate gross unrealized loss for federal income tax purposes was $3.5 million.
(8)As of December 31, 2023, the Fund had the following commitments to fund various revolving and delayed draw senior secured loans, including commitments to issue letters of credit through a financial intermediary on behalf of certain portfolio companies. Such commitments are subject to the satisfaction of certain conditions set forth in the documents governing these loans and letters of credit and there can be no assurance that such conditions will be satisfied. See Note 7 for more information on revolving and delayed draw loan commitments related to certain portfolio companies.
| | | | | | | | | | | | | | | | | | | | |
(in thousands)
Portfolio Company | Total revolving and delayed draw loan commitments | Less: funded commitments | Total unfunded commitments | Less: commitments substantially at discretion of the Fund | Less: unavailable commitments due to borrowing base or other covenant restrictions | Total net unfunded revolving and delayed draw commitments |
| 22 HoldCo Limited | $ | 4,179.1 | | $ | — | | $ | 4,179.1 | | $ | — | | $ | — | | $ | 4,179.1 | |
| 3 Step Sports LLC and 3 Step Holdings, LLC | 13,584.9 | | (526.3) | | 13,058.6 | | — | | — | | 13,058.6 | |
| Accession Risk Management Group, Inc. and RSC Insurance Brokerage, Inc. | 402.8 | | — | | 402.8 | | — | | — | | 402.8 | |
| ADMA Biologics Inc. | 1.0 | | (1.0) | | — | | — | | — | | — | |
| AI Aqua Merger Sub, Inc. | 1,217.4 | | — | | 1,217.4 | | — | | — | | 1,217.4 | |
| Airx Climate Solutions, Inc. | 11,435.2 | | — | | 11,435.2 | | — | | — | | 11,435.2 | |
| Alcami Corporation and ACM Note Holdings, LLC | 890.4 | | — | | 890.4 | | — | | — | | 890.4 | |
| Amerivet Partners Management, Inc. and AVE Holdings LP | 7,713.5 | | — | | 7,713.5 | | — | | — | | 7,713.5 | |
See accompanying notes to consolidated financial statements.
48
| | | | | | | | | | | | | | | | | | | | |
(in thousands)
Portfolio Company | Total revolving and delayed draw loan commitments | Less: funded commitments | Total unfunded commitments | Less: commitments substantially at discretion of the Fund | Less: unavailable commitments due to borrowing base or other covenant restrictions | Total net unfunded revolving and delayed draw commitments |
| Apex Service Partners, LLC and Apex Service Partners Holdings, LLC | 6,798.6 | | (163.2) | | 6,635.4 | | — | | — | | 6,635.4 | |
| Bamboo US BidCo LLC | 2,621.9 | | — | | 2,621.9 | | — | | — | | 2,621.9 | |
| Bobcat Purchaser, LLC and Bobcat Topco, L.P. | 1,595.7 | | — | | 1,595.7 | | — | | — | | 1,595.7 | |
| BR PJK Produce, LLC | 1,774.1 | | — | | 1,774.1 | | — | | — | | 1,774.1 | |
| BradyIFS Holdings, LLC | 4,916.3 | | — | | 4,916.3 | | — | | — | | 4,916.3 | |
| City Line Distributors LLC and City Line Investments LLC | 800.5 | | — | | 800.5 | | — | | — | | 800.5 | |
| Cliffwater LLC | 1,470.6 | | — | | 1,470.6 | | — | | — | | 1,470.6 | |
| Coupa Holdings, LLC and Coupa Software Incorporated | 410.8 | | — | | 410.8 | | — | | — | | 410.8 | |
| CPIG Holdco Inc. | 1.0 | | (0.5) | | 0.5 | | — | | — | | 0.5 | |
| Crosspoint Capital AS SPV, LP | 2,887.7 | | (211.3) | | 2,676.4 | | — | | — | | 2,676.4 | |
| Cube Industrials Buyer, Inc. and Cube A&D Buyer Inc. | 2,586.2 | | — | | 2,586.2 | | — | | — | | 2,586.2 | |
| Demakes Borrower, LLC | 3,292.7 | | — | | 3,292.7 | | — | | — | | 3,292.7 | |
| DOXA Insurance Holdings LLC | 24,210.9 | | — | | 24,210.9 | | — | | — | | 24,210.9 | |
| Echo Purchaser, Inc. | 8,750.0 | | (159.1) | | 8,590.9 | | — | | — | | 8,590.9 | |
| Eternal Aus Bidco Pty Ltd | 1,895.7 | | — | | 1,895.7 | | — | | — | | 1,895.7 | |
| Excel Fitness Consolidator LLC | 3,333.3 | | — | | 3,333.3 | | — | | — | | 3,333.3 | |
| Finastra USA, Inc., DH Corporation/Societe DH, and Finastra Europe S.A R.L. | 2,349.6 | | — | | 2,349.6 | | — | | — | | 2,349.6 | |
| Flint OpCo, LLC | 2,186.2 | | — | | 2,186.2 | | — | | — | | 2,186.2 | |
| FlyWheel Acquireco, Inc. | 1,607.1 | | (1,071.4) | | 535.7 | | — | | — | | 535.7 | |
| GC Waves Holdings, Inc. | 12,900.2 | | — | | 12,900.2 | | — | | — | | 12,900.2 | |
| GroundWorks, LLC | 503.8 | | — | | 503.8 | | — | | — | | 503.8 | |
| GS SEER Group Borrower LLC and GS SEER Group Holdings LLC | 4,568.3 | | — | | 4,568.3 | | — | | — | | 4,568.3 | |
| GTCR F Buyer Corp. and GTCR (D) Investors LP | 5,000.0 | | — | | 5,000.0 | | — | | — | | 5,000.0 | |
| Guidepoint Security Holdings, LLC | 2,659.5 | | — | | 2,659.5 | | — | | — | | 2,659.5 | |
| Hakken Midco B.V. | 1,082.7 | | — | | 1,082.7 | | — | | — | | 1,082.7 | |
| Helios Service Partners, LLC and Astra Service Partners, LLC | 3,001.0 | | (0.6) | | 3,000.4 | | — | | — | | 3,000.4 | |
| Higginbotham Insurance Agency, Inc. | 865.3 | | — | | 865.3 | | — | | — | | 865.3 | |
| Hills Distribution, Inc., Hills Intermediate FT Holdings, LLC and GMP Hills, LP | 1,826.1 | | (0.6) | | 1,825.5 | | — | | — | | 1,825.5 | |
| HP RSS Buyer, Inc. | 3,529.9 | | — | | 3,529.9 | | — | | — | | 3,529.9 | |
| Hyland Software, Inc. | 1,102.9 | | — | | 1,102.9 | | — | | — | | 1,102.9 | |
| Infinity Home Services HoldCo, Inc. and IHS Parent Holdings, L.P. | 6,727.8 | | — | | 6,727.8 | | — | | — | | 6,727.8 | |
| Keystone Agency Partners LLC | 34,309.1 | | — | | 34,309.1 | | — | | — | | 34,309.1 | |
| Kings Buyer, LLC | 1,529.3 | | — | | 1,529.3 | | — | | — | | 1,529.3 | |
| Leviathan Intermediate Holdco, LLC and Leviathan Holdings, L.P. | 182.2 | | — | | 182.2 | | — | | — | | 182.2 | |
| Lightbeam Bidco, Inc. | 3,225.7 | | — | | 3,225.7 | | — | | — | | 3,225.7 | |
| Mr. Greens Intermediate, LLC, Florida Veg Investments LLC, MRG Texas, LLC and Restaurant Produce and Services Blocker, LLC | 5,526.3 | | — | | 5,526.3 | | — | | — | | 5,526.3 | |
| New ChurcHill HoldCo LLC and Victory Topco, LP | 20,322.9 | | (321.6) | | 20,001.3 | | — | | — | | 20,001.3 | |
| Next Holdco, LLC | 1,697.6 | | — | | 1,697.6 | | — | | — | | 1,697.6 | |
| North Haven Fairway Buyer, LLC, Fairway Lawns, LLC and Command Pest Control, LLC | 1,200.4 | | — | | 1,200.4 | | — | | — | | 1,200.4 | |
| North Haven Stack Buyer, LLC | 17.9 | | — | | 17.9 | | — | | — | | 17.9 | |
| Northwinds Holding, Inc. and Northwinds Services Group LLC | 3,450.0 | | — | | 3,450.0 | | — | | — | | 3,450.0 | |
| OakBridge Insurance Agency LLC and Maple Acquisition Holdings, LP | 5,803.6 | | — | | 5,803.6 | | — | | — | | 5,803.6 | |
| Omnia Partners, LLC | 429.4 | | — | | 429.4 | | — | | — | | 429.4 | |
| Paragon 28, Inc. and Paragon Advanced Technologies, Inc. | 7,072.4 | | (0.5) | | 7,071.9 | | — | | — | | 7,071.9 | |
| Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P. | 1,183.6 | | (166.1) | | 1,017.5 | | — | | — | | 1,017.5 | |
| PCIA SPV-3, LLC and ASE Royal Aggregator, LLC | 4,600.0 | | — | | 4,600.0 | | — | | — | | 4,600.0 | |
| PestCo Holdings, LLC and PestCo, LLC | 2,481.0 | | — | | 2,481.0 | | — | | — | | 2,481.0 | |
See accompanying notes to consolidated financial statements.
49
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(in thousands)
Portfolio Company | Total revolving and delayed draw loan commitments | Less: funded commitments | Total unfunded commitments | Less: commitments substantially at discretion of the Fund | Less: unavailable commitments due to borrowing base or other covenant restrictions | Total net unfunded revolving and delayed draw commitments |
| Priority Waste Holdings LLC, Priority Waste Holdings Indiana LLC and Priority Waste Super Holdings, LLC | 6,001.0 | | (0.5) | | 6,000.5 | | — | | — | | 6,000.5 | |
| PushPay USA Inc. | 357.1 | | — | | 357.1 | | — | | — | | 357.1 | |
| PYE-Barker Fire & Safety, LLC | 14,963.6 | | — | | 14,963.6 | | — | | — | | 14,963.6 | |
| Silk Holdings III Corp. and Silk Holdings I Corp. | 1.0 | | (0.6) | | 0.4 | | — | | — | | 0.4 | |
| Solar Bidco Limited | 1,476.6 | | — | | 1,476.6 | | — | | — | | 1,476.6 | |
| Steward Partners Global Advisory, LLC and Steward Partners Investment Advisory, LLC | 2,876.5 | | — | | 2,876.5 | | — | | — | | 2,876.5 | |
| Sugar PPC Buyer LLC | 5,434.8 | | — | | 5,434.8 | | — | | — | | 5,434.8 | |
| Sunbit Receivables Trust IV | 2,700.0 | | — | | 2,700.0 | | — | | — | | 2,700.0 | |
| TSS Buyer, LLC | 2,956.6 | | — | | 2,956.6 | | — | | — | | 2,956.6 | |
| United Digestive MSO Parent, LLC and Koln Co-Invest Unblocked, LP | 4,245.3 | | — | | 4,245.3 | | — | | — | | 4,245.3 | |
| Vertex Service Partners, LLC and Vertex Service Partners Holdings, LLC | 18,776.8 | | — | | 18,776.8 | | — | | — | | 18,776.8 | |
| Vobev, LLC and Vobev Holdings, LLC | 166.9 | | (0.7) | | 166.2 | | — | | — | | 166.2 | |
| WCI-BXC Purchaser, LLC and WCI-BXC Investment Holdings, L.P. | 194.6 | | — | | 194.6 | | — | | — | | 194.6 | |
| World Insurance Associates, LLC and World Associates Holdings, LLC | 25,000.0 | | — | | 25,000.0 | | — | | — | | 25,000.0 | |
| Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P. | 2,966.1 | | (395.5) | | 2,570.6 | | — | | — | | 2,570.6 | |
| $ | 337,829.0 | | $ | (3,019.5) | | $ | 334,809.5 | | $ | — | | $ | — | | $ | 334,809.5 | |
(9)As of December 31, 2023, the Fund was party to subscription agreements to fund equity investment commitments as follows:
| | | | | | | | | | | | | | | | | | |
(in thousands)
Portfolio Company | Total equity commitments | Less: funded equity commitments | Total unfunded equity commitments | Less: equity commitments substantially at discretion of the Fund | | Total net unfunded equity commitments |
| GTCR F Buyer Corp. and GTCR (D) Investors LP | $ | 25.9 | | $ | — | | $ | 25.9 | | $ | — | | | $ | 25.9 | |
| Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P. | 19.6 | | — | | 19.6 | | — | | | 19.6 | |
| Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P. | 5.6 | | — | | 5.6 | | — | | | 5.6 | |
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| $ | 51.1 | | $ | — | | $ | 51.1 | | $ | — | | | $ | 51.1 | |
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(10)All investments are non-controlled, non-affiliated investments. Non-controlled, non-affiliated investments are defined as investments in which the Fund owns less than 5% of the portfolio company’s outstanding voting securities and does not have the power to exercise control over the management or policies of such portfolio company.
See accompanying notes to consolidated financial statements.
50
ARES STRATEGIC INCOME FUND
CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS
(in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended September 30, | | For the Nine Months Ended September 30, |
| 2024 | | 2023 | | 2024 | | 2023 |
| | | | | | | |
| Operations: | | | | | | | |
| Net investment income | $ | 97,223 | | | $ | 20,878 | | | $ | 209,574 | | | $ | 35,768 | |
| Net realized gains | 3,840 | | | 2,247 | | | 12,050 | | | 4,201 | |
| Net unrealized (losses) gains | (2,528) | | | 4,395 | | | 26,400 | | | 7,230 | |
| Net increase in net assets resulting from operations | 98,535 | | | 27,520 | | | 248,024 | | | 47,199 | |
| Distributions to shareholders: | | | | | | | |
| Distributed earnings - Class I | (80,548) | | | (15,222) | | | (180,449) | | | (15,222) | |
| Distributed earnings - Class S | (14,085) | | | (1,348) | | | (34,183) | | | (1,348) | |
| Distributed earnings - Class D | (3,338) | | | (362) | | | (6,664) | | | (362) | |
| Net decrease in net assets from distributions | (97,971) | | | (16,932) | | | (221,296) | | | (16,932) | |
| Share transactions: | | | | | | | |
| Class I: | | | | | | | |
| Proceeds from shares sold | 843,258 | | | 664,218 | | | 2,242,628 | | | 910,682 | |
| Share transfers between classes | 843 | | | — | | | 843 | | | — | |
| Distributions reinvested | 17,373 | | | 1,394 | | | 42,596 | | | 1,394 | |
| Repurchased shares, net of early repurchase deduction | (1,586) | | | — | | | (11,836) | | | — | |
| Net increase in net assets from share transactions | 859,888 | | | 665,612 | | | 2,274,231 | | | 912,076 | |
| Class S: | | | | | | | |
| Proceeds from shares sold | 92,662 | | | 137,604 | | | 389,045 | | | 137,604 | |
| Share transfers between classes | (2,541) | | | — | | | (3,196) | | | — | |
| Distributions reinvested | 3,183 | | | 11 | | | 6,363 | | | 11 | |
| Repurchased shares, net of early repurchase deduction | (2,037) | | | — | | | (2,295) | | | — | |
| Net increase in net assets from share transactions | 91,267 | | | 137,615 | | | 389,917 | | | 137,615 | |
| Class D: | | | | | | | |
| Proceeds from shares sold | 121,218 | | | 31,848 | | | 154,936 | | | 31,848 | |
| Share transfers between classes | 1,698 | | | — | | | 2,353 | | | — | |
| Distributions reinvested | 608 | | | 48 | | | 1,189 | | | 48 | |
| Net increase in net assets from share transactions | 123,524 | | | 31,896 | | | 158,478 | | | 31,896 | |
| Total increase in net assets | 1,075,243 | | | 845,711 | | | 2,849,354 | | | 1,111,854 | |
| Net assets, beginning of period | 3,535,503 | | | 414,241 | | | 1,761,392 | | | 148,098 | |
| Net assets, end of period | $ | 4,610,746 | | | $ | 1,259,952 | | | $ | 4,610,746 | | | $ | 1,259,952 | |
See accompanying notes to consolidated financial statements.
ARES STRATEGIC INCOME FUND
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
(unaudited)
| | | | | | | | | | | | | |
| For the Nine Months Ended September 30, | | |
| 2024 | | 2023 | | |
| | | | | |
| OPERATING ACTIVITIES: | | | | | |
| Net increase in net assets resulting from operations | $ | 248,024 | | | $ | 47,199 | | | |
| Adjustments to reconcile net increase in net assets resulting from operations: | | | | | |
| Net realized gains on investments and foreign currency transactions | (12,050) | | | (4,201) | | | |
| Net unrealized gains on investments and foreign currency transactions | (26,400) | | | (7,230) | | | |
| Net gains on interest rate swap accounted for as hedge instrument and the related hedged item | (242) | | | — | | | |
| Net accretion of investments | (10,851) | | | (2,179) | | | |
| PIK interest | (12,462) | | | (895) | | | |
| | | | | |
| PIK dividends | (2,776) | | | (101) | | | |
| | | | | |
| Amortization of debt issuance costs | 4,525 | | | 1,161 | | | |
| Accretion of discount on notes payable | 262 | | | — | | | |
| Amortization of offering costs | 3,361 | | | 2,412 | | | |
| Purchases of investments | (5,916,801) | | | (1,860,811) | | | |
| Proceeds from repayments or sales of investments | 1,704,640 | | | 429,680 | | | |
| Changes in operating assets and liabilities: | | | | | |
| | | | | |
| Interest receivable | (36,253) | | | (7,522) | | | |
| Other assets | (5,202) | | | (15,746) | | | |
| Base management fee payable | 7,321 | | | 1,288 | | | |
| Income based fee payable | 7,970 | | | 1,730 | | | |
| Capital gains incentive fee payable | 4,750 | | | 1,397 | | | |
| Interest and facility fees payable | 18,118 | | | 1,328 | | | |
| Accounts payable and other liabilities | 39,009 | | | 8,915 | | | |
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| Net cash used in operating activities | (3,985,057) | | | (1,403,575) | | | |
| FINANCING ACTIVITIES: | | | | | |
| Borrowings on debt | 3,665,832 | | | 709,433 | | | |
| Repayments of debt | (2,240,190) | | | (365,100) | | | |
| Debt issuance costs | (25,758) | | | (6,482) | | | |
| Net proceeds from issuance of common shares | 2,786,609 | | | 1,080,133 | | | |
| Repurchased shares, net of early repurchase deduction | (14,131) | | | — | | | |
| Distributions to shareholders | (149,029) | | | (6,154) | | | |
| Net cash provided by financing activities | 4,023,333 | | | 1,411,830 | | | |
| CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 38,276 | | | 8,255 | | | |
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | 57,972 | | | 113,417 | | | |
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | $ | 96,248 | | | $ | 121,672 | | | |
| Supplemental Information: | | | | | |
| Interest paid during the period | $ | 71,040 | | | $ | 10,131 | | | |
| Distributions declared and payable during the period | $ | 221,296 | | | $ | 16,932 | | | |
See accompanying notes to consolidated financial statements.
ARES STRATEGIC INCOME FUND
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2024
(in thousands, except per share data, percentages and as otherwise indicated;
for example, with the word “million” or otherwise)
(unaudited)
1. ORGANIZATION
Ares Strategic Income Fund (together with its consolidated subsidiaries, the “Fund”) is a Delaware statutory trust formed on March 15, 2022. The Fund is a closed-end management investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (together with the rules and regulations promulgated thereunder, the “Investment Company Act”). The Fund has elected to be treated as a regulated investment company (“RIC”) under the Internal Revenue Code of 1986, as amended (the “Code”) and operates in a manner so as to qualify for the tax treatment applicable to RICs.
The Fund is externally managed by Ares Capital Management LLC (“Ares Capital Management” or the Fund’s “investment adviser”), a subsidiary of Ares Management Corporation (“Ares Management” or “Ares”), a publicly traded, leading global alternative investment manager, pursuant to an investment advisory and management agreement. Ares Operations LLC (“Ares Operations” or the Fund’s “administrator”), a subsidiary of Ares Management, provides certain administrative and other services necessary for the Fund to operate.
The Fund’s investment objective is to generate current income and, to a lesser extent, long-term capital appreciation. The Fund seeks to invest primarily in first lien senior secured loans, second lien senior secured loans, subordinated secured and unsecured loans, subordinated debt, which in some cases include equity and/or preferred components, and other types of credit instruments which may include commercial real estate mezzanine loans, real estate mortgages, distressed investments, securitized products, notes, bills, debentures, bank loans, convertible and preferred securities, infrastructure debt and government and municipal obligations, made to or issued by U.S. middle-market companies, which the Fund generally defines as companies with annual EBITDA between $10 million and $250 million. As used herein, EBITDA represents annual net income before net interest expense, income tax expense, depreciation and amortization. The Fund expects that a majority of its investments will be in directly originated loans. For cash management and other purposes, the Fund also intends to invest in broadly syndicated loans and other more liquid credit investments, including in publicly traded debt instruments and other instruments that are not directly originated. The Fund primarily invests in illiquid and restricted investments, and while most of the Fund’s investments are expected to be in private U.S. companies (the Fund generally has to invest at least 70% of its total assets in “qualifying assets,” including private U.S. companies), the Fund may also invest from time to time in non-U.S. companies. The Fund’s portfolio may also include equity securities such as common stock, preferred stock, warrants or options, which may be obtained as part of providing a broader financing solution. Under normal circumstances, the Fund will invest directly or indirectly at least 80% of its total assets (net assets plus borrowings for investment purposes) in debt instruments of varying maturities.
Beginning in November 2022 and ending on January 30, 2023, the Fund entered into agreements with several investors pursuant to which such investors committed to purchase the Fund’s Class I shares (the “Private Placement”). The Private Placement was conducted pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506(b) of Regulation D promulgated under the Securities Act and was thus exempt from registration under the Securities Act as it was made only to investors (or advisors and/or managers of such investors) with whom the Fund’s investment adviser had substantive pre-existing relationships, as each of such investors (or such investor’s advisors and/or managers) was known by the Fund’s investment adviser (or persons acting on the Fund’s investment adviser's behalf ) due to a prior investment relationship with entities affiliated with Ares Management, and who are “accredited investors” pursuant to Rule 501(a) under the Securities Act.
Pursuant to such agreements entered into between the Fund and each investor in connection with the Private Placement, the investors participating in the Private Placement (the “Private Placement Investors”) committed to purchase Class I shares at an initial offering price of $25.00 per share, to be adjusted following the initial drawdown of such Private Placement Investors’ subscriptions to a price equal to the net asset value (“NAV”) per share as of the most recently completed month-end prior to the date of such drawdown.
The Fund publicly offers on a continuous basis up to $7.5 billion of its common shares, including Class S shares, Class D shares and Class I shares (“Common Shares”), pursuant to an offering (the “Offering”) registered with the Securities and
Exchange Commission (the “SEC”). On April 17, 2023, the Fund was granted an exemptive relief order from the SEC that permits the Fund to offer to sell any combination of three classes of Common Shares, with a dollar value up to the maximum offering amount of $7.5 billion of its Common Shares. The share classes have different ongoing shareholder servicing and/or distribution fees. Prior to receiving the exemptive relief order, the Fund only offered and sold Class I shares and did not offer any Class S or Class D shares. The purchase price per share for each class of Common Shares equals the Fund’s NAV per share, as of the effective date of the monthly share purchase. The Offering is a “best efforts” offering, which means that Ares Wealth Management Solutions, LLC (“AWMS”), the intermediary manager for the Offering and an affiliate of the Fund’s investment adviser, will use its best efforts to sell Common Shares, but is not obligated to purchase or sell any specific amount of shares. The Fund also engages in offerings of its unregistered Common Shares to non-U.S. investors pursuant to Regulation S of the Securities Act.
2. SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“GAAP”), and include the accounts of the Fund and its consolidated subsidiaries. The Fund is an investment company following accounting and reporting guidance in Accounting Standards Codification (“ASC”) 946, Financial Services—Investment Companies. The consolidated financial statements reflect all adjustments and reclassifications that, in the opinion of management, are necessary for the fair presentation of the results of operations and financial condition as of and for the periods presented. All significant intercompany balances and transactions have been eliminated.
Interim financial statements are prepared in accordance with GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Articles 6 or 10 of Regulation S-X. In the opinion of management, all adjustments, consisting solely of normal recurring accruals considered necessary for the fair presentation of financial statements for the interim period presented, have been included. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending December 31, 2024.
The Fund reclassified certain industry and investment classifications of its portfolio companies in the accompanying consolidated financial statements as of December 31, 2023 to conform to their current period presentations. These reclassifications had no impact on the prior period’s consolidated balance sheet.
Cash, Cash Equivalents and Restricted Cash
Cash and cash equivalents include funds from time to time deposited with financial institutions and short-term, liquid investments in a money market account. Cash and cash equivalents are carried at cost which approximates fair value.
Restricted cash primarily relates to cash held as collateral for interest rate swap.
The following table provides a reconciliation of cash, cash equivalents and restricted cash in the consolidated statement of assets and liabilities to the total amount shown at the end of the applicable period in the consolidated statement of cash flows:
| | | | | | | | | | | | | | | | | |
| As of | | | | | | |
| September 30, 2024 | | December 31, 2023 | | | | | | |
| | | | | | | | | |
| Cash and cash equivalents | $ | 57,518 | | | $ | 57,972 | | | | | | | |
| Restricted cash | 38,730 | | | — | | | | | | | |
| Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | $ | 96,248 | | | $ | 57,972 | | | | | | | |
Concentration of Credit Risk
The Fund places its cash and cash equivalents with financial institutions and, at times, cash held in depository or money market accounts may exceed the Federal Deposit Insurance Corporation insured limit.
Investments
Investment transactions are recorded on the trade date. Realized gains or losses are measured by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment using the specific identification method without regard to unrealized gains or losses previously recognized, and include investments charged off during the period, net of recoveries. Unrealized gains or losses primarily reflect the change in investment values, including the reversal of previously recorded unrealized gains or losses when gains or losses are realized.
Pursuant to Rule 2a-5 under the Investment Company Act, the Fund's board of trustees designated the Fund’s investment adviser as the Fund’s valuation designee (the “Valuation Designee”) to perform fair value determinations for investments held by the Fund without readily available market quotations, subject to the oversight of the Fund’s board of trustees. All investments are recorded at their fair value.
Investments for which market quotations are readily available are typically valued at such market quotations. In order to validate market quotations, the Valuation Designee looks at a number of factors to determine if the quotations are representative of fair value, including the source and nature of the quotations. Debt and equity securities that are not publicly traded or whose market prices are not readily available are valued at fair value as determined in good faith by the Valuation Designee, subject to the oversight of the Fund’s board of trustees, based on, among other things, the input of the Fund’s independent third-party valuation providers (“IVPs”) that have been engaged to support the valuation of such portfolio investments at least quarterly (with certain de minimis exceptions) and under the valuation policy and a consistently applied valuation process. In addition, the Fund’s independent registered public accounting firm obtains an understanding of, and performs select procedures relating to, the Fund’s investment valuation process within the context of performing the Fund’s financial statement audit.
Investments in the Fund’s portfolio that do not have a readily available market are valued at fair value as determined in good faith by the Valuation Designee, as described herein. As part of the valuation process for investments that do not have readily available market prices, the Valuation Designee may take into account the following types of factors, if relevant, in determining the fair value of the Fund’s investments: the enterprise value of a portfolio company (the entire value of the portfolio company to a market participant, including the sum of the values of debt and equity securities used to capitalize the enterprise at a point in time), the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flow, the markets in which the portfolio company does business, a comparison of the portfolio company’s securities to any similar publicly traded securities, changes in the interest rate environment and the credit markets, which may affect the price at which similar investments would trade in their principal markets and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent sale occurs, the Valuation Designee considers the pricing indicated by the external event to corroborate its valuation.
Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Fund’s investments may fluctuate from period to period. Additionally, the fair value of the Fund’s investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that the Fund may ultimately realize. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If the Fund was required to liquidate a portfolio investment in a forced or liquidation sale, the Fund could realize significantly less than the value at which the Fund has recorded it. In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the valuations currently assigned.
