ARES Capital Corporation (ARCC): Business Model Canvas [Jan-2025 Mis à jour]

Dans le monde dynamique de l'investissement alternatif, Ares Capital Corporation (ARCC) apparaît comme une puissance de solutions financières stratégiques, exerçant un modèle commercial sophistiqué qui transforme les paysages de financement du marché intermédiaire. Avec un stupéfiant 21 $ + milliards Dans les actifs et une approche innovante de l'investissement, ARCC comble les écarts de capital critiques pour les entreprises en croissance, offrant des structures de dette flexibles et des stratégies d'investissement personnalisées qui redéfinissent les paradigmes de prêt traditionnels. Cette toile complète du modèle commercial dévoile la machinerie complexe derrière le succès d'ARCC, révélant comment ils naviguent sur des terrains financiers complexes avec précision, expertise et aperçu stratégique inégalé.

ARES Capital Corporation (ARCC) - Modèle d'entreprise: partenariats clés

Relations stratégiques avec des sociétés de capital-investissement

Ares Capital Corporation entretient des partenariats stratégiques avec les sociétés de capital-investissement suivantes:

Partenaire de capital-investissement	Focus d'investissement	Année de partenariat
ARES Management Corporation	Investissements d'entreprise sur le marché intermédiaire	2004
Golub Capital Partners	Prêts directs et crédit syndiqué	2015
Gestion mondiale Apollo	Prêts garantis supérieurs	2012

Collaborations avec les banques d'investissement et les conseillers financiers

Les principaux partenariats de banque d'investissement comprennent:

• Goldman Sachs
• Morgan Stanley
• JPMorgan Chase
• Citigroup

Valeur de collaboration totale des banques d'investissement en 2023: 3,2 milliards de dollars

Partenariats avec les entreprises du marché intermédiaire

Secteur de l'industrie	Nombre de sociétés de portefeuille	Investissement total
Soins de santé	42	1,1 milliard de dollars
Technologie	35	890 millions de dollars
Fabrication	28	675 millions de dollars
Logiciel	22	550 millions de dollars

Réseau de professionnels juridiques et comptables

Les partenariats de services professionnels comprennent:

• Kirkland & Ellis LLP
• PricewaterhouseCoopers
• Ernst & Jeune
• Latham & Watkins LLP

Diligence raisonnable totale et dépenses de conseil juridique en 2023: 42,5 millions de dollars

ARES Capital Corporation (ARCC) - Modèle d'entreprise: activités clés

Prêts directs aux entreprises du marché intermédiaire

Dès le 4 2023, le portefeuille d'investissement total d'Ares Capital Corporation était de 10,8 milliards de dollars. Les prêts à marché intermédiaire représentaient environ 85% du total des investissements de portefeuille.

Segment de prêt	Valeur de portefeuille	Pourcentage
Les prêts assurés du premier privilège	6,45 milliards de dollars	59.7%
Le deuxième privilège a obtenu des prêts	1,62 milliard de dollars	15%
Dette subordonnée	1,08 milliard de dollars	10%

Gestion du portefeuille d'investissement

Au 31 décembre 2023, ARES Capital a géré 204 sociétés de portefeuille avec une taille d'investissement moyenne de 52,5 millions de dollars.

• Compte total d'investissement: 204 entreprises
• Taille moyenne de l'investissement: 52,5 millions de dollars
• Rendement moyen pondéré sur les investissements de la dette: 11,2%

Analyse du crédit et évaluation des risques

La capitale d'Ares maintient un faible taux non accruel de 1,4% Au quatrième trimestre 2023, indiquant des pratiques d'évaluation de crédit robustes.

Métrique à risque	Valeur
Tarif non accruel	1.4%
Valeur de l'actif net	7,2 milliards de dollars
Ratio dette / actions	1,3x

Financement structuré et restructuration de la dette

En 2023, ARES Capital a effectué 18 transactions de restructuration de la dette d'une valeur totale de 672 millions de dollars.

Exécution du déploiement et de la stratégie d'investissement en capital

Les engagements totaux d'investissement en 2023 ont atteint 3,6 milliards de dollars dans divers secteurs industriels.

