You can't find anybody saying there are credit issues in the system, says Ares CEO Michael Arougheti

Ares Management CEO Mike Arougheti addresses the firm's third-quarter performance, highlighting a record fundraising pace of $31 billion despite a temporary slowdown in capital deployment. While credit deployment decreased by 33% due to muted M&A activity and increased selectivity, global pipelines remain at record highs with early signs of conversion returning in the fourth quarter. The discussion emphasizes the resilience of private credit portfolios, where 83% of assets are floating rate, allowing for increased profit potential as rates rise. Despite broader economic anxiety regarding geopolitics and inflation, core portfolio health remains robust with non-accruals at a low 1.5% of fair value, loan-to-value ratios in the mid-40s, and interest coverage between 2 and 2.5 times. These metrics suggest that borrowers continue to absorb higher rates effectively within a strong overall economy.