Experienced Leadership. One-Stop Financing. Dependable Partner.
Ares Capital Corporation (“Ares Capital”) is a specialty finance company that is a closed-end, non-diversified management investment company. We have elected to be regulated as a business development company, or a BDC, under the Investment Company Act of 1940. Our common stock is publicly traded on The NASDAQ Global Select Market under the ticker symbol “ARCC”. Ares Capital’s October 2004 initial public offering raised approximately $160 million in net proceeds.
Today, Ares Capital is one of the largest BDCs with approximately $12 billion* of total committed capital under management as of June 30, 2010. Ares Capital is led by partners and managing directors who possess an average of more than 15 years of relevant middle market lending and leveraged finance experience and investment committee members who possess an average of more than 20 years of relevant experience.
Ares Capital provides one-stop solutions to meet the distinct and underserved financing needs of private middle market companies across diverse industries. Our flexibility, structuring expertise and self-origination capabilities enable us to invest across the capital structure and to meet the full spectrum of our clients’ financing needs. As a patient, long-term investor with permanent capital, we have developed a reputation for the flexibility of our approach, a willingness to hold large positions and the ability to offer sponsors and management teams increased certainty of execution.
In November 2007, Ares Capital’s portfolio company, Ivy Hill Asset Management, L.P. (“IHAM”), established Ivy Hill Middle Market Credit Fund, Ltd. (“Ivy Hill I”), an unconsolidated middle market credit fund, to capitalize on the attractive asset management opportunity in the middle market. Subsequent to November 2007, IHAM became manager or sub-manager to nine additional middle market credit funds, including Ivy Hill I, Ivy Hill Middle Market Credit Fund II, Ltd. and Ivy Hill Senior Debt Fund, L.P. and related vehicles (collectively, the “Ivy Hill Funds”), CoLTS 2005-1 Ltd., CoLTS 2005-2 Ltd. and CoLTS 2007-1 Ltd., (collectively, the “CoLTS Funds”), FirstLight Financial Corporation (“FirstLight”) and Knightsbridge CLO 2007-1 Ltd. and Knightsbridge CLO 2008-1 Ltd. (collectively, the "Knightsbridge Funds"). IHAM generates asset management fee income by managing middle market senior debt funds primarily for third party investors. As of June 30, 2010, IHAM had total committed capital under management of approximately $2.6 billion.**
Ares Capital also co-manages with GE Commercial Finance Investment Advisory Services LLC an unconsolidated senior debt fund, the Senior Secured Loan Fund LLC (the “SL Fund”). The SL Fund primarily invests in "unitranche" loans (loans that combine both senior and subordinated debt, generally in a first lien position) of middle-market companies. The SL Fund was initially formed in December 2007 with approximately $3.6 billion of committed capital. We acquired our interests in the SL Fund from Allied Capital Corporation (“Allied Capital”) in October 2009.
Through a wholly owned subsidiary, Ares Capital also manages Emporia Preferred Funding I Ltd., Emporia Preferred Funding II Ltd. and Emporia Preferred Funding III Ltd. (collectively, the “Emporia Funds”) which invest in the debt securities of primarily middle market companies. As of June 30, 2010, the Emporia Funds had approximately $1.2 billion* of committed capital under management.
On April 1, 2010, Ares Capital consummated the acquisition of Allied Capital Corporation (the "Allied Acquisition"), becoming the largest business development company measured by market capitalization and total portfolio companies under management as of June 30, 2010.
Ares Capital is managed by Ares Capital Management LLC (“Ares Capital Management”), a subsidiary of Ares Management LLC (“Ares”), a global alternative asset investment management firm and SEC-registered investment adviser with offices in Los Angeles, New York, London, Washington, D.C., Chicago, Atlanta, Paris, Stockholm and Frankfurt. As of June 30, 2010, Ares Management LLC had approximately $37 billion*** of committed capital under management. Ares Capital Management is able to leverage Ares’ investment platform, resources, relationships and significant capital markets, trading and research expertise to provide us with attractive investments.