Private credit roundup: Earnings hold up as defaults, redemptions remain elevated

• Ares Management raised $36 billion in Q2 2026, with assets under management rising 17% year-over-year to $671.3 billion and uninvested capital reaching a record $170 billion
• Fitch reported the U.S. private credit default rate climbed to a record 6.0% through June 2026, with industrials and manufacturing at 10.4% and healthcare at 9.4%
• Retail redemption pressures intensified with requests reaching 38.1% of NAV at Blue Owl Technology Income Corp and 18.9% at Blue Owl Credit Income Corp, while private credit secondary-market volume surged 122% to $20.4 billion in H1 2026

Private Credit Roundup: Earnings Hold Up as Defaults, Redemptions Remain Elevated

Key Performance Highlights:

Major private credit firms demonstrated resilience in Q2 2026 despite market headwinds. Ares Management raised a record $36 billion in the quarter, including $23.7 billion for credit strategies, bringing total assets under management to $671.3 billion—up 17% year-over-year. The firm deployed $35.9 billion and holds a record $170 billion in uninvested capital.

Ares Capital, the largest publicly traded BDC, reported core earnings of 47 cents per share. Blue Owl Capital posted $319 billion in AUM (up 12% annually) with distributable earnings rising 9%.

Stress Signals:

Fitch Ratings reported the U.S. private credit default rate reached a record 6.0% for the 12 months through June 2026, up from 5.7% the prior quarter, with 32 default events involving 20 new borrowers. Industrials and manufacturing led with a 10.4% default rate, followed by healthcare at 9.4%.

Retail redemptions remained elevated, with requests far exceeding normal quarterly limits. Private credit inflows declined approximately 25% year-to-date versus 2025. Q2 redemption requests hit 38.1% of NAV at Blue Owl Technology Income Corp, 18.9% at Blue Owl Credit Income Corp, and 16.8% at Apollo Debt Solutions.

Market Implications:

The secondary market expanded dramatically, with Evercore estimating $20.4 billion in global private credit secondary volume in H1 2026—up 122% year-over-year and surpassing all of 2025. GP-led deals represented 83% of activity. BDCs and semi-liquid funds are expected to comprise roughly 25% of credit-secondary activity in 2026 as managers address liquidity demands.