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Ares European Strategic Income Fund
AESIF
Overview
Legal Name:
Ares European Strategic Income Fund
Manager:
Ares Management
Website:
Fundraising Status:
Open
Domicile:
Luxembourg
Legal Form:
Lux SICAV (S.A.)
Regulatory Regimes:
Lux UCI (Part II)
Term:
Perpetual-Life
Base Currency:
EUR
Launch Year:
2024
Inception Date:
Jan 2, 2024
Size:
€4.7B (as of Jan 31, 2026)
No. of Investments:
358 (as of Jan 31, 2026)
Administrator:
The Bank of New York Mellon SA/NV, Luxembourg Branch
Investor Eligibility Segments:
Institutional, Professional / Accredited, Retail
Permitted Distribution Countries:
United Kingdom, Australia, Mexico, New Zealand, Switzerland
Strategy
AESIF is a European private credit strategy investing primarily in directly originated, senior secured, floating‑rate loans to UK and European mid‑market companies (c.€10m+ EBITDA). The portfolio emphasises first‑lien exposure, capital preservation and diversified, defensive sectors, with a smaller allocation to other private credit instruments and liquid leveraged loans/high yield bonds to support flexibility and liquidity management.
Asset Classes:
Private Credit
Strategy:
Direct Lending (PC)
Underlying Investment Type:
Direct investments
Geographic Focus Region:
Europe
Geographic Focus:
Europe
Sector Focus (GICS):
Diversified
Sector Focus (not standardized):
Healthcare, Business Services, Finance & Insurance, Software & Technology, Telecommunications
Other Focus:
Minority Stake, ESG Investment Focus
Leverage Limits Summary:
Fund-level net leverage capped at 70% of NAV (up to 75% temporarily); excludes non‑recourse investment-level debt.
Investment Limits Summary:
No more than 20% of NAV in any single Investment (look-through basis; exemption during four-year ramp-up).
Performance
for I Acc (EUR) share class
Total Returns (% Net of Fees)
Total Returns (% Net of Fees)
| Net returns (since inception) | I Acc (EUR) |
|---|---|
| Total Return | 20% |
| Annualized Return | 9.5% |
| Best Month | (Feb 2024)1.4% |
| Worst Month | (Jan 2026)0.3% |
| Risk metrics (since inception) | |
| Volatility | 1.1% |
| Sharpe Ratio (4.3% risk-free) | 4.93 |
Yearly returns (since inception)
Allocations
Rate Type allocation
Rate Type
as of Jan 31, 2026
Target
Rate Type
as of Jan 31, 2026
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Rate Type
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Sector
as of Jan 31, 2026
Target
Sector
as of Jan 31, 2026
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Sector
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Seniority
as of Jan 31, 2026
Target
Seniority
as of Jan 31, 2026
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Seniority
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Geography
as of Jan 31, 2026
Target
Geography
as of Jan 31, 2026
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Geography
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Get free accessKey terms
for I Acc (EUR) share class
Share Class
Minimum Subsribtion:
€25,000
Currency:
EUR
Distribution Type:
Accumulating
Investor Type:
Professional / Accredited
ISIN:
LU2702162343
Liquidity
Gate:
2% of aggregate NAV across parallel entities per month and 5% per calendar quarter.
Gate Level:
Aggregate NAV
Redemption Frequency:
Monthly
Redemption Basis:
NAV per Share as of the last calendar day of the relevant month.
Subscribtion Frequency:
Monthly
Subscribtion Basis:
NAV per Share as of the end of the immediately preceding month.
Fees
Management Fee:
1.25%
Maximum rate; payable monthly in arrears on month-end NAV.
Management Fee Basis:
NAV
Month-end NAV before fee accruals, redemptions, distributions and FX effects.
Performance Fee:
12.50%
Income: 12.5% over 5% annualised hurdle with full catch-up; paid quarterly in arrears. Capital gains: 12.5% cumulative net realised gains; annual crystallisation; full loss netting and carryforward; no clawback
Performance Fee Basis:
Net Investment Income, Realized Capital Gains
Income basis: Pre-Performance Participation Allocation Net Investment Income Returns over 5% annualised hurdle with full catch-up; quarterly measurement. Capital gains basis: cumulative realised gains net of realised losses and unrealised depreciation from inception; annual calculation with full loss netting and carryforward; no clawback
Hurdle rate:
5.00%
Income component only; 1.25% per quarter (5.0% annualized) soft hurdle; pro-rated; based on pre-fee net investment income; separate 12.5% capital-gains allocation without hurdle.
Catch-up:
100.00%
100% of income above 1.25% up to 1.43% per quarter (5.72% annualized); then 12.5% of income above 1.43%; income component only; paid quarterly in arrears; pro-rated for partial periods.
Back load (redemption):
5.00%
If redeemed within 18 months.
Servicing fee:
0.00%
| Management Fee: | 1.25% | Maximum rate; payable monthly in arrears on month-end NAV. |
| Management Fee Basis: | NAV | Month-end NAV before fee accruals, redemptions, distributions and FX effects. |
| Performance Fee: | 12.50% | Income: 12.5% over 5% annualised hurdle with full catch-up; paid quarterly in arrears. Capital gains: 12.5% cumulative net realised gains; annual crystallisation; full loss netting and carryforward; no clawback |
| Performance Fee Basis: | Net Investment Income, Realized Capital Gains | Income basis: Pre-Performance Participation Allocation Net Investment Income Returns over 5% annualised hurdle with full catch-up; quarterly measurement. Capital gains basis: cumulative realised gains net of realised losses and unrealised depreciation from inception; annual calculation with full loss netting and carryforward; no clawback |
| Hurdle rate: | 5.00% | Income component only; 1.25% per quarter (5.0% annualized) soft hurdle; pro-rated; based on pre-fee net investment income; separate 12.5% capital-gains allocation without hurdle. |
| Catch-up: | 100.00% | 100% of income above 1.25% up to 1.43% per quarter (5.72% annualized); then 12.5% of income above 1.43%; income component only; paid quarterly in arrears; pro-rated for partial periods. |
| Back load (redemption): | 5.00% | If redeemed within 18 months. |
| Servicing fee: | 0.00% |
FAQ
What is Ares European Strategic Income Fund?
Ares European Strategic Income Fund is an evergreen Lux UCI fund focused on Private Credit and managed by Ares Management.
Who manages Ares European Strategic Income Fund?
Ares European Strategic Income Fund is managed by Ares Management, based in Los Angeles, California, United States.
How big is Ares European Strategic Income Fund?
Ares European Strategic Income Fund has a size of €4.7B.
What type of fund is Ares European Strategic Income Fund?
Ares European Strategic Income Fund is an open-ended / evergreen Lux UCI fund investing in private credit and domiciled in Luxembourg.
When was Ares European Strategic Income Fund launched?
Ares European Strategic Income Fund was launched on Jan 2, 2024 and is structured as a Lux SICAV (S.A.) vehicle with a perpetual-life term.
Where is Ares European Strategic Income Fund domiciled and regulated?
Ares European Strategic Income Fund is domiciled in Luxembourg under Lux UCI (Part II).
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