Ares Capital

What Ares Capital does

Ares Capital Corporation is the largest publicly traded Business Development Company (BDC) in the United States, founded in 2004 and listed on NASDAQ under ticker ARCC. The company provides senior secured loans, subordinated debt, and equity investments to private middle market companies across diverse industries including healthcare, energy, financial services, and software. As of Q1 2026, the portfolio stood at $29.5 billion across approximately 607 portfolio investments, with a weighted average interest rate of 10.3% on floating-rate loans and a 1.2% non-accrual ratio demonstrating strong credit quality relative to BDC peers.

Ares Capital's core technology stack comprises credit underwriting, portfolio risk management, and capital allocation systems supporting direct lending to borrowers underserved by traditional bank financing. The company is externally managed by Ares Capital Management LLC, a subsidiary of Ares Management Corporation (NYSE: ARES), under a long-standing advisory agreement that has been the subject of shareholder litigation alleging excessive fees. Product offerings include first-lien senior secured debt, subordinated debt, equity co-investments, and management control positions, with additional liquidity provided through a $1 billion commercial paper program, $5.5 billion Revolving Credit Facility, $1.47 billion BNP Paribas facility, and repeated public unsecured notes offerings.

The revenue model is anchored in interest income from the floating-rate loan portfolio, supplemented by dividend distributions and capital markets funding activities. As a BDC regulated under the Small Business Investment Incentive Act of 1980, Ares Capital must distribute at least 90% of taxable income to shareholders, and it has maintained stable or increasing dividends for 67 consecutive quarters at a yield of approximately 10–10.6%. Total investment income reached $763 million in Q1 2026, and shareholders receive distributions via NASDAQ-traded common stock and underwritten public notes. The company targets two principal customer segments: private U.S. middle market companies seeking flexible debt and equity capital, and dividend-focused retail and institutional investors seeking high-yield income.

Name

Ares Capital

Legal name

Ares Capital Corporation

Website

https://arescapitalcorp.com

Company type

Public

Founded year

2004

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Ares Capital Corporation is the largest publicly traded U.S. Business Development Company (BDC), providing senior secured loans, subordinated debt, and equity financing to private U.S. middle market companies across healthcare, energy, financial services, and software industries, while distributing approximately 90% of taxable income as dividends to shareholders at a ~10% yield.

Ownership category

akta.pro rank

Product category

Specialty Finance / Business Development Company (BDC)

NAICS

All Other Financial Investment Activities (52399), Portfolio Management and Investment Advice (523940)

SIC

Investors, Nec (6799)

akta.pro primary industry

BDC / Public Vehicle Venture Debt Providers (FSANAIAC)

Keywords

• Business development company
• Middle market lending
• Direct lending finance
• Private credit investing
• Senior debt financing

Headquarters

HQ city

Los Angeles

HQ country

United States

HQ region

North America

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Infrastructure, Personnel, Marketing or Sales, Others

Revenue model

1. Interest Income from Direct Lending: Ares Capital generates the majority of its revenue from interest income on senior and subordinated debt investments made in private middle market companies. Loans are typically floating-rate, generating above-market interest rates averaging around 10.3%, with the company required to distribute at least 90% of taxable income to shareholders to maintain BDC tax-advantaged status under the Small Business Investment Incentive Act of 1980.
2. Dividend Distributions: As a BDC, Ares Capital distributes the majority of its taxable income to shareholders as dividends. The company offers a double-digit dividend yield (approximately 10–10.6%) paid quarterly, sustained by net investment income, realized gains, and spillover income reserves. It has maintained stable or increasing dividends for 67 consecutive quarters.
3. Debt Issuance / Notes Offering: Ares Capital raises capital through public debt offerings of unsecured notes, including $1 billion senior notes due 2032, $800 million 5.550% unsecured notes due 2030, and a $1 billion commercial paper program. Proceeds are used for debt repayment, general corporate purposes, and investing in portfolio companies.

