David Kaplan

Co-Founder, Partner & Director, Ares Management

Search every verified David Kaplan interview, podcast appearance, and on-the-record quote — each transcript cross-checked by AI and human review to confirm speaker identity. David Kaplan, co-founder, partner and director at Ares Management, said in a February 2023 interview on CNBC's "Squawk on the Street" that the firm is raising its standards around rates of return for the underwriting process due to a high degree of uncertainty in the market. Kaplan noted that the Federal Reserve's commitment to raising rates and squashing inflation has made it difficult for companies to project budgets, leading Ares to adjust its underwriting criteria for the amount of risk taken. He stated that the firm is not pulling back from markets and has $88 billion of dry powder, adding that the current volatility suits Ares' flexible capital approach. Kaplan said he does not see a "tidal wave" of defaults coming, though he noted that businesses with debt maturities in 2024 and 2025 are beginning to seek solutions. He attributed the muted default outlook in part to Ares' focus on senior positions in the capital structure and lending to upper-middle-market companies, which he described as more resilient. Kaplan added that he expects alternative credit to be raised in 2023 in anticipation of debt paydowns and maturities.