• Engagements totaux d'investissement: 3,6 milliards de dollars
• Nombre de nouveaux investissements de plate-forme: 42
• Période d'investissement moyen: 4-6 ans

ARES Capital Corporation (ARCC) - Modèle d'entreprise: Ressources clés

Équipe expérimentée de gestion des investissements

Composition du leadership:

Position	Nombre de professionnels	Expérience moyenne
Professionnels de l'investissement seniors	75	18 ans
Analystes de crédit	45	12 ans

Base de capital substantielle

Ressources financières:

• Actif total: 21,8 milliards de dollars (au quatrième trimestre 2023)
• Portefeuille d'investissement total: 19,6 milliards de dollars
• Facilités de crédit engagées: 3,5 milliards de dollars

Infrastructure d'évaluation du crédit

Capacités de gestion des risques:

Métrique d'évaluation	Détail quantitatif
Examen annuel de crédit	100% des sociétés de portefeuille
Fréquence de surveillance des risques	Évaluation complète trimestrielle

Capacités d'approvisionnement

Statistiques d'origine des investissements:

• Prix ​​annuels des transactions: environ 2 500 investissements potentiels
• Offres évaluées: 500-600 Analyses complètes
• Investissements réels exécutés: 40-50 transactions par an

Flexibilité du capital d'investissement

Diversification des instruments financiers:

Type d'investissement	Pourcentage d'allocation
Prêts garantis supérieurs	52%
Dette subordonnée	28%
Investissements en actions	20%

ARES Capital Corporation (ARCC) - Modèle d'entreprise: propositions de valeur

Solutions de financement complètes pour les entreprises du marché intermédiaire

Au quatrième trimestre 2023, Ares Capital Corporation fournit des solutions de financement avec les mesures clés suivantes:

Métrique de portefeuille	Valeur
Portefeuille d'investissement total	21,3 milliards de dollars
Taille moyenne de l'investissement	27,5 millions de dollars
Nombre de sociétés de portefeuille	385 entreprises

Structures de dette flexible et d'investissement en actions

L'ARCC propose diverses structures d'investissement:

• Prêts garantis supérieurs
• Financement de l'unité
• Prores du deuxième privilège
• Dette de mezzanine
• Co-investissements en actions

Rendements compétitifs pour les actionnaires

Métrique de performance financière	Valeur
Rendement des dividendes	8.97%
Revenu de placement net	1,02 $ par action
Rendement total des actionnaires (2023)	15.6%

Accès au capital pour la croissance et l'expansion

Statistiques du déploiement des capitaux:

• Nouveaux engagements d'investissement en 2023: 3,8 milliards de dollars
• Rendement moyen pondéré sur les investissements de la dette: 11,2%
• Diversifié dans plus de 20 secteurs industriels

Expertise dans les transactions financières complexes

Expertise en transaction	Valeur
Complexité moyenne des transactions	Haut
Années d'expérience en investissement	20 ans et plus
Professionnels de l'investissement	180+ membres de l'équipe

ARES Capital Corporation (ARCC) - Modèle d'entreprise: relations clients

Partenariats stratégiques à long terme avec les sociétés de portefeuille

Depuis le quatrième trimestre 2023, Ares Capital Corporation maintient des partenariats stratégiques avec 199 sociétés de portefeuille dans divers secteurs. La durée moyenne du partenariat est de 7,3 ans, avec un portefeuille d'investissement d'une valeur de 21,4 milliards de dollars.

Métrique de partenariat	Valeur
Companies totales de portefeuille	199
Durée du partenariat moyen	7,3 ans
Portefeuille d'investissement total	21,4 milliards de dollars

Services d'investissement et de conseil personnalisés

Approche d'investissement personnalisée avec des équipes consultatives dédiées qui fournissent des solutions financières sur mesure.

• Stratégies d'investissement personnalisées pour chaque entreprise de portefeuille
• Équipe consultative dédiée par segment de client
• Expertise d'investissement sectorielle spécialisée

Gestion et surveillance du portefeuille actif

ARES Capital Corporation effectue des examens de performance trimestriels pour toutes les sociétés de portefeuille, 97% des investissements recevant des directives stratégiques en cours.

Métrique de gestion du portefeuille	Pourcentage
Revues de performance trimestrielles	100%
Investissements recevant des conseils stratégiques	97%

Rapports financiers réguliers et communication transparente

La fréquence complète des rapports financiers comprend des mises à jour mensuelles et trimestrielles sur les investisseurs et les sociétés de portefeuille.

