Ares Capital Corporation

Ares Capital Corporation (ARCC) stands as a prominent publicly traded business development company (BDC) managed by an affiliate of Ares Management Corporation, a leading global alternative investment manager. Headquartered in Los Angeles, California, ARCC specializes in providing comprehensive debt and equity financing solutions to U.S. middle-market companies across a diverse array of industries. Their strategic focus is on offering "one-stop" financing, simplifying the capital raising process for businesses seeking growth capital, acquisitions, recapitalizations, or other strategic initiatives.

The investment strategy of Ares Capital Corporation primarily revolves around senior secured loans and junior secured loans, which constitute the vast majority of their portfolio. While debt financing is their core offering, they also make, to a lesser extent, equity investments, often alongside their debt commitments. This flexible approach allows them to tailor financing structures to meet the specific needs of their portfolio companies. They typically target companies with annual EBITDA ranging from $10 million to $250 million, demonstrating their commitment to established, cash-flow generative businesses rather than early-stage ventures.

Ares Capital Corporation is one of the largest BDCs in the United States, reflecting its significant scale and market influence. As of September 30, 2023, the company reported approximately $22.7 billion in total assets, underscoring its substantial capacity to deploy capital. Their robust financial position enables them to participate in and often lead large, complex transactions. In the third quarter of 2023 alone, ARCC committed $2.4 billion across 37 new investments and 15 existing portfolio companies, with new commitments averaging approximately $65 million. This scale allows them to be a reliable and substantial financing partner for middle-market enterprises.