Ares Capital Corporation (“Ares Capital” – NASDAQ:ARCC) is providing additional details on its financing commitments closed during the second quarter of 2014, which were included in Ares Capital’s earnings announcement released yesterday. Financing commitments made by Ares Capital totaled more than $1.0 billion in the second quarter. “During the second quarter, we invested over $1 billion in 29 different investments primarily in floating rate, senior loans of leading middle market companies in a variety of industries, including consumer products, healthcare and service industries,” said Kipp deVeer, Chief Executive Officer of Ares Capital. “We also continued to remain active providing growth capital and acquisition financing for our dynamic portfolio.” Below is a description of two of the transactions that closed during the second quarter. totes»Isotoner Holdings Corporation / Freeman Spogli & Co. / Investcorp Ares Capital served as lead arranger, administrative agent, collateral agent and bookrunner for an $80 million second lien term loan in support of the acquisition of totes»Isotoner Holdings Corporation by Freeman Spogli and Investcorp. totes»Isotoner is a designer, marketer and distributor of rain, cold weather and footwear products and related accessories. FeraDyne Outdoors, LLC / Snow Phipps Group Ares Capital served as lead arranger, administrative agent and revolver agent for a senior secured credit facility to support the acquisition of FeraDyne Outdoors, LLC by Snow Phipps Group. Headquartered in Cartersville, GA, FeraDyne is the world’s leading provider of branded bowhunting and archery accessories. About Ares Capital Corporation Ares Capital is a leading specialty finance company that provides one-stop debt and equity financing solutions to the U.S. middle market. Ares Capital 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 subsidiary of Ares Management, L.P. (“Ares Management”) (NYSE: ARES). Ares Management is a publicly traded, leading global alternative asset manager with approximately $77 billion of assets under management as of March 31, 2014. For more information, visit www.arescapitalcorp.com. However, the contents of such website are not and should not be deemed to be incorporated by reference herein. About totes»Isotoner totes»Isotoner Corporation, headquartered in Cincinnati, Ohio, is the leading designer, marketer and distributor of high-quality branded rain products (umbrellas), cold weather products (gloves, hats and scarves), footwear (slippers and sandals) and related accessories. In addition to its market leading position in the United States, totes»Isotoner has a strong international presence, particularly in France, the United Kingdom and Canada. The totes and Isotoner brands are among the most recognizable and trusted rain and cold weather accessory brands globally. For more information, visit www.totes-isotoner.com. About Freeman Spogli & Co. Freeman Spogli is a private equity firm dedicated exclusively to investing and partnering with management in consumer-related and distribution companies. Since its founding in 1983, Freeman Spogli has invested approximately $3.3 billion of equity in 50 portfolio companies with aggregate transaction values of $20 billion. Freeman Spogli & Co. has offices in Los Angeles and New York. For more information, visit www.freemanspogli.com. About Investcorp Investcorp is a leading provider and manager of alternative investment products and is publicly traded on the Bahrain Bourse (INVCORP). The Investcorp Group has offices in New York, London, Bahrain, Saudi Arabia and Abu Dhabi. Investcorp has three business areas: corporate investment in the US, Europe and the Gulf, real estate investment in the US and global hedge funds. Investcorp has approximately $10.5 billion in total assets under management. For more information, visit www.investcorp.com. About FeraDyne Outdoors, LLC Headquartered in Cartersville, Ga., FeraDyne designs and manufactures a range of innovative category-leading products for today’s bowhunters. The company offers an extensive portfolio of innovative, patent-protected products such as broadheads, nocks and releases, all of which are designed to enhance the performance of archers in the field and on the range. For more information, contact FeraDyne Outdoors, 110 Beasley Road, Cartersville, GA 30120, or call 866-387-9307. For more information on FeraDyne brands, visit www.ragebroadheads.com, www.muzzy.com, www.nockturnal.com and www.trufire.com. About Snow Phipps Snow Phipps is a private equity firm focused on middle-market control investments. With $1.5 billion of assets currently under management, Snow Phipps targets platform companies with enterprise values ranging from $100 million to $500 million. The firm utilizes an operating partner model to invest across select industries and seek value creation through an operationally focused strategy. For more information, visit www.snowphipps.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.