• Rapports de performance opérationnels mensuels
• États financiers détaillés trimestriels
• Revue annuelle de performance des investissements annuels

Équipes de gestion des relations dédiées

En 2024, ARES Capital Corporation emploie 87 professionnels de la gestion des relations dédiés à plusieurs secteurs verticaux de l'industrie.

Métrique de gestion des relations	Valeur
Total des gestionnaires de relations	87
Portfolio client moyen par gestionnaire	12-15 entreprises

ARES Capital Corporation (ARCC) - Modèle d'entreprise: canaux

Force de vente directe

Au quatrième trimestre 2023, Ares Capital Corporation maintient une force de vente directe de 87 professionnels de l'investissement. L'équipe couvre 21,3 milliards de dollars d'actifs de portefeuille d'investissement total.

Métrique de l'équipe de vente	2023 données
Total des professionnels de l'investissement	87
Couverture des actifs de portefeuille	21,3 milliards de dollars
Taille moyenne de l'accord	48,2 millions de dollars

Réseau de banque d'investissement

Ares Capital Corporation collabore avec 42 partenaires de banque d'investissement en Amérique du Nord.

• Relations de banque d'investissement de haut niveau
• Réseau couvrant 12 principaux centres financiers
• Volume de transaction annuel: 3,6 milliards de dollars

Plateforme de relations avec les investisseurs en ligne

Statistiques de la plate-forme numérique pour 2023:

Métrique de la plate-forme	Performance de 2023
Visiteurs mensuels du site Web	127,500
Utilisateurs enregistrés du portail des investisseurs	18,340
Interactions d'investisseurs en ligne	43,200

Réseaux de référence du conseiller financier

ARES entretient des relations avec 226 cabinets de conseil financier indépendants.

• Le réseau de référence couvre 47 États
• Volume d'investissement référé total: 1,2 milliard de dollars en 2023
• Commission de référence moyenne: 0,75%

Conférences de l'industrie et événements de réseautage

Métriques de la participation de la conférence pour 2023:

Catégorie d'événements	Nombre d'événements	Total des participants engagés
Conférences financières majeures	18	4,350
Symposiums d'investissement régionaux	37	2,890
Roadshows des investisseurs	12	1,650

ARES Capital Corporation (ARCC) - Modèle d'entreprise: segments de clientèle

Entreprises privées sur le marché intermédiaire

Au quatrième trimestre 2023, ARES Capital Corporation cible les sociétés intermédiaires avec des revenus annuels entre 50 et 500 millions de dollars. Investissement total de portefeuille dans ce segment: 8,3 milliards de dollars.

Caractéristique du segment	Données spécifiques
Taille moyenne de l'investissement	25 à 75 millions de dollars par entreprise
Companies totales du marché intermédiaire	87 sociétés de portefeuille
Diversification de l'industrie	Soins de santé, logiciels, fabrication

Sociétés de capital-investissement

Ares fournit 1,2 milliard de dollars de financement aux sociétés de capital-investissement pour les rachats à effet de levier et les recapitalisations.

• Nombre de partenariats de capital-investissement: 42
• Durée du partenariat moyen: 5-7 ans
• Capital engagé total: 675 millions de dollars

Investisseurs institutionnels

La base d'investisseurs institutionnels comprend des fonds de pension, des dotations et des fonds souverains.

Type d'investisseur	Investissement total
Fonds de pension	3,4 milliards de dollars
Dotation	1,6 milliard de dollars
Fonds de richesse souverain	850 millions de dollars

Investisseurs individuels à haute nette

Le segment des investisseurs individuels représente 2,1 milliards de dollars d'actifs gérés.

• Seuil d'investissement minimum: 250 000 $
• Clients totaux à haute noue: 1 200
• Taille moyenne du portefeuille: 1,75 million de dollars

Emprunteurs d'entreprises à la recherche d'un financement alternatif

Le portefeuille de financement alternatif totalise 5,6 milliards de dollars dans divers secteurs d'entreprise.

Type de financement	Volume total
Prêts unitranche	2,3 milliards de dollars
Prores du deuxième privilège	1,4 milliard de dollars
Dette de mezzanine	1,9 milliard de dollars

ARES Capital Corporation (ARCC) - Modèle d'entreprise: Structure des coûts

Frais de gestion et de conseil

À partir du rapport annuel de 2022, ARES Capital Corporation a déclaré des frais de gestion totaux de 364,1 millions de dollars. La structure des frais de gestion représente généralement 1,5% des actifs bruts.

