July
Withdrawal requests of $1.5b from Ares Capital Management’s $11b Strategic Income Fund in this year’s second quarter.
The requests amount to about 14.4% of the fund’s value. Ares halted withdrawals after the disbursements reached 5% of the fund’s assets.
The 5% limit per quarter is built into the private credit industry’s standard fund structure.
The euro, previously expected to rise to $1.20 in value this year as investors shied away from the dollar, fell to $1.1350 on 25 June, its lowest level in a year & down 2.6% in June alone.
The ECB already raised its interest rate once as energy prices climbed due to the Iran war.
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Private equity firms seek loans as pace of deals slows. Europe’s buyout companies contacted elite London financing firm Enness Global 459 times this year through mid-June, exploring the prospect of borrowing against their future profits, the lender told the Financial Times.
