Bloomberg Surveillance · Friday, July 31, 2026
Despite prevailing negative narratives about the private credit space, Aries reports that its direct lending business has non-accruals inside of two percent, well below historical averages. Cash flow growth remains consistent at plus or minus ten percent, with healthy interest coverage and low loan-to-value ratios, indicating strong fundamental performance.
“Earlier this year, everyone was saying there's going to be a complete collapse, that the private credit space is going to go down in flames because of the retail investors, etc. And your compatriots and yourself are coming out and saying, WHOA not at all. We're seeing actually performance hang in there and people are still interested.”
“If you look at our direct lending business, which is kind of where I think people are focused. Are non accruals across the direct lending business right now are inside of two percent. That is well below the historical averages.”
“Our cash flow growth is plus or minus ten percent, as I said, and that's been consistent. We are seeing healthy interest coverage, very low loans to value. So the fundamental performance is exactly what was underwritten. A lot of the noise. You know, I don't really know where it's coming from.”