Ares Capital Corporation (NASDAQ: ARCC) is a leading specialty
finance company that provides one-stop solutions to meet the distinct
and underserved financing needs of private middle-market companies
across diverse industries. We invest primarily in first and second
lien loans (including unitranche loans) and mezzanine debt, which
in some cases includes an equity component like warrants. To a lesser
extent, we also make equity investments. We seek current income
and capital appreciation through our debt and equity investments.
We seek to originate investments in market-leading companies with
a history of stable cash flows, proven competitive advantages and
experienced management teams. We seek to serve as a lead agent or
investor in order to optimize due diligence and capital structure
as well as enable active monitoring of the investment. Our strategy
is to maximize risk-adjusted returns throughout economic cycles.
As of December 31, 2016, our portfolio had a fair value of
approximately $8.8 billion and consisted of 218 portfolio
companies backed by 148 different private equity sponsors. Pro
forma for the acquisition of American Capital, Ltd., that closed
on January 3, 2017, ARCC has approximately $11.8 billion in
investments at fair value as of September 30.
ARCC is a closed-end, non-diversified management investment company
that has elected to be regulated as a business development company
("BDC") under the Investment Company Act of 1940 and the rules and
regulations promulgated thereunder and
is the largest BDC by total assets and market capitalization. ARCC is externally managed by Ares
Capital Management LLC, a subsidiary of
Ares Management, L.P. (NYSE:ARES)
("Ares"), a publicly traded, leading global alternative
asset manager. We leverage off of the Ares platform, benefiting
from its relationships, infrastructure, industry research, reputation
and significant multi-asset class management expertise.