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels5 records

Core offering

Ares Capital Corporation provides senior secured debt, subordinated debt, and equity investments to private middle market companies in the United States that lack access to traditional bank financing or public capital markets. Operating as a Business Development Company (BDC), the company lends across industries including healthcare, energy, finance, and software/technology, deploying capital through floating-rate loan structures. The company also funds its investment operations through public equity, unsecured notes, commercial paper, and revolving credit facilities.

Product overview

Ares Capital Corporation operates as the largest publicly traded Business Development Company (BDC), providing comprehensive financing solutions to private middle market companies in the United States. The company's core offerings include senior secured debt financing, subordinated debt investments, and equity investments across industries such as healthcare, energy, and finance. The company also utilizes funding mechanisms including a $1 billion commercial paper program and revolving credit facilities to support its investment operations. As a BDC, Ares Capital is structured to lend to smaller companies that lack access to traditional bank financing, offering floating-rate loans that generate income distributed to shareholders.

Differentiator

Problem solved

Functional benefit

Products and services

• Senior Debt Financing Provides first-lien senior secured floating-rate debt investments to private middle market companies across healthcare, energy, finance, and other industries. Loans are typically priced at spreads above SOFR, generating a weighted average interest rate of approximately 10.3% as of Q1 2026.
• Subordinated Debt Financing Offers subordinated debt investments to private middle market companies, typically carrying higher yields than senior debt to compensate for increased risk. These investments often accompany senior debt facilities.
• Equity Investments

Quantifiable outcome

• 67 consecutive quarters of stable or increasing dividends, with a 10.6% dividend yield as of 2026
• +4 more outcomes

Named customers5 records

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Scale indicators15 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• Main Street Capital: Publicly traded BDC (MAIN) and SBIC providing debt and equity capital to lower middle-market companies; direct peer in business model with comparable dividend focus and middle-market lending focus.
• Carlyle Secured Lending: Publicly traded BDC (CGBD) sponsored by Carlyle, providing senior secured loans to middle-market companies — directly comparable origination model and sponsor-backed deal flow to Ares Capital.
• Blue Owl Capital Corp: Publicly traded BDC (OBDC) formed from Owl Rock Capital and previously GSV Capital; direct lender to middle-market companies with similar origination model, scale, and dividend-yield investor base.
• Blackstone Private Credit Fund: Non-traded BDC (BCRED) sponsored by Blackstone Credit, providing direct middle-market lending — represents the growing private BDC cohort competing with Ares for sponsor-backed deal flow.
• FS KKR Capital: Publicly traded BDC (FSK) providing senior secured loans to US middle-market borrowers, sponsored by FS Investments and KKR — directly comparable to Ares Capital in scale, structure, and middle-market focus.
• New Mountain Finance: Publicly traded BDC (NMFC) managed by New Mountain Finance Advisers, providing senior and subordinated loans to US middle-market companies in defensive growth sectors — directly comparable lending strategy.
• Sixth Street Specialty Lending: Publicly traded BDC (TSLX) focused on first-lien senior secured loans to US middle-market companies — direct peer in product, structure, and customer profile to Ares Capital's senior debt franchise.
• PennantPark Floating Rate Capital: Publicly traded BDC (PFLT) focused on first-lien senior secured floating-rate loans to middle-market private equity-sponsored companies — directly comparable senior-secured floating-rate lending strategy.
• Oaktree Specialty Lending: Publicly traded BDC (OCSL) managed by Oaktree Capital Management, lending to US middle-market companies — directly comparable in business model, sponsor relationships, and floating-rate direct lending focus.
• Golub Capital BDC: Publicly traded BDC (GBDC) focused on senior secured first-lien loans to US middle-market companies sponsored by private equity sponsors — the closest direct comparable to Ares Capital in origination strategy and target borrower profile.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/aris-capital-limited

Revenue estimate

Valuation estimate

Number of profiles

Profiles10 records

Subsidiaries2 records

Funding overview

Funding rounds9 records

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments25 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Ares Capital