The Valuation Designee, subject to the oversight of the Fund’s board of trustees, undertakes a multi‑step valuation process each quarter, as described below:
•The Fund’s quarterly valuation process begins with a preliminary valuation being prepared by the investment professionals responsible for the portfolio investment in conjunction with the Fund’s portfolio management team and valuation team.
•Preliminary valuations are reviewed and discussed by the valuation committee of the Valuation Designee.
•For portfolio investments selected for review by an IVP,
◦Relevant information related to the portfolio investment is made available by the Valuation Designee to the IVP, who does not independently verify such information.
◦The IVP reviews and analyzes the information provided by the Valuation Designee, along with relevant market and economic data, and independently determines a range of values for each of the selected portfolio investments.
◦The IVP provides its analysis to the Valuation Designee to support the IVP’s valuation methodology and calculations.
•The valuation committee of the Valuation Designee determines the fair value of each investment in the Fund’s portfolio without a readily available market quotation in good faith based on, among other things, the input of the IVPs, where applicable.
•For portfolio investments selected for review by an IVP, a positive assurance opinion or independent valuation report is issued by the IVP that confirms the fair value determined by the Valuation Designee for a selected portfolio investment is within the range of values independently calculated by such IVP.
When the Valuation Designee determines the Fund’s NAV as of the last day of a month that is not also the last day of a calendar quarter, the Valuation Designee updates the value of securities with reliable market quotations to the most recent market quotation. For securities without reliable market quotations, the Valuation Designee will generally value such assets at the most recent quarterly valuation unless the Valuation Designee determines that a significant observable change has occurred since the most recent quarter end with respect to the investment (which determination may be as a result of a material event at a portfolio company, material change in market spreads, secondary market transaction in the securities of an investment or otherwise). If the Valuation Designee determines such a change has occurred with respect to one or more investments, the Valuation Designee will determine whether to update the value for each relevant investment. See Note 8 for more information on the Fund’s valuation process.
Interest Income Recognition
Interest income is recorded on an accrual basis and includes the accretion of discounts, amortization of premiums and payment-in-kind (“PIK”) interest. Discounts from and premiums to par value on investments purchased are accreted/amortized into interest income over the life of the respective security using the effective yield method. To the extent loans contain PIK provisions, PIK interest, computed at the contractual rate specified in each applicable agreement, is accrued and recorded as interest income and added to the principal balance of the loan. PIK interest income added to the principal balance is generally collected upon repayment of the outstanding principal. To maintain the Fund’s tax treatment as a RIC, this non-cash source of income must be paid out to shareholders in the form of distributions for the year the income was earned, even though the Fund has not yet collected the cash. The amortized cost of investments represents the original cost adjusted for any accretion of discounts, amortization of premiums and PIK interest.
Loans are generally placed on non-accrual status when principal or interest payments are past due 30 days or more or when there is reasonable doubt that principal or interest will be collected in full. Accrued and unpaid interest is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon the Fund’s judgment regarding collectability. Non-accrual loans are restored to accrual status when past due principal and interest are paid or there is no longer any reasonable doubt that such principal or interest will be collected in full and, in the Fund’s judgment, are likely to remain current. The Fund may make exceptions to this policy if the loan has sufficient collateral value (i.e., typically measured as enterprise value of the portfolio company) or is in the process of collection.
Collateralized loan obligation (“CLO”) equity investments recognize interest income by utilizing an effective interest methodology based upon an effective yield to maturity utilizing projected cash flows, as required by ASC 325-40,
Beneficial Interest in Securitized Financial Assets.
Dividend Income Recognition
Dividend income on preferred equity is recorded on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies. To the extent a preferred equity contains PIK provisions, PIK dividends, computed at the contractual rate specified in each applicable agreement, are accrued and recorded as dividend income and added to the principal balance of the preferred equity. PIK dividends added to the principal balance are generally collected upon redemption of the equity.
Other Income
Other income includes amendment fees that are fixed based on contractual terms and are generally non-recurring and non-refundable and are recognized as revenue when earned upon closing of the related transaction. Other income also includes fees for management and consulting services, loan guarantees, commitments and other services rendered by the Fund to portfolio companies. Such fees are fixed based on contractual terms and are recognized as income as services are rendered.
Foreign Currency Translation
The Fund’s books and records are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis:
(1)Fair value of investment securities, other assets and liabilities—at the exchange rates prevailing at the end of the period.
(2)Purchases and sales of investment securities, income and expenses—at the exchange rates prevailing on the respective dates of such transactions, income or expenses.
Results of operations based on changes in foreign exchange rates are separately disclosed in the consolidated statement of operations, if any. Foreign security and currency translations may involve certain considerations and risks not typically associated with investing in U.S. companies and U.S. government securities. These risks include, but are not limited to, currency fluctuations and revaluations and future adverse political, social and economic developments, which could cause investments in foreign markets to be less liquid and prices more volatile than those of comparable U.S. companies or U.S. government securities.
Derivative Instruments
The Fund follows the guidance in ASC Topic 815, Derivatives and Hedging, when accounting for derivative instruments. The Fund designated a certain interest rate swap as the hedging instrument in a qualifying fair value hedge accounting relationship, and as a result, the change in fair value of the hedging instrument and hedged item are recorded in interest expense and recognized as components of “interest and credit facility fees” in the Fund’s consolidated statement of operations. The change in fair value of the interest rate swap is offset by a change in the carrying value of the corresponding fixed rate debt. For all other derivatives, the Fund does not utilize hedge accounting and as such values its derivatives at fair value with the unrealized gains or losses recorded in “net unrealized gains (losses) from foreign currency transactions” in the Fund’s consolidated statement of operations.
Organization and Offering Expenses
Costs associated with the organization of the Fund are expensed as incurred. Costs associated with the offering of Common Shares of the Fund are capitalized as deferred offering expenses and included in other assets on the consolidated statements of assets and liabilities and amortized over a twelve-month period from incurrence.
Debt Issuance Costs
Debt issuance costs are amortized over the life of the related debt instrument using the straight line method or the effective yield method, depending on the type of debt instrument.
Income Taxes
The Fund has elected to be treated as a RIC under the Code and operates in a manner so as to qualify for the tax treatment applicable to RICs. To qualify for tax treatment as a RIC, the Fund must, among other requirements, meet certain source-of-income and asset diversification requirements and timely distribute to its shareholders at least 90% of its investment company taxable income, as defined by the Code, for each year. The Fund has made and intends to continue to make the requisite distributions to its shareholders, which will generally relieve the Fund from U.S. federal corporate-level income taxes.
Depending on the level of taxable income earned in a tax year, the Fund may choose to carry forward taxable income in excess of current year distributions from such current year taxable income into the next tax year and pay a 4% excise tax on such income, as required. To the extent that the Fund determines that its estimated current year taxable income will be in excess
of estimated distributions for the current year from such income, the Fund accrues excise tax, if any, on estimated excess taxable income as such taxable income is earned.
Distributions
To the extent that the Fund has taxable income available, the Fund intends to make monthly distributions to its shareholders. Distributions to shareholders are recorded on the record date. All distributions will be paid at the sole discretion of the board of trustees and will depend on the Fund’s earnings, financial condition, maintenance of the Fund’s tax treatment as a RIC, compliance with applicable BDC regulations and such other factors as the board of trustees may deem relevant from time to time. Although the gross distribution per share is generally equivalent for each share class, the net distribution for each share class is reduced for any class specific expenses, including shareholder servicing and/or distribution fees, if any.
The Fund has adopted a distribution reinvestment plan (“distribution reinvestment plan”), pursuant to which the Fund will not reinvest cash distributions declared by the board of trustees on behalf of the Fund’s shareholders unless such shareholders elect for their shares to be automatically reinvested. As a result, if the board of trustees authorizes, and the Fund declares, a cash distribution, then the Fund’s shareholders who have opted into the Fund’s distribution reinvestment plan will have their cash distributions automatically reinvested in additional shares, rather than receiving the cash distribution. Distributions on fractional shares will be credited to each participating shareholder’s account. The purchase price for shares issued under the Fund’s distribution reinvestment plan will be equal to the most recent available NAV per share for such shares at the time the distribution is payable.
Use of Estimates in the Preparation of the Consolidated Financial Statements
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of actual and contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income or loss and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include the valuation of investments.
Recent Accounting Pronouncements
The Fund considers the applicability and impact of all accounting standard updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not listed were assessed by the Fund and either determined to be not applicable or expected to have minimal impact on its consolidated financial statements.
In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”),” which enhances disclosure requirements about significant segment expenses that are regularly provided to the chief operating decision maker (the “CODM”). ASU 2023-07 among other things, (i) requires a single segment public entity to provide all of the disclosures as required by Topic 280, (ii) requires a public entity to disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources and (iii) provides the ability for a public entity to elect more than one performance measure. ASU 2023-07 is effective for the fiscal year beginning after December 15, 2023, and interim periods beginning with the first quarter ended March 31, 2025. Early adoption is permitted and retrospective adoption is required for all prior periods presented. The Fund is currently assessing the impact of this guidance, however, the Fund does not expect a material impact on its consolidated financial statements.
In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”),” which intends to improve the transparency of income tax disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 and is to be adopted on a prospective basis with the option to apply retrospectively. The Fund is currently assessing the impact of this guidance, however, the Fund does not expect a material impact to its consolidated financial statements.
3. AGREEMENTS
Investment Advisory and Management Agreement
The Fund is party to an investment advisory and management agreement (the “investment advisory and management agreement”) with Ares Capital Management. Subject to the overall supervision of the Fund’s board of trustees and in accordance with the Investment Company Act, Ares Capital Management provides investment advisory and management services to the Fund. For providing these services, Ares Capital Management receives fees from the Fund consisting of a base
management fee and an incentive fee. The cost of both the base management fee and the incentive fee is ultimately borne by the Fund’s shareholders. Without payment of any penalty, the Fund has the right to terminate the investment advisory and management agreement upon 60 days’ written notice, and Ares Capital Management has the right to terminate the agreement upon 120 days’ written notice.
The base management fee is payable monthly in arrears at an annual rate of 1.25% of the value of the Fund’s net assets as of the beginning of the first calendar day of the applicable month. For purposes of the investment advisory and management agreement, “net assets” means the Fund’s total assets less liabilities, determined on a consolidated basis in accordance with GAAP.
The incentive fee consists of two components that are independent of each other, with the result that one component may be payable even if the other is not. A portion of the incentive fee is based on a percentage of the Fund’s income and a portion is based on a percentage of the Fund’s capital gains, each as described below.
(i) Income Based Fee
The portion of the incentive fee based on the Fund’s income is based on pre-incentive fee net investment income, as defined in the investment advisory and management agreement, for the quarter. Pre-incentive fee net investment income means, as the context requires, either the dollar value of, or percentage rate of return on the value of the Fund’s net assets in accordance with GAAP at the end of the immediately preceding quarter from, interest income, dividend income and any other income (including any other fees (other than fees for providing managerial assistance), such as commitment, origination, structuring, diligence and consulting fees or other fees that the Fund receives from portfolio companies) accrued during the calendar quarter, minus the Fund’s operating expenses accrued for the quarter (including the base management fee, expenses payable under the administration agreement entered into between the Fund and the Fund’s administrator, and any interest expense or fees on any credit facilities or outstanding debt and dividends paid on any issued and outstanding preferred shares, but excluding the incentive fee and any shareholder servicing and/or distribution fees).
Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as market or original issue discount, debt investments with PIK interest, preferred stock with PIK dividends and zero coupon securities), accrued income that the Fund has not yet received in cash. The Fund’s investment adviser is not under any obligation to reimburse the Fund for any part of the income based fee it receives that are based on accrued interest income that the Fund never actually receives. Pre-incentive fee net investment income is not adjusted for incentive fee payments or any shareholder servicing and/or distribution fee payments by the Class S shares and the Class D shares. Accordingly, pre-incentive fee net investment income may be calculated on higher amounts of income than the Fund may ultimately realize and that may ultimately be distributed to common shareholders.
Pre-incentive fee net investment income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. The impact of expense support payments and recoupments are also excluded from pre-incentive fee net investment income. See “Expense Support and Conditional Reimbursement Agreement” below. Because of the structure of the income based fee, it is possible that the Fund may pay such fees in a quarter where it incurs a loss. For example, if the Fund receives pre-incentive fee net investment income in excess of the hurdle rate for a quarter, the Fund will pay the applicable income based fee even if the Fund has incurred a loss in that quarter due to realized and/or unrealized losses.
Pre-incentive fee net investment income, expressed as a rate of return on the value of the Fund’s net assets at the end of the immediately preceding quarter, is compared to a “hurdle rate” of return of 1.25% per quarter (5.0% annualized).
The Fund pays its investment adviser an income based fee quarterly in arrears with respect to the Fund’s pre-incentive fee net investment income in each calendar quarter as follows:
•No incentive fee based on pre-incentive fee net investment income in any calendar quarter in which the Fund’s pre-incentive fee net investment income does not exceed the hurdle rate of 1.25% per quarter (5.00% annualized);
•100% of the dollar amount of Fund’s pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the hurdle rate but is less than a rate of return of 1.43% (5.72% annualized). This portion of the pre-incentive fee net investment income (which exceeds the hurdle rate but is less than 1.43%) is referred to as the “catch-up”. The “catch-up” is meant to provide the Fund’s investment adviser with 12.5% of the pre-incentive fee net investment income as if a hurdle rate did not apply if this net investment income exceeds 1.43% in any calendar quarter; and
•12.5% of the dollar amount of the Fund’s pre-incentive fee net investment income, if any, that exceeds a rate of return of 1.43% (5.72% annualized). This reflects that once the hurdle rate is reached and the catch-up is achieved, 12.5% of all pre-incentive fee net investment income thereafter are allocated to the investment adviser.
The fees that are payable under the investment advisory and management agreement for any partial period will be appropriately prorated and adjusted for any share issuances or repurchases during the relevant period.
(ii) Capital Gains Incentive Fee
The second component of the incentive fee, the capital gains incentive fee, is payable in arrears at the end of each calendar year in an amount equal to 12.5% of cumulative realized capital gains from inception through the end of such calendar year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, as calculated in accordance with GAAP, less the aggregate amount of any previously paid capital gains incentive fee.
Notwithstanding the foregoing, if the Fund is required by GAAP to record an investment at its fair value as of the time of acquisition instead of at the actual amount paid for such investment by the Fund (including, for example, as a result of the application of the asset acquisition method of accounting), then solely for the purposes of calculating the capital gains incentive fee, the “accreted or amortized cost basis” of an investment shall be an amount (the “Contractual Cost Basis”) equal to (1) (x) the actual amount paid by the Fund for such investment plus (y) any amounts recorded in the Fund’s consolidated financial statements as required by GAAP that are attributable to the accretion of such investment plus (z) any other adjustments made to the cost basis included in the Fund’s consolidated financial statements, including PIK interest or additional amounts funded (net of repayments) minus (2) any amounts recorded in the Fund’s consolidated financial statements as required by GAAP that are attributable to the amortization of such investment, whether such calculated Contractual Cost Basis is higher or lower than the fair value of such investment (as determined in accordance with GAAP) at the time of acquisition.
Each year, the fee paid for the capital gains incentive fee is net of the aggregate amount of any previously paid capital gains incentive fee for all prior periods. In no event will the capital gains incentive fee payable pursuant to the investment advisory and management agreement be in excess of the amount permitted by the Investment Advisers Act of 1940, as amended, including Section 205 thereof. If the investment advisory and management agreement shall terminate as of a date that is not a calendar year end, the termination shall be treated as though it were a calendar year end for purposes of calculating and paying a capital gains incentive fee.
The fees that are payable under the investment advisory and management agreement for any partial period will be appropriately prorated and adjusted for any share issuances or repurchases during the relevant period.
The base management fee, income based fee and capital gains incentive fee for the three and nine months ended September 30, 2024 and 2023 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended September 30, | | For the Nine Months Ended September 30, |
| 2024 | | 2023 | | 2024 | | 2023 |
| | | | | | | |
| Base management fee | $ | 13,300 | | | $ | 3,065 | | | $ | 29,803 | | | $ | 4,763 | |
| Income based fee | $ | 12,576 | | | $ | 2,203 | | | $ | 27,494 | | | $ | 3,016 | |
| Capital gains incentive fee(1) | $ | 164 | | | $ | 830 | | | $ | 4,806 | | | $ | 1,397 | |
________________________________________
(1)Calculated in accordance with GAAP as discussed below.
There was no capital gains incentive fee payable to the Fund’s investment adviser as calculated under the investment advisory and management agreement for the three and nine months ended September 30, 2024 and 2023. In addition, in accordance with GAAP, the Fund had cumulatively accrued a capital gains incentive fee of $7,912 as of September 30, 2024. GAAP requires that the capital gains incentive fee accrual consider the cumulative aggregate unrealized capital appreciation in the calculation, as a capital gains incentive fee would be payable if such unrealized capital appreciation were realized, even though such unrealized capital appreciation is not permitted to be considered in calculating the fee actually payable under the investment advisory and management agreement. This GAAP accrual is calculated using the aggregate cumulative realized capital gains and losses and aggregate cumulative unrealized capital depreciation included in the calculation of the capital gains incentive fee plus the aggregate cumulative unrealized capital appreciation, net of any expense associated with cumulative
unrealized capital depreciation or appreciation. If such amount is positive at the end of a period, then GAAP requires the Fund to record a capital gains incentive fee equal to 12.5% of such cumulative amount, less the aggregate amount of actual capital gains incentive fee paid or capital gains incentive fee accrued under GAAP in all prior periods. As of September 30, 2024, the Fund has paid capital gains incentive fee since inception totaling $56. The resulting accrual for any capital gains incentive fee under GAAP in a given period may result in an additional expense if such cumulative amount is greater than in the prior period or a reversal of previously recorded expense if such cumulative amount is less than in the prior period. If such cumulative amount is negative, then there is no accrual. There can be no assurance that such unrealized capital appreciation will be realized in the future.
The services of all investment professionals and staff of the Fund’s investment adviser, when and to the extent engaged in providing investment advisory and management services to the Fund, and the compensation and routine overhead expenses of such personnel allocable to such services, are provided and paid for by the Fund’s investment adviser. Under the investment advisory and management agreement, the Fund bears all other costs and expenses of its operations and transactions, including, but not limited to, those relating to: organization and offering expenses of the Fund associated with the Offering, as provided for in Financial Industry Regulatory Authority, Inc. (“FINRA”) Conduct Rule 2310(a)(12) (but excluding any shareholder servicing and/or distribution fees); calculation of the Fund’s NAV (including the cost and expenses of any IVP or pricing services); expenses incurred by the Fund’s investment adviser payable to third parties, including agents, consultants or other advisers, in monitoring the Fund’s financial and legal affairs and in monitoring the Fund’s investments (including the cost of consultants hired to develop information technology systems designed to monitor the Fund’s investments) and performing due diligence on the Fund’s prospective portfolio companies; interest payable on indebtedness, if any, incurred to finance the Fund’s investments; offerings of the Fund’s Common Shares and other securities; the costs of effecting any repurchases of the Common Shares and the Fund’s other securities; investment advisory fees, including any management fee and incentive fee, payable under the investment advisory and management agreement; administration fees, if any, payable under the administration agreement; fees payable, if any, under any intermediary manager or selected intermediary agreements; shareholder servicing and/or distribution fees payable under the Fund’s distribution and shareholder servicing plan adopted pursuant to Rule 12b-1 under the Investment Company Act; fees payable to third parties, including agents, consultants or other advisers, relating to, or associated with, evaluating and making investments (including payments to third party vendors for financial information services); transfer agent, escrow agent and custodial fees and expenses; federal and state registration fees; all costs of registration and listing the Fund’s Common Shares or any other securities on any securities exchange; federal, state and local taxes; independent trustees’ fees and expenses; costs of preparing and filing reports or other documents required by governmental bodies (including the SEC) and an official or agency administering the securities laws of a state; the costs of any reports, proxy statements or other notices to shareholders, including printing and other related costs; commissions and other compensation payable to brokers or dealers; to the extent the Fund is covered by any joint insurance policies, the Fund’s allocable portion of the fidelity bond, trustees and officers’ errors or omissions liability insurance and any other insurance premiums; outside legal expenses; accounting expenses (including fees and disbursements and expenses related to the audit of the Fund and the preparation of the Fund’s tax information); direct costs and expenses of administration, including printing, mailing, long distance telephone, cellular phone and data service, copying, and staff; and all other expenses incurred by the Fund or its administrator in connection with administering the Fund’s business, as described in more detail under “Administration Agreement” below.
Administration Agreement
The Fund is party to an administration agreement (the “administration agreement”) with its administrator, Ares Operations. Pursuant to the administration agreement, Ares Operations furnishes the Fund with office equipment and clerical, bookkeeping and record keeping services at the Fund’s office facilities. Under the administration agreement, Ares Operations may also arrange for the services of, and oversee custodians, depositories, transfer agents, escrow agents, distribution disbursing agents, other shareholder servicing agents, accountants, attorneys, underwriters, brokers and dealers, corporate fiduciaries, insurers, banks and such other persons in any such other capacity deemed to be necessary or desirable. Ares Operations also performs, or oversees the performance of, the Fund’s required administrative services, which include, among other things, providing assistance in accounting, legal, compliance, operations, technology and investor relations, being responsible for the financial and other records that the Fund is required to maintain and preparing all reports and other materials required to be filed with the SEC or any other regulatory authority, including reports to shareholders.
In addition, Ares Operations assists the Fund in determining and publishing its NAV, assists the Fund in providing managerial assistance to its portfolio companies, oversees the preparation and filing of the Fund’s tax returns and the printing and dissemination of reports to its shareholders, and generally oversees the payment of its expenses and the performance of administrative and professional services rendered to the Fund by others. Payments under the administration agreement are equal to an amount based upon the Fund’s allocable portion of Ares Operations’ overhead and other expenses (including travel expenses) incurred by Ares Operations in performing its obligations under the administration agreement, including the Fund’s
allocable portion of the compensation, rent and other expenses of certain of the Fund’s officers and their respective staffs. The administration agreement may be terminated by either party without penalty upon 60 days’ written notice to the other party.
For the three and nine months ended September 30, 2024, the Fund incurred $1,545 and $4,392, respectively, and $769 and $2,205, respectively, in the comparable periods in 2023, in administrative and other fees, including certain costs that are reimbursable under the investment advisory and management agreement or administration agreement, all of which have been supported by the Fund’s investment adviser pursuant to the Expense Support and Conditional Reimbursement Agreement (as defined below).
Intermediary Manager Agreement
On April 24, 2023, the Fund entered into an intermediary manager agreement (the “Intermediary Manager Agreement”) with AWMS (the “Intermediary Manager”). The Intermediary Manager is entitled to receive shareholder servicing and/or distribution fees monthly in arrears at an annual rate of 0.85% and 0.25% of the value of the Fund’s net assets attributable to Class S shares and Class D shares, respectively, as of the beginning of the first calendar day of the month. No shareholder servicing and/or distribution fees are paid with respect to Class I shares. The shareholder servicing and/or distribution fees are payable to the Intermediary Manager, but the Intermediary Manager anticipates that all or a portion of the shareholder servicing and/or distribution fees will be retained by, or reallowed (paid) to, participating broker-dealers.
The Intermediary Manager is a broker-dealer registered with the SEC and a member of the FINRA.
The Intermediary Manager Agreement may be terminated at any time, without the payment of any penalty, by vote of a majority of the Fund’s trustees who are not “interested persons”, as defined in the Investment Company Act, of the Fund and who have no direct or indirect financial interest in the operation of the Fund’s distribution plan or the Intermediary Manager Agreement, or by vote of a majority of the outstanding voting securities of the Fund, on not more than 60 days’ written notice to the Intermediary Manager or the Fund’s investment adviser. The Intermediary Manager Agreement automatically terminates in the event of its assignment, as defined in the Investment Company Act.
Shareholder Servicing and/or Distribution Fees
Pursuant to Rule 12b-1 under the Investment Company Act, the Fund adopted a shareholder servicing and distribution plan pursuant to which Class S shares and Class D shares are subject to shareholder servicing and/or distribution fees. The following table shows the shareholder servicing and/or distribution fees the Fund and, ultimately, certain classes of the Fund’s common shareholders, pay the Intermediary Manager with respect to the Class S shares and Class D shares on an annualized basis as a percentage of the Fund’s NAV for such class. Subject to FINRA and other limitations on underwriting compensation, the Fund and, ultimately, certain classes of the Fund's shareholders, will pay a shareholder servicing and/or distribution fee equal to 0.85% per annum of the aggregate NAV for the Class S shares and a shareholder servicing and/or distribution fee equal to 0.25% per annum of the aggregate NAV for the Class D shares, in each case, payable monthly. No shareholder servicing and/or distribution fees are paid with respect to the Class I shares.
| | | | | |
| Annual Shareholder Servicing and/or Distribution Fees as a % of NAV |
| Class S | 0.85 | % |
| Class D | 0.25 | % |
| Class I | — | % |
The shareholder servicing and/or distribution fees are paid monthly in arrears, calculated using the NAV of the applicable class as of the beginning of the first calendar day of the month, subject to FINRA and other limitations on underwriting compensation.
The Intermediary Manager will reallow (pay) all or a portion of the shareholder servicing and/or distribution fees to participating brokers and servicing brokers for ongoing shareholder services performed by such brokers. Because the shareholder servicing and/or distribution fees with respect to Class S shares and Class D shares are calculated based on the aggregate NAV for all of the outstanding shares of each such class, such shareholder servicing and/or distribution fees reduce the NAV with respect to all shares of each such class, including shares issued under the Fund’s distribution reinvestment plan.
Eligibility to receive shareholder servicing and/or distribution fees is conditioned on a broker providing the following ongoing services with respect to the Class S or Class D shares: assistance with recordkeeping, answering investor inquiries regarding the Fund, including regarding distribution payments and reinvestments, helping investors understand their investments upon their request, and assistance with share repurchase requests. The shareholder servicing and/or distribution fees are ongoing fees that are not paid at the time of purchase. Because the shareholder servicing and/or distribution fees are paid out of the Fund’s other assets on an ongoing basis, over time these fees will increase the cost of a shareholder’s investment and may cost the shareholder more than paying other types of sales charges.
The Fund’s investment adviser, or its affiliates, may pay additional compensation out of its own resources (i.e., not Fund assets) to certain selling agents or financial intermediaries in connection with the sale of the Fund’s Common Shares. The additional compensation may differ among brokers or dealers in amount or in the amount of calculation. Payments of additional compensation may be fixed dollar amounts or, based on the aggregate value of outstanding Common Shares held by the Fund’s common shareholders introduced by the broker or dealer, or determined in some other manner. The receipt of the additional compensation by a selling broker or dealer may create potential conflicts of interest between an investor and its broker or dealer who is recommending the Fund over other potential investments.
The shareholder servicing and/or distribution fees that were attributable to Class S shares and D shares for the three and nine months ended September 30, 2024 and 2023 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended September 30, | | For the Nine Months Ended September 30, |
| 2024 | | 2023 | | 2024 | | 2023 |
| Class S | $ | 1,412 | | | $ | 143 | | | $ | 3,391 | | | $ | 143 | |
| Class D | $ | 92 | | | $ | 11 | | | $ | 182 | | | $ | 11 | |
There were no shareholder servicing and/or distribution fees that were attributable to Class S shares and D shares prior to the date of the first sale of Class S shares and D shares on August 1, 2023.
Expense Support and Conditional Reimbursement Agreement
The Fund has entered into an expense support and conditional reimbursement agreement (the “Expense Support and Conditional Reimbursement Agreement”) with the Fund’s investment adviser, pursuant to which, among other things, the Fund’s investment adviser has agreed to advance all of the Fund’s estimated organization and initial offering expenses, which includes all of the Fund’s organization and initial offering expenses incurred in connection with the Private Placement.
The Fund’s investment adviser may also elect to pay certain of the Fund’s other expenses on the Fund’s behalf (each, an “Expense Payment”), provided that no portion of an Expense Payment will be used to pay any interest expense or shareholder servicing and/or distribution fees of the Fund. Any Expense Payment that the Fund’s investment adviser has committed to pay must be paid by the Fund’s investment adviser to the Fund in any combination of cash or other immediately available funds no later than 45 days after such commitment was made in writing, and/or offset against amounts due from the Fund to the Fund’s investment adviser or its affiliates.
