Ares Capital Corporation (NASDAQ: ARCC) is a market-leading Business Development Company and one of the largest direct lenders in the U.S.(1) Our dynamic global platform combines powerful origination capabilities and extensive knowledge to deliver comprehensive solutions to meet the distinct and underserved financing needs of private middle-market companies across a wide range of industries. As a patient, long-term investor with permanent capital, we are able to hold large positions and have the ability to offer sponsors and management teams enhanced certainty of execution.
Ares Capital is a market-leading Business Development Company and one of the largest direct lenders in the U.S.(1)
We have elected to be regulated as a business development company ("BDC") under the Investment Company Act of 1940 and the rules and regulations promulgated thereunder. Our common stock is publicly traded on The NASDAQ Global Select Market under the ticker symbol "ARCC".
Ares Capital is able to leverage the power of the broader Ares platform to access resources, relationships and significant capital markets, trading and research experience to provide ARCC with attractive investment opportunities.
The partners and investment committee members for Ares Capital's investment adviser possess an average of over 26 years of relevant experience.
Our Investment Approach
We invest across a range of industries, targeting market-leading companies with a history of stable cash flows, demonstrated competitive advantages, identifiable growth prospects, and experienced management teams. Our investment strategy focuses on:
- • Intensive due diligence
- • Structuring expertise
- • Disciplined underwriting
- • Active portfolio management
- • Agenting or leading transactions
Our Channels and Partners
We directly cover financial sponsors and commit debt and equity capital.
We have direct relationships with management teams, entrepreneurs, family offices and small deal sponsors seeking capital, as well as interfacing through intermediaries.
We underwrite for our own investment, syndicate middle market loans, and occasionally invest in syndicated/club transactions.
Types of Investments:
Revolver, first lien, second lien, stretch senior, unitranche, subordinated loans, private/public high yield, non-control equity
- Leveraged Buyouts
- Growth Capital
- General Refinancing
- Project Finance/Power Generation
- Rescue Financing
Target Investment Characteristics*:
Commitment & Hold Range(2) :
- $30 - $500 million (Corporate)
- $10 - $200 million (Project Finance/Power Generation)
- $10 - $250 million (Corporate only)
Sectors We Invest In:
- Health Care Services
- Software & Services
- Commercial & Professional Services
- Consumer Services
- Consumer Durables & Apparel
- Power generation projects
- Energy efficiency projects
- Energy services
Potential Benefits to Investors, Portfolio Companies and Financial Sponsors
- Dedicated and experienced professionals
- Access to relationships, market intelligence, deal flow, research, infrastructure, due diligence and expertise of the broader Ares Management Corporation platform
- Opportunities for shareholder returns generated through net interest and dividends from investments, fee income, and, in some cases, net capital gains from equity investments
- Long-term and short-term strategies focused on maximizing relative value through economic cycles
- Multi-asset class track record and experience
- Disciplined growth with a focus on long-term value creation and capital preservation
For Portfolio Companies and Financial Sponsors:
- Long-term patient investor with permanent capital
- Flexible and creative structures with ability to meet financing needs
- Active in all market environments
- Ability to grow capital base with clients' needs over time
- Execution speed
- Enhanced certainty of closing
- Significant resources and managerial assistance
- Deep industry relationships
*Not every investment meets each of the criteria.
(1) As of September 30, 2020.
(2) Includes Ares Capital and certain of its financial services portfolio companies.