Ares Management Corp (NYSE:ARES) reported an uptick in underperforming investments during the second quarter, amid the industry's concerns regarding disruption from rapid advances in artificial intelligence.
Ares’ publicly traded business development company, Ares Capital Corp, saw non-accrual status loans rise to $708 million, up 15% from the first quarter, and 26% year-over-year, Bloomberg reported. • Ares Management stock is showing downward bias.
Where are ARES shares going?
CEO Kort Schnabel said that the firm remained disciplined in a slower deal environment, using scale, capital strength and borrower relationships to secure attractive investment opportunities.
Read Also: Kraken Valuation Takes Hit: Secondary Market Investors Mark Down Crypto Exchange Ahead of Public Debut "In the slower transaction environment of the second quarter, our scale, stable capital base and longstanding borrower relationships enabled us to capture enhanced economics in attractive credits while remaining highly selective," Schnabel said.
