Ares Capital Corporation

Analysis

Business Description

Ares Capital Corporation (Ares Capital) is a specialty finance company that provides solutions for the underserved financing needs of private middle-market companies across different industries. The company is managed by its subsidiary, Ares Capital Management LLC. It operates in the US.

The company primarily invests in first lien senior secured loans (including 'unitranche' loans, loans that combine senior and mezzanine debt), second lien senior secured loans and mezzanine debt. The first and second lien senior secured loans in which the company invests have stated terms of three to ten years and the mezzanine debt investments have stated terms of up to 10 years.

Ares Capital's investments in project finance and power generation projects range between $10 million and $200 million each and investments in corporate borrowers range between $30 million and $500 million each. The company also makes preferred and common equity investments, which have generally been non-control equity investments of less than $20 million usually in conjunction with a concurrent debt investment. The company invests in loans and securities with any maturity or duration.

Ares Capital invests in industries such as healthcare, consumer products, power generation, restaurants and food services, manufacturing, containers and packaging, food and beverage, education, automotive services, oil and gas among others.

The company's investment portfolio includes, ACAS Equity Holdings Corporation, HCI Equity, LLC, CPV Maryland Holding Company II, LLC, Moxie Patriot LLC, Panda Liberty LLC, Laboratories Bidco LLC, MPH Energy Holdings, LP, Petroleum Service Group LLC, Research Now Group, LLC and Survey Sampling International, LLC.