Following any calendar month in which Available Operating Funds (as defined below) exceed the cumulative distributions accrued to the Fund’s shareholders based on distributions declared with respect to record dates occurring in such calendar month (the amount of such excess being hereinafter referred to as “Excess Operating Funds”), the Fund shall pay such Excess Operating Funds, or a portion thereof, to the Fund’s investment adviser until such time as all Expense Payments made by the Fund’s investment adviser to the Fund within three years prior to the last business day of the applicable calendar month in which such reimbursement payment obligation is accrued. Any payments required to be made by the Fund shall be referred to herein as a “Reimbursement Payment.” Reimbursement Payments are conditioned on (i) an expense ratio (excluding any management or incentive fee) that, after giving effect to the recoupment, is lower than the expense ratio (excluding any management or incentive fee) at the time of the fee waiver or expense reimbursement and (ii) a distribution level (exclusive of return of capital, if any) equal to, or greater than, the rate at the time of the waiver or reimbursement. “Available Operating Funds” means the sum of (i) net investment company taxable income (including net short-term capital gains reduced by net long-term capital losses), (ii) net capital gains (including the excess of net long-term capital gains over net short-term capital losses) and (iii) dividends and other distributions paid to the Fund on account of investments in portfolio companies (to the extent such amounts listed in clause (iii) are not included under clauses (i) and (ii) above).
The Fund’s obligation to make a Reimbursement Payment shall automatically become a liability of the Fund on the last business day of the applicable calendar month, except to the extent the Fund’s investment adviser has waived its right to
receive such payment for the applicable month. Reimbursement Payments for a given Expense Payment must be made within three years prior to the last business day of the applicable calendar month in which such Reimbursement Payment obligation is accrued. The expense support is measured on a per share class basis.
The Fund’s investment adviser agreed not to seek recoupment of any base management fee and incentive fee from the commencement of operations through July 31, 2023. As a result, as of September 30, 2024, $2,487 of base management fee and $1,286 of income based fee were included in the expense support amounts below and will not be repaid to the investment adviser.
The following table presents a summary of Expense Payments and the related Reimbursement Payments since the Fund’s commencement of operations:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the Month Ended | | Expense Support from the Adviser | | Recoupment of Expense Support | | Expense Support No Longer Eligible for Reimbursement | | Unreimbursed Expense Support | | Ratio of Operating Expenses to Average Net Assets for the Period(1) | | Effective Rate of Distribution per Share(2) | | Eligible for Reimbursement through |
| December 31, 2022 | | $ | 1,449 | | | $ | — | | | $ | — | | | $ | 1,449 | | | 5.04 | % | | — | | | 12/31/2025 |
| January 31, 2023 | | $ | 1,088 | | | $ | — | | | $ | — | | | $ | 1,088 | | | 4.56 | % | | — | | | 01/31/2026 |
| February 28, 2023 | | $ | 891 | | | $ | — | | | $ | — | | | $ | 891 | | | 3.53 | % | | — | | | 02/28/2026 |
| March 31, 2023 | | $ | 916 | | | $ | — | | | $ | — | | | $ | 916 | | | 3.63 | % | | — | | | 03/31/2026 |
| April 30, 2023 | | $ | 1,083 | | | $ | — | | | $ | — | | | $ | 1,083 | | | 2.99 | % | | — | | | 04/30/2026 |
| May 31, 2023 | | $ | 1,312 | | | $ | — | | | $ | — | | | $ | 1,312 | | | 2.47 | % | | — | | | 05/31/2026 |
| June 30, 2023 | | $ | 2,253 | | | $ | — | | | $ | — | | | $ | 2,253 | | | 2.48 | % | | — | | | 06/30/2026 |
| July 31, 2023 | | $ | 2,502 | | | $ | — | | | $ | — | | | $ | 2,502 | | | 1.16 | % | | — | | | 07/31/2026 |
| August 31, 2023 | | $ | 2,300 | | | $ | — | | | $ | — | | | $ | 2,300 | | | 1.94 | % | | 8.69 | % | | 08/31/2026 |
| September 30, 2023 | | $ | 1,636 | | | $ | — | | | $ | — | | | $ | 1,636 | | | 1.66 | % | | 8.95 | % | | 09/30/2026 |
| October 31, 2023 | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | 1.20 | % | | 8.67 | % | | 10/31/2026 |
| November 30, 2023 | | $ | 1,637 | | | $ | — | | | $ | — | | | $ | 1,637 | | | 1.18 | % | | 9.69 | % | | 11/30/2026 |
| December 31, 2023 | | $ | 1,144 | | | $ | — | | | $ | — | | | $ | 1,144 | | | 1.08 | % | | 9.33 | % | | 12/31/2026 |
| January 31, 2024 | | $ | 1,592 | | | $ | — | | | $ | — | | | $ | 1,592 | | | 1.20 | % | | 9.27 | % | | 01/31/2027 |
| February 29, 2024 | | $ | 2,183 | | | $ | — | | | $ | — | | | $ | 2,183 | | | 1.10 | % | | 9.93 | % | | 02/28/2027 |
| March 31, 2024 | | $ | 2,194 | | | $ | — | | | $ | — | | | $ | 2,194 | | | 1.49 | % | | 9.28 | % | | 03/31/2027 |
| April 30, 2024 | | $ | 3,066 | | | $ | — | | | $ | — | | | $ | 3,066 | | | 1.21 | % | | 9.55 | % | | 04/30/2027 |
| May 31, 2024 | | $ | 2,437 | | | $ | — | | | $ | — | | | $ | 2,437 | | | 1.18 | % | | 9.25 | % | | 05/31/2027 |
| June 30, 2024 | | $ | 3,170 | | | $ | — | | | $ | — | | | $ | 3,170 | | | 1.22 | % | | 9.52 | % | | 06/30/2027 |
| July 31, 2024 | | $ | 1,164 | | | $ | — | | | $ | — | | | $ | 1,164 | | | 1.01 | % | | 9.19 | % | | 07/31/2027 |
| August 31, 2024 | | $ | 4,291 | | | $ | — | | | $ | — | | | $ | 4,291 | | | 1.02 | % | | 9.20 | % | | 08/31/2027 |
| September 30, 2024 | | $ | 5,402 | | | $ | — | | | $ | — | | | $ | 5,402 | | | 0.96 | % | | 9.51 | % | | 09/30/2027 |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
________________________________________
(1)In accordance with the Expense Support and Conditional Reimbursement Agreement, the ratio of operating expenses excludes organization and offering expenses, stated interest expense, any base management fee and any incentive fee.
(2)The effective rate of distribution per share is the (a) annualized regular cash distributions per share, exclusive of returns of capital, distribution rate reductions due to distribution and shareholder fees, and declared special dividends or special distributions, if any, (b) divided by the prior month’s NAV per share.
4. INVESTMENTS
As of September 30, 2024 and December 31, 2023, investments consisted of the following:
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| As of | | | | |
| September 30, 2024 | | December 31, 2023 | | | | |
| | | | | | | |
| Amortized Cost(1) | | Fair Value | | Amortized Cost(1) | | Fair Value | | | | |
| First lien senior secured loans | $ | 6,523,125 | | | $ | 6,547,469 | | | $ | 2,369,207 | | | $ | 2,385,971 | | | | | |
| Second lien senior secured loans | 173,717 | | | 172,140 | | | 43,237 | | | 43,771 | | | | | |
| Senior subordinated loans | 84,312 | | | 88,991 | | | 46,631 | | | 46,966 | | | | | |
| Corporate bonds | 10,000 | | | 10,934 | | | 10,000 | | | 10,507 | | | | | |
| Collateralized loan obligations | 187,964 | | | 189,703 | | | 22,500 | | | 22,681 | | | | | |
| Commercial mortgage-backed securities | 4,988 | | | 5,138 | | | 4,988 | | | 5,010 | | | | | |
| Private asset-backed investments | 139,223 | | | 141,240 | | | 11,786 | | | 11,901 | | | | | |
| Preferred equity | 72,216 | | | 80,050 | | | 39,500 | | | 41,033 | | | | | |
| Other equity | 72,820 | | | 80,358 | | | 8,935 | | | 9,718 | | | | | |
| Total | $ | 7,268,365 | | | $ | 7,316,023 | | | $ | 2,556,784 | | | $ | 2,577,558 | | | | | |
________________________________________
(1)The amortized cost represents the original cost adjusted for any accretion of discounts, amortization of premiums and PIK interest or dividends.
The Fund uses Global Industry Classification Standards for classifying the industry groupings of its portfolio companies. The industrial and geographic compositions of the Fund’s portfolio at fair value as of September 30, 2024 and December 31, 2023 were as follows:
| | | | | | | | | | | | | | | | | |
| As of | | | | | | |
| September 30, 2024 | | December 31, 2023 | | | | | | |
| | | | | | | | | |
| Industry | | | | | | | | | |
| Software and Services | 24.9 | % | | 20.4 | % | | | | | | |
| Capital Goods | 9.7 | | | 10.4 | | | | | | | |
| Health Care Services | 9.2 | | | 12.2 | | | | | | | |
| Commercial and Professional Services | 9.1 | | | 5.5 | | | | | | | |
| Consumer Services | 7.9 | | | 10.5 | | | | | | | |
| Financial Services | 5.9 | | | 7.2 | | | | | | | |
| Insurance Services | 5.6 | | | 7.5 | | | | | | | |
| Media and Entertainment | 4.9 | | | 4.4 | | | | | | | |
| Investment Funds and Vehicles | 2.9 | | | 1.3 | | | | | | | |
| Materials | 2.8 | | | 1.6 | | | | | | | |
| Retailing and Distribution | 2.6 | | | 2.7 | | | | | | | |
| Pharmaceuticals, Biotechnology and Life Sciences | 2.4 | | | 4.0 | | | | | | | |
| Automobiles and Components | 2.0 | | | 1.7 | | | | | | | |
| Consumer Durables and Apparel | 1.9 | | | 0.4 | | | | | | | |
| Technology Hardware and Equipment | 1.4 | | | 1.1 | | | | | | | |
| Other | 6.8 | | | 9.1 | | | | | | | |
| Total | 100.0 | % | | 100.0 | % | | | | | | |
| | | | | | | | | | | | | | | | | |
| As of | | | | | | |
| September 30, 2024 | | December 31, 2023 | | | | | | |
| | | | | | | | | |
| Geographic Region | | | | | | | | | |
| United States | 93.2 | % | | 91.5 | % | | | | | | |
| Europe | 3.3 | | | 5.0 | | | | | | | |
| Canada | 1.1 | | | 2.3 | | | | | | | |
| Bermuda/Cayman Islands | 2.2 | | | 0.7 | | | | | | | |
| Other | 0.2 | | | 0.5 | | | | | | | |
| Total | 100.0 | % | | 100.0 | % | | | | | | |
As of September 30, 2024, loans on non-accrual status represented 0.1% of the total investments at amortized cost (or 0.1% at fair value). As of December 31, 2023, there were no loans on non-accrual status.
5. DEBT
In accordance with the Investment Company Act, a BDC generally is allowed to borrow amounts such that its asset coverage, calculated pursuant to the Investment Company Act, is at least 150% (or 200% if certain requirements under the Investment Company Act are not met) immediately after such borrowing. The Fund’s sole initial shareholder has approved a proposal that allows the Fund to reduce its asset coverage ratio applicable to senior securities from 200% to 150%. As of September 30, 2024, the Fund’s asset coverage was 315%.
The Fund’s outstanding debt as of September 30, 2024 and December 31, 2023 was as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| As of |
| September 30, 2024 | | December 31, 2023 |
| Total Aggregate Principal Amount Committed/ Outstanding (1) | | Principal Amount Outstanding | | Carrying Value | | Total Aggregate Principal Amount Committed/ Outstanding (1) | | Principal Amount Outstanding | | Carrying Value |
Revolving Credit Facility | $ | 1,785,000 | | (2) | $ | 380,371 | | | $ | 380,370 | | | $ | 800,000 | | (2) | $ | 460,349 | | | $ | 460,325 | |
| SG Funding Facility | 1,825,000 | | (3) | 695,000 | | | 695,000 | | | 1,000,000 | | (3) | 250,000 | | | 250,000 | |
| SB Funding Facility | 750,000 | | | 375,000 | | | 375,000 | | | — | | | — | | | — | |
| August 2029 Notes | 700,000 | | | 700,000 | | | 711,298 | | (4)(5) | — | | | — | | | — | |
| Total | $ | 5,060,000 | | | $ | 2,150,371 | | | $ | 2,161,668 | | | $ | 1,800,000 | | | $ | 710,349 | | | $ | 710,325 | |
________________________________________
(1)Represents the total aggregate amount committed or outstanding, as applicable, under such instrument. Borrowings under the committed Revolving Credit Facility, SG Funding Facility and SB Funding Facility (each as defined below) are subject to borrowing base and other restrictions.
(2)Provides for a feature that allows the Fund, under certain circumstances, to increase the size of the Revolving Credit Facility to a maximum of $2,625,000 and $1,050,000, as of September 30, 2024 and December 31, 2023, respectively.
(3)Provides for a feature that allows ASIF Funding I (as defined below), under certain circumstances, to increase the size of the SG Funding Facility to a maximum of $2,000,000.
(4)Represents the aggregate principal amount outstanding, less unamortized debt issuance costs and the unaccreted discount recorded upon issuance.
(5)The carrying value of the August 2029 Notes (as defined below) as of September 30, 2024 includes an adjustment as a result of an effective hedge accounting relationship. See Note 6 for more information.
Revolving Credit Facility
The Fund is party to a senior secured revolving credit facility agreement with JPMorgan Chase Bank, N.A. and each of the other parties thereto (the “Revolving Credit Facility”), that as of September 30, 2024, allowed the Fund to borrow up to $1,785,000 at any one time outstanding. As of September 30, 2024, the end of the revolving period and the stated maturity date were April 15, 2028 and April 15, 2029, respectively. As of September 30, 2024, the Revolving Credit Facility also provided for a feature that allowed the Fund, under certain circumstances, to increase the overall size of the Revolving Credit Facility to a maximum of $2,625,000. The Revolving Credit Facility generally requires payments of interest at the end of each Secured Overnight Financing Rate (“SOFR”) interest period, but no less frequently than quarterly, on SOFR based loans, and monthly payments of interest on other loans. Subsequent to the end of the respective revolving periods and prior to the respective stated maturity dates, the Fund is required to repay the relevant outstanding principal amounts under both the term loan tranche and revolving tranche on a monthly basis in an amount equal to 1/12th of the outstanding principal amount at the end of the respective revolving periods. See Note 11 for a subsequent event relating to the Revolving Credit Facility.
Under the Revolving Credit Facility, the Fund is required to comply with various covenants, reporting requirements and other customary requirements for similar revolving credit facilities, including, without limitation, covenants related to: (a) limitations on the incurrence of additional indebtedness and liens, (b) limitations on certain investments, (c) limitations on certain restricted payments, (d) maintaining a certain minimum shareholders’ equity, (e) maintaining a ratio of total assets (less total liabilities not representing indebtedness) to total indebtedness of the Fund (subject to certain exceptions) of not less than 1.5:1.0, (f) limitations on pledging certain unencumbered assets, and (g) limitations on the creation or existence of agreements that prohibit liens on certain properties of the Fund. These covenants are subject to important limitations and exceptions that are described in the documents governing the Revolving Credit Facility. Amounts available to borrow under the Revolving Credit Facility (and the incurrence of certain other permitted debt) are also subject to compliance with a borrowing base that applies different advance rates to different types of assets (based on their value as determined pursuant to the Revolving Credit Facility) that are pledged as collateral. As of September 30, 2024, the Fund was in compliance in all material respects with the terms of the Revolving Credit Facility.
As of September 30, 2024 and December 31, 2023, there was $380,371 and $460,349 aggregate principal amount outstanding, respectively, under the Revolving Credit Facility. The Revolving Credit Facility also provides for a sub-limit for the issuance of letters of credit for up to an aggregate amount of $100,000.
The interest rate charged on the Revolving Credit Facility is based on SOFR plus a credit spread adjustment of 0.10% (or an alternate rate of interest for certain loans, commitments and/or other extensions of credit denominated in approved foreign currencies plus a spread adjustment, if applicable) and an applicable spread of either 1.75% or 1.875% or an “alternate base rate” (as defined in the documents governing the Revolving Credit Facility) plus an applicable spread of 0.75% or 0.875%, in each case, determined monthly based on the total amount of the borrowing base relative to the sum of (i) the greater of (a) the aggregate amount of revolving exposure under the Revolving Credit Facility and (b) 85% of the total commitments of the Revolving Credit Facility (or, if higher, the total revolving exposure) plus (ii) other debt, if any, secured by the same collateral as the Revolving Credit Facility. The Revolving Credit Facility allows for borrowings to be made using one, three or six month SOFR. As of September 30, 2024, the one, three and six month SOFR was 4.85%, 4.59% and 4.25%, respectively. As of September 30, 2024, the applicable spread in effect was 1.75%. In addition to the stated interest expense on the Revolving Credit Facility, the Fund is required to pay a commitment fee of 0.375% per annum on any unused portion of the Revolving Credit Facility. The Fund is also required to pay a letter of credit fee of 0.25% per annum on letters of credit issued and the applicable spread.
For the three and nine months ended September 30, 2024 and 2023, the components of interest and credit facility fees expense, cash paid for interest expense, average stated interest rates (i.e., rate in effect plus the spread) and average outstanding balances for the Revolving Credit Facility were as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended September 30, | | For the Nine Months Ended September 30, |
| 2024 | | 2023 | | 2024 | | 2023 |
| | | | | | | |
| Stated interest expense | $ | 1,201 | | | $ | 4,273 | | | $ | 12,651 | | | $ | 9,265 | |
| Credit facility fees | 1,631 | | | 510 | | | 3,322 | | | 1,426 | |
| Amortization of debt issuance costs | 681 | | | 355 | | | 1,775 | | | 962 | |
| Total interest and credit facility fees expense | $ | 3,513 | | | $ | 5,138 | | | $ | 17,748 | | | $ | 11,653 | |
| Cash paid for interest expense | $ | 1,364 | | | $ | 5,348 | | | $ | 12,802 | | | $ | 10,131 | |
| Average stated interest rate | 7.11 | % | | 7.33 | % | | 7.21 | % | | 7.15 | % |
| Average outstanding balance | $ | 66,120 | | | $ | 233,039 | | | $ | 230,611 | | | $ | 172,837 | |
SG Funding Facility
The Fund and the Fund’s wholly owned subsidiary, ASIF Funding I, LLC (“ASIF Funding I”), are party to a revolving funding facility with Société Générale and each of the other parties thereto (the “SG Funding Facility”), that provides for a facility amount of $1,825,000. The end of the revolving period and the stated maturity date are August 28, 2027 and August 28, 2029, respectively. The SG Funding Facility also provides for a feature that allows ASIF Funding I, under certain circumstances, to increase the overall size of the SG Funding Facility to a maximum of $2,000,000.
In addition, the Fund, as transferor, and ASIF Funding I, as transferee, are party to a contribution agreement, pursuant to which the Fund will transfer to ASIF Funding I certain originated or acquired loans and related assets from time to time. The obligations of ASIF Funding I under the SG Funding Facility are secured by substantially all assets held by ASIF Funding I.
Under the SG Funding Facility, the Fund and ASIF Funding I are required to comply with various covenants, reporting requirements and other customary requirements for similar facilities. These covenants are subject to important limitations and exceptions that are described in the documents governing the SG Funding Facility. As of September 30, 2024, the Fund and ASIF Funding I were in compliance in all material respects with the terms of the SG Funding Facility.
As of September 30, 2024 and December 31, 2023, there was $695,000 and $250,000 aggregate principal amount outstanding, respectively, under the SG Funding Facility. Since August 28, 2024, the interest rate charged on the SG Funding Facility is based on SOFR plus an applicable margin of 2.05% per annum. From December 19, 2023 to August 27, 2024, the interest rate charged on the SG Funding Facility was based on SOFR plus an applicable margin of 2.60% per annum. Prior to December 19, 2023, the interest rate charged on the SG Funding Facility was based on SOFR plus an applicable margin that was a blended rate determined as follows: (i) 1.90% per annum for the portion of the collateral pool that consisted of broadly syndicated loans, determined by multiplying the aggregate amount of loans then outstanding under the SG Funding Facility by the percentage of the collateral pool that consisted of broadly syndicated loans, plus (ii) 2.80% per annum for the portion of the collateral pool that did not consist of broadly syndicated loans, determined by multiplying the aggregate amount of loans then outstanding under the SG Funding Facility by the percentage of the collateral pool that did not consist of broadly syndicated loans. In addition to the stated interest expense, ASIF Funding I is required to pay, among other fees, a daily commitment fee on any monthly distribution date, termination date or on the date of any payment or prepayment of a loan outstanding under the SG Funding Facility.
For the three and nine months ended September 30, 2024 and 2023, the components of interest and credit facility fees expense, cash paid for interest expense, average stated interest rates (i.e., rate in effect plus the spread) and average outstanding balances for the SG Funding Facility were as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended September 30, | | For the Nine Months Ended September 30, |
| 2024 | | 2023 | | 2024 | | 2023 |
| | | | | | | |
| Stated interest expense | $ | 11,287 | | | $ | — | | | $ | 28,155 | | | $ | — | |
| Credit facility fees | 1,384 | | | 459 | | | 3,583 | | | 459 | |
| Amortization of debt issuance costs | 815 | | | 199 | | | 2,129 | | | 199 | |
| Total interest and credit facility fees expense | $ | 13,486 | | | $ | 658 | | | $ | 33,867 | | | $ | 658 | |
| Cash paid for interest expense | $ | 8,842 | | | $ | — | | | $ | 26,561 | | | $ | — | |
| Average stated interest rate | 7.71 | % | | — | % | | 7.85 | % | | — | % |
| Average outstanding balance | $ | 572,609 | | | $ | — | | | $ | 471,223 | | | $ | — | |
SB Funding Facility
The Fund and the Fund’s wholly owned subsidiary, ASIF Funding II, LLC (“ASIF Funding II”), are party to a revolving funding facility with the Bank of Nova Scotia and each of the other parties thereto (the “SB Funding Facility”), that provides for a facility amount of $750,000. The end of the reinvestment period and the stated maturity date are September 1, 2026 and March 1, 2033, respectively.
In addition, the Fund, as transferor, and ASIF Funding II, as transferee, are party to a contribution agreement, pursuant to which the Fund will transfer to ASIF Funding II certain originated or acquired loans and related assets from time to time. The obligations of ASIF Funding II under the SB Funding Facility are secured by substantially all assets held by ASIF Funding II.
Under the SB Funding Facility, the Fund and ASIF Funding II, as applicable, have made representations and warranties regarding their businesses, among other things, and are required to comply with various covenants, servicing procedures, reporting requirements and other customary requirements for similar facilities. The SB Funding Facility includes usual and customary events of default for facilities of this nature. As of September 30, 2024, the Fund and ASIF Funding II were in compliance in all material respects with the terms of the SB Funding Facility.
As of September 30, 2024, there was $375,000 aggregate principal amount outstanding under the SB Funding Facility. Since August 2, 2024, the interest rate charged on the SB Funding Facility is based on SOFR plus an applicable margin of (i) 2.10% during the reinvestment period and (ii) 2.40% following the reinvestment period. Prior to August 2, 2024, the interest rate charged on the SB Funding Facility was based on SOFR plus an applicable margin of (i) 2.40% during the reinvestment period and (ii) 2.70% following the reinvestment period. As of September 30, 2024, the applicable spread in effect was 2.10%. In addition, ASIF Funding II is required to pay, among other fees, a commitment fee of 0.50% per annum on any unused portion of the SB Funding Facility.
For the three and nine months ended September 30, 2024, the components of interest and credit facility fees expense, cash paid for interest expense, average stated interest rates (i.e., rate in effect plus the spread) and average outstanding balances for the SB Funding Facility were as follows:
| | | | | | | | | | | |
| | | |
| | | |
| For the Three Months Ended September 30, 2024 | | For the Nine Months Ended September 30, 2024 |
| Stated interest expense | $ | 5,179 | | | $ | 8,184 | |
| Credit facility fees | 374 | | | 707 | |
| Amortization of debt issuance costs | 173 | | | 395 | |
| Total interest and credit facility fees expense | $ | 5,726 | | | $ | 9,286 | |
| Cash paid for interest expense | $ | 4,580 | | | $ | 7,295 | |
| Average stated interest rate | 7.42 | % | | 7.53 | % |
| Average outstanding balance | $ | 273,098 | | | $ | 142,792 | |
Unsecured Notes
In June 2024, the Fund issued $700,000 in aggregate principal amount of unsecured notes that mature on August 15, 2029 and bear interest at a rate of 6.350% per annum (the “August 2029 Notes”). The August 2029 Notes were sold to initial purchasers in a private placement in reliance on Section 4(a)(2) of the Securities Act, and for the resale by such initial purchasers to (i) qualified institutional buyers in transactions exempt from registration under the Securities Act pursuant to Rule 144A thereunder or (ii) certain non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act. The August 2029 Notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration. The August 2029 Notes pay interest semi-annually on February 15 and August 15 of each year, commencing on February 15, 2025, and all principal is due upon maturity. The August 2029 Notes may be redeemed in whole or in part at any time at the Fund’s option at a redemption price equal to par plus a “make whole” premium, if applicable, as determined pursuant to the indenture governing the August 2029 Notes, and any accrued and unpaid interest. The August 2029 Notes were issued at a discount to the principal amount.
Concurrent with the issuance of the August 2029 Notes, the Fund entered into a Registration Rights Agreement (the “August 2029 Notes Registration Rights Agreement”) for the benefit of the initial purchasers of the August 2029 Notes. Pursuant to the August 2029 Notes Registration Rights Agreement, the Fund is obligated to file a registration statement with the
SEC with respect to an offer to exchange the August 2029 Notes for a new issue of debt securities registered under the Securities Act with terms substantially identical to those of the August 2029 Notes (except for provisions relating to transfer restrictions and payment of additional interest) and to use its commercially reasonable efforts to consummate such exchange offer on the earliest practicable date after the registration statement has been declared effective but in no event later than June 5, 2025. If the Fund fails to satisfy its registration obligations under the August 2029 Notes Registration Rights Agreement, it will be required to pay additional interest to the holders of the August 2029 Notes.
In connection with the August 2029 Notes, the Fund entered into an interest rate swap agreement for a total notional amount of $700,000 that matures on August 15, 2029 to more closely align the interest rate of such liability with the Fund’s investment portfolio, which consists primarily of floating rate loans. Under the interest rate swap agreement, the Fund receives a fixed interest rate of 6.350% and pays a floating interest rate based on one-month SOFR plus 2.208%. The Fund designated this interest rate swap and the August 2029 Notes as a qualifying hedge accounting relationship. See Note 6 for more information on the interest rate swap.
See Note 11 for a subsequent event relating to an additional issuance of unsecured notes.
For the three and nine months ended September 30, 2024, the components of interest expense, cash paid for interest expense and average stated interest rate, net of effect of interest rate swap for the August 2029 Notes were as follows.
| | | | | | | | | | | |
| | | |
| | | |
| For the Three Months Ended September 30, 2024 | | For the Nine Months Ended September 30, 2024 |
| Stated interest expense(1) | $ | 13,159 | | | $ | 16,969 | |
| Amortization of debt issuance costs | 176 | | | 226 | |
| Accretion of discount | 204 | | | 262 | |
| Total interest expense | $ | 13,539 | | | $ | 17,457 | |
| Cash paid for interest expense(1) | $ | 24,382 | | | $ | 24,382 | |
| Average stated interest rate, net of effect of interest rate swap | 7.50 | % | | 7.50 | % |
| | | |
________________________________________
(1)Includes the impact of the interest rate swap.
The August 2029 Notes contain certain covenants, including covenants requiring the Fund to comply with Section 18(a)(1)(A) as modified by Section 61(a) of the Investment Company Act, or any successor provisions, and to provide financial information to the holders of such notes under certain circumstances. These covenants are subject to important limitations and exceptions set forth in the indenture governing such notes. As of September 30, 2024, the Fund was in compliance in all material respects with the terms of the indenture governing the August 2029 Notes.
