Ares Capital Corp (ARCC)

Overview

Ares Capital Corporation stands out as a pivotal business development entity specializing in a broad array of financial services tailored towards the middle market segment. Its core focus encompasses acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions. The company showcases a diverse investment interest in sectors including basic and growth manufacturing, business services, consumer products, health care products and services, and information technology services, among others. Furthermore, it exhibits a regional focus, with strategic investments steered from its offices in New York, Chicago, and Los Angeles, targeting the Northeast, Mid-Atlantic, Southeast, Southwest, Midwest, and Western regions of the United States. Ares Capital Corporation's commitment to empowering middle market companies is reflected in its comprehensive investment approach, ranging from $20 million to $400 million, designed to nurture growth, drive innovation, and facilitate strategic refinancing activities.

Products and Services

• Acquisition Financing

  This service is designed to support companies in the acquisition process, offering the financial backbone needed for successful transactions. Ares Capital Corporation aids companies in navigating the complex process of acquisition by providing the necessary capital for them to expand and thrive.

• Recapitalization Services

  Targeting companies undergoing restructuring or needing a financial reset, these services are crucial. They help in reorganizing a company's capital structure, aiming to optimize its financial health and operational efficiency.

• Mezzanine Debt Financing

  Ares Capital provides mezzanine financing, a hybrid of debt and equity financing that gives lenders the right to convert to an ownership or equity interest in the company in case of default, after senior lenders are paid. This financing solution fills the gap between senior debt and equity in a company's capital structure.

• Restructurings and Rescue Financing

  This crucial service offers a lifeline to companies facing financial distress, enabling them to restructure debts and navigate through challenging times. It's designed to help companies regain their financial stability and continue their operations.

• Leveraged Buyout Transactions

  Ares specializes in leveraged buyouts, offering financial solutions that enable management teams or investors to acquire a significant stake or total ownership of a company, utilizing borrowed funds to maximize return on equity.

• Growth Capital and General Refinancing

  The company provides growth capital to businesses seeking to expand their operations, enter new markets, or invest in new products or services. Additionally, general refinancing services are available to help companies optimize their debt structure and reduce financing costs.

• Debt Investments and Equity Positions

  Ares Capital's strategy includes making debt investments ranging from first lien loans and unitranche structures to subordinated debt, as well as taking non-control preferred and common equity positions in companies, offering a versatile range of financial instruments.