Ares Capital Corporation Acquires Diversified Middle Market Loan Portfolio For $319 Million
Ares Capital Corporation (NASDAQ: ARCC) announced today that it has
acquired a diversified middle-market corporate loan portfolio managed by
a global banking institution for approximately $319 million.
Ares Capital Corporation (NASDAQ: ARCC) announced today that it has acquired a diversified middle-market corporate loan portfolio managed by a global banking institution for approximately $319 million. The portfolio is primarily comprised of first lien senior loans, and to a lesser extent, second lien loans and small equity co-investments. The portfolio is comprised of 32 investments in 23 portfolio companies in industries that are generally similar to those in Ares Capital’s portfolio. “As the banking industry faces increasing regulatory restrictions, we are seeing more opportunities such as this to purchase high-quality, middle-market loan portfolios from financial institutions where we see potential to create value,” said Michael Arougheti, Chief Executive Officer of Ares Capital. “We were already familiar with many of the companies represented in this portfolio and, in addition to the financial merits of the transaction, we believe we can develop mutually beneficial long-term relationships with many of these companies and their sponsors.” About Ares Capital CorporationAres Capital is a leading specialty finance company that provides one-stop financing solutions to U.S. middle market companies and private equity sponsors. The Company originates and invests in senior secured loans, mezzanine debt and, to a lesser extent, equity investments through its national direct origination platform. Ares Capital’s investment objective is to generate both current income and capital appreciation through debt and equity investments primarily in private companies. Ares Capital has elected to be regulated as a business development company, and is externally managed by a wholly owned subsidiary of Ares Management LLC. Ares Management is a global alternative asset manager and a SEC-registered investment adviser with approximately $68 billion of committed capital under management as of September 30, 2013. For more information, visit www.arescapitalcorp.com.
Before you invest in business development companies (BDCs) holding loans with real estate or other hard assets and mortgage real estate investment trusts (mREITs), understand these differences between the two instruments.