The August 2029 Notes are the Fund’s senior unsecured obligations and rank senior in right of payment to any future indebtedness that is expressly subordinated in right of payment to the August 2029 Notes; equal in right of payment to the Fund’s existing and future unsecured indebtedness that is not expressly subordinated; effectively junior in right of payment to any of its secured indebtedness (including existing unsecured indebtedness that the Fund later secures) to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by the Fund’s subsidiaries, financing vehicles or similar facilities.
6. DERIVATIVE INSTRUMENTS
The Fund enters into derivative instruments from time to time to help mitigate its foreign currency and interest rate risk exposures.
Foreign Currency Forward Contracts
Certain information related to the Fund’s foreign currency forward derivative instruments as of September 30, 2024 and December 31, 2023 is presented below.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | As of September 30, 2024 |
| Derivative Instrument | Notional
Amount | | Maturity Date | | Gross Amount of Recognized Assets | | Gross Amount of Recognized Liabilities | | Balance Sheet
Location of Net Amounts |
| Foreign currency forward contract | CAD | 55,062 | | | November 16, 2026 | | $ | 41,019 | | | $ | (41,195) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | NOK | 54,034 | | | March 31, 2026 | | 5,004 | | | (5,060) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | £ | 47,367 | | | August 16, 2027 | | 60,284 | | | (61,509) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | £ | 31,468 | | | June 11, 2027 | | 39,996 | | | (40,884) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | £ | 30,369 | | | August 21, 2026 | | 37,777 | | | (39,054) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | AUD | 19,036 | | | November 17, 2026 | | 12,330 | | | (12,717) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | AUD | 15,394 | | | October 18, 2024 | | 10,169 | | | (10,404) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | € | 14,761 | | | October 25, 2024 | | 16,084 | | | (16,268) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | CAD | 12,123 | | | June 11, 2027 | | 9,007 | | | (9,077) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | € | 10,143 | | | March 30, 2027 | | 11,407 | | | (11,584) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | £ | 9,005 | | | March 31, 2026 | | 11,370 | | | (11,673) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | £ | 6,695 | | | August 21, 2026 | | 8,433 | | | (8,662) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | € | 4,911 | | | March 26, 2026 | | 5,448 | | | (5,514) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | AUD | 3,991 | | | February 18, 2026 | | 2,640 | | | (2,700) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | NZD | 3,773 | | | July 17, 2026 | | 2,303 | | | (2,350) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | £ | 3,090 | | | October 25, 2024 | | 3,966 | | | (4,049) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | € | 3,057 | | | May 22, 2026 | | 3,440 | | | (3,461) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | CAD | 2,782 | | | November 16, 2026 | | 2,035 | | | (2,063) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | € | 1,716 | | | March 30, 2027 | | 1,944 | | | (1,960) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | £ | 1,440 | | | March 31, 2026 | | 1,747 | | | (1,831) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | £ | 960 | | | March 31, 2025 | | 1,167 | | | (1,225) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | € | 880 | | | March 26, 2025 | | 966 | | | (976) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | € | 296 | | | October 25, 2024 | | 322 | | | (326) | | | Accounts payable and other liabilities |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Foreign currency forward contract | € | 116 | | | March 31, 2026 | | 130 | | | (130) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | NZD | 110 | | | January 17, 2025 | | 68 | | | (69) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | NZD | 109 | | | October 17, 2024 | | 67 | | | (68) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | NZD | 104 | | | April 17, 2025 | | 64 | | | (65) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | NZD | 102 | | | July 17, 2025 | | 63 | | | (64) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | NZD | 95 | | | October 17, 2025 | | 58 | | | (59) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | NZD | 93 | | | January 20, 2026 | | 57 | | | (58) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | NZD | 92 | | | April 17, 2026 | | 56 | | | (57) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | € | 77 | | | December 27, 2024 | | 85 | | | (85) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | € | 74 | | | March 31, 2025 | | 82 | | | (82) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | € | 72 | | | June 30, 2025 | | 80 | | | (80) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | € | 72 | | | September 30, 2025 | | 81 | | | (81) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | € | 70 | | | December 29, 2025 | | 79 | | | (79) | | | Accounts payable and other liabilities |
| Total | | | | | | $ | 289,828 | | | $ | (295,519) | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | As of December 31, 2023 |
| Derivative Instrument | Notional
Amount | | Maturity Date | | Gross Amount of Recognized Assets | | Gross Amount of Recognized Liabilities | | Balance Sheet
Location of Net Amounts |
| | | | | | | | | | |
| Foreign currency forward contract | £ | 11,532 | | | August 21, 2026 | | $ | 14,240 | | | $ | (14,240) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | AUD | 9,518 | | | November 17, 2026 | | 6,165 | | | (6,165) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | € | 7,826 | | | January 26, 2024 | | 8,380 | | | (8,380) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | CAD | 1,391 | | | November 16, 2026 | | 1,017 | | | (1,017) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | £ | 720 | | | March 31, 2026 | | 874 | | | (874) | | | Accounts payable and other liabilities |
| Foreign currency forward contract | £ | 480 | | | March 31, 2025 | | 583 | | | (583) | | | Accounts payable and other liabilities |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| Total | | | | | | $ | 31,259 | | | $ | (31,259) | | | |
As of September 30, 2024, the counterparties to each of the Fund’s foreign currency forward contracts were Canadian Imperial Bank of Commerce and Wells Fargo Bank, N.A. As of December 31, 2023, the counterparty to all of the Fund’s foreign currency forward contracts was Wells Fargo Bank, N.A.
Net realized and unrealized gains and losses on derivative instruments not designated as a qualifying hedge accounting relationship recognized by the Fund for the three and nine months ended September 30, 2024 and 2023 are in the following locations in the consolidated statement of operations:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended September 30, | | For the Nine Months Ended September 30, | | | | |
| Derivative Instrument | Statement Location | 2024 | | 2023 | | 2024 | | 2023 | | | | |
| | | | | | | | | | | | |
| Foreign currency forward contract | Net realized gains (losses) on foreign currency transactions | $ | 187 | | | $ | — | | | $ | 383 | | | $ | — | | | | | |
| Foreign currency forward contract | Net unrealized gains (losses) on foreign currency transactions | $ | (8,000) | | | $ | 245 | | | $ | (7,477) | | | $ | 245 | | | | | |
| | | | | | | | | | | | |
Interest Rate Swap
In connection with the August 2029 Notes, the Fund entered into an interest rate swap agreement to more closely align the interest rate of such liability with the Fund’s investment portfolio, which consists primarily of floating rate loans. Under the interest rate swap agreement, the Fund receives a fixed interest rate and pays a floating interest rate of one-month SOFR plus an applicable spread, as disclosed below. The Fund designated this interest rate swap and the August 2029 Notes as a qualifying fair value hedge accounting relationship. As of September 30, 2024, the counterparty to the Fund’s interest rate swap agreement was Wells Fargo Bank, N.A. Certain information related to the Fund’s interest rate swap instrument as of September 30, 2024 is presented below.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Description | | Hedged Item | | Company Receives | | Company Pays | | Maturity Date | | Notional Amount |
| Interest rate swap | | August 2029 Notes | | 6.350 | % | | SOFR + 2.208% | | August 15, 2029 | | $ | 700,000 | |
| | | | | | | | | | |
See Note 5 for more information on the August 2029 Notes. See Note 11 for a subsequent event relating to an additional interest rate swap in connection with an additional issuance of unsecured notes.
As a result of the Fund’s designation of the interest rate swap as the hedging instrument in a qualifying fair value hedge accounting relationship, the Fund is required to fair value the hedging instrument and the related hedged item, with the changes in the fair value of each being recorded in interest expense. The net gain related to the fair value hedge was approximately $264 and $242 for the three and nine months ended September 30, 2024, respectively, which is included in “interest and credit facility fees” in the Fund’s consolidated statement of operations. The balance sheet impact of fair valuing the interest rate swap as of September 30, 2024 is presented below:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | As of September 30, 2024 |
| Derivative Instrument | Notional
Amount | | Maturity Date | | Gross Amount of Recognized Assets | | Gross Amount of Recognized Liabilities | | Balance Sheet
Location of Net Amounts |
| Interest rate swap(1) | $ | 700,000 | | | August 15, 2029 | | $ | 25,436 | | | $ | — | | | Other assets |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| Total | | | | | | $ | 25,436 | | | $ | — | | | |
________________________________________
(1)The asset related to the fair value of the interest rate swap is offset by a $25,194 increase to the carrying value of the August 2029 Notes.
7. COMMITMENTS AND CONTINGENCIES
Investment Commitments
The Fund’s investment portfolio may contain debt investments which are in the form of revolving and delayed draw loan commitments, which require the Fund to provide funding when requested by portfolio companies in accordance with underlying loan agreements. As of September 30, 2024 and December 31, 2023, the Fund had the following commitments to fund various revolving and delayed draw term loans:
| | | | | | | | | | | |
| | As of |
| September 30, 2024 | | December 31, 2023 |
| | | |
| Total revolving loan commitments | $ | 466,138 | | | $ | 59,388 | |
| Less: funded commitments | (76,807) | | | (3,020) | |
| Total net unfunded revolving loan commitments | 389,331 | | | 56,368 | |
| | | |
| Total delayed draw term loan commitments | 839,423 | | | 278,442 | |
| | | |
| | | |
| | | |
| Total net unfunded revolving and delayed draw term loan commitments | $ | 1,228,754 | | | $ | 334,810 | |
The Fund’s commitment to fund delayed draw loans is generally triggered upon the satisfaction of certain pre-negotiated terms and conditions. Generally, the most significant and uncertain term requires the borrower to satisfy a specific use of proceeds covenant. The use of proceeds covenant typically requires the borrower to use the additional loans for the specific purpose of a permitted acquisition or permitted investment, for example. In addition to the use of proceeds covenant, the borrower is generally required to satisfy additional negotiated covenants (including specified leverage levels).
In addition, as of September 30, 2024 and December 31, 2023, the Fund was party to subscription agreements to fund equity investment commitments as follows:
| | | | | | | | | | | |
| | As of |
| September 30, 2024 | | December 31, 2023 |
| | | |
| Total equity commitments | $ | 33,067 | | | $ | 51 | |
| Less: funded commitments | (3,228) | | | — | |
| Total net unfunded equity commitments | $ | 29,839 | | | $ | 51 | |
| | | |
| | | |
| | | |
| | | |
| | | |
8. FAIR VALUE OF FINANCIAL INSTRUMENTS
The Fund follows ASC 825-10, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASC 825-10”), which provides funds the option to report selected financial assets and liabilities at fair value. ASC 825-10 also establishes presentation and disclosure requirements designed to facilitate comparisons between funds that choose different measurement attributes for similar types of assets and liabilities and to more easily understand the effect of the fund’s choice to use fair value on its earnings. ASC 825-10 also requires entities to display the fair value of the selected assets and liabilities on the face of the balance sheet. The Fund has not elected the ASC 825-10 option to report selected financial assets and liabilities at fair value. With the exception of the line items entitled “other assets” and “debt,” which are reported at amortized cost, the carrying value of all other assets and liabilities approximate fair value.
The Fund also follows ASC 820-10, Fair Value Measurements and Disclosures (“ASC 820-10”), which among other matters, requires enhanced disclosures about investments that are measured and reported at fair value. ASC 820-10 defines fair value, establishes a framework for measuring fair value in accordance with GAAP and expands disclosure of fair value measurements. ASC 820-10 determines fair value to be the price that would be received for an investment in a current sale, which assumes an orderly transaction between market participants on the measurement date. ASC 820-10 requires the Fund to assume that the portfolio investment is sold in its principal market to market participants or, in the absence of a principal market, the most advantageous market, which may be a hypothetical market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact. In accordance with ASC 820-10, the Fund has considered its principal market as the market in which the Fund exits its portfolio investments with the greatest volume and level of activity. ASC 820-10 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. In accordance with ASC 820-10, these inputs are summarized in the three broad levels listed below:
•Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.
•Level 2—Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.
•Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement.
In addition to using the above inputs in investment valuations, the Valuation Designee continues to employ the net asset valuation policy and procedures that have been reviewed by the Fund’s board of trustees in connection with their designation of the Fund’s investment adviser as the valuation designee that are consistent with the provisions of Rule 2a-5 under the Investment Company Act and ASC 820-10 (see Note 2 for more information). Consistent with its valuation policies and procedures, the Valuation Designee will evaluate the source of inputs, including any markets in which the Fund’s investments are trading (or any markets in which securities with similar attributes are trading), in determining fair value. Where there may not be a readily available market value for some of the investments in the Fund’s portfolio, the fair value of a portion of the Fund’s investments may be determined using unobservable inputs.
The Fund’s portfolio investments classified as Level 3 are typically valued using two different valuation techniques. The first valuation technique is an analysis of the enterprise value (“EV”) of the portfolio company. EV means the entire value of the portfolio company to a market participant, including the sum of the values of debt and equity securities used to capitalize the enterprise at a point in time. The primary method for determining EV uses a multiple analysis whereby appropriate multiples are applied to the portfolio company’s EBITDA. EBITDA multiples are typically determined based upon review of market comparable transactions and publicly traded comparable companies, if any. The Valuation Designee may also employ other valuation multiples to determine EV, such as revenues or, in the case of certain portfolio companies in the power generation industry, kilowatt capacity. The second method for determining EV uses a discounted cash flow analysis whereby future expected cash flows of the portfolio company are discounted to determine a present value using estimated discount rates (typically a weighted average cost of capital based on costs of debt and equity consistent with current market conditions). The EV analysis is performed to determine the value of equity investments, the value of debt investments in portfolio companies where the Fund has control or could gain control through an option or warrant security, and to determine if there is credit impairment for debt investments. If debt investments are credit impaired, an EV analysis may be used to value such debt investments; however, in addition to the methods outlined above, other methods such as a liquidation or wind-down analysis may be utilized to estimate EV. The second valuation technique is a yield analysis, which is typically performed for non-credit impaired debt investments in portfolio companies where the Fund does not own a controlling equity position. To determine fair value using a yield analysis, a current price is imputed for the investment based upon an assessment of the expected market yield for a similarly structured investment with a similar level of risk. In the yield analysis, the Valuation Designee considers the current contractual interest rate, the maturity and other terms of the investment relative to risk of the Fund and the specific investment. A key determinant of risk, among other things, is the leverage through the investment relative to the EV of the portfolio company. As debt investments held by the Fund are substantially illiquid with no active transaction market, the Valuation Designee depends on primary market data, including newly funded transactions, as well as secondary market data with respect to high yield debt instruments and syndicated loans, as inputs in determining the appropriate market yield, as applicable.
The following table presents fair value measurements of cash and cash equivalents, restricted cash, investments, unfunded revolving and delayed draw loan commitments and derivatives as of September 30, 2024:
| | | | | | | | | | | | | | | | | | | | | | | |
| Fair Value Measurements Using |
| Level 1 | | Level 2 | | Level 3 | | Total |
| Cash and cash equivalents | $ | 57,518 | | | $ | — | | | $ | — | | | $ | 57,518 | |
| Restricted cash | $ | 38,730 | | | $ | — | | | $ | — | | | $ | 38,730 | |
| | | | | | | |
| First lien senior secured loans | $ | — | | | $ | 3,203,489 | | | $ | 3,343,980 | | | $ | 6,547,469 | |
| Second lien senior secured loans | — | | | 142,345 | | | 29,795 | | | 172,140 | |
| Senior subordinated loans | — | | | — | | | 88,991 | | | 88,991 | |
| Corporate bonds | — | | | — | | | 10,934 | | | 10,934 | |
| Collateralized loan obligations | — | | | — | | | 189,703 | | | 189,703 | |
| Commercial mortgage-backed securities | — | | | — | | | 5,138 | | | 5,138 | |
| Private asset-backed investments | — | | | — | | | 141,240 | | | 141,240 | |
| Preferred equity | — | | | — | | | 80,050 | | | 80,050 | |
| Other equity | — | | | — | | | 77,257 | | | 77,257 | |
| Investments not measured at net asset value | $ | — | | | $ | 3,345,834 | | | $ | 3,967,088 | | | $ | 7,312,922 | |
| Investments measured at net asset value(1) | | | | | | | 3,101 | |
| Total investments | | | | | | | $ | 7,316,023 | |
| Unfunded revolving and delayed draw loan commitments(2) | $ | — | | | $ | — | | | $ | (6,440) | | | $ | (6,440) | |
| Derivatives: | | | | | | | |
| Foreign currency forward contracts | $ | — | | | $ | (5,691) | | | $ | — | | | $ | (5,691) | |
| Interest rate swap | $ | — | | | $ | 25,436 | | | $ | — | | | $ | 25,436 | |
| | | | | | | |
________________________________________
(1)Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of assets and liabilities.
(2)The fair value of unfunded revolving and delayed draw loan commitments is included in “accounts payable and other liabilities” in the accompanying consolidated statement of assets and liabilities.
The following table presents fair value measurements of cash and cash equivalents, investments, unfunded revolving and delayed draw loan commitments and derivatives as of December 31, 2023:
| | | | | | | | | | | | | | | | | | | | | | | |
| Fair Value Measurements Using |
| Level 1 | | Level 2 | | Level 3 | | Total |
| Cash and cash equivalents | $ | 57,972 | | | $ | — | | | $ | — | | | $ | 57,972 | |
| | | | | | | |
| First lien senior secured loans | $ | — | | | $ | 1,533,600 | | | $ | 852,371 | | | $ | 2,385,971 | |
| Second lien senior secured loans | — | | | 33,236 | | | 10,535 | | | 43,771 | |
| Senior subordinated loans | — | | | 8,379 | | | 38,587 | | | 46,966 | |
| Corporate bonds | — | | | — | | | 10,507 | | | 10,507 | |
| Collateralized loan obligations | — | | | — | | | 22,681 | | | 22,681 | |
| Commercial mortgage-backed securities | — | | | — | | | 5,010 | | | 5,010 | |
| Private asset-backed investments | — | | | — | | | 11,901 | | | 11,901 | |
| Preferred equity | — | | | — | | | 41,033 | | | 41,033 | |
| Other equity | — | | | — | | | 9,718 | | | 9,718 | |
| Total investments | $ | — | | | $ | 1,575,215 | | | $ | 1,002,343 | | | $ | 2,577,558 | |
| | | | | | | |
| Unfunded revolving and delayed draw loan commitments(1) | $ | — | | | $ | — | | | $ | (4,008) | | | $ | (4,008) | |
| Derivatives - Foreign currency forward contracts | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | |
________________________________________
(1)The fair value of unfunded revolving and delayed draw loan commitments is included in “accounts payable and other liabilities” in the accompanying consolidated statement of assets and liabilities.
The following tables summarize the significant unobservable inputs the Valuation Designee used to value the majority of the Fund’s investments categorized within Level 3 as of September 30, 2024 and December 31, 2023. The tables are not intended to be all-inclusive, but instead to capture the significant unobservable inputs relevant to the determination of fair values.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | As of September 30, 2024 | |
| | | | | | Unobservable Input | |
| Asset Category | | Fair Value | | Primary Valuation Techniques | | Input | | Estimated Range | | Weighted Average(1) | |
| First lien senior secured loans | | $ | 3,192,882 | | | Yield analysis | | Market yield | | 6.3% - 16.0% | | 10.5% | |
| | 151,098 | | | Broker quotes | | N/A | | N/A | | N/A | |
| Second lien senior secured loans | | 29,795 | | | Yield analysis | | Market yield | | 9.8% - 16.0% | | 11.5% | |
| Senior subordinated loans | | 88,991 | | | Yield analysis | | Market yield | | 11.0% - 16.5% | | 13.5% | |
| Corporate bonds | | 10,934 | | | Broker quotes | | N/A | | N/A | | N/A | |
| Collateralized loan obligations | | 189,703 | | | Broker quotes | | N/A | | N/A | | N/A | |
| Commercial mortgage-backed securities | | 5,138 | | | Broker quotes | | N/A | | N/A | | N/A | |
| Private asset-backed investments | | 82,168 | | | Yield analysis | | Market yield | | 3.3% - 15.0% | | 9.1% | |
| | 50,049 | | | Transaction cost | | N/A | | N/A | | N/A | |
| | 9,023 | | | Income (other) | | Constant default rate | | 0.0% - 10.3% | | 1.8% | |
| Preferred equity | | 80,050 | | | EV market multiple analysis | | EBITDA multiple | | 5.3x - 23.0x | | 18.2x | |
| | | | Yield analysis | | Market yield | | 9.8% - 15.0% | | 13.9% | |
| Other equity | | 77,257 | | | EV market multiple analysis | | EBITDA multiple | | 8.0x - 34.6x | | 14.1x | |
| Total investments | | $ | 3,967,088 | | | | | | | | | | |
____________________________________
(1)Unobservable inputs were weighted by the relative fair value of the investments.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | As of December 31, 2023 | |
| | | | | | Unobservable Input | |
| Asset Category | | Fair Value | | Primary Valuation Techniques | | Input | | Estimated Range | | Weighted Average(1) | |
| First lien senior secured loans | | $ | 801,531 | | | Yield analysis | | Market yield | | 9.6% - 21.4% | | 12.3% | |
| | 50,840 | | | Broker quotes | | N/A | | N/A | | N/A | |
| Second lien senior secured loans | | 10,535 | | | Yield analysis | | Market yield | | 11.8% | | 11.8% | |
| Senior subordinated loans | | 38,587 | | | Yield analysis | | Market yield | | 13.9% - 19.2% | | 17.3% | |
| Corporate bonds | | 10,507 | | | Broker quotes | | N/A | | N/A | | N/A | |
| Collateralized loan obligations | | 22,681 | | | Broker quotes | | N/A | | N/A | | N/A | |
| Commercial mortgage-backed securities | | 5,010 | | | Broker quotes | | N/A | | N/A | | N/A | |
| Private asset-backed investments | | 11,901 | | | Yield analysis | | Market yield | | 10.7% - 16.2% | | 13.1% | |
| Preferred equity | | 41,033 | | | EV market multiple analysis | | EBITDA multiple | | 9.5x - 32.5x | | 21.7x | |
| Other equity | | 9,718 | | | EV market multiple analysis | | EBITDA multiple | | 7.0x - 23.4x | | 15.5x | |
| Total investments | | $ | 1,002,343 | | | | | | | | | | |
____________________________________
(1)Unobservable inputs were weighted by the relative fair value of the investments.
Changes in market yields, discount rates or EBITDA multiples, each in isolation, may change the fair value of certain of the Fund’s investments. Generally, an increase in market yields or discount rates or decrease in EBITDA multiples may result in a decrease in the fair value of certain of the Fund’s investments.
Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Fund’s investments may fluctuate from period to period. Additionally, the fair value of the Fund’s investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that the Fund may ultimately realize. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If the Fund was required to liquidate a portfolio investment in a forced or liquidation sale, it could realize significantly less than the value at which the Fund has recorded it.
In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the valuations currently assigned.
The following tables present changes in investments that use Level 3 inputs as of and for the three and nine months ended September 30, 2024:
| | | | | | | |
| | As of and For the Three Months Ended September 30, 2024 | | |
| Balance as of June 30, 2024 | $ | 2,671,635 | | | |
| Net realized gains | 1,029 | | | |
| Net unrealized gains | 13,956 | | | |
| Purchases | 1,482,460 | | | |
| Sales | (61,141) | | | |
| Repayments | (58,454) | | | |
| PIK interest and dividends | 7,790 | | | |
| Net accretion of discount on investments | 3,113 | | | |
| Net transfers in and/or out of Level 3 | (93,300) | | | |
| Balance as of September 30, 2024 | $ | 3,967,088 | | | |
| | | | | |
| | As of and For the Nine Months Ended September 30, 2024 |
| Balance as of December 31, 2023 | $ | 1,002,343 | |
| Net realized gains | 3,217 | |
| Net unrealized gains | 44,607 | |
| Purchases | 3,237,554 | |
| Sales | (95,413) | |
| Repayments | (141,756) | |
| PIK interest and dividends | 15,136 | |
| Net accretion of discount on investments | 6,857 | |
| Net transfers in and/or out of Level 3 | (105,457) | |
| Balance as of September 30, 2024 | $ | 3,967,088 | |
Investments were transferred into and out of Level 3 during the three and nine months ended September 30, 2024. Transfers into and out of Level 3 were generally as a result of changes in the observability of significant inputs or available market data for certain portfolio companies.
As of September 30, 2024, the net unrealized appreciation on the investments that use Level 3 inputs was $52,991.
For the three and nine months ended September 30, 2024, the total amount of gains (losses) included in earnings attributable to the change in unrealized gains (losses) relating to the Fund’s Level 3 assets still held as of September 30, 2024, and reported within the net unrealized gains (losses) on investments and foreign currency transactions in the Fund’s consolidated statement of operations, was $13,578 and $44,192, respectively.
The following tables present changes in investments that use Level 3 inputs as of and for the three and nine months ended September 30, 2023:
| | | | | |
| | As of and For the Three Months Ended September 30, 2023 |
| Balance as of June 30, 2023 | $ | 308,151 | |
| Net realized gains | 152 | |
| Net unrealized gains | 5,202 | |
| Purchases | 337,390 | |
| Sales | (12,544) | |
| Repayments | (10,626) | |
| PIK interest and dividends | 168 | |
| Net accretion of discount on investments | 489 | |
| Net transfers in and/or out of Level 3 | (19,094) | |
| Balance as of September 30, 2023 | $ | 609,288 | |
| | | | | |
| As of and For the Nine Months Ended September 30, 2023 |
| Balance as of December 31, 2022 | $ | 18,744 | |
| Net realized gains | 794 | |
| Net unrealized losses | (34,548) | |
| Purchases | 716,935 | |
| Sales | (42,821) | |
| Repayments | (13,929) | |
| PIK interest and dividends | 502 | |
| Net accretion of discount on investments | 995 | |
| Net transfers in and/or out of Level 3 | (37,384) | |
| Balance as of September 30, 2023 | $ | 609,288 | |
Investments were transferred into and out of Level 3 during the three and nine months ended September 30, 2023. Transfers into and out of Level 3 were generally as a result of changes in the observability of significant inputs or available market data for certain portfolio companies.
As of September 30, 2023, the net unrealized appreciation on the investments that use Level 3 inputs was $3,956.
For the three and nine months ended September 30, 2023, the total amount of gains (losses) included in earnings attributable to the change in unrealized gains (losses) relating to the Fund’s Level 3 assets still held as of September 30, 2023, and reported within the net unrealized gains (losses) on investments and foreign currency transactions in the Fund’s consolidated statement of operations was $3,130 and $3,949, respectively.
The following are the carrying and fair values of the Fund’s debt obligations as of September 30, 2024 and December 31, 2023.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| As of | | | | |
| September 30, 2024 | | December 31, 2023 | | | | |
| | | | | | | |
| Carrying Value(1) | | Fair Value(5) | | Carrying Value(1) | | Fair Value(5) | | | | |
| Revolving Credit Facility | $ | 380,370 | | | $ | 380,371 | | | $ | 460,325 | | | $ | 460,325 | | | | | |
| SG Funding Facility | 695,000 | | | 695,000 | | | 250,000 | | | 250,000 | | | | | |
| SB Funding Facility | 375,000 | | | 375,000 | | | — | | | — | | | | | |
August 2029 Notes (principal amount outstanding of $700,000 and $0, respectively) | 711,298 | | (2)(3) | 715,603 | | | — | | | — | | | | | |
| Total | $ | 2,161,668 | | (4) | $ | 2,165,974 | | | $ | 710,325 | | (4) | $ | 710,325 | | | | | |
____________________________________
(1)The Revolving Credit Facility, SG Funding Facility and SB Funding Facility carrying values are the same as the principal amounts outstanding.
(2)Represents the aggregate principal amount outstanding, less unamortized debt issuance costs and the unaccreted discount recorded upon issuance.
(3)The carrying value of the August 2029 Notes as of September 30, 2024 includes an adjustment as a result of an effective hedge accounting relationship. See Notes 5 and 6 for more information.
(4)Total principal amount of debt outstanding totaled $2,150,371 and $710,349 as of September 30, 2024 and December 31, 2023, respectively.
