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Ares European Strategic Income Fund (AESIF)
Key Statistics
Fund Size
€4,700M
Target Return
7.7%
Annualized Return
9.5%
Launch Year
2024
Min. Investment
€25,000
Availability
Open through selected distributors
Structure
SICAV
Product Category
Open-end
Domicile
Luxembourg
GP Type
Single
Liquidity Level
Semi-liquid
Management Fee
1.25%
Carry
12.5% over 5% hurdle
Hurdle Rate
5%
High Water Mark
No
Catch-Up Mechanism
100% catch-up
ISIN
LU2702162343
Currencies
EUR, USD, GBP, AUD, SGD
Investor Eligibility
Retail
Liquidity Options
Monthly subscriptions and redemptions
Highlights
Key Information Document (KID) – EU Funds
KID Risk Indicator
3 out of 7
Annual Returns (KID Scenarios)
Stressed
-3.62%
Moderate
5.5%
Favorable
7.7%
Average Total Cost Level (KID)
3.29%
Allocations
Geographic Focus
Investment Strategy
Industry Focus
Portfolio Composition
Information about fund
Ares’ European Direct Lending in an Evergreen Wrapper
Ares European Strategic Income Fund (AESIF) is the European arm of Ares’ push into private wealth: a perpetual-life Luxembourg Part II SICAV that commenced investing on 2 January 2024. The fund lends directly to Western European mid-market companies and is built from senior secured, floating-rate loans originated by Ares itself, with a minority sleeve of syndicated loans and bonds held for liquidity. Ares is the largest direct lender in Europe by most counts, and AESIF is how private investors get a slice of that machine without a ten-year drawdown fund.
Key Figures (31 January 2026)
Fund Size
€4.7B
358 investments
Annualized Return
9.5%
I Acc EUR, net, since Jan 2024
Volatility
~1.1%
Since inception
Management Fee
1.25%
Max; 12.5% perf. fee over 5% hurdle
Liquidity
Monthly
2%/month, 5%/quarter gates
Minimum
€25,000
Retail-oriented classes
Scale and Performance
Growth has been rapid. The fund passed €2.2 billion in its first year and stood at €4.7 billion across 358 investments by 31 January 2026, with roughly €90 million of new subscriptions still arriving each month in mid-2026. Since inception the I Acc EUR class has returned a total of about 20%, or 9.5% a year net, with volatility of around 1% — the smooth, income-driven profile private credit is bought for. AESIF is young, however, and there is no reason the smooth performance to date could not give way to a more ordinary default-cycle experience at some stage.
Fees and Liquidity
Terms at a Glance
| Structure | Luxembourg SICAV, Part II UCI, perpetual life; inception 2 January 2024 |
| Strategy | Directly originated senior secured floating-rate loans to Western European mid-market companies, plus a liquid sleeve |
| Management fee | Up to 1.25% p.a. |
| Performance fee | 12.5% on income over a 5% annual hurdle (full catch-up); 12.5% on realised gains |
| Dealing | Monthly subscriptions and redemptions at NAV |
| Gates | 2% of NAV per month, 5% per quarter |
| Early redemption | 5% deduction within the first 18 months |
| Leverage | Capped at 70% of NAV (75% temporarily) |
| KID | Risk 3 of 7; moderate 5.5%, favourable 7.7%; total cost 3.29% |
The management fee is capped at 1.25% a year, with a performance fee of 12.5% on income above a 5% annual hurdle (full catch-up) and 12.5% on realised capital gains. Shares can be subscribed and redeemed at NAV monthly, but an early-redemption deduction of 5% applies during the first 18 months, and redemptions are gated at 2% of NAV per month and 5% per quarter. Fund-level leverage is capped at 70% of NAV. For the retail-oriented share classes the minimum investment is €25,000.
Deepdive & Related Funds
Ares Capital Corporation
Ares Capital Corporation is a publicly traded BDC focused on middle-market debt and credit investments.
Ares Private Markets Fund (APMF)
Ares Private Markets Fund (APMF) is a diversified private equity investment vehicle designed to provide investors with exposure to private markets through a mix of secondary transactions, GP-led deals, primary commitments, structured solutions, and co-investments. By focusing heavily on secondaries, the fund seeks to acquire mature private equity assets, offering investors faster capital deployment and reduced early-stage investment drag. It targets a broad range of industries, with a core focus on buyout strategies and selective exposure to growth equity. Geographically, the fund is primarily North America-focused, with additional allocations in Europe and other global markets. Ares Management is a global leader in alternative investments, with deep expertise across private equity, private credit, real estate, and infrastructure. The firm’s dedicated secondaries team has a strong track record in sourcing, evaluating, and structuring transactions, providing access to high-quality private market opportunities. Through its expansive network and disciplined investment approach, Ares aims to generate strong risk-adjusted returns while offering liquidity features that make private equity more accessible to investors.
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Apollo European Private Credit ELTIF
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Apollo Global Diversified Credit ELTIF
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Blackstone ECRED
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BNP Diversified Private Credit Fund
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Carlyle European Tactical Private Credit (ETAC)
Carlyle European Tactical Private Credit ELTIF (ETAC) is a Luxembourg semi-liquid ELTIF that puts 70-80% of assets into senior secured European private credit from Carlyle’s $211 billion credit platform. Class I-EUR returned 9.4% net in 2025 with an 8.0% distribution yield; fees are 1.2% plus 12% over a 4% hurdle; redemptions are quarterly with a 5% gate. €50,000 minimum for retail Class A.
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