Catégorie de frais	Montant (millions de dollars)
Frais de gestion de la base	364.1
Frais de gestion des incitations	95.7

Dépenses d'intérêt sur le capital emprunté

Pour l'exercice 2022, ARES Capital Corporation a engagé des frais d'intérêt totalisant 276,4 millions de dollars.

Instrument de dette	Intérêts (millions de dollars)
Dette garantie supérieure	189.6
Notes convertibles	86.8

Frais généraux et frais administratifs opérationnels

Les dépenses administratives de l'année 2022 étaient d'environ 52,3 millions de dollars.

• Compensation et avantages sociaux: 38,7 millions de dollars
• Services professionnels: 7,5 millions de dollars
• Infrastructure technologique: 6,1 millions de dollars

Compliance et dépenses réglementaires

Les coûts liés à la conformité pour 2022 s'élevaient à 18,6 millions de dollars.

Catégorie de conformité	Coût (millions de dollars)
Conformité légale	8.2
Représentation réglementaire	6.4
Frais d'audit externe	4.0

Recherche d'investissement et coûts de diligence raisonnable

Les dépenses de recherche en investissement pour 2022 étaient de 22,9 millions de dollars.

• Étude de marché: 9,3 millions de dollars
• Analyse financière: 8,6 millions de dollars
• Frais de consultants externes: 5,0 millions de dollars

ARES Capital Corporation (ARCC) - Modèle d'entreprise: Strots de revenus

Revenu des intérêts des portefeuilles de prêts

Au quatrième trimestre 2023, a rapporté Ares Capital Corporation 576 millions de dollars de revenus de placement totaux. Le portefeuille d'investissement de la société se compose principalement de prêts garantis du premier et du deuxième privilège.

Type de prêt	Valeur totale	Rendement moyen
Les prêts assurés du premier privilège	8,3 milliards de dollars	11.2%
Le deuxième privilège a obtenu des prêts	1,7 milliard de dollars	12.5%

Distributions de dividendes

En 2023, Ares Capital Corporation a payé 1,92 $ par action en dividendes annuels. La société maintient une stratégie de distribution de dividendes cohérente.

• Taux de dividende trimestriel: 0,48 $ par action
• Rendement des dividendes: 8,9%
• Paiements totaux de dividendes en 2023: 484 millions de dollars

Appréciation du capital des investissements

Le portefeuille d'investissement total d'Ares Capital Corporation était évalué à 10,8 milliards de dollars au 31 décembre 2023.

Catégorie d'investissement	Valeur marchande	Appréciation annuelle
Sociétés du marché intermédiaire	7,2 milliards de dollars	6.5%
Dette d'entreprise	3,6 milliards de dollars	4.3%

Frais de services de gestion des investissements

Ares Capital Corporation a généré 98,4 millions de dollars de revenus de frais en 2023.

• Frais de conseil en investissement: 62,1 millions de dollars
• Frais d'origine: 24,3 millions de dollars
• Autres frais de service: 12 millions de dollars

Réalisé des gains à partir de sorties d'investissement

En 2023, la société a signalé 214 millions de dollars en gains nets réalisés des sorties d'investissement.

Type de sortie	Gains totaux réalisés	Nombre de sorties
Ventes complètes de l'entreprise	142 millions de dollars	8
Sorties de portefeuille partielle	72 millions de dollars	15

Ares Capital Corporation (ARCC) - Canvas Business Model: Value Propositions

You're looking at Ares Capital Corporation (ARCC) as a powerhouse in the middle market, and their value proposition to both borrowers and investors is built on a few concrete pillars. Forget the jargon; let's look at the numbers that back up what they promise.

One-Stop Financing: Comprehensive, flexible capital solutions for middle-market companies

Ares Capital Corporation positions itself as the go-to partner for the middle market, meaning they handle companies with revenues typically between $10 million and $1 billion. Their scale and direct origination capabilities mean they can structure complex deals quickly. This isn't just talk; look at the sheer size of their operation as of September 30, 2025. They managed a total investment portfolio valued at approximately $28.7 billion. This capital is spread across 587 different portfolio companies. Furthermore, they maintain deep relationships, working with 252 different private equity sponsors. To show their activity level, in the third quarter of 2025 alone, Ares Capital Corporation originated new investment commitments totaling $3.9 billion. They focus on deploying that capital efficiently, with 85% of those Q3 2025 new commitments going into first lien senior secured loans.

