Ares Capital (NASDAQ:ARCC) (NASDAQ: ARCC) is a leading business development company (BDC) that provides financing solutions to middle-market companies primarily in the United States. Founded in 2004 as an affiliate of Ares Management Corporation, the firm specializes in private credit strategies, offering senior secured loans, second-lien debt, mezzanine financing and equity co-investments. Through its BDC structure, Ares Capital seeks to deliver attractive risk-adjusted returns by partnering with sponsor-backed companies across a diverse range of industries, including healthcare, consumer products, business services and technology.
Leveraging the scale and platform of Ares Management—one of the world’s largest alternative asset managers—Ares Capital deploys capital through both direct lending and structured financings. Its debt investments are often structured to provide covenant protections and collaborative relationships with management teams, while its equity co-investment activity allows participation in growth and buyout transactions. This dual focus on debt and equity enables the firm to tailor financing solutions to the strategic needs of its portfolio companies.
While the bulk of Ares Capital’s investments are concentrated in North America, the firm’s global network and extensive market expertise allow it to pursue select opportunities in Europe and other regions. The company’s portfolio is diversified by industry, seniority of capital, and borrower stage, reflecting a disciplined approach to credit underwriting and portfolio management under the Investment Company Act of 1940. Ares Capital’s in-house research, coupled with Ares Management’s sector specialists, supports ongoing monitoring and value creation initiatives within its portfolio.
The company is overseen by a board of directors comprised of seasoned credit and private equity professionals and is managed day-to-day by an experienced investment team within Ares Management. Ares Management was co-founded by Antony Ressler and Michael Arougheti, whose leadership has guided the firm’s growth into a diversified alternative asset platform. Ares Capital’s executive management team brings decades of direct lending and private credit expertise, enabling the BDC to maintain its focus on generating income and preserving capital for shareholders.
