NEW YORK, June 10 (Reuters) - Most of the requests to withdraw money from a private credit fund for the wealthy run by alternative asset manager Ares came from outside the United States, its CEO said on Wednesday.
"We had 11% redemption requests. It was from less than 5% of our investors. It was largely concentrated in small institutions and family offices, not in the U.S.," Michael Arougheti told the Morgan Stanley U.S. Financials conference in New York.
The company previously said those requests came from "select geographies".
Wealthy individuals pulled more money than they put into private credit vehicles run by multiple asset managers at the beginning of this year, as fears circulated about transparency, lending standards, and how software companies who borrowed heavily from direct lenders would navigate disruption from artificial intelligence.
Arougheti said this experience gave him "confidence that the markets will grow through this".
Michael J. Arougheti is an entrepreneur and businessperson who founded Ares Management Corp., Ares Management LP, Ares Management LLC and Ares Management Corp (Private Equity) and who has been the head of 8 different companies. Currently, Mr. Arougheti is Co-Chairman of Ares Acquisition Corp., President, Chief Executive Officer & Director at Ares Management Corp., Co-Chairman & Executive Vice President at Ares Capital Corp., Director, CEO & President at Ares Management LLC, President, Chief Executive Officer & Director at Ares Management GP LLC and Co-Chairman and Executive Vice President at Ares Management Corp (Private Equity) (which are all subsidiaries of Ares Management Corp.) and Senior Advisor at Volery Capital Partners LLC. Michael J. Arougheti is also Partner at Direct Lending Group, Inc. and Member of Program for Appropriate Technology in Health and on the board of 7 other companies.
He previously occupied the position of Principal at Royal Bank of Canada and Managing Partner-Principal Finance Group at RBC Capital Partners Ltd. (a subsidiary of Royal Bank of Canada), Principal at Onyx Partners, Inc., Executive Vice President at Columbia Savings & Loan Association (Milwaukee, Wisconsin), Member-Mergers & Acquisitions Group at Kidder, Peabody & Co., Inc., Principal at Taylor & Co. Law Offices LLP, Co-Chairman for ACRE Capital LLC, Director at Evercom, Inc., Director at Imperial Capital LLC and Principal at Indosuez Capital.
Mr. Arougheti received an undergraduate degree from Yale University.
Morgan Stanley is a financial services group. Income (including intragroup) breaks down by activity as follows:
- investment and finance banking (46.4%): specialized financing (acquisitions, projects, etc.), operations on the stock, interest, exchange, and raw materials markets, share trading transactions, merger-acquisition consulting, etc.;
- wealth management (44.5%);
- asset and investment fund management (9.1%): USD 1,895 billion of assets under management at the end of 2025.
Income is distributed geographically as follows: Americas (74.9%), Asia (13.3%) and Europe/Middle East/Africa (11.8%).
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