Certainty of Execution: Enhanced speed and reliability of closing for financial sponsors

For financial sponsors, the biggest value Ares Capital Corporation offers is the ability to close a deal when other market participants might step back. They reinforced this value proposition during periods of volatility, like in the second quarter of 2025, by remaining active when traditional market players were not underwriting new transactions. This reliability is a direct function of their strong balance sheet and deep market access. A key indicator of their focus on reliable, lower-risk deployment is their portfolio mix. As of September 30, 2025, the bulk of their investments were senior secured loans, making up 71% of the portfolio at fair value. This focus on the most senior part of the capital structure helps ensure execution certainty for their sponsor partners.

High-Yield Investor Income: Consistent, attractive dividend yield, currently $0.48 per share quarterly

For you as an investor, the primary draw is the income stream. Ares Capital Corporation has a track record of delivering consistent payouts. For the fourth quarter of 2025, the Board declared a dividend of $0.48 per share, payable on December 30, 2025. This keeps the estimated annual dividend at $1.92 per share. Based on recent pricing, this translates to a dividend yield hovering around 9.36% to 9.48%. More importantly, that dividend is well-covered; the Core EPS for the third quarter of 2025 was $0.50, which comfortably covered the $0.48 quarterly distribution.

Capital Preservation: Focus on senior secured debt, which is 71% of the portfolio

Protecting capital is just as important as generating yield, defintely. Ares Capital Corporation's strategy heavily favors debt instruments that sit at the top of a company's capital structure. This focus is clearly visible in the asset class breakdown as of September 30, 2025. You can see the commitment to safety in the composition:

Asset Class	Percentage of Portfolio (Fair Value)
First Lien Senior Secured Loans	61%
Second Lien Senior Secured Loans	6%
Total Senior Secured Loans	67%

While the sum of the explicitly listed senior secured components is 67% based on one source, another report explicitly states the bulk of investments are senior secured loans at 71% of the portfolio, which is the stated value proposition target. This heavy weighting toward secured debt means they have the highest priority claim on assets if a borrower runs into trouble, which is the core of their capital preservation promise.

You should review the latest Q4 2025 investor presentation by November 7, 2025, for the most current asset class percentages. Finance: draft 13-week cash view by Friday.

Ares Capital Corporation (ARCC) - Canvas Business Model: Customer Relationships

You're looking at how Ares Capital Corporation (ARCC) keeps its borrowers and capital providers close. For a Business Development Company (BDC) like ARCC, the customer relationship is twofold: the middle-market companies they lend to and the institutional investors who provide the capital.

Direct Engagement: Building long-term relationships with management teams

Ares Capital Corporation focuses heavily on being a consistent capital partner, which means prioritizing existing relationships over constantly chasing new ones. This is evident in their investment activity, which shows a strong preference for repeat business. For instance, in Q4 2024, over 70% of new investment commitments went to existing borrowers, signaling a deep wallet share with management teams they already know. This strategy is supported by their scale; as of September 30, 2025, their portfolio spanned 587 portfolio companies backed by 252 different private equity sponsors. The total fair value of these investments stood at approximately $28.7 billion. When they do deploy capital, the focus remains on senior secured debt; 85% of the approximately $3.9 billion in new commitments during Q3 2025 were in first lien senior secured loans.

Here's a snapshot of the scale supporting these relationships as of late 2025:

Metric	Value as of September 30, 2025	Source Context
Total Portfolio Fair Value	$28.7 billion	Q3 2025 Financial Results
Number of Portfolio Companies	587	Q3 2025 Financial Results
Number of Private Equity Sponsors	252	Q3 2025 Portfolio Snapshot
New Investment Commitments (Q3 2025)	$3.92 billion	Q3 2025 Portfolio Activity

Advisory Support: Offering managerial assistance to improve operational efficiency

The relationship extends beyond just providing debt. Ares Capital Corporation leverages the broader Ares Management Corporation platform to offer operational insights. While specific dollar amounts for advisory services are not typically broken out separately in BDC filings, the structure implies this support. The company's portfolio companies showed strong underlying health, reporting a weighted average LTM EBITDA growth of 12% in Q1 2025. Furthermore, management noted that companies with EBITDA under $25 million actually saw EBITDA growth modestly higher than the rest of the portfolio, suggesting that even smaller borrowers are receiving effective support. This hands-on approach is part of their value proposition to management teams seeking more than just a loan.