(5)The fair value of the debt obligations would be categorized as Level 2 under ASC 820-10.
9. NET ASSETS
The Fund has the authority to issue an unlimited number of Common Shares of beneficial interest at $0.01 par value per share.
Pursuant to subscription agreements providing for the commitment to purchase an aggregate of up to $847,098 of the Fund’s Class I shares entered into between the Fund and several investors between November 2022 and ending on January 30, 2023, the Fund called an aggregate of $847,098 from October 6, 2022 through July 31, 2023, and in exchange therefore, the Fund issued approximately 32,402 Class I shares to 61 shareholders, including the investment from the Fund’s sole initial shareholder. Of the $847,098 of commitments called, $452,462 and $698,925, respectively, were called during the three and nine months ended September 30, 2023, in exchange for approximately 16,914 and 26,476 Class I shares, respectively.
On August 1, 2023, the Fund held the first closing in the Offering, pursuant to its Registration Statement on Form N-2 (File No. 333-264145) declared effective by the SEC on April 24, 2023, as amended and supplemented. The Fund publicly offers on a continuous basis up to $7.5 billion of its Common Shares, pursuant to the Offering. The purchase price per share for each class of Common Shares equals the Fund’s NAV per share, as of the effective date of the monthly share purchase. The Fund also engages in offerings of its unregistered Common Shares to non-U.S. investors pursuant to Regulation S of the Securities Act.
The following tables summarize transactions in Common Shares during the three and nine months ended September 30, 2024 and 2023, respectively:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended September 30, 2024 | | For the Nine Months Ended September 30, 2024 |
| | | | | | | |
| Shares | | Amount | | | | | | Shares | | Amount | | | | |
| Class I | | | | | | | | | | | | | | | |
| Subscriptions(1) | 30,737 | | | $ | 843,258 | | | | | | | 82,026 | | | $ | 2,242,628 | | | | | |
| Share transfers between classes | 31 | | | 843 | | | | | | | 31 | | | 843 | | | | | |
| Distributions reinvested | 633 | | | 17,373 | | | | | | | 1,558 | | | 42,596 | | | | | |
| Repurchased shares, net of early repurchase deduction | (59) | | | (1,586) | | | | | | | (441) | | | (11,836) | | | | | |
| | | | | | | | | | | | | | | |
| Net increase | 31,342 | | | $ | 859,888 | | | | | | | 83,174 | | | $ | 2,274,231 | | | | | |
| Class S | | | | | | | | | | | | | | | |
| Subscriptions(1) | 3,378 | | | $ | 92,662 | | | | | | | 14,250 | | | $ | 389,045 | | | | | |
| Share transfers between classes | (93) | | | (2,541) | | | | | | | (117) | | | (3,196) | | | | | |
| Distributions reinvested | 116 | | | 3,183 | | | | | | | 232 | | | 6,363 | | | | | |
| Repurchased shares, net of early repurchase deduction | (75) | | | (2,037) | | | | | | | (85) | | | (2,295) | | | | | |
| Net increase | 3,326 | | | $ | 91,267 | | | | | | | 14,280 | | | $ | 389,917 | | | | | |
| Class D | | | | | | | | | | | | | | | |
| Subscriptions(1) | 4,421 | | | $ | 121,218 | | | | | | | 5,658 | | | $ | 154,936 | | | | | |
| Share transfers between classes | 62 | | | 1,698 | | | | | | | 86 | | | 2,353 | | | | | |
| Distributions reinvested | 22 | | | 608 | | | | | | | 43 | | | 1,189 | | | | | |
| | | | | | | | | | | | | | | |
| Net increase | 4,505 | | | $ | 123,524 | | | | | | | 5,787 | | | $ | 158,478 | | | | | |
| Total net increase | 39,173 | | | $ | 1,074,679 | | | | | | | 103,241 | | | $ | 2,822,626 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended September 30, 2023 | | For the Nine Months Ended September 30, 2023 |
| Shares | | Amount | | Shares | | Amount |
| Class I | | | | | | | |
| Subscriptions(1) | 24,745 | | | $ | 664,218 | | | 34,306 | | | $ | 910,682 | |
| | | | | | | |
| Distributions reinvested | 51 | | | 1,394 | | | 51 | | | 1,394 | |
| Repurchased shares, net of early repurchase deduction | — | | | — | | | — | | | — | |
| | | | | | | |
| Net increase | 24,796 | | | $ | 665,612 | | | 34,357 | | | $ | 912,076 | |
| Class S | | | | | | | |
| Subscriptions(1) | 5,088 | | | $ | 137,604 | | | 5,088 | | | $ | 137,604 | |
| | | | | | | |
| Distributions reinvested | — | | | 11 | | | — | | | 11 | |
| | | | | | | |
| Net increase | 5,088 | | | $ | 137,615 | | | 5,088 | | | $ | 137,615 | |
| Class D | | | | | | | |
| Subscriptions(1) | 1,178 | | | $ | 31,848 | | | 1,178 | | | $ | 31,848 | |
| | | | | | | |
| Distributions reinvested | 2 | | | 48 | | | 2 | | | 48 | |
| | | | | | | |
| Net increase | 1,180 | | | $ | 31,896 | | | 1,180 | | | $ | 31,896 | |
| Total net increase | 31,064 | | | $ | 835,123 | | | 40,625 | | | $ | 1,081,587 | |
____________________________________
(1)See Note 11 for subsequent events related to subscription activities.
Net Asset Value Per Share and Offering Price
The Fund determines NAV for each class of shares as of the last day of each calendar month. Share issuances related to monthly subscriptions are effective the first calendar day of each month. The NAV per share for each class of shares is determined by dividing the value of total assets attributable to the class minus liabilities attributable to the share class by the total number of each share class of Common Shares outstanding at the date as of which the determination is made. The following tables summarize each month-end NAV per share for Class I, Class S and Class D shares during the nine months ended September 30, 2024 and 2023:
| | | | | | | | | | | | | | | | | |
| | NAV Per Share |
| Class I | | Class S | | Class D |
| January 31, 2024 | $ | 27.17 | | | $ | 27.17 | | | $ | 27.17 | |
| February 29, 2024 | $ | 27.19 | | | $ | 27.19 | | | $ | 27.19 | |
| March 31, 2024 | $ | 27.30 | | | $ | 27.30 | | | $ | 27.30 | |
| April 30, 2024 | $ | 27.29 | | | $ | 27.29 | | | $ | 27.29 | |
| May 31, 2024 | $ | 27.39 | | | $ | 27.39 | | | $ | 27.39 | |
| June 30, 2024 | $ | 27.45 | | | $ | 27.45 | | | $ | 27.45 | |
| July 31, 2024 | $ | 27.44 | | | $ | 27.44 | | | $ | 27.44 | |
| August 31, 2024 | $ | 27.41 | | | $ | 27.41 | | | $ | 27.41 | |
| September 30, 2024 | $ | 27.45 | | | $ | 27.45 | | | $ | 27.45 | |
| | | | | |
| | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | NAV Per Share |
| Class I | | Class S | | Class D | | | | |
| January 31, 2023 | $ | 25.40 | | | $ | 25.40 | | | $ | 25.40 | | | | | |
| February 28, 2023 | $ | 25.58 | | | $ | 25.58 | | | $ | 25.58 | | | | | |
| March 31, 2023 | $ | 25.71 | | | $ | 25.71 | | | $ | 25.71 | | | | | |
| April 30, 2023 | $ | 26.12 | | | $ | 26.12 | | | $ | 26.12 | | | | | |
| May 31, 2023 | $ | 26.08 | | | $ | 26.08 | | | $ | 26.08 | | | | | |
| June 30, 2023 | $ | 26.75 | | | $ | 26.75 | | | $ | 26.75 | | | | | |
| July 31, 2023 | $ | 27.01 | | | $ | 27.01 | | | $ | 27.01 | | | | | |
| August 31, 2023 | $ | 27.08 | | | $ | 27.08 | | | $ | 27.08 | | | | | |
| September 30, 2023 | $ | 27.07 | | | $ | 27.07 | | | $ | 27.07 | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
The date of the first sale of Class S shares and D shares was August 1, 2023.
Distributions
The Fund’s board of trustees expects to declare monthly regular distributions for each class of its Common Shares. The following tables present the monthly regular distributions that were declared and payable during the nine months ended September 30, 2024:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Class I |
| Declaration Date | | Record Date | | Payment Date | | Net Distribution Per Share | | Distribution Amount |
| January 23, 2024 | | January 31, 2024 | | February 22, 2024 | | $ | 0.21430 | | | $ | 12,120 | |
| January 23, 2024 | | February 29, 2024 | | March 25, 2024 | | 0.21430 | | | 13,234 | |
| January 23, 2024 | | March 29, 2024 | | April 24, 2024 | | 0.21430 | | | 14,439 | |
| March 14, 2024 | | April 30, 2024 | | May 23, 2024 | | 0.21430 | | | 17,945 | |
| March 14, 2024 | | May 31, 2024 | | June 25, 2024 | | 0.21430 | | | 19,924 | |
| March 14, 2024 | | June 28, 2024 | | July 24, 2024 | | 0.21430 | | | 22,239 | |
| May 10, 2024 | | July 31, 2024 | | August 23, 2024 | | 0.21430 | | | 24,786 | |
| May 10, 2024 | | August 30, 2024 | | September 23, 2024 | | 0.21430 | | | 26,807 | |
| May 10, 2024 | | September 30, 2024 | | October 23, 2024 | | 0.21430 | | | 28,955 | |
| | | | | | $ | 1.92870 | | | $ | 180,449 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Class S |
| Declaration Date | | Record Date | | Payment Date | | Net Distribution Per Share | | Distribution Amount |
| January 23, 2024 | | January 31, 2024 | | February 22, 2024 | | $ | 0.19470 | | | $ | 2,417 | |
| January 23, 2024 | | February 29, 2024 | | March 25, 2024 | | 0.19600 | | | 2,778 | |
| January 23, 2024 | | March 29, 2024 | | April 24, 2024 | | 0.19472 | | | 3,181 | |
| March 14, 2024 | | April 30, 2024 | | May 23, 2024 | | 0.19528 | | | 3,554 | |
| March 14, 2024 | | May 31, 2024 | | June 25, 2024 | | 0.19465 | | | 3,888 | |
| March 14, 2024 | | June 28, 2024 | | July 24, 2024 | | 0.19522 | | | 4,280 | |
| May 10, 2024 | | July 31, 2024 | | August 23, 2024 | | 0.19454 | | | 4,462 | |
| May 10, 2024 | | August 30, 2024 | | September 23, 2024 | | 0.19454 | | | 4,694 | |
| May 10, 2024 | | September 30, 2024 | | October 23, 2024 | | 0.19520 | | | 4,929 | |
| | | | | | $ | 1.75485 | | | $ | 34,183 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Class D |
| Declaration Date | | Record Date | | Payment Date | | Net Distribution Per Share | | Distribution Amount |
| January 23, 2024 | | January 31, 2024 | | February 22, 2024 | | $ | 0.20854 | | | $ | 471 | |
| January 23, 2024 | | February 29, 2024 | | March 25, 2024 | | 0.20892 | | | 498 | |
| January 23, 2024 | | March 29, 2024 | | April 24, 2024 | | 0.20854 | | | 529 | |
| March 14, 2024 | | April 30, 2024 | | May 23, 2024 | | 0.20871 | | | 578 | |
| March 14, 2024 | | May 31, 2024 | | June 25, 2024 | | 0.20852 | | | 606 | |
| March 14, 2024 | | June 28, 2024 | | July 24, 2024 | | 0.20869 | | | 644 | |
| May 10, 2024 | | July 31, 2024 | | August 23, 2024 | | 0.20849 | | | 728 | |
| May 10, 2024 | | August 30, 2024 | | September 23, 2024 | | 0.20849 | | | 1,025 | |
| May 10, 2024 | | September 30, 2024 | | October 23, 2024 | | 0.20868 | | | 1,585 | |
| | | | | | $ | 1.87758 | | | $ | 6,664 | |
The following tables present the monthly regular distributions that were declared and payable during the nine months ended September 30, 2023:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Class I |
| Declaration Date | | Record Date | | Payment Date | | Net Distribution Per Share | | Distribution Amount |
| June 30, 2023 | | August 31, 2023 | | September 25, 2023 | | $ | 0.19925 | | | $ | 7,195 | |
| August 10, 2023 | | September 29, 2023 | | October 25, 2023 | | 0.19925 | | | 8,027 | |
| | | | | | | | |
| | | | | | | | |
| | | | | | $ | 0.39850 | | | $ | 15,222 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Class S |
| Declaration Date | | Record Date | | Payment Date | | Net Distribution Per Share | | Distribution Amount |
| June 30, 2023 | | August 31, 2023 | | September 25, 2023 | | $ | 0.17975 | | | $ | 430 | |
| August 10, 2023 | | September 29, 2023 | | October 25, 2023 | | 0.18033 | | | 918 | |
| | | | | | | | |
| | | | | | | | |
| | | | | | $ | 0.36008 | | | $ | 1,348 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Class D |
| Declaration Date | | Record Date | | Payment Date | | Net Distribution Per Share | | Distribution Amount |
| June 30, 2023 | | August 31, 2023 | | September 25, 2023 | | $ | 0.19351 | | | $ | 134 | |
| August 10, 2023 | | September 29, 2023 | | October 25, 2023 | | 0.19369 | | | 228 | |
| | | | | | | | |
| | | | | | | | |
| | | | | | $ | 0.38720 | | | $ | 362 | |
The net distributions received by shareholders of Class S shares and Class D shares include the effect of the shareholder servicing and/or distribution fees applicable to such class of shares. Class I shares have no shareholder servicing and/or distribution fees.
See Note 11 for subsequent events relating to regular distributions declared by the Fund’s board of trustees.
Distribution Reinvestment Plan
The Fund has adopted a distribution reinvestment plan, pursuant to which the Fund will not reinvest cash distributions declared by the board of trustees on behalf of the Fund’s shareholders unless such shareholders elect for their shares to be automatically reinvested. As a result, if the board of trustees authorizes, and the Fund declares, a cash distribution, then the Fund’s shareholders who have opted into the Fund’s distribution reinvestment plan will have their cash distributions automatically reinvested in additional shares, rather than receiving the cash distribution. Distributions on fractional shares will be credited to each participating shareholder’s account. The purchase price for shares issued under the Fund’s distribution reinvestment plan will be equal to the most recent available NAV per share for such shares at the time the distribution is payable.
Share Repurchase Program
The Fund has commenced a share repurchase program in which the Fund intends to offer to repurchase, at the discretion of the Fund’s board of trustees, up to 5% of its Common Shares outstanding (either by number of shares or aggregate NAV) in each quarter. The Fund’s board of trustees may amend, suspend or terminate the share repurchase program if it deems such action to be in its best interest and the best interest of its common shareholders. As a result, share repurchases may not be available each quarter, or at all. The Fund conducts any such repurchase offers in accordance with the requirements of Rule 13e-4 promulgated under the Securities Exchange Act of 1934, as amended, and the Investment Company Act, with the terms of such tender offer published in a tender offer statement to be sent to all shareholders and filed with the SEC on Schedule TO. All common shareholders will be given at least 20 full business days to elect to participate in such share repurchases. All shares purchased by the Fund, pursuant to the terms of each tender offer, will be retired and thereafter will be authorized and unissued shares.
Under the Fund’s share repurchase program, to the extent the Fund offers to repurchase shares in any particular quarter, the Fund expects to repurchase shares pursuant to tender offers using a purchase price equal to the NAV per share as of the last calendar day of the applicable month designated by the Fund’s board of trustees, except that the Fund deducts 2.00% from such NAV for shares that have not been outstanding for at least one year (the “Early Repurchase Deduction”).
On August 12, 2024, the Fund amended and restated the plan adopted by the Fund pursuant to Rule 18f-3 under the Investment Company Act so the Fund may issue multiple classes of Common Shares (the “Multiple Class Plan”) to provide that the Early Repurchase Deduction holding period ends on the one-year anniversary of the subscription closing date and the Early Repurchase Deduction will not apply to shares acquired through the Fund’s distribution reinvestment plan. The Early Repurchase Deduction may be waived in the case of repurchase requests: (i) arising from the death or qualified disability of the holder; (ii) submitted by discretionary model portfolio management programs (and similar arrangements); (iii) from feeder funds (or similar vehicles) primarily created to hold the Fund's Common Shares, which are offered to non-U.S. persons, where such funds seek to avoid imposing such a deduction because of administrative or systems limitations; and (iv) in the event that a shareholder's Common Shares are repurchased because the shareholder has failed to maintain a minimum account balance. Prior to May 8, 2024, the Fund could only waive the Early Repurchase Deduction in the case of repurchase requests arising from the death or qualified disability of the holder. The Early Repurchase Deduction will be retained by the Fund for the benefit of remaining shareholders.
During the three months ended September 30, 2024, pursuant to tender offers, the Fund repurchased approximately 59 Class I shares and 75 Class S shares for a total value of $1,586 and $2,037, respectively, which is net of the Early Repurchase Deduction. During the nine months ended September 30, 2024, pursuant to tender offers, the Fund repurchased approximately 441 Class I shares and 85 Class S shares for a total value of $11,836 and $2,295, respectively, each of which are net of the Early Repurchase Deduction. No Class D shares were repurchased during the three and nine months ended September 30, 2024. The following table presents the share repurchases completed during the nine months ended September 30, 2024:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Repurchase Pricing Date | | Total Number of Shares Repurchased | | Percentage of Outstanding Shares Repurchased (1) | | Repurchase Request Deadline | | Purchase Price Per Share (2) | | Amount Repurchased (All Classes) (2) | | Maximum number of shares that may yet be purchased under the repurchase program (3) |
| February 29, 2024 | | 387 | | 0.54 | % | | March 20, 2024 | | $ | 27.19 | | | $ | 10,376 | | | — | |
| May 31, 2024 | | 5 | | 0.01 | % | | June 20, 2024 | | $ | 27.39 | | | $ | 132 | | | — | |
| August 31, 2024 | | 134 | | 0.09 | % | | September 20, 2024 | | $ | 27.41 | | | $ | 3,623 | | | — | |
_______________________________________________________________________________
(1) Percentage is based on total shares outstanding as of the close of business on the last calendar day of the month preceding the applicable repurchase pricing date.
(2) Amounts shown net of the Early Repurchase Deduction.
(3) All repurchase requests were satisfied in full.
10. FINANCIAL HIGHLIGHTS
The following is a schedule of financial highlights as of and for the nine months ended September 30, 2024 and 2023:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | As of and For the Nine Months Ended September 30, 2024 | | | | |
| | | | | Class I | | Class S | | Class D | | | | |
| Per Share Data: | | | | | | | | | | | | | |
| Net asset value at beginning of period | | | | | $ | 27.22 | | | $ | 27.22 | | | $ | 27.22 | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Net investment income for period(1) | | | | | 1.82 | | | 1.64 | | | 1.77 | | | | | |
| Net realized and unrealized gains for period(1) | | | | | 0.34 | | | 0.34 | | | 0.34 | | | | | |
| Net increase in net assets resulting from operations | | | | | 2.16 | | | 1.98 | | | 2.11 | | | | | |
| Distributions from net investment income | | | | | (1.93) | | | (1.75) | | | (1.88) | | | | | |
| Total increase in net assets | | | | | 0.23 | | | 0.23 | | | 0.23 | | | | | |
| Net asset value at end of period | | | | | $ | 27.45 | | | $ | 27.45 | | | $ | 27.45 | | | | | |
| Total return based on net asset value(2) | | | | | 7.72 | % | | 7.12 | % | | 7.54 | % | | | | |
| Shares outstanding at end of period | | | | | 135,116 | | 25,253 | | 7,593 | | | | |
| Ratio/Supplemental Data: | | | | | | | | | | | | | |
| Net assets at end of period | | | | | $ | 3,709,086 | | $ | 693,222 | | $ | 208,438 | | | | |
| Ratio of operating expenses (excluding expense support) to average net assets(3)(4) | | | | | 6.47 | % | | 7.32 | % | | 6.72 | % | | | | |
| Ratio of operating expenses (including expense support) to average net assets(3) | | | | | 5.40 | % | | 6.27 | % | | 5.63 | % | | | | |
| Ratio of net investment income to average net assets(3)(5) | | | | | 8.95 | % | | 8.07 | % | | 8.76 | % | | | | |
| Portfolio turnover rate(3) | | | | | 54 | % | | 54 | % | | 54 | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | As of and For the Nine Months Ended September 30, 2023 | | | | |
| Class I | | Class S(6) | | Class D(6) | | | | | | | | | | |
| Per Share Data: | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | $ | 24.99 | | | $ | 27.01 | | | $ | 27.01 | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Net investment income for period(1) | 1.84 | | | 0.33 | | | 0.35 | | | | | | | | | | | |
| Net realized and unrealized gains for period(1) | 0.64 | | | 0.09 | | | 0.10 | | | | | | | | | | | |
| Net increase in net assets | 2.48 | | | 0.42 | | | 0.45 | | | | | | | | | | | |
| Distributions to shareholders(2) | (0.40) | | | (0.36) | | | (0.39) | | | | | | | | | | | |
| Total increase in net assets | 2.08 | | | 0.06 | | | 0.06 | | | | | | | | | | | |
| Net asset value, end of period | $ | 27.07 | | | $ | 27.07 | | | $ | 27.07 | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Total return based on net asset value(2) | 9.92 | % | | 1.56 | % | | 1.66 | % | | | | | | | | | | |
| Shares outstanding, end of period | 40,284 | | 5,088 | | 1,180 | | | | | | | | | | |
| Ratio/Supplemental Data: | | | | | | | | | | | | | | | |
| Net assets, end of period | $ | 1,090,317 | | $ | 137,708 | | $ | 31,927 | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Ratio of operating expenses (excluding expense support) to average net assets(3)(4) | 7.76 | % | | 6.50 | % | | 5.92 | % | | | | | | | | | | |
| Ratio of operating expenses (including expense support) to average net assets(3)(4) | 3.97 | % | | 4.59 | % | | 3.96 | % | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Ratio of net investment income to average net assets(3)(5) | 9.55 | % | | 7.29 | % | | 7.89 | % | | | | | | | | | | |
| Portfolio turnover rate(3) | 83 | % | | 83 | % | | 83 | % | | | | | | | | | | |
_______________________________________________________________________________
(1)Weighted average basic per share data.
(2)For the nine months ended September 30, 2024 and 2023, the total return based on net asset value equaled the change in net asset value during the period divided by the beginning net asset value for the period. The Fund’s performance changes over time and currently may be different than that shown. Past performance is no guarantee of future results. Total return is not annualized.
(3)The ratios reflect an annualized amount.
(4)For the nine months ended September 30, 2024 and 2023, the ratio of operating expenses to average net assets consisted of the following:
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | For the Nine Months Ended September 30, 2024 |
| | | | | Class I | | Class S | | Class D | | |
| Base management fee | | | | | 1.25 | % | | 1.25 | % | | 1.25 | % | | |
| Income based fee and capital gains incentive fee | | | | | 1.35 | | | 1.35 | | | 1.35 | | | |
| Interest and credit facility fees | | | | | 3.29 | | | 3.29 | | | 3.29 | | | |
| | | | | | | | | | | |
| Shareholder servicing and/or distribution fees | | | | | — | | | 0.85 | | | 0.25 | | | |
| Other operating expenses | | | | | 0.58 | | | 0.58 | | | 0.58 | | | |
| Total operating expenses | | | | | 6.47 | % | | 7.32 | % | | 6.72 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the Nine Months Ended September 30, 2023 | | | | |
| Class I | | Class S(6) | | Class D(6) | | | | | | | | | | |
| Base management fee | 1.25 | % | | 1.25 | % | | 1.25 | % | | | | | | | | | | |
| Income based fee and capital gains incentive fee | 1.17 | | | 1.09 | | | 1.11 | | | | | | | | | | | |
| Interest and credit facility fees | 3.33 | | | 1.80 | | | 1.81 | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Other operating expenses | 2.01 | | | 2.36 | | | 1.75 | | | | | | | | | | | |
| Total operating expenses | 7.76 | % | | 6.50 | % | | 5.92 | % | | | | | | | | | | |
(5)The ratio of net investment income to average net assets excludes income taxes related to realized gains and losses.
(6)The date of the first sale of Class S shares and D shares was August 1, 2023.
11. SUBSEQUENT EVENTS
The Fund’s management has evaluated subsequent events through the date of issuance of the consolidated financial statements included herein. There have been no subsequent events that occurred during such period that would require disclosure in this Form 10-Q or would be required to be recognized in the consolidated financial statements or accompanying notes as of and for the nine months ended September 30, 2024, except as discussed below.
In October 2024, the Fund increased the total commitments under its Revolving Credit Facility from $1.785 billion to $1.810 billion. The other terms of the Revolving Credit Facility remained unchanged.
In October 2024, the Fund, through a wholly owned and consolidated subsidiary, priced a $476,000 term debt securitization. The transaction is expected to close in November 2024, subject to customary closing conditions. A term debt securitization is also known as a collateralized loan obligation and is a form of secured financing incurred by the Fund, which is consolidated by the Fund and subject to its overall asset coverage requirement.
In October 2024, the Fund issued $750,000 in aggregate principal amount of unsecured notes that mature on February 15, 2030 and bear interest at a rate of 5.600% per annum (the “February 2030 Notes”). The February 2030 Notes were sold to initial purchasers in a private placement in reliance on Section 4(a)(2) of the Securities Act, and for the resale by such initial purchasers to (i) qualified institutional buyers in transactions exempt from registration under the Securities Act pursuant to Rule 144A thereunder or (ii) certain non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act. The February 2030 Notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration. The February 2030 Notes pay interest semi-annually on February 15 and August 15 of each year, commencing on February 15, 2025, and all principal is due upon maturity. The February 2030 Notes may be redeemed in whole or in part at any time at the Fund’s option at a redemption price equal to par plus a “make whole” premium, if applicable, as determined pursuant to the indenture governing the February 2030 Notes, and any accrued and unpaid interest.
Concurrent with the issuance of the February 2030 Notes, the Fund entered into a Registration Rights Agreement (the “February 2030 Notes Registration Rights Agreement”) for the benefit of the initial purchasers of the February 2030 Notes. Pursuant to the February 2030 Notes Registration Rights Agreement, the Fund is obligated to file a registration statement with the SEC with respect to an offer to exchange the February 2030 Notes for a new issue of debt securities registered under the Securities Act with terms substantially identical to those of the February 2030 Notes (except for provisions relating to transfer restrictions and payment of additional interest) and to use its commercially reasonable efforts to consummate such exchange offer on the earliest practicable date after the registration statement has been declared effective but in no event later than October 2, 2025. Alternatively, in accordance with the terms of the February 2030 Notes Registration Rights Agreement, the Fund may consummate such exchange offer through the use of an existing registration statement. If the Fund fails to satisfy its registration obligations under the February 2030 Notes Registration Rights Agreement, it will be required to pay additional interest to the holders of the February 2030 Notes.
In connection with the February 2030 Notes, the Fund entered into an interest rate swap agreement for a total notional amount of $750,000 that matures on February 15, 2030 to more closely align the interest rate of such liability with the Fund’s investment portfolio, which consists primarily of floating rate loans. Under the interest rate swap agreement, the Fund receives a fixed interest rate of 5.600% and pays a floating interest rate based on one-month SOFR plus 2.302%. The Fund designated this interest rate swap and the February 2030 Notes in a qualifying hedge accounting relationship. See Note 6 for more information on the interest rate swap.
On October 1, 2024, the Fund issued and sold approximately 13,253 Common Shares (consisting of 10,847 Class I shares, 1,002 Class S shares and 1,404 Class D shares at an offering price of $27.45 per share for each class of share), and received approximately $363,783 as payment for such shares.
The Fund received approximately $503,337 of net proceeds relating to the issuance of Class I shares, Class S shares and Class D shares for subscriptions effective November 1, 2024. The purchase price per Class I share, Class S share and Class D share will equal the Fund’s NAV per Class I share, Class S share and Class D share, respectively, as of the last calendar day of October 2024 (the “October NAV”), which is generally expected to be available within 20 business days after November 1, 2024. At that time, the number of Class I shares, Class S shares and Class D shares issued to each investor based on the October NAV and such investor’s subscription amount will be determined and Class I shares, Class S shares and Class D shares, as applicable, will be credited to the investor’s account as of the effective date of the share purchase, November 1, 2024.
