Ares Strategic Income Fund's board has taken a firm stance against an unsolicited mini-tender offer from Cox Capital Partners, urging shareholders to reject the proposal. The offer, which seeks to purchase up to 431,965 Class I shares at $23.15 each, represents a significant discount of approximately 13% to the net asset value (NAV) per share as of August 31, 2026. This decision is crucial for the fund as it aims to protect its shareholders' interests and maintain the integrity of its valuation.
The board's recommendation is particularly notable given that a similar mini-tender offer was made by Cox in July 2026, which was also deemed inadvisable by the board. In that instance, no shareholders participated in the offer, reflecting confidence in the board's judgment. The board's rejection of Cox's current offer emphasizes its commitment to safeguarding shareholder value and ensuring that the fund remains on a stable financial footing.
Background
Ares Strategic Income Fund, incorporated in New York, operates as an investment fund focused on providing strategic income solutions. The fund was previously known as Ares Private Credit Fund until its name change in March 2022. The fund is classified as a non-accelerated filer and is not currently listed on any stock exchange. It primarily engages in investment activities that align with its strategic objectives.
What the Filing Says
According to the recent SEC filing (accession number 0001628280-26-064530), the board has stated, "The offer price is approximately 13% below the August 31, 2026 NAV per Class I share." The board's position is clear: they recommend that shareholders reject Cox's offer and do not tender their shares. Shareholders are advised that they do not need to take any action if they choose not to participate in the offer.
Impact
This decision affects the shareholders of Ares Strategic Income Fund, particularly those holding Class I shares. By rejecting the mini-tender offer, the board aims to maintain the value of the shares and protect the interests of its investors. The fund's management and its investment adviser have distanced themselves from Cox's unsolicited offer, reinforcing their commitment to shareholder welfare.
What's Next
The filing does not say what happens next. However, shareholders are encouraged to disregard Cox's offer and related materials. Those who have already tendered their shares are advised to consider withdrawing them before the offer's expiration.