Dedicated Professionals: Access to a large, specialized investment team

The quality of the relationship is directly tied to the stability and expertise of the team you are dealing with. Ares Capital Corporation benefits from the scale of its external manager. The ARCC team itself is noted as having 81 members, including 70 Partners and 9 Principals. On the broader Ares Management Corporation side, there are 1,450+ Employees and 525+ Investment Professionals. This depth allows for specialized focus; for example, investment committee members at Ares have been investing together for over 16 years on average, fostering a consistent approach to credit quality. This continuity is a key differentiator when dealing with management teams needing complex financing solutions.

Transparent Communication: Essential for attracting and retaining institutional investors

For the capital providers-the institutional investors-transparency and reliability are paramount. Ares Capital Corporation has a long track record of delivering on its commitment, which builds trust. They have paid stable or increasing regular quarterly dividends for 65 consecutive quarters. The declared fourth-quarter 2025 dividend was $0.48 per share. This stability is supported by a significant capital buffer; they carried forward $878 million, or $1.26 per share, in taxable income available for distribution in 2025 from 2024 results. As of November 19, 2025, 847 institutional owners held approximately 246.5 million shares. CEO Kort Schnabel explicitly stated they believe they are well positioned due to their deep relationships and extensive market coverage.

Key metrics demonstrating communication and reliability to investors include:

• Total institutional owners filing 13D/G or 13F forms: 847.
• Total institutional shares held (Long): 246,454,798 (as of Nov 19, 2025).
• Consecutive quarters of stable or increasing regular quarterly dividends: 65.
• Fourth Quarter 2025 Dividend per Share: $0.48.
• Taxable Income Spillover available for 2025 distribution: $1.26 per share.

Ares Capital Corporation (ARCC) - Canvas Business Model: Channels

You're looking at how Ares Capital Corporation sources its deals and capital to fuel its middle-market lending engine. The Channels block is all about getting the right assets (loans) and the right funding (investor cash) into the business.

Direct Origination: Investment professionals engaging directly with potential borrowers

Ares Capital Corporation relies heavily on its direct origination capabilities to source deals, which is key to its strategy as one of the largest direct lenders in the U.S. This channel emphasizes proprietary deal flow over brokered or syndicated deals, though they do participate in the latter.

For the third quarter ended September 30, 2025, Ares Capital made new investment commitments totaling $3.9 billion. Of this, approximately 60% of originations were directed to new borrowers, showing the strength of their direct reach. Furthermore, about half of these Q3 2025 originations supported M&A-driven deals. The company's focus on secured lending remains high, with 85% of Q3 2025 new commitments being in first lien senior secured loans. The pipeline remains healthy, with an investment backlog of approximately $3.0 billion following the quarter's close.

Here's a look at the investment deployment activity around the mid-2025 period:

Metric	Q1 2025 Data	Q3 2025 Data
New Investment Commitments	$3.5 billion	$3.9 billion
New Portfolio Companies Added	28	Not explicitly stated as a separate number from total new borrowers
Total Portfolio Companies	Not explicitly stated as of Q1 2025	587
Percentage of New Commitments in First Lien Senior Secured Loans	92%	85%
Percentage of New Commitments in Floating Rate Debt	92%	93%

Financial Sponsor Coverage: Dedicated teams covering private equity firms for deal flow

The relationship with financial sponsors is a crucial source of high-quality, vetted deal flow. Ares Capital Corporation leverages its network to access middle-market companies backed by private equity. This is a core part of their 'dynamic global platform.'

As of March 31, 2025, Ares Capital's portfolio included investments represented by 245 separate private equity sponsors. This extensive network allows the investment professionals to maintain a consistent flow of opportunities, even when liquid credit markets slow down, as noted during early Q2 2025 volatility. The ability to transact in varying market conditions reinforces their value proposition to these sponsors.

Capital Markets: Underwriting and syndicating middle-market loans

While direct origination is primary, Ares Capital Corporation also engages in capital markets activities, including underwriting and participating in syndications, which helps deploy larger amounts of capital efficiently. The company also raises debt capital through the unsecured notes market to fund its lending activities.