As previously disclosed, on August 13, 2024, the Fund announced the declaration of regular monthly gross distributions for October, November and December 2024. On November 8, 2024, the Fund announced the declaration of regular monthly gross distributions for January, February and March 2025, in each case for each class of its Common Shares. The following table presents the regular monthly gross distributions per share that were declared and payable:
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Gross Distribution Per Share |
| Record Date | | Payment Date(1) | Class I | | Class S | | Class D | | | | |
| October 31, 2024 | | November 22, 2024 | $ | 0.21430 | | | $ | 0.21430 | | | $ | 0.21430 | | | | | |
| November 29, 2024 | | December 26, 2024 | $ | 0.21430 | | | $ | 0.21430 | | | $ | 0.21430 | | | | | |
| December 31, 2024 | | January 23, 2025 | $ | 0.21430 | | | $ | 0.21430 | | | $ | 0.21430 | | | | | |
| January 31, 2025 | | February 21, 2025 | $ | 0.21430 | | | $ | 0.21430 | | | $ | 0.21430 | | | | | |
| February 28, 2025 | | March 21, 2025 | $ | 0.21430 | | | $ | 0.21430 | | | $ | 0.21430 | | | | | |
| March 31, 2025 | | April 21, 2025 | $ | 0.21430 | | | $ | 0.21430 | | | $ | 0.21430 | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
______________________________________________________________________________
(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 distributions 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.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The information contained in this section should be read in conjunction with our consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report. In addition, some of the statements in this Quarterly Report (including in the following discussion) constitute forward-looking statements, which relate to future events or the future performance or financial condition of Ares Strategic Income Fund (the “Fund,” “we,” “us,” or “our”). The forward-looking statements contained in this report involve a number of risks and uncertainties, including statements concerning:
•our, or our portfolio companies’, future business, operations, operating results or prospects;
•the return or impact of current and future investments;
•the impact of a protracted decline in the liquidity of credit markets on our business;
•changes in the general economy, slowing economy, rising inflation and risk of recession;
•the impact of changes in laws or regulations (including the interpretation thereof), including tax laws, governing our operations or the operations of our portfolio companies or the operations of our competitors;
•the valuation of our investments in portfolio companies, particularly those having no liquid trading market;
•our ability to recover unrealized losses;
•market conditions and our ability to access different debt markets and additional debt and equity capital and our ability to manage our capital resources effectively;
•our contractual arrangements and relationships with third parties;
•political and regulatory conditions that contribute to uncertainty and market volatility including the impact of the recent U.S. presidential election and legislative, regulatory, trade and policy changes associated with a new administration;
•the impact of supply chain constraints on our portfolio companies and the global economy;
•uncertainty surrounding global financial stability;
•ongoing conflicts in the Middle East;
•the disruption of global shipping activities;
•the Russia-Ukraine war and the potential for volatility in energy prices and other commodities and their impact on the industries in which we invest;
•the financial condition of our current and prospective portfolio companies and their ability to achieve their objectives;
•the impact of information technology system failures, data security breaches, data privacy compliance, network disruptions, and cybersecurity attacks;
•our ability to anticipate and identify evolving market expectations with respect to environmental, social and governance matters, including the environmental impacts of our portfolio companies’ supply chain and operations;
•our ability to successfully complete and integrate any acquisitions;
•the outcome and impact of any litigation or regulatory proceeding;
•the adequacy of our cash resources and working capital;
•the timing, form and amount of any distributions;
•the timing of cash flows, if any, from the operations of our portfolio companies;
•the ability of our investment adviser to locate suitable investments for us and to monitor and administer our investments; and
•the fluctuations in global interest rates.
We use words such as “anticipates,” “believes,” “expects,” “intends,” “project,” “estimates,” “will,” “should,” “could,” “would,” “may” and similar expressions to identify forward-looking statements, although not all forward-looking statements include these words. Our actual results and condition could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth in “Risk Factors” and elsewhere in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on March 14, 2024 (the “Annual Report”) and in this Quarterly Report.
We have based the forward-looking statements included in this Quarterly Report on information available to us on the filing date of this Quarterly Report, and we assume no obligation to update any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we have filed or in the future may file with the Securities and Exchange Commission (the “SEC”), including annual reports on Form 10-K, registration statements on Form N-2, quarterly reports on Form 10-Q and current reports on Form 8-K.
OVERVIEW
We are an externally managed, closed-end management investment company. Formed as a Delaware statutory trust on March 15, 2022, we have elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (together with the rules and regulations promulgated thereunder, the “Investment Company Act”).
We are externally managed by Ares Capital Management LLC (“Ares Capital Management” or our “investment adviser”), a subsidiary of Ares Management Corporation (NYSE:ARES) (“Ares Management” or “Ares”), a publicly traded, leading global alternative investment manager, pursuant to our investment advisory and management agreement (the “investment advisory and management agreement”). Our investment adviser is responsible for sourcing potential investments, conducting due diligence on prospective investments, analyzing investment opportunities, structuring investments and monitoring our portfolio on an ongoing basis. Our investment adviser is registered as an investment adviser with the SEC. Our administrator, Ares Operations LLC (“Ares Operations” or “our administrator”), a subsidiary of Ares Management, provides certain administrative and other services necessary for us to operate.
Our investment objective is to generate current income and, to a lesser extent, long-term capital appreciation. We seek to invest primarily in first lien senior secured loans, second lien senior secured loans, subordinated secured and unsecured loans, subordinated debt, which in some cases include equity and/or preferred components, and other types of credit instruments which may include commercial real estate mezzanine loans, real estate mortgages, distressed investments, securitized products, notes, bills, debentures, bank loans, convertible and preferred securities, infrastructure debt and government and municipal obligations, made to or issued by U.S. middle-market companies, which we generally define as companies with annual EBITDA between $10 million and $250 million. As used herein, EBITDA represents annual net income before net interest expense, income tax expense, depreciation and amortization. We expect that a majority of our investments will be in directly originated loans. For cash management and other purposes, we also intend to invest in broadly syndicated loans and other more liquid credit investments, including in publicly traded debt instruments and other instruments that are not directly originated. We primarily invest in illiquid and restricted investments, and while most of our investments are expected to be in private U.S. companies (we generally have to invest at least 70% of our total assets in “qualifying assets,” including private U.S. companies), we may also invest from time to time in non-U.S. companies. Our portfolio may also include equity securities such as common stock, preferred stock, warrants or options, which may be obtained as part of providing a broader financing solution. Under normal circumstances, we will invest directly or indirectly at least 80% of our total assets (net assets plus borrowings for investment purposes) in debt instruments of varying maturities.
To seek to enhance our returns, we employ leverage as market conditions permit and at the discretion of our investment adviser, but in no event will leverage employed exceed the limitations set forth in the Investment Company Act. We intend to use leverage in the form of borrowings, including loans from certain financial institutions, including any potential borrowings under our Facilities (as defined below) and the issuance of debt securities. We may also use leverage in the form of
the issuance of preferred shares, but do not currently intend to do so. In determining whether to borrow money, we analyze the maturity, covenant package and rate structure of the proposed borrowings as well as the risks of such borrowings compared to our investment outlook. Any such leverage, if incurred, would be expected to increase the total capital available for investment by us. See “Risk Factors—Risks Relating to Our Business and Structure—We borrow money, which magnifies the potential for gain or loss on amounts invested and may increase the risk of investing in us” in our Annual Report. To finance investments, we may securitize certain of our secured loans or other investments, including through the formation of one or more collateralized loan obligations, while retaining all or most of the exposure to the performance of these investments. See “Risk Factors—Risks Relating to Our Business and Structure—We may form or invest in one or more CLOs, which may subject us to certain structured financing risks” in our Annual Report. Our investments are subject to a number of risks. See “Risk Factors" below and “Risk Factors” in our Annual Report.
As a BDC, we are required to comply with certain regulatory requirements. For instance, we generally have to invest at least 70% of our total assets in “qualifying assets,” including securities and indebtedness of private U.S. companies and certain public U.S. companies, cash, cash equivalents, U.S. government securities and high-quality debt investments that mature in one year or less. We also may invest up to 30% of our portfolio in non-qualifying assets, as permitted by the Investment Company Act. Specifically, as part of this 30% basket, we may invest in entities that are not considered “eligible portfolio companies” (as defined in the Investment Company Act), including companies located outside of the United States, entities that are operating pursuant to certain exceptions under the Investment Company Act, and publicly traded entities whose public equity market capitalization exceeds the levels provided for under the Investment Company Act. In addition, we, our investment adviser and certain of our affiliates have received an exemptive relief order from the SEC that permits us and other BDCs and registered closed-end management investment companies managed by Ares Management and its affiliates to co-invest in portfolio companies with each other and with affiliated investment funds (the “Co-Investment Exemptive Order”). Co-investments made under the Co-Investment Exemptive Order are subject to compliance with certain conditions and other requirements, which could limit our ability to participate in a co-investment transaction. We may also otherwise co-invest with funds managed by Ares Management or any of its downstream affiliates, subject to compliance with existing regulatory guidance, applicable regulations and our investment adviser’s allocation policy.
We have elected to be treated as a regulated investment company (“RIC”) under the Internal Revenue Code of 1986, as amended (the “Code”), and operate in a manner so as to qualify for the tax treatment applicable to RICs. To qualify as a RIC, we must, among other requirements, meet certain source-of-income and asset diversification requirements and timely distribute to our shareholders generally at least 90% of our investment company taxable income, as defined by the Code, for each year. Pursuant to this election, we generally will not have to pay U.S. federal corporate-level taxes on any income that we distribute to our shareholders provided that we satisfy those requirements.
MACROECONOMIC ENVIRONMENT
During the third quarter of 2024, leveraged corporate credit markets posted positive returns, driven by sustained economic growth, a healthy level of corporate earnings and further stability in the capital markets and U.S. banking system. With easing inflationary measures, the Federal Reserve softened its monetary policies and lowered the federal funds rate in support of its goals of maximum employment and returning inflation to its two percent objective.
PORTFOLIO AND INVESTMENT ACTIVITY
Our investment activity for the three months ended September 30, 2024 and 2023 is presented below.
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| | | | | | | |
| For the Three Months Ended September 30, | | | | |
| (dollar amounts in thousands) | 2024 | | 2023 | | | | |
| New investment commitments(1): | | | | | | | |
| Total new investment commitments(2) | $ | 3,091,038 | | | $ | 1,308,627 | | | | | |
| | | | | | | |
| Less: investment commitments exited(3) | (741,295) | | | (221,102) | | | | | |
| Net investment commitments | $ | 2,349,743 | | | $ | 1,087,525 | | | | | |
| Principal amount of investments funded: | | | | | | | |
| First lien senior secured loans | $ | 2,460,525 | | | $ | 1,145,932 | | | | | |
| Second lien senior secured loans | 41,399 | | | 15,751 | | | | | |
| Senior subordinated loans | 4,755 | | | 19,549 | | | | | |
| Collateralized loan obligations | 110,344 | | | 9,465 | | | | | |
| | | | | | | |
| Private asset-backed investments | 53,731 | | | — | | | | | |
| Preferred equity | 7,255 | | | 16,452 | | | | | |
| Other equity | 27,360 | | | 604 | | | | | |
| Total | $ | 2,705,369 | | | $ | 1,207,753 | | | | | |
| Principal amount of investments sold or repaid: | | | | | | | |
| First lien senior secured loans | $ | 715,877 | | | $ | 212,130 | | | | | |
| Second lien senior secured loans | 12,500 | | | 6,775 | | | | | |
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| | | | | | | |
| Private asset-backed investments | 3,302 | | | — | | | | | |
| | | | | | | |
| | | | | | | |
| Total | $ | 736,179 | | | $ | 218,905 | | | | | |
| | | | | | | |
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| Weighted average remaining term for investment commitments (in months) | 79 | | | 59 | | | | | |
| Percentage of new investment commitments at floating rates | 92 | % | | 98 | % | | | | |
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| Weighted average yield(4): | | | | | | | |
| Funded during the period at amortized cost | 9.7 | % | | 10.1 | % | | | | |
| Funded during the period at fair value | 9.7 | % | | 10.0 | % | | | | |
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_______________________________________________________________________________
(1)New investment commitments include new agreements to fund revolving loans or delayed draw loans. See Note 7 to our consolidated financial statements for the three and nine months ended September 30, 2024 for more information on our commitments to fund revolving loans or delayed draw loans.
(2)Includes both funded and unfunded commitments. Of these new investment commitments, we funded approximately $2.7 billion and $1.2 billion for the three months ended September 30, 2024 and 2023, respectively.
(3)Includes funded commitments. For the three months ended September 30, 2024 and 2023, investment commitments exited included exits of unfunded commitments of $5.1 million and $2.3 million, respectively.
(4)“Weighted average yield” is computed as (a) the annual stated interest rate or yield earned plus the net annual amortization of original issue discount and market discount or premium earned on the relevant accruing investments, divided by (b) the total accruing investments at amortized cost or at fair value, as applicable.
As of September 30, 2024 and December 31, 2023, our investments consisted of the following:
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| As of | | | | |
| September 30, 2024 | | December 31, 2023 | | | | |
| (in thousands) | Amortized Cost(1) | | Fair Value | | Amortized Cost(1) | | Fair Value | | | | |
| First lien senior secured loans | $ | 6,523,125 | | | $ | 6,547,469 | | | $ | 2,369,207 | | | $ | 2,385,971 | | | | | |
| Second lien senior secured loans | 173,717 | | | 172,140 | | | 43,237 | | | 43,771 | | | | | |
| Senior subordinated loans | 84,312 | | | 88,991 | | | 46,631 | | | 46,966 | | | | | |
| Corporate bonds | 10,000 | | 10,934 | | 10,000 | | | 10,507 | | | | | |
| Collateralized loan obligations | 187,964 | | | 189,703 | | | 22,500 | | | 22,681 | | | | | |
| Commercial mortgage-backed securities | 4,988 | | | 5,138 | | | 4,988 | | | 5,010 | | | | | |
| Private asset-backed investments | 139,223 | | | 141,240 | | | 11,786 | | | 11,901 | | | | | |
| Preferred equity | 72,216 | | | 80,050 | | | 39,500 | | | 41,033 | | | | | |
| Other equity | 72,820 | | | 80,358 | | | 8,935 | | | 9,718 | | | | | |
| Total | $ | 7,268,365 | | | $ | 7,316,023 | | | $ | 2,556,784 | | | $ | 2,577,558 | | | | | |
________________________________________
(1)The amortized cost represents the original cost adjusted for any accretion of discounts, amortization of premiums and PIK interest or dividends.
Our commitment to fund delayed draw loans is triggered upon the satisfaction of certain pre-negotiated terms and conditions. Generally, the most significant and uncertain term requires the borrower to satisfy a specific use of proceeds covenant. The use of proceeds covenant typically requires the borrower to use the additional loans for the specific purpose of a permitted acquisition or permitted investment, for example. In addition to the use of proceeds covenant, the borrower is generally required to satisfy additional negotiated covenants (including specified leverage levels). We are also party to subscription agreements to fund equity investments. See Note 7 to our consolidated financial statements for the three and nine months ended September 30, 2024 for more information on our unfunded commitments.
The weighted average yields at amortized cost and fair value of our portfolio as of September 30, 2024 and December 31, 2023 were as follows:
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| As of | | | | |
| September 30, 2024 | | December 31, 2023 | | | | |
| Amortized Cost | | Fair Value | | Amortized Cost | | Fair Value | | | | |
| Debt and other income producing securities(1) | 9.9 | % | | 9.9 | % | | 10.7 | % | | 10.6 | % | | | | |
| Total portfolio(2) | 9.8 | % | | 9.7 | % | | 10.5 | % | | 10.4 | % | | | | |
| First lien senior secured loans(3) | 9.8 | % | | 9.7 | % | | 10.6 | % | | 10.5 | % | | | | |
| Second lien senior secured loans(3) | 10.9 | % | | 11.0 | % | | 12.8 | % | | 12.6 | % | | | | |
| Senior subordinated loans(3) | 14.7 | % | | 13.9 | % | | 15.4 | % | | 15.3 | % | | | | |
| Corporate bonds(3) | 9.4 | % | | 8.6 | % | | 9.4 | % | | 9.0 | % | | | | |
| Collateralized loan obligations(3) | 12.2 | % | | 12.1 | % | | 10.2 | % | | 10.1 | % | | | | |
| Commercial mortgage-backed securities(3) | 10.8 | % | | 10.5 | % | | 10.4 | % | | 10.4 | % | | | | |
| Private asset-backed investments(3) | 10.5 | % | | 10.3 | % | | 11.2 | % | | 11.2 | % | | | | |
| Other income producing equity securities(4) | 12.5 | % | | 11.8 | % | | 9.0 | % | | 8.9 | % | | | | |
_______________________________________________________________________________
(1)“Weighted average yields on debt and other income producing securities” are computed as (a) the annual stated interest rate or yield earned plus the net annual amortization of original issue discount and market discount or premium earned on accruing debt and other income producing securities, divided by (b) the total accruing debt and other income producing securities at amortized cost or at fair value, as applicable.
(2)“Weighted average yields on total portfolio” are computed as (a) the annual stated interest rate or yield earned plus the net annual amortization of original issue discount and market discount or premium earned on accruing debt and other income producing securities, divided by (b) total investments at amortized cost or at fair value, as applicable.
(3)“Weighted average yields” of investments are computed as (a) the annual stated interest rate or yield earned plus the net annual amortization of original issue discount and market discount or premium earned on the relevant accruing investments, divided by (b) the total relevant investments at amortized cost or at fair value, as applicable.
(4)“Weighted average yield on other income producing equity securities” is computed as (a) the yield earned on the relevant income producing equity securities, divided by (b) the total relevant income producing equity securities at amortized cost or fair value, as applicable.
Ares Capital Management employs an investment rating system to categorize our investments. In addition to various risk management and monitoring tools, our investment adviser grades the credit risk of all investments on a scale of 1 to 4 no less frequently than quarterly. This system is intended primarily to reflect the underlying risk of a portfolio investment relative to our initial cost basis in respect of such portfolio investment (i.e., at the time of origination or acquisition), although it may also take into account under certain circumstances the performance of the portfolio company’s business, the collateral coverage of the investment and other relevant factors. The grade of a portfolio investment may be reduced or increased over time. The following is a description of each investment grade:
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| Investment grade | | Description |
| 4 | | Involves the least amount of risk to our initial cost basis. The trends and risk factors for this investment since origination or acquisition are generally favorable, which may include the performance of the portfolio company or a potential exit. |
| 3 | | Involves a level of risk to our initial cost basis that is similar to the risk to our initial cost basis at the time of origination or acquisition. This portfolio company is generally performing as expected and the risk factors to our ability to ultimately recoup the cost of our investment are neutral to favorable. All investments or acquired investments in new portfolio companies are initially assessed a grade of 3. |
| 2 | | Indicates that the risk to our ability to recoup the initial cost basis of such investment has increased materially since origination or acquisition, including as a result of factors such as declining performance and non-compliance with debt covenants; however, payments are generally not more than 120 days past due. For investments graded 2, our investment adviser enhances its level of scrutiny over the monitoring of such portfolio company. |
| 1 | | Indicates that the risk to our ability to recoup the initial cost basis of such investment has substantially increased since origination or acquisition, and the portfolio company likely has materially declining performance. For debt investments with an investment grade of 1, most or all of the debt covenants are out of compliance and payments are substantially delinquent. For investments graded 1, it is anticipated that we will not recoup our initial cost basis and may realize a substantial loss of our initial cost basis upon exit. For investments graded 1, our investment adviser enhances its level of scrutiny over the monitoring of such portfolio company. |
Set forth below is the grade distribution of our portfolio companies as of September 30, 2024 and December 31, 2023:
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| As of | | | | |
| September 30, 2024 | | December 31, 2023 | | | | |
| (dollar amounts in thousands) | Fair Value | | % | | Number of Companies | | % | | Fair Value | | % | | Number of Companies | | % | | | | |
| Grade 4 | $ | 60,695 | | | 0.8 | % | | 3 | | | 0.7 | % | | $ | 15,112 | | | 0.6 | % | | 1 | | | 0.4 | % | | | | |
| Grade 3 | 7,250,810 | | | 99.1 | | | 448 | | | 98.9 | | | 2,557,743 | | | 99.2 | | | 257 | | | 99.2 | | | | | |
| Grade 2 | 782 | | | — | | | 1 | | | 0.2 | | | 4,703 | | | 0.2 | | | 1 | | | 0.4 | | | | | |
| Grade 1 | 3,736 | | | 0.1 | | | 1 | | | 0.2 | | | — | | | — | | | — | | | — | | | | | |
| Total | $ | 7,316,023 | | | 100.0 | % | | 453 | | | 100.0 | % | | $ | 2,577,558 | | | 100.0 | % | | 259 | | | 100.0 | % | | | | |
As of September 30, 2024 and December 31, 2023, the weighted average grade of the investments in our portfolio at fair value was 3.0 and 3.0, respectively.
As of September 30, 2024, loans on non-accrual status represented 0.1% of the total investments at amortized cost (or 0.1% at fair value). As of December 31, 2023, there were no loans on non-accrual status.
KEY COMPONENTS OF OUR RESULTS OF OPERATIONS
Revenues
We generate revenue primarily in the form of interest income on debt investments, capital gains, and dividend income from our equity investments in our portfolio companies. Our senior and subordinated debt investments are expected to bear interest at a fixed or floating rate. Interest on debt securities is generally payable quarterly or semiannually. In some cases, some of our investments may provide for deferred interest payments or payment-in-kind (“PIK”) interest. The principal amount of the debt securities and any accrued but unpaid PIK interest generally will become due at the maturity date. In addition, we may generate revenue in the form of commitment and other fees in connection with transactions. Original issue discounts and market discounts or premiums will be capitalized, and we will accrete or amortize such amounts as interest income. We will record prepayment premiums on loans and debt securities as realized gains. Dividend income on preferred equity, if any, will be recognized on an accrual basis to the extent that we expect to collect such amounts.
Expenses
The services of all investment professionals and staff of our investment adviser, when and to the extent engaged in providing investment advisory and management services to us and the compensation and routine overhead expenses of such personnel allocable to such services, are provided and paid for by our investment adviser. Under the investment advisory and management agreement, we bear all other costs and expenses of our operations and transactions. See Note 3 to our consolidated financial statements for the three and nine months ended September 30, 2024 for more information on fees and expenses.
From time to time, our investment adviser, our administrator or their affiliates may pay third-party providers of goods or services. We will reimburse our investment adviser, our administrator or such affiliates thereof for any such amounts paid on our behalf. From time to time, our investment adviser or our administrator may defer or waive fees and/or rights to be reimbursed for expenses.
Expense Support and Conditional Reimbursement Agreement
We have entered into an expense support and conditional reimbursement agreement (the “Expense Support and Conditional Reimbursement Agreement”) with our investment adviser. See Note 3 to our consolidated financial statements for the three and nine months ended September 30, 2024 for more information on the Expense Support and Conditional Reimbursement Agreement.
RESULTS OF OPERATIONS
For the three and nine months ended September 30, 2024 and 2023
Operating results for the three and nine months ended September 30, 2024 and 2023 were as follows:
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| For the Three Months Ended September 30, | | For the Nine Months Ended September 30, |
| (in thousands) | 2024 | | 2023 | | 2024 | | 2023 |
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| Total investment income | $ | 154,317 | | | $ | 30,873 | | | $ | 342,575 | | | $ | 51,321 | |
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| Total expenses | 67,717 | | | 16,055 | | | 157,803 | | | 29,156 | |
| Expense support | (10,857) | | | (6,438) | | | (25,499) | | | (13,981) | |
| Net expenses | 56,860 | | | 9,617 | | | 132,304 | | | 15,175 | |
| Net investment income before income taxes | 97,457 | | | 21,256 | | | 210,271 | | | 36,146 | |
| Income tax expense, including excise tax | 234 | | | 378 | | | 697 | | | 378 | |
| Net investment income | 97,223 | | | 20,878 | | | 209,574 | | | 35,768 | |
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| Net realized gains on investments and foreign currency transactions | 3,840 | | | 2,247 | | | 12,050 | | | 4,201 | |
| Net unrealized (losses) gains on investments and foreign currency transactions | (2,528) | | | 4,395 | | | 26,400 | | | 7,230 | |
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| Net increase in net assets resulting from operations | $ | 98,535 | | | $ | 27,520 | | | $ | 248,024 | | | $ | 47,199 | |
Net income can vary substantially from period to period due to various factors, including but not limited to the level of new investment commitments, the recognition of realized gains and losses and unrealized appreciation and depreciation.
Investment Income
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| For the Three Months Ended September 30, | | For the Nine Months Ended September 30, |
| (in thousands) | 2024 | | 2023 | | 2024 | | 2023 |
| Interest income from investments | $ | 148,220 | | | $ | 30,547 | | | $ | 329,377 | | | $ | 50,806 | |
| Dividend income | 2,136 | | | 101 | | | 4,418 | | | 101 | |
| Other income | 3,961 | | | 225 | | | 8,780 | | | 414 | |
| Total investment income | $ | 154,317 | | | $ | 30,873 | | | $ | 342,575 | | | $ | 51,321 | |
Total investment income for the three and nine months ended September 30, 2024 increased from the comparable periods in 2023 primarily as a result of an increase in the average size of our investment portfolio. The average size and the weighted average yield of our portfolio at amortized cost for the three and nine months ended September 30, 2024 and 2023 were as follows:
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| For the Three Months Ended September 30, | | For the Nine Months Ended September 30, |
| (dollar amounts in thousands) | 2024 | | 2023 | | 2024 | | 2023 |
| Average size of portfolio(1) | $ | 6,011,034 | | | $ | 1,341,273 | | | $ | 4,466,193 | | | $ | 740,009 | |
| Weighted average yield on portfolio | 9.9 | % | | 9.1 | % | | 10.0 | % | | 9.2 | % |
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(1)Includes non-interest earning investments.
Operating Expenses
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| For the Three Months Ended September 30, | | For the Nine Months Ended September 30, |
| (in thousands) | 2024 | | 2023 | | 2024 | | 2023 |
| Interest and credit facility fees | $ | 36,264 | | | $ | 5,796 | | | $ | 78,358 | | | $ | 12,311 | |
| Base management fee | 13,300 | | | 3,065 | | | 29,803 | | | 4,763 | |
| Income based fee | 12,576 | | | 2,203 | | | 27,494 | | | 3,016 | |
| Capital gains incentive fee(1) | 164 | | | 830 | | | 4,806 | | | 1,397 | |
| Offering expenses | 363 | | | 1,729 | | | 3,361 | | | 2,412 | |
| Shareholder servicing and distribution fees | | | | | | | |
| Class S | 1,412 | | | 143 | | | 3,391 | | | 143 | |
| Class D | 92 | | | 11 | | | 182 | | | 11 | |
| Administrative and other fees | 1,545 | | | 769 | | | 4,392 | | | 2,205 | |
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| Other general and administrative | 2,001 | | | 1,509 | | | 6,016 | | | 2,898 | |
| Total expenses | 67,717 | | | 16,055 | | | 157,803 | | | 29,156 | |
| Expense support | (10,857) | | | (6,438) | | | (25,499) | | | (13,981) | |
| Net expenses | $ | 56,860 | | | $ | 9,617 | | | $ | 132,304 | | | $ | 15,175 | |
_______________________________________________________________________________
(1)Calculated in accordance with GAAP as discussed below.
Interest and credit facility fees for the three and nine months ended September 30, 2024 and 2023, were comprised of the following:
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| | For the Three Months Ended September 30, | | For the Nine Months Ended September 30, |
| (in thousands) | 2024 | | 2023 | | 2024 | | 2023 |
| Stated interest expense(1) | $ | 30,826 | | | $ | 4,273 | | | $ | 65,959 | | | $ | 9,265 | |
| Credit facility fees | 3,389 | | | 969 | | | 7,612 | | | 1,885 | |
| Amortization of debt issuance costs | 1,845 | | | 554 | | | 4,525 | | | 1,161 | |
| Accretion of discount | 204 | | | — | | | 262 | | | — | |
| Total interest and credit facility fees | $ | 36,264 | | | $ | 5,796 | | | $ | 78,358 | | | $ | 12,311 | |
________________________________________
(1)Includes the impact of the interest rate swap for the three and nine months ended September 30, 2024.
