SCHEDULE: Cliffwater Funds Report 1.0% Stake in Ares Strategic Income Fund

Cliffwater Corporate Lending Fund, along with its adviser Cliffwater LLC and CEO Stephen Nesbitt, reported a 1.0% beneficial ownership stake in Ares Strategic Income Fund as of September 30, 2025.

Summary

• Cliffwater Corporate Lending Fund, Cliffwater LLC, and Stephen Nesbitt collectively reported beneficial ownership of 3,820,631.60 Class I Shares of Beneficial Interest in Ares Strategic Income Fund.
• This represents 1.0% of the outstanding shares, based on 368,511,961.4 shares as of September 30, 2025.
• The shares are held in the ordinary course of business and not for the purpose of changing or influencing control of the issuer.
• The Fund has waived voting rights in excess of 4.99%.

Sentiment

Score: 5

Explanation: The filing is a routine disclosure of beneficial ownership, indicating a stable institutional holding without any explicit positive or negative operational or financial news for the issuer.

Positives

• Cliffwater Corporate Lending Fund, an institutional investor, maintains a 1.0% beneficial ownership stake in Ares Strategic Income Fund, indicating continued investment interest.
• The reporting persons explicitly state that their acquisition and holding of shares are in the ordinary course of business and not for the purpose of changing or influencing control, providing clarity on their passive investment intent.

Negatives

• The filing itself does not contain any negative disclosures regarding the issuer's performance or the reporting persons' investment.

Risks

• The filing does not detail specific operational or financial risks pertaining to Ares Strategic Income Fund.
• The inherent market risks associated with holding securities are not explicitly discussed but are implicit in any investment.

Future Outlook

The filing is a statement of beneficial ownership and does not contain forward-looking statements or guidance regarding the issuer's future performance or the reporting persons' future investment intentions beyond the current holding.

Management Comments

• The securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under ?? 240.14a-11.

Industry Context

This Schedule 13G filing reflects a routine disclosure of institutional ownership in a publicly traded fund. Such filings are common for investment advisers and funds that acquire significant, but non-controlling, stakes in other entities as part of their investment strategies. The Ares Strategic Income Fund operates within the broader financial services and asset management industry, where institutional ownership is a standard component of market structure.

Comparison to Industry Standards

• A 1.0% stake is a notable institutional position, but typically below the threshold for active control or significant influence, especially given the explicit waiver of voting rights above 4.99%.
• The filing adheres to standard SEC disclosure requirements for beneficial ownership, consistent with practices across the investment management industry for similar fund structures.

Stakeholder Impact

• Shareholders of Ares Strategic Income Fund may note the continued institutional investment by Cliffwater Corporate Lending Fund, which could be perceived as a vote of confidence in the fund's strategy.
• The explicit statement that the ownership is not for control purposes clarifies that the reporting persons do not intend to influence the issuer's management or strategic direction, which may reassure existing management and other shareholders.

Next Steps

• The filing does not specify any future actions or milestones for the issuer or the reporting persons beyond the continued holding of the reported shares.

Key Dates

Keywords

Ares Strategic Income Fund, Cliffwater Corporate Lending Fund, Cliffwater LLC, Stephen Nesbitt, Schedule 13G, Beneficial Ownership, Investment Adviser, Class I Shares, SEC Filing, Institutional Ownership