Ares Capital Corporation

Ares Capital Corporation is a business development company that provides financing solutions to middle-market companies in the United States. It specializes in growth capital, acquisition financing, recapitalizations, mezzanine debt, restructurings, rescue financing, and leveraged buyouts. The company invests across various sectors including sports, media & entertainment, industrials & business services, infrastructure & power, financial institutions, software & technology, specialty healthcare, consumer, retail & services, energy, and basic manufacturing. It typically invests between $30 million and $500 million in companies with EBITDA ranging from $10 million to $250 million. Debt investments range from $10 million to $100 million and include revolvers, first lien loans, warrants, unitranche structures, second lien loans, mezzanine debt, private high yield, junior capital, subordinated debt, and non-control preferred and common equity.

Ares Capital Corporation is listed on the Nasdaq Global Select Market (NasdaqGS) under the ticker symbol ARCC. Its shares are traded in US dollars (USD), as the company is based in the United States. The exchange is one of the major US stock exchanges, providing liquidity and visibility for investors. Being listed on NasdaqGS indicates that the company meets stringent listing requirements, including financial standards and corporate governance criteria.

Ares Capital Corporation operates in the Financial Services sector and specifically within the Asset Management industry. As a business development company (BDC), it manages a portfolio of investments in middle-market companies. The asset management industry involves pooling funds from investors and investing them in various assets to generate returns. Ares Capital focuses on debt and equity investments, providing capital to companies that may not have access to traditional bank financing. Its role is similar to that of a private equity or venture capital firm, but with a focus on providing flexible financing solutions.

Ares Capital Corporation primarily serves the United States market, focusing on middle-market companies located in various regions. It has a presence in the Northeast and Mid-Atlantic regions from its New York office, the Midwest region from its Chicago office, and the Western region from its Los Angeles office. The company also targets the Southeast and Southwest regions. This geographic diversification allows it to source investment opportunities across the country. While its investments are concentrated in the US, the company may selectively consider opportunities in other regions if they meet its criteria.

Ares Capital Corporation generates revenue primarily through interest income from its debt investments and dividends from equity investments. It provides various types of financing, including first lien loans, second lien loans, mezzanine debt, and unitranche structures, which yield interest payments. Additionally, it may earn fees from origination, commitment, and advisory services. The company also benefits from capital gains when it exits equity investments. Its investment strategy focuses on companies with EBITDA between $10 million and $250 million, and it typically invests between $30 million and $500 million per transaction. By targeting middle-market companies, Ares Capital aims to achieve attractive risk-adjusted returns.