Stated interest expense for the three and nine months ended September 30, 2024 increased from the comparable periods in 2023 primarily due to an increase in outstanding debt. Our weighted average stated interest rate on debt outstanding for the three and nine months ended September 30, 2024 increased from the comparable periods in 2023 primarily due to the higher debt outstanding, which was entirely floating rate. Average debt outstanding and weighted average stated interest rate on our debt outstanding for the three and nine months ended September 30, 2024 and 2023 were as follows:
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| For the Three Months Ended September 30, | | For the Nine Months Ended September 30, |
| (dollar amounts in thousands) | 2024 | | 2023 | | 2024 | | 2023 |
| Average debt outstanding | $ | 1,611,826 | | | $ | 233,039 | | | $ | 1,146,085 | | | $ | 172,837 | |
| Weighted average stated interest rate on debt outstanding(1) | 7.5 | % | | 7.3 | % | | 7.6 | % | | 7.1 | % |
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(1)The weighted average stated interest rate on our debt outstanding for the three and nine months ended September 30, 2024 includes the impact of an interest rate swap. See Note 6 to our consolidated financial statements for the three and nine months ended September 30, 2024, for more information on the interest rate swap.
The base management fee for the three and nine months ended September 30, 2024 increased from the comparable periods in 2023 primarily due to the increase in the average size of our portfolio.
The income based fee for the three and nine months ended September 30, 2024 increased from the comparable periods in 2023 primarily due to the pre-incentive fee net investment income, as defined in the investment advisory and management agreement, for the three and nine months ended September 30, 2024 being higher than in the comparable periods in 2023.
For the three and nine months ended September 30, 2024, the capital gains incentive fee calculated in accordance with GAAP was $0.2 million and $4.8 million, respectively, and $0.8 million and $1.4 million, respectively, for the comparable periods in 2023. The capital gains incentive fee accrual for the nine months ended September 30, 2024 changed from the comparable period in 2023 primarily due to net gains on investments and foreign currency transactions of $38.5 million compared to approximately $11.4 million for the nine months ended September 30, 2023. The capital gains incentive fee accrued under GAAP includes an accrual related to unrealized capital appreciation, whereas the capital gains incentive fee actually payable under our investment advisory and management agreement does not. There can be no assurance that such unrealized capital appreciation will be realized in the future. The accrual for any capital gains incentive fee under GAAP in a given period may result in an additional expense if such cumulative amount is greater than in the prior period or a reduction of previously recorded expense if such cumulative amount is less than in the prior period. If such cumulative amount is negative, then there is no accrual. As of September 30, 2024, there was approximately $7.9 million of capital gains incentive fee accrued in accordance with GAAP. As of September 30, 2024, there was no capital gains incentive fee actually payable under our investment advisory and management agreement.
Our investment adviser agreed not to seek recoupment of any base management fee and incentive fee from the commencement of operations through July 31, 2023. See Note 3 to our consolidated financial statements for the three and nine months ended September 30, 2024, for more information on the base management fee, income based fee and capital gains incentive fee.
Offering expenses include expenses incurred in connection with our continuous offering of Common Shares (as defined below). Administrative and other fees represent fees paid to Ares Operations and our investment adviser for our
allocable portion of overhead and other expenses incurred by Ares Operations and our investment adviser, in performing their obligations under each of the administration agreement and the investment advisory and management agreement, respectively, including our allocable portion of the compensation, rent and other expenses of certain of our corporate officers and their respective staffs. See Note 3 to our consolidated financial statements for the three and nine months ended September 30, 2024, for more information on the administrative and other fees. Other general and administrative expenses include, among other costs, professional fees, insurance, fees and expenses related to evaluating and making investments in portfolio companies and independent trustees’ fees.
For the three and nine months ended September 30, 2024, total other expenses was approximately $5.4 million and $17.3 million, respectively, which is comprised of shareholder servicing and distribution fees, administrative and other fees, offering expenses and other general and administrative expenses, compared to $4.2 million and $7.7 million, respectively, for the comparable periods in 2023. Administrative and other fees and other general and administrative expenses for the three and nine months ended September 30, 2024 increased from comparable periods in 2023, primarily as a result of the continued portfolio growth. Other expenses for the three and nine months ended September 30, 2024 increased from the comparable periods in 2023, primarily as a result of our continuous registered offering of Common Shares, which began on August 1, 2023.
Income Tax Expense, Including Excise Tax
We have elected to be treated as a RIC under the Code and operate in a manner so as to qualify for the tax treatment applicable to RICs. To qualify as a RIC, we must, among other requirements, meet certain source-of-income and asset diversification requirements and timely distribute to our shareholders at least 90% of our investment company taxable income, as defined by the Code, for each year. We have made and intend to continue to make the requisite distributions to our shareholders which will generally relieve us from U.S. federal corporate-level income taxes.
Depending on the level of taxable income earned in a tax year, we may choose to carry forward such taxable income in excess of current year distributions from such current year taxable income into the next tax year and pay a 4% excise tax on such income, as required. To the extent that we determine that our estimated current year taxable income will be in excess of estimated distributions for the current year from such income, we accrue excise tax, if any, on estimated excess taxable income as such taxable income is earned. For the three and nine months ended September 30, 2024, we recorded an expense of $0.2 million and $0.7 million, respectively, for U.S. federal excise tax, compared to $0.4 million and $0.4 million, respectively, for the comparable periods in 2023.
Net Realized and Unrealized Gains/Losses
For the three and nine months ended September 30, 2024, we recorded net realized gains on investments of $3.8 million and $11.9 million, respectively, compared to $2.3 million and $4.2 million, respectively, for the comparable periods in 2023, primarily from full or partial sales of our debt investments.
For the three and nine months ended September 30, 2024, we recorded net unrealized gains on investments of $2.2 million and $30.7 million, respectively, compared to $4.0 million and $6.9 million, respectively, for the comparable periods in 2023. For the three and nine months ended September 30, 2024, we also recognized net unrealized losses on foreign currency transactions of $4.7 million and $4.3 million, respectively.
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
Our current liquidity and capital resources are expected to be generated primarily from the proceeds received from the sale of common shares of beneficial interest, including Class I shares, Class S shares and Class D shares (“Common Shares”), pursuant to our registration statement on Form N-2 (File No. 333-264145) declared effective by the SEC on April 24, 2023 (as amended and supplemented, the “Registration Statement”) on a continuous basis at a price per share equal to the then-current net asset value (“NAV”) per share, cash flows from our operations and advances from our credit facilities (the Revolving Credit Facility, the SG Funding Facility and SB Funding Facility (each as defined below, and together, the “Facilities”)). Further, we expect to generate additional liquidity and capital resources from the net proceeds of any future offerings of our debt or equity securities, including unsecured notes and any financing arrangements we may enter into in the future.
Our primary uses of cash and cash equivalents are for (i) investments in portfolio companies and other investments, (ii) the cost of operations (including paying our investment adviser and our administrator), (iii) the cost of any borrowings or other financing arrangements and (iv) cash distributions to the holders of our Common Shares.
In accordance with the Investment Company Act, we may borrow amounts such that our asset coverage calculated pursuant to the Investment Company Act, is at least 150% (or 200% if certain requirements under the Investment Company Act are not met) immediately after such borrowing (i.e., we are able to borrow up to two dollars for every dollar we have in assets less all liabilities and indebtedness not represented by senior securities issued by us). As of September 30, 2024, we had approximately $58 million in cash and cash equivalents and $2.2 billion in total aggregate principal amount of debt outstanding ($2.2 billion at carrying value) and our asset coverage was 315%. Subject to borrowing base and other restrictions, we had approximately $2.9 billion available for additional borrowings under the Facilities as of September 30, 2024.
We have implemented a share repurchase program pursuant to which we intend to offer to repurchase, at the discretion of our board of trustees, up to 5% of our Common Shares outstanding (either by number of shares or aggregate NAV) in each quarter. We conduct any such repurchases of our Common Shares pursuant to the terms of tender offers in accordance with the requirements of Rule 13e-4 promulgated under the Exchange Act and the Investment Company Act, with the terms of such tender offer published in a tender offer statement to be sent to all shareholders and filed with the SEC on Schedule TO. We may from time to time seek to retire, cancel or purchase any of our outstanding debt through cash purchases and/or exchanges, in open market purchases, privately negotiated transactions or otherwise. The amounts involved may be material. In addition, we may from time to time enter into new debt facilities, increase the size of existing facilities or issue debt securities, including secured debt, unsecured debt and/or debt securities convertible into common stock. Any such purchases or exchanges of common stock or outstanding debt, or incurrence or issuance of additional debt would be subject to prevailing market conditions, our liquidity requirements, contractual and regulatory restrictions and other factors.
We believe that our current cash and cash equivalents on hand, our short-term investments, our available borrowing capacity under the Facilities and our anticipated cash flows from operations will be adequate to meet our cash needs for our daily operations in the near term.
Equity Capital Activities
Pursuant to subscription agreements providing for the commitment to purchase an aggregate of up to $847.1 million of our Class I shares entered into between us and several investors between November 2022 and ending on January 30, 2023 (the “Seed Investment Agreements”), we called an aggregate of $847.1 million from October 6, 2022 through July 31, 2023, and in exchange therefore, we issued approximately 32,402,451 Class I shares to 61 shareholders, including the investment from our sole initial shareholder.
On August 1, 2023, we held the first closing in the offering of Common Shares, pursuant to our Registration Statement. We publicly offer on a continuous basis up to $7.5 billion of our Common Shares, pursuant to an offering (the “Offering”) registered with the SEC. The purchase price per share for each class of Common Shares equals to our NAV per share, as of the effective date of the monthly share purchase. Ares Wealth Management Solutions, LLC, our intermediary manager, will use its best efforts to sell Common Shares, but is not obligated to purchase or sell any specific amount of Common Shares in the Offering. We also engage in offerings of our unregistered Common Shares to non-U.S. investors pursuant to Regulation S of the Securities Act.
The following table summarizes transactions in Common Shares during the three and nine months ended September 30, 2024:
| | | | | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended September 30, 2024 | | For the Nine Months Ended September 30, 2024 |
| (in thousands) | Shares | | Amount | | Shares | | Amount |
| Class I | | | | | | | |
| Subscriptions(1) | 30,737 | | | $ | 843,258 | | | 82,026 | | | $ | 2,242,628 | |
| Share transfers between classes | 31 | | | 843 | | | 31 | | | 843 | |
| Distributions reinvested | 633 | | | 17,373 | | | 1,558 | | | 42,596 | |
| Repurchased shares, net of early repurchase deduction | (59) | | | (1,586) | | | (441) | | | (11,836) | |
| | | | | | | |
| Net increase | 31,342 | | | $ | 859,888 | | | 83,174 | | | $ | 2,274,231 | |
| Class S | | | | | | | |
| Subscriptions(1) | 3,378 | | | $ | 92,662 | | | 14,250 | | | $ | 389,045 | |
| Share transfers between classes | (93) | | | (2,541) | | | (117) | | | (3,196) | |
| Distributions reinvested | 116 | | | 3,183 | | | 232 | | | 6,363 | |
| Repurchased shares, net of early repurchase deduction | (75) | | | (2,037) | | | (85) | | | (2,295) | |
| Net increase | 3,326 | | | $ | 91,267 | | | 14,280 | | | $ | 389,917 | |
| Class D | | | | | | | |
| Subscriptions(1) | 4,421 | | | $ | 121,218 | | | 5,658 | | | $ | 154,936 | |
| Share transfers between classes | 62 | | | 1,698 | | | 86 | | | 2,353 | |
| Distributions reinvested | 22 | | | 608 | | | 43 | | | 1,189 | |
| | | | | | | |
| Net increase | 4,505 | | | $ | 123,524 | | | 5,787 | | | $ | 158,478 | |
| Total net increase | 39,173 | | | $ | 1,074,679 | | | 103,241 | | | $ | 2,822,626 | |
____________________________________
(1)See “Recent Developments” as well as Note 11 to our consolidated financial statements for the three and nine months ended September 30, 2024 for subsequent events relating to subscription activities.
Net Asset Value Per Share and Offering Price
We determine NAV for each class of shares as of the last day of each calendar month. Share issuances related to monthly subscriptions are effective the first calendar day of each month. The NAV per share for each class of Common Shares is determined by dividing the value of total assets attributable to the class minus liabilities attributable to the share class by the total number of each share class of Common Shares outstanding at the date as of which the determination is made. The following table summarizes each month-end NAV per share for Class I, Class S and Class D shares during the nine months ended September 30, 2024.
| | | | | | | | | | | | | | | | | |
| | NAV Per Share |
| Class I | | Class S | | Class D |
| January 31, 2024 | $ | 27.17 | | | $ | 27.17 | | | $ | 27.17 | |
| February 29, 2024 | $ | 27.19 | | | $ | 27.19 | | | $ | 27.19 | |
| March 31, 2024 | $ | 27.30 | | | $ | 27.30 | | | $ | 27.30 | |
| April 30, 2024 | $ | 27.29 | | | $ | 27.29 | | | $ | 27.29 | |
| May 31, 2024 | $ | 27.39 | | | $ | 27.39 | | | $ | 27.39 | |
| June 30, 2024 | $ | 27.45 | | | $ | 27.45 | | | $ | 27.45 | |
| July 31, 2024 | $ | 27.44 | | | $ | 27.44 | | | $ | 27.44 | |
| August 31, 2024 | $ | 27.41 | | | $ | 27.41 | | | $ | 27.41 | |
| September 30, 2024 | $ | 27.45 | | | $ | 27.45 | | | $ | 27.45 | |
| | | | | |
| | | | | |
| | | | | |
Distributions
Our board of trustees expects to declare monthly regular distributions for each class of our Common Shares. The following tables present the monthly regular distributions that were declared and payable during the nine months ended September 30, 2024 (dollars in thousands except per share amounts).
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Class I |
| Declaration Date | | Record Date | | Payment Date | | Net Distribution Per Share | | Distribution Amount |
| January 23, 2024 | | January 31, 2024 | | February 22, 2024 | | $ | 0.21430 | | | $ | 12,120 | |
| January 23, 2024 | | February 29, 2024 | | March 25, 2024 | | 0.21430 | | | 13,234 | |
| January 23, 2024 | | March 29, 2024 | | April 24, 2024 | | 0.21430 | | | 14,439 | |
| March 14, 2024 | | April 30, 2024 | | May 23, 2024 | | 0.21430 | | | 17,945 | |
| March 14, 2024 | | May 31, 2024 | | June 25, 2024 | | 0.21430 | | | 19,924 | |
| March 14, 2024 | | June 28, 2024 | | July 24, 2024 | | 0.21430 | | | 22,239 | |
| May 10, 2024 | | July 31, 2024 | | August 23, 2024 | | 0.21430 | | | 24,786 | |
| May 10, 2024 | | August 30, 2024 | | September 23, 2024 | | 0.21430 | | | 26,807 | |
| May 10, 2024 | | September 30, 2024 | | October 23, 2024 | | 0.21430 | | | 28,955 | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | $ | 1.92870 | | | $ | 180,449 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Class S |
| Declaration Date | | Record Date | | Payment Date | | Net Distribution Per Share | | Distribution Amount |
| January 23, 2024 | | January 31, 2024 | | February 22, 2024 | | $ | 0.19470 | | | $ | 2,417 | |
| January 23, 2024 | | February 29, 2024 | | March 25, 2024 | | 0.19600 | | | 2,778 | |
| January 23, 2024 | | March 29, 2024 | | April 24, 2024 | | 0.19472 | | | 3,181 | |
| March 14, 2024 | | April 30, 2024 | | May 23, 2024 | | 0.19528 | | | 3,554 | |
| March 14, 2024 | | May 31, 2024 | | June 25, 2024 | | 0.19465 | | | 3,888 | |
| March 14, 2024 | | June 28, 2024 | | July 24, 2024 | | 0.19522 | | | 4,280 | |
| May 10, 2024 | | July 31, 2024 | | August 23, 2024 | | 0.19454 | | | 4,462 | |
| May 10, 2024 | | August 30, 2024 | | September 23, 2024 | | 0.19454 | | | 4,694 | |
| May 10, 2024 | | September 30, 2024 | | October 23, 2024 | | 0.19520 | | | 4,929 | |
| | | | | | | | |
| | | | | | $ | 1.75485 | | | $ | 34,183 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Class D |
| Declaration Date | | Record Date | | Payment Date | | Net Distribution Per Share | | Distribution Amount |
| January 23, 2024 | | January 31, 2024 | | February 22, 2024 | | $ | 0.20854 | | | $ | 471 | |
| January 23, 2024 | | February 29, 2024 | | March 25, 2024 | | 0.20892 | | | 498 | |
| January 23, 2024 | | March 29, 2024 | | April 24, 2024 | | 0.20854 | | | 529 | |
| March 14, 2024 | | April 30, 2024 | | May 23, 2024 | | 0.20871 | | | 578 | |
| March 14, 2024 | | May 31, 2024 | | June 25, 2024 | | 0.20852 | | | 606 | |
| March 14, 2024 | | June 28, 2024 | | July 24, 2024 | | 0.20869 | | | 644 | |
| May 10, 2024 | | July 31, 2024 | | August 23, 2024 | | 0.20849 | | | 728 | |
| May 10, 2024 | | August 30, 2024 | | September 23, 2024 | | 0.20849 | | | 1,025 | |
| May 10, 2024 | | September 30, 2024 | | October 23, 2024 | | 0.20868 | | | 1,585 | |
| | | | | | | | |
| | | | | | $ | 1.87758 | | | $ | 6,664 | |
The net distributions received by shareholders of Class S shares and Class D shares include the effect of the shareholder servicing and/or distribution fees applicable to such class of shares. Class I shares have no shareholder servicing and/or distribution fees.
See “Recent Developments” as well as Note 11 to our consolidated financial statements for the three and nine months ended September 30, 2024 for a subsequent event relating to regular distributions declared by our board of trustees.
Distribution Reinvestment Plan
We have adopted a distribution reinvestment plan (“distribution reinvestment plan”), pursuant to which we will not reinvest cash distributions declared by our board of trustees on behalf of our shareholders unless such shareholders elect for their shares to be automatically reinvested. As a result, if our board of trustees authorizes, and we declare, a cash distribution, then our shareholders who have opted into our distribution reinvestment plan will have their cash distributions automatically reinvested in additional shares, rather than receiving the cash distribution. Distributions on fractional shares will be credited to each participating shareholder’s account. The purchase price for shares issued under our distribution reinvestment plan will be equal to the most recent available NAV per share for such shares at the time the distribution is payable.
Share Repurchase Program
We have implemented a share repurchase program, pursuant to which we intend to offer to repurchase, at the discretion of our board of trustees, up to 5% of our Common Shares outstanding (either by number of shares or aggregate NAV) in each quarter. Our board of trustees may amend, suspend or terminate the share repurchase program if it deems such action to be in our best interest and the best interest of our common shareholders. As a result, share repurchases may not be available each quarter, or at all. We will conduct any such repurchase offers in accordance with the requirements of Rule 13e-4 promulgated under the Securities Exchange Act of 1934, as amended, and the Investment Company Act, with the terms of such tender offer published in a tender offer statement to be sent to all our shareholders and filed with the SEC on Schedule TO. All our common shareholders will be given at least 20 full business days to elect to participate in such share repurchases. All shares purchased by us pursuant to the terms of each tender offer, will be retired and thereafter will be authorized and unissued shares.
Under our share repurchase program, to the extent we offer to repurchase shares in any particular quarter, we expect to repurchase shares pursuant to tender offers using a purchase price equal to the NAV per share as of the last calendar day of the applicable month designated by our board of trustees, except that we deduct 2.00% from such NAV for shares that have not been outstanding for at least one year (the “Early Repurchase Deduction”).
On August 12, 2024, we amended and restated the plan adopted by us pursuant to Rule 18f-3 under the Investment Company Act so we may issue multiple classes of Common Shares (the “Multiple Class Plan”) to provide that the Early Repurchase Deduction holding period ends on the one-year anniversary of the subscription closing date and the Early Repurchase Deduction will not apply to shares acquired through our distribution reinvestment plan. The Early Repurchase Deduction may be waived in the case of repurchase requests: (i) arising from the death or qualified disability of the holder; (ii) submitted by discretionary model portfolio management programs (and similar arrangements); (iii) from feeder funds (or similar vehicles) primarily created to hold our Common Shares, which are offered to non-U.S. persons, where such funds seek to avoid imposing such a deduction because of administrative or systems limitations; and (iv) in the event that a shareholder’s Common Shares are repurchased because the shareholder has failed to maintain a minimum account balance. Prior to May 8, 2024, we could only waive the Early Repurchase Deduction in the case of repurchase requests arising from the death or qualified disability of the holder. The Early Repurchase Deduction will be retained by us for the benefit of remaining shareholders.
During the three months ended September 30, 2024, pursuant to tender offers, we repurchased 58,693 Class I shares and 75,055 Class S shares for a total value of approximately $1.6 million and $2.0 million, respectively, which is net of the Early Repurchase Deduction. During the nine months ended September 30, 2024, pursuant to tender offers, we repurchased 441,177 Class I shares and 84,715 Class S shares for a total value of approximately $11.8 million and $2.3 million, respectively, each of which are net of the Early Repurchase Deduction. No Class D shares were repurchased during the three and nine months ended September 30, 2024. The following table presents the share repurchases completed during the nine months ended September 30, 2024 (dollar amounts in thousands except per share amounts):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Repurchase Pricing Date | | Total Number of Shares Repurchased | | Percentage of Outstanding Shares Repurchased (1) | | Repurchase Request Deadline | | Purchase Price Per Share (2) | | Amount Repurchased (All Classes) (2) | | Maximum number of shares that may yet be purchased under the repurchase program (3) |
| February 29, 2024 | | 387,233 | | 0.54 | % | | March 20, 2024 | | $ | 27.19 | | | $ | 10,376 | | | — | |
| May 31, 2024 | | 4,911 | | 0.01 | % | | June 20, 2024 | | $ | 27.39 | | | $ | 132 | | | — | |
| August 31, 2024 | | 133,748 | | 0.09 | % | | September 20, 2024 | | $ | 27.41 | | | $ | 3,623 | | | — | |
_______________________________________________________________________________
(1) Percentage is based on total shares outstanding as of the close of business on the last calendar day of the month preceding the applicable repurchase pricing date.
(2) Amounts shown net of the Early Repurchase Deduction.
(3) All repurchase requests were satisfied in full.
Debt Capital Activities
Our debt obligations consisted of the following as of September 30, 2024 and December 31, 2023:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| As of |
| | September 30, 2024 | | December 31, 2023 |
| (in thousands) | Total Aggregate Principal Amount Committed/ Outstanding (1) | | Principal Amount Outstanding | | Carrying Value | | Total Aggregate Principal Amount Committed/ Outstanding (1) | | Principal Amount Outstanding | | Carrying Value |
Revolving Credit Facility | $ | 1,785,000 | | (2) | $ | 380,371 | | | $ | 380,370 | | | $ | 800,000 | | (2) | $ | 460,349 | | | $ | 460,325 | |
| SG Funding Facility | 1,825,000 | | (3) | 695,000 | | | 695,000 | | | 1,000,000 | | (3) | 250,000 | | | 250,000 | |
| SB Funding Facility | 750,000 | | | 375,000 | | | 375,000 | | | — | | | — | | | — | |
| August 2029 Notes | 700,000 | | | 700,000 | | | 711,298 | | (4)(5) | — | | | — | | | — | |
| | | | | | | | | | | |
| Total | $ | 5,060,000 | | | $ | 2,150,371 | | | $ | 2,161,668 | | | $ | 1,800,000 | | | $ | 710,349 | | | $ | 710,325 | |
________________________________________
(1)Represents the total aggregate amount committed or outstanding, as applicable, under such instrument. Borrowings under the committed Revolving Credit Facility, SG Funding Facility and SB Funding Facility (each as defined below) are subject to borrowing base and other restrictions.
(2)Provides for a feature that allows us, under certain circumstances, to increase the size of the Revolving Credit Facility to a maximum of approximately $2.6 billion and $1.1 billion, as of September 30, 2024 and December 31, 2023, respectively.
(3)Provides for a feature that allows ASIF Funding I (as defined below), under certain circumstances, to increase the size of the SG Funding Facility to a maximum of $2.0 billion.
(4)Represents the aggregate principal amount outstanding, less unamortized debt issuance costs and the unaccreted discount recorded upon issuance.
(5)The carrying value of the August 2029 Notes (as defined below) as of September 30, 2024 includes an adjustment as a result of an effective hedge accounting relationship. See Note 6 to our consolidated financial statements for the three and nine months ended September 30, 2024 for more information.
Revolving Credit Facility
We are party to a senior secured revolving credit facility agreement with JPMorgan Chase Bank, N.A and each of the other parties thereto (the “Revolving Credit Facility”), that as of September 30, 2024, allowed us to borrow up to approximately $1.8 billion at any one time outstanding. As of September 30, 2024, the end of the revolving period and the stated maturity date were April 15, 2028 and April 15, 2029, respectively. As of September 30, 2024, the Revolving Credit Facility also provided for a feature that allowed us, under certain circumstances, to increase the overall size of the Revolving Credit Facility to a maximum of approximately $2.6 billion. The interest rate charged on the Revolving Credit Facility is based on Secured Overnight Financing Rate (“SOFR”) plus a credit spread adjustment of 0.10% (or an alternate rate of interest for certain loans, commitments and/or other extensions of credit denominated in approved foreign currencies plus a spread adjustment, if applicable) and an applicable spread of either 1.75% or 1.875% or an “alternate base rate” (as defined in the documents governing the Revolving Credit Facility) plus an applicable spread of 0.75% or 0.875%, in each case, determined monthly based on the total amount of the borrowing base relative to the sum of (i) the greater of (a) the aggregate amount of revolving exposure under the Revolving Credit Facility and (b) 85% of the total commitments of the Revolving Credit Facility (or, if higher, the total revolving exposure) plus (ii) other debt, if any, secured by the same collateral as the Revolving Credit Facility. As of September 30, 2024, the applicable spread in effect was 1.75%. We are also required to pay a letter of credit fee of 0.25% per annum on letters of credit issued, determined monthly based on the total amount of the borrowing base relative to the total
commitments of the Revolving Credit Facility and other debt, if any, secured by the same collateral as the Revolving Credit Facility. Additionally, we are required to pay a commitment fee of 0.375% per annum on any unused portion of the Revolving Credit Facility. As of September 30, 2024, there was approximately $380 million aggregate principal amount outstanding under the Revolving Credit Facility and we were in compliance in all material respects with the terms of the Revolving Credit Facility. See “Recent Developments,” as well as Note 11 to our consolidated financial statements for the three and nine months ended September 30, 2024 for a subsequent event relating to the Revolving Credit Facility.
SG Funding Facility
We and our wholly owned subsidiary, ASIF Funding I, LLC (“ASIF Funding I”) are a party to a revolving funding facility with Société Générale and each of the other parties thereto (the “SG Funding Facility”), that provides for a facility amount of approximately $1.8 billion. The end of the revolving period and the stated maturity date are August 28, 2027 and August 28, 2029, respectively. The SG Funding Facility also provides for a feature that allows ASIF Funding I, under certain circumstances, to increase the overall size of the SG Funding Facility to a maximum of $2.0 billion. The interest rate charged on the SG Funding Facility is based on SOFR plus an applicable margin of 2.05% per annum. In addition to the stated interest expense, ASIF Funding I is required to pay, among other fees, a daily commitment fee on any monthly distribution date, termination date or on the date of any payment or prepayment of a loan outstanding under the SG Funding Facility. As of September 30, 2024, there was $695 million aggregate principal amount outstanding under the SG Funding Facility and we and ASIF Funding I were in compliance in all material respects with the terms of the SG Funding Facility.
