Ares Capital Corporation (9A2)

Overview

Ares Capital Corporation operates as a business development company that focuses primarily on providing a broad range of financial solutions to middle market companies. It has carved a niche in facilitating acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions. With a strategic preference for investing in basic and growth manufacturing, business services, consumer products, health care products and services, as well as information technology service sectors, Ares Capital Corporation extends its investment reach to industries like restaurants, retail, oil and gas, and technology. With a geographical focus that spans the Northeast, Mid-Atlantic, Southeast, Southwest, Midwest, and Western regions of the United States, the company operates from offices strategically located in New York, Chicago, and Los Angeles. The investment strategy of Ares Capital Corporation is tailored towards companies demonstrating an EBITDA range of $10 million to $250 million, with the firm making investments ranging from $20 million up to a maximum of $400 million.

Products and Services

• Debt Investments

The company engages in providing debt financing solutions for middle market companies, with investments ranging between $10 million and $100 million. These solutions could include revolvers, first lien loans, second lien loans, mezzanine debt, and private high yield investments, catering to the specific needs of businesses for growth, refinancing, or restructuring purposes.

• Equity Investments

Ares Capital Corporation selectively offers non-control preferred and common equity investments, aligning with its strategy to support companies’ growth and operational objectives. This allows the company to participate in the potential upside of its portfolio companies.

• Unitranche Structures

It provides unique financing solutions that combine senior and subordinated debt features into a single debt instrument. This simplifies the capital structure and can expedite transaction timelines for borrowers.

• Mezzanine Debt

Offering mezzanine financing fills the gap between senior debt and equity for companies undergoing expansion or acquisitions, providing a flexible, subordinated debt solution that supports companies’ longer-term growth trajectories.

• Special Situations and Opportunistic Investments

Ares Capital Corporation is active in identifying and capitalizing on distressed and discounted debt positions. This includes third-party-led senior and subordinated debt financings, showcasing its capacity to support companies through complex financial situations.

• Board Representation

In addition to financial investments, Ares Capital Corporation often seeks board representation in its portfolio companies. This strategic involvement enables the company to provide valuable oversight and guidance, aligning with its investment philosophy of closely supporting the companies it invests in.