Ares Management (ARES) Goldman Sachs 30th Annual European Financials Conference 2026 summary

Institutional and market trends

• Institutional demand for private credit and direct lending remains robust, with recent record fundraising and a strong Q1 indicating long-term confidence in the asset class.

• Spreads have widened due to market volatility, creating an attractive investment environment and strong vintage year expectations.

• Geographic differences persist, with Europe presenting more barriers to entry and growth potential compared to the mature U.S. market.

• Asset-backed credit is rapidly expanding, targeting 40 sub-sectors and benefiting from banks' reduced activity post-GFC.

• The firm is well-positioned for deployment, with significant dry powder and a diversified global platform.

Product innovation and fund structure

• New fund structures, such as evergreen sleeves alongside closed-end funds, are being introduced to broaden investor access and appeal.

• These structures allow institutions to maintain longer-term exposure and reduce the need for frequent re-underwriting.

• All fund options invest in the same underlying loans, streamlining administration.

Credit quality and risk management

• Credit quality remains stable, with non-accruals below historical averages and portfolio companies showing healthy growth.

• AI-related risks in software lending are actively monitored, with third-party reviews confirming low risk for most portfolio companies.

• The majority of software loans are expected to mature within two to three years, with strong equity coverage and cash generation mitigating risk.