CION Ares Diversified Credit Fund

Overview

CION Ares Diversified Credit Fund (CADC) is a closed-end interval fund that invests in a diversified portfolio of credit assets, including both liquid and illiquid instruments, aiming to provide superior risk-adjusted returns across various market cycles. The fund employs a dynamic asset allocation framework, leveraging the extensive operational resources, infrastructure, and origination network of Ares Management Corporation. CADC is advised by CION Ares Management, LLC, a joint venture between CION Investments and Ares Management Corporation. The fund's investment strategy focuses on a broad spectrum of credit instruments, such as directly originated loans, syndicated loans, corporate bonds, asset-backed securities, and commercial real estate loans. As of December 31, 2023, CADC had over 600 investments across 24 unique industries, with secured debt instruments accounting for 86% of the portfolio. Approximately 72% of the fund's investments were directly originated by investment groups within the Ares Management Corporation platform. Since its inception on January 26, 2017, CADC has experienced consistent asset growth, reaching approximately $4.5 billion in total managed assets as of December 31, 2023. The fund has a history of increasing its distribution rates, with the annualized distribution rate for Class I shares rising to 8.30% on NAV as of April 1, 2023. This increase reflects the fund's emphasis on floating rate credit investments, which have benefited from higher interest rates. CION Ares Diversified Credit Fund is distributed through a broad universe of registered investment advisors (RIAs), independent broker-dealers, and wirehouses, providing individual investors with access to alternative credit investments without high minimums or multi-year lock-ups. The fund's growth and distribution rate increases underscore its commitment to delivering value to investors seeking income, stability, and diversification away from public markets.