SB Funding Facility
We and our wholly owned subsidiary, ASIF Funding II, LLC (“ASIF Funding II”) are party to a revolving funding facility with the Bank of Nova Scotia and each of the other parties thereto (the “SB Funding Facility”), that provides for a facility amount of $750 million. The end of the reinvestment period and the stated maturity date are September 1, 2026 and March 1, 2033, respectively. The interest rate charged on the SB Funding Facility is based on SOFR plus an applicable margin of (i) 2.10% during the reinvestment period and (ii) 2.40% following the reinvestment period. As of September 30, 2024, the applicable spread in effect was 2.10%. In addition, ASIF Funding II is required to pay, among other fees, a commitment fee of 0.50% per annum on any unused portion of the SB Funding Facility. As of September 30, 2024, there was $375 million aggregate principal amount outstanding under the SB Funding Facility and we and ASIF Funding II were in compliance in all material respects with the terms of the SB Funding Facility.
Unsecured Notes
In June 2024, we issued $700 million in aggregate principal amount of unsecured notes that mature on August 15, 2029 and bear interest at a rate of 6.350% per annum (the “August 2029 Notes”). The August 2029 Notes were sold to initial purchasers in a private placement in reliance on Section 4(a)(2) of the Securities Act, and for the resale by such initial purchasers to (i) qualified institutional buyers in transactions exempt from registration under the Securities Act pursuant to Rule 144A thereunder or (ii) certain non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act. The August 2029 Notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration. The August 2029 Notes pay interest semi-annually on February 15 and August 15 of each year, commencing on February 15, 2025, and all principal is due upon maturity. The August 2029 Notes may be redeemed in whole or in part at our option at any time at a redemption price equal to par plus a “make whole” premium, if applicable, as determined pursuant to the indenture governing the August 2029 Notes, and any accrued and unpaid interest. The August 2029 Notes were issued at a discount to the principal amount.
Concurrent with the issuance of the August 2029 Notes, we entered into a Registration Rights Agreement (the “August 2029 Notes Registration Rights Agreement”) for the benefit of the initial purchasers of the August 2029 Notes. Pursuant to the August 2029 Notes Registration Rights Agreement, we are obligated to file a registration statement with the SEC with respect to an offer to exchange the August 2029 Notes for a new issue of debt securities registered under the Securities Act with terms substantially identical to those of the August 2029 Notes (except for provisions relating to transfer restrictions and payment of additional interest) and to use our commercially reasonable efforts to consummate such exchange offer on the earliest practicable date after the registration statement has been declared effective but in no event later than June 5, 2025. If we fail to satisfy our registration obligations under the August 2029 Notes Registration Rights Agreement, we will be required to pay additional interest to the holders of the August 2029 Notes.
In connection with the August 2029 Notes, we entered into an interest rate swap agreement to more closely align the interest rate of such liability with our investment portfolio, which consists primarily of floating rate loans. We designated this interest rate swap and the August 2029 Notes as a qualifying fair value hedge accounting relationship. Certain information related to our interest rate swap instrument as of September 30, 2024 is presented below (dollar amounts in thousands).
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| Description | | Hedged Item | | Company Receives | | Company Pays | | Maturity Date | | Notional Amount |
| Interest rate swap | | August 2029 Notes | | 6.350 | % | | SOFR + 2.208% | | August 15, 2029 | | $ | 700,000 | |
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See Note 5 to our consolidated financial statements for the three and nine months ended September 30, 2024 for more information on our debt obligations.
See “Recent Developments,” as well as Note 11 to our consolidated financial statements for the three and nine months ended September 30, 2024 for a subsequent event relating to an additional issuance of unsecured notes.
As of September 30, 2024, we were in compliance in all material respects with the indenture governing the August 2029 Notes.
The August 2029 Notes are our senior unsecured obligations and rank senior in right of payment to any future indebtedness that is expressly subordinated in right of payment to the August 2029 Notes; equal in right of payment to our existing and future unsecured indebtedness that is not expressly subordinated; effectively junior in right of payment to any of our secured indebtedness (including existing unsecured indebtedness that we later secure) to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by our subsidiaries, financing vehicles or similar facilities.
RECENT DEVELOPMENTS
In October 2024, we increased the total commitments under our Revolving Credit Facility from $1.785 billion to $1.810 billion. The other terms of the Revolving Credit Facility remained unchanged.
In October 2024, we, through a wholly owned and consolidated subsidiary, priced a $476 million term debt securitization. The transaction is expected to close in November 2024, subject to customary closing conditions. Term debt securitization is also known as a collateralized loan obligation and is a form of secured financing incurred by us, which is consolidated by us and subject to its overall asset coverage requirement.
In October 2024, we issued $750 million in aggregate principal amount of unsecured notes that mature on February 15, 2030 and bear interest at a rate of 5.600% per annum (the “February 2030 Notes”). The February 2030 Notes were sold to initial purchasers in a private placement in reliance on Section 4(a)(2) of the Securities Act, and for the resale by such initial purchasers to (i) qualified institutional buyers in transactions exempt from registration under the Securities Act pursuant to Rule 144A thereunder or (ii) certain non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act. The February 2030 Notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration. The February 2030 Notes pay interest semi-annually on February 15 and August 15 of each year, commencing on February 15, 2025, and all principal is due upon maturity. The February 2030 Notes may be redeemed in whole or in part at any time at our option at a redemption price equal to par plus a “make whole” premium, if applicable, as determined pursuant to the indenture governing the February 2030 Notes, and any accrued and unpaid interest.
Concurrent with the issuance of the February 2030 Notes, we entered into the Registration Rights Agreement (the “February 2030 Notes Registration Rights Agreement”) for the benefit of the initial purchasers of the February 2030 Notes. Pursuant to the February 2030 Notes Registration Rights Agreement, we are obligated to file a registration statement with the SEC with respect to an offer to exchange the February 2030 Notes for a new issue of debt securities registered under the Securities Act with terms substantially identical to those of the February 2030 Notes (except for provisions relating to transfer restrictions and payment of additional interest) and to use its commercially reasonable efforts to consummate such exchange offer on the earliest practicable date after the registration statement has been declared effective but in no event later than October 2, 2025. If we fail to satisfy our registration obligations under the February 2030 Notes Registration Rights Agreement, we will be required to pay additional interest to the holders of the February 2030 Notes.
In connection with the February 2030 Notes, we entered into an interest rate swap agreement for a total notional amount of $750 million that matures on February 15, 2030 to more closely align the interest rate of such liability with our
investment portfolio, which consists primarily of floating rate loans. Under the interest rate swap agreement, we receive a fixed interest rate of 5.600% and pay a floating interest rate based on one-month SOFR plus 2.302%. We designated this interest rate swap and the February 2030 Notes as a qualifying hedge accounting relationship.
On October 1, 2024, we issued and sold 13,252,580 Common Shares (consisting of 10,846,830 Class I shares, 1,002,028 Class S shares and 1,403,722 Class D shares at an offering price of $27.45 per share for each class of share), and we received approximately $364 million as payment for such shares.
We received approximately $503 million of net proceeds relating to the issuance of Class I shares, Class S shares and Class D shares for subscriptions effective November 1, 2024. The purchase price per Class I share, Class S share and Class D share will equal our NAV per Class I share, Class S share and Class D share, respectively, as of the last calendar day of October 2024 (the “October NAV”), which is generally expected to be available within 20 business days after November 1, 2024. At that time, the number of Class I shares, Class S shares and Class D shares issued to each investor based on the October NAV and such investor’s subscription amount will be determined and Class I shares, Class S shares and Class D shares, as applicable, will be credited to the investor’s account as of the effective date of the share purchase, November 1, 2024.
As previously disclosed, on August 13, 2024, we announced the declaration of regular monthly gross distributions for October, November and December 2024. On November 8, 2024, we announced the declaration of regular monthly gross distributions for January, February and March 2025, in each case for each class of its Common Shares. The following table presents the regular monthly gross distributions per share that were declared and payable:
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| | | | Gross Distribution Per Share |
| Record Date | | Payment Date(1) | Class I | | Class S | | Class D | | | | |
| October 31, 2024 | | November 22, 2024 | $ | 0.21430 | | | $ | 0.21430 | | | $ | 0.21430 | | | | | |
| November 29, 2024 | | December 26, 2024 | $ | 0.21430 | | | $ | 0.21430 | | | $ | 0.21430 | | | | | |
| December 31, 2024 | | January 23, 2025 | $ | 0.21430 | | | $ | 0.21430 | | | $ | 0.21430 | | | | | |
| January 31, 2025 | | February 21, 2025 | $ | 0.21430 | | | $ | 0.21430 | | | $ | 0.21430 | | | | | |
| February 28, 2025 | | March 21, 2025 | $ | 0.21430 | | | $ | 0.21430 | | | $ | 0.21430 | | | | | |
| March 31, 2025 | | April 21, 2025 | $ | 0.21430 | | | $ | 0.21430 | | | $ | 0.21430 | | | | | |
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______________________________________________________________________________
(1)The distributions for each class of our Common Shares will be paid on or about the payment dates above.
These distributions will be paid in cash or reinvested in our Common Shares for shareholders participating in our 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 our Common Shares as of their respective record dates. Class I shares have no shareholder servicing and/or distribution fees.
CRITICAL ACCOUNTING ESTIMATES
This discussion of our expected operating plans is based upon our expected consolidated financial statements, which will be prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The preparation of these consolidated financial statements will require our management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Changes in the economic environment, financial markets and any other parameters used in determining such estimates could cause actual results to differ. The critical accounting estimates should be read in conjunction with the risk factors as disclosed in “Item 1A. Risk Factors.” See Note 2 to our consolidated financial statements for the three and nine months ended September 30, 2024 for more information on our critical accounting policies.
Investments
Investment transactions are recorded on the trade date. Realized gains or losses are measured by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment using the specific identification method without regard to unrealized gains or losses previously recognized, and include investments charged off during the period, net of recoveries. Unrealized gains or losses primarily reflect the change in investment values, including the reversal of previously recorded unrealized gains or losses when gains or losses are realized.
Pursuant to Rule 2a-5 under the Investment Company Act, our board of trustees has designated our investment adviser as our valuation designee (the “Valuation Designee”) to perform fair value determinations for investments held by us without readily available market quotations, subject to the oversight by our board of trustees. All investments are recorded at their fair value.
Investments for which market quotations are readily available are typically valued at such market quotations. In order to validate market quotations, the Valuation Designee looks at a number of factors to determine if the quotations are representative of fair value, including the source and nature of the quotations. Debt and equity securities that are not publicly traded or whose market prices are not readily available are valued at fair value as determined in good faith by the Valuation Designee, subject to the oversight of our board of trustees, based on, among other things, the input of the independent third‑party valuation providers (“IVPs”) that have been engaged to support the valuation of such portfolio investments at least quarterly (with certain de minimis exceptions) and under a valuation policy and a consistently applied valuation process. In addition, our independent registered public accounting firm obtains an understanding of, and performs select procedures relating to, our investment valuation process within the context of performing our financial statement audit.
Investments in our portfolio that do not have a readily available market are valued at fair value as determined in good faith by the Valuation Designee, as described herein. As part of the valuation process for investments that do not have readily available market prices, the Valuation Designee may take into account the following types of factors, if relevant, in determining the fair value of our investments: the enterprise value of a portfolio company (the entire value of the portfolio company to a market participant, including the sum of the values of debt and equity securities used to capitalize the enterprise at a point in time), the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flow, the markets in which the portfolio company does business, a comparison of the portfolio company’s securities to any similar publicly traded securities, changes in the interest rate environment and the credit markets, which may affect the price at which similar investments would trade in their principal markets and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent sale occurs, the Valuation Designee considers the pricing indicated by the external event to corroborate the valuation.
Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may fluctuate from period to period. Additionally, the fair value of our investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that we may ultimately realize. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we could realize significantly less than the value at which we have recorded it.
In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the valuations currently assigned.
The Valuation Designee, subject to the oversight of our board of trustees, undertakes a multi‑step valuation process each quarter, as described below:
•Our quarterly valuation process begins with a preliminary valuation being prepared by the investment professionals responsible for the portfolio investment in conjunction with our portfolio management team and valuation team.
•Preliminary valuations are reviewed and discussed by the valuation committee of the Valuation Designee.
•For portfolio investments selected for review by an IVP,
◦Relevant information related to the portfolio investment is made available by the Valuation Designee to the IVP, who does not independently verify such information.
◦The IVP reviews and analyzes the information provided by the Valuation Designee, along with relevant market and economic data, and independently determines a range of values for each of the selected portfolio investments.
◦The IVP provides its analysis to the Valuation Designee to support the IVP’s valuation methodology and calculations.
•The valuation committee of the Valuation Designee determines the fair value of each investment in our portfolio without a readily available market quotation in good faith based on, among other things, the input of the IVPs, where applicable.
•For portfolio investments selected for review by an IVP, a positive assurance opinion or independent valuation report is issued by the IVP that confirms the fair value determined by the Valuation Designee for a selected portfolio investment is within the range of values independently calculated by such IVP.
When the Valuation Designee determines our NAV as of the last day of a month that is not also the last day of a calendar quarter, the Valuation Designee intends to update the value of securities with reliable market quotations to the most recent market quotation. For securities without reliable market quotations, the Valuation Designee will generally value such assets at the most recent quarterly valuation unless the Valuation Designee determines that a significant observable change has occurred since the most recent quarter end with respect to the investment (which determination may be as a result of a material event at a portfolio company, material change in market spreads, secondary market transaction in the securities of an investment or otherwise). If the Valuation Designee determines such a change has occurred with respect to one or more investments, the Valuation Designee will determine whether to update the value for each relevant investment.
Fair Value of Financial Instruments
We follow ASC 825-10, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASC 825-10”), which provides companies the option to report selected financial assets and liabilities at fair value. ASC 825-10 also establishes presentation and disclosure requirements designed to facilitate comparisons between companies that choose different measurement attributes for similar types of assets and liabilities and to more easily understand the effect of our choice to use fair value on its earnings. ASC 825-10 also requires entities to display the fair value of the selected assets and liabilities on the face of the balance sheet. We have not elected the ASC 825-10 option to report selected financial assets and liabilities at fair value. With the exception of the line items entitled “other assets” and “debt,” which are reported at amortized cost, the carrying value of all other assets and liabilities approximate fair value.
We also follow ASC 820-10, Fair Value Measurements and Disclosures (“ASC 820-10”), which expands the application of fair value accounting. ASC 820-10 defines fair value, establishes a framework for measuring fair value in accordance with GAAP and expands disclosure of fair value measurements. ASC 820-10 determines fair value to be the price that would be received for an investment in a current sale, which assumes an orderly transaction between market participants on the measurement date. ASC 820-10 requires us to assume that the portfolio investment is sold in its principal market to market participants or, in the absence of a principal market, the most advantageous market, which may be a hypothetical market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact. In accordance with ASC 820-10, we have considered its principal market as the market in which we exit our portfolio investments with the greatest volume and level of activity. ASC 820-10 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. In accordance with ASC 820-10, these inputs are summarized in the three broad levels listed below:
•Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access.
•Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.
•Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement.
In addition to using the above inputs in investment valuations, the Valuation Designee continues to employ the net asset valuation policy and procedures that have been reviewed by our board of trustees in connection with their designation of our investment adviser as our valuation designee and are consistent with the provisions of Rule 2a-5 under the Investment Company Act and ASC 820-10. Consistent with its valuation policies and procedures, the Valuation Designee evaluates the source of inputs, including any markets in which our investments are trading (or any markets in which securities with similar attributes are trading), in determining fair value. Because there may not be a readily available market value for some of the investments in our portfolio, the fair value of a portion of our investments may be determined using unobservable inputs.
Our portfolio investments classified as Level 3 are typically valued using two different valuation techniques. The first valuation technique is an analysis of the enterprise value (“EV”) of the portfolio company. EV means the entire value of the portfolio company to a market participant, including the sum of the values of debt and equity securities used to capitalize the
enterprise at a point in time. The primary method for determining EV uses a multiple analysis whereby appropriate multiples are applied to the portfolio company’s EBITDA (generally defined as net income before net interest expense, income tax expense, depreciation and amortization). EBITDA multiples are typically determined based upon review of market comparable transactions and publicly traded comparable companies, if any. The Valuation Designee may also employ other valuation multiples to determine EV, such as revenues or, in the case of certain portfolio companies in the power generation industry, kilowatt capacity. The second method for determining EV uses a discounted cash flow analysis whereby future expected cash flows of the portfolio company are discounted to determine a present value using estimated discount rates (typically a weighted average cost of capital based on costs of debt and equity consistent with current market conditions). The EV analysis is performed to determine the value of equity investments, the value of debt investments in portfolio companies where we have control or could gain control through an option or warrant security, and to determine if there is credit impairment for debt investments. If debt investments are credit impaired, an EV analysis may be used to value such debt investments; however, in addition to the methods outlined above, other methods such as a liquidation or wind-down analysis may be utilized to estimate EV. The second valuation technique is a yield analysis, which is typically performed for non-credit impaired debt investments in portfolio companies where we do not own a controlling equity position. To determine fair value using a yield analysis, a current price is imputed for the investment based upon an assessment of the expected market yield for a similarly structured investment with a similar level of risk. In the yield analysis, the Valuation Designee considers the current contractual interest rate, the maturity and other terms of the investment relative to the risk of us and the specific investment. A key determinant of risk, among other things, is the leverage through the investment relative to the EV of the portfolio company. As debt investments held by us are substantially illiquid with no active transaction market, the Valuation Designee depends on primary market data, including newly funded transactions, as well as secondary market data with respect to high yield debt instruments and syndicated loans, as inputs in determining the appropriate market yield, as applicable.
See Note 8 to our consolidated financial statements for the three and nine months ended September 30, 2024 for more information on our valuation process.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
We are subject to financial market risks, including changes in interest rates and the valuations of our investment portfolio. Uncertainty with respect to the fluctuations in global interest rates, inflationary pressures, the Russia-Ukraine war and more recently the ongoing conflicts in the Middle East introduced significant volatility in the financial markets, and the effects of this volatility has materially impacted and could continue to materially impact our market risks, including those listed below. For more information concerning these risks and their potential impact on our business and our operating results, see “Risk Factors—General Risk Factors—Global economic, political and market conditions, including uncertainty about the financial stability of the United States, could have a significant adverse effect on our business, financial condition and results of operations”, “Risk Factors—Risks Relating to Our Investments—Economic recessions or downturns could impair our portfolio companies and harm our operating results” and “Risk Factors—Risks Relating to Our Business and Structure—Inflation has adversely affected the business, results of operations and financial condition of our portfolio companies” in our Annual Report.
Investment Valuation Risk
Because there is not a readily available market value for most of the investments in our portfolio, substantially all of our portfolio investments are valued at fair value as determined in good faith by the Valuation Designee, subject to the oversight of our board of trustees, based on, among other things, the input of the independent third-party valuation firms that have been engaged to support the valuation of each portfolio investment without a readily available market quotation at least quarterly (with certain de minimis exceptions). Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may fluctuate from period to period. Additionally, the fair value of our investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that we may ultimately realize. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we could realize significantly less than the value at which we have recorded it. In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the valuations currently assigned. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” as well as Notes 2 and 8 to our consolidated financial statements for the three and nine months ended September 30, 2024 for more information relating to our investment valuation.
Interest Rate Risk
Interest rate sensitivity refers to the change in our earnings that may result from changes in the level of interest rates. Because we fund a portion of our investments with borrowings, our net investment income is affected by the difference between the rate at which we invest and the rate at which we borrow. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income. See “Risk Factors—Risks Relating to Our Business and Structure—We are exposed to risks associated with changes in interest rates including the current rising interest rate environment” in our Annual Report.
In a prolonged low interest rate environment, the difference between the total interest income earned on interest earning assets and the total interest expense incurred on interest bearing liabilities may be compressed, reducing our net income and potentially adversely affecting our operating results. Conversely, in a rising interest rate environment, such difference could potentially increase thereby increasing our net income as indicated per the table below.
As of September 30, 2024, 93% of the investments at fair value in our portfolio were at floating rates, 5% bore interest at fixed rate and 2% were non-income producing. Additionally, 73% of the variable rate investments at fair value contained interest rate floors. The Facilities bear interest at variable rates with no interest rate floors. The August 2029 Notes have been swapped from a fixed rate to a floating rate through the interest rate swap. See Note 5 to our consolidated financial statements for the three and nine months ended September 30, 2024 for more information on our debt obligations. See Note 6 to our consolidated financial statements for the three and nine months ended September 30, 2024 for more information on the interest rate swap.
We regularly measure our exposure to interest rate risk. We assess interest rate risk and manage our interest rate exposure on an ongoing basis by comparing our interest rate sensitive assets to our interest rate sensitive liabilities. Based on that review, we determine whether or not any hedging transactions are necessary to mitigate exposure to changes in interest rates.
Based on our September 30, 2024 consolidated statement of assets and liabilities, the following table shows the annualized impact on net income of base rate changes in interest rates (considering interest rate floors for variable rate instruments) assuming no changes in our investment and borrowing structure:
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(in millions)
Basis Point Change | | Interest Income | | Interest
Expense | | Net
Income(1) |
| Up 300 basis points | | $ | 206 | | | $ | 65 | | | $ | 141 | |
| Up 200 basis points | | $ | 138 | | | $ | 43 | | | $ | 95 | |
| Up 100 basis points | | $ | 69 | | | $ | 22 | | | $ | 47 | |
| Down 100 basis points | | $ | (69) | | | $ | (22) | | | $ | (47) | |
| Down 200 basis points | | $ | (138) | | | $ | (43) | | | $ | (95) | |
| Down 300 basis points | | $ | (206) | | | $ | (65) | | | $ | (141) | |
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(1)Excludes the impact of any income based fee. See Note 3 to our consolidated financial statements for the three and nine months ended September 30, 2024 for more information on the income based fee.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures (as that term is defined in Rules 13a‑15(e) and 15d‑15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) that are designed to ensure that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officers and principal financial officer, as appropriate, to allow timely decisions regarding required disclosures. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Our management, with the participation of our principal executive officers and principal financial officer, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of September 30, 2024. Based upon that evaluation and subject to the foregoing, our principal executive officers
and principal financial officer concluded that, as of September 30, 2024, the design and operation of our disclosure controls and procedures were effective to accomplish their objectives at the reasonable assurance level.
Changes in Internal Control over Financial Reporting
There have been no changes in our internal control over financial reporting (as defined in Rules 13a‑15(f) and 15d‑15(f) under the Exchange Act) during the quarter ended September 30, 2024 that have materially affected, or that are reasonably likely to materially affect, our internal control over financial reporting.
PART II — OTHER INFORMATION
Item 1. Legal Proceedings
From time to time, we, our executive officers, trustees and our investment adviser, its affiliates and/or any of their respective principals and employees are subject to legal proceedings, including those arising from our investments in our portfolio companies, and as a result, incur significant costs and expenses in connection with such legal proceedings. Legal proceedings may increase to the extent we find it necessary to foreclose or otherwise enforce remedies with respect to loans that are in default, which borrowers may seek to resist by asserting counterclaims and defenses, against us or our investment adviser.
We and our investment adviser are also subject to extensive regulation, which, from time to time, results in requests for information from us or our investment adviser or regulatory proceedings or investigations against us or our investment adviser, respectively. We incur significant costs and expenses in connection with any such information requests, proceedings and investigations.
Item 1A. Risk Factors
In addition to the other information set forth in this report, you should carefully consider the risk factors described in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and those set forth under the caption “Risk Factors” in our Registration Statement on Form N-2, which could materially affect our business, financial condition and/or operating results. The risks described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and in our Registration Statement on Form N-2 are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Refer to Item 3.02 in our Current Reports on Form 8-K filed with SEC on July 22, 2024, August 21, 2024 and September 23, 2024 for information about unregistered sales of our equity securities during the quarter.
Item 3. Defaults Upon Senior Securities.
Not applicable.
Item 4. Mine Safety Disclosures.
Not applicable.
Item 5. Other Information.
Rule 10b5-1 Trading Plans
During the fiscal quarter ended September 30, 2024, none of our board of trustees or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement.”
Item 6. Exhibits.
EXHIBIT INDEX
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| Exhibit Number | | Description | |
| | Fourth Amended and Restated Declaration of Trust (incorporated by reference to Exhibit 3.1 to the Fund’s Form 8-K (File No. 814-01512), filed on May 25, 2023). | |
| | Second Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 to the Fund’s Form 8-K (File No. 814-01512), filed on May 25, 2023). | |
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| | Second Supplemental Indenture, dated as of October 2, 2024, relating to the 5.600% Notes due 2030, between Ares Strategic Income Fund and U.S. Bank Trust Company, National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Fund’s Form 8-K (File No. 814-00663), filed on October 2, 2024). | |
| | Form of 5.600% Notes due 2030 (incorporated by reference to Exhibit 4.2 to the Fund’s Form 8-K (File No. 814-00663), filed on October 2, 2024). | |
| | Registration Rights Agreement, dated as of October 2, 2024, relating to the 5.600% Notes due 2030 by and among Ares Strategic Income Fund and BNP Paribas Securities Corp., BofA Securities, Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC (incorporated by reference to Exhibit 4.3 to the Fund's Form 8-K (File No. 814-006633), filed on October 2, 2024). | |
| | Third Amended and Restated Investment Advisory and Management Agreement (incorporated by reference to Exhibit 10.1 to the Fund’s Form 8-K (File No. 814-01512), filed on September 12, 2024). | |
| | Second Amended and Restated Administration Agreement (incorporated by reference to Exhibit 10.2 to the Fund’s Form 8-K (File No. 814-01512), filed on September 12, 2024). | |
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| | Amendment No. 1 to Credit Agreement, dated as of August 2, 2024, among ASIF Funding II, LLC, as borrower, Ares Strategic Income Fund, as parent and servicer and The Bank of Nova Scotia, as administrative agent and revolving lender (incorporated by reference to Exhibit 10.1 to the Fund’s Form 8-K (File No. 814-01512), filed on August 7, 2024). | |
| | Omnibus Amendment to Transaction Documents, dated as of August 28, 2024, among ASIF Funding I, LLC, as borrower, Ares Strategic Income Fund, as servicer, the lenders from time to time party thereto, and Société Générale, as agent and swingline lender (incorporated by reference to Exhibit 10.1 to the Fund’s Form 8-K (File No. 814-01512), filed on August 30, 2024). | |
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| | Amendment No. 2 to Credit Agreement, dated as of August 29, 2024, among ASIF Funding II, LLC, as borrower, Ares Strategic Income Fund, as parent and servicer and The Bank of Nova Scotia, as administrative agent and revolving lender* | |
| | Amendment No. 3 to Credit Agreement, dated as of October 4, 2024, among ASIF Funding II, LLC, as borrower, Ares Strategic Income Fund, as parent and servicer and The Bank of Nova Scotia, as administrative agent and revolving lender* | |
| | Commitment Increase Agreement, dated as of October 25, 2024, among Ares Strategic Income Fund, the lenders party thereto, and JPMorgan Chase Bank, N.A., as administrative agent* | |
| | Certification by Co-Chief Executive Officer pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002* | |
| | Certification by Co-Chief Executive Officer pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002* | |
| | Certification by Chief Financial Officer pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002* | |
| | Certification by the Chief Executive Officers and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002** | |
| 101.INS | | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document. | |
| 101.SCH | | Inline XBRL Taxonomy Extension Schema Document | |
| 101.CAL | | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
| 101.DEF | | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
| 101.LAB | | Inline XBRL Taxonomy Extension Label Linkbase Document | |
| 101.PRE | | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
| 104 | | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |
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* Filed herewith
** This certification is not deemed filed by the SEC and is not to be incorporated by reference in any filing we make under the Securities Act of 1933 or the Securities Exchange Act of 1934, irrespective of any general incorporation language in any filings.
SIGNATURES
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 thereunto duly authorized.
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| | ARES STRATEGIC INCOME FUND | |
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| Date: November 8, 2024 | By | /s/ MICHAEL L. SMITH | |
| | | Michael L. Smith
Co-Chief Executive Officer | |
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| Date: November 8, 2024 | By | /s/ MITCHELL GOLDSTEIN | |
| | | Mitchell Goldstein
Co-Chief Executive Officer | |
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| Date: November 8, 2024 | By | /s/ SCOTT C. LEM | |
| | | Scott C. Lem
Chief Financial Officer and Treasurer | |