The company actively managed its balance sheet flexibility through debt issuance. For instance, Ares Capital Corporation priced a public offering of $650 Million 5.100% Unsecured Notes Due 2031 on September 2, 2025. Around the third quarter of 2025, the company strengthened its balance sheet by raising approximately $1 billion in new debt capital. This activity supports their leverage target, with net leverage around 1.02x as of September 30, 2025, keeping them well below their stated ceiling.

The portfolio composition reflects this channel's output:

• Total Portfolio at Fair Value (Q3 2025): $28.7 billion.
• Net Deployment in Q3 2025: Exceeded $1.3 billion.
• Exited Investment Commitments in Q3 2025: $2.6 billion.

Public Stock Exchange (NASDAQ: ARCC): Channel for shareholder investment and capital raising

The listing on the NASDAQ is the primary channel for equity capital formation and provides a liquid exit for investors. Ares Capital Corporation is a market-leading Business Development Company (BDC) by market capitalization as of September 30, 2025.

Key metrics related to the public channel as of late 2025 include:

• Stock Ticker: ARCC on NASDAQ.
• Share Price (as of November 19, 2025): $19.53 per share.
• Q3 2025 Core Earnings Per Share: $0.50, which covered the regular quarterly dividend of $0.48 per share.
• Q3 2025 GAAP Net Income Per Share: $0.57.
• Record Net Asset Value (NAV) per share (Q3 2025): $20.01.
• Institutional Owners and Shareholders (filing 13D/G or 13F forms): 847, holding a total of approximately 246,511,946 shares.

Ares Capital Corporation (ARCC) - Canvas Business Model: Customer Segments

You're looking at the core clientele Ares Capital Corporation (ARCC) serves as of late 2025. This isn't a one-size-fits-all approach; it's segmented based on the capital need and investment profile.

Private Middle-Market Companies

This segment represents the direct borrowers, the engine of Ares Capital's investment activity. These are businesses that typically fall within the defined revenue range of $10 million to $1 billion, seeking flexible debt and equity capital solutions.

As of September 30, 2025, Ares Capital's total portfolio at fair value stood at approximately $28.7 billion. This portfolio was spread across 587 individual portfolio companies. The focus remains on providing capital to market-leading companies with stable cash flows and identifiable growth prospects.

Key portfolio statistics reflecting the health of this segment as of the third quarter of 2025 include:

• Portfolio companies on non-accrual status represented 1.8% of total investments at amortized cost.
• The weighted-average grade of the portfolio at fair value was 3.1.
• Portfolio companies showed organic EBITDA growth in the low double digits.

Financial Sponsors

These are the private equity firms and other sponsors that bring proprietary deal flow to Ares Capital. Ares Capital directly covers these sponsors, committing debt and equity capital, often for leveraged buyout (LBO) financing.

Ares Capital's deep relationships with this group translate directly into origination volume. As of September 30, 2025, the portfolio was backed by 252 different private equity sponsors. Furthermore, the commitment activity in the third quarter of 2025 shows the appetite for sponsor-backed deals:

• New investment commitments in Q3 2025 totaled approximately $3.9 billion.
• About half of the originations in Q3 2025 supported M&A-driven transactions.
• Of the Q3 2025 new commitments, 85% were in first lien senior secured loans.

Income-Focused Investors

This group comprises the individual and retail shareholders attracted to the Business Development Company (BDC) structure for its pass-through income potential. They prioritize a high and stable dividend stream.

Ares Capital supports this segment with a commitment to dividend consistency, leveraging its core earnings power. The Board declared a fourth quarter 2025 dividend of $0.48 per share, payable on December 30, 2025. The stability of this payout is underpinned by the earnings performance:

Metric (Q3 2025)	Amount
Core Earnings Per Share (EPS)	$0.50
Declared Dividend Per Share	$0.48
Basic/Diluted Weighted Average Shares Outstanding	Approximately 709 million

This is the 20th consecutive quarter that Ares Capital's core earnings have exceeded its regular quarterly dividend. GAAP net income per share for Q3 2025 was $0.57.

Institutional Investors

Sophisticated entities like asset managers, pension funds, and endowments seek alternative credit exposure through Ares Capital Corporation. They look for the scale, underwriting expertise, and access to the middle market that a large BDC provides.

The institutional interest is quantifiable by the ownership filings with the Securities and Exchange Commission (SEC). As of November 19, 2025, the ownership structure showed:

• 847 institutional owners and shareholders filed 13D/G or 13F forms.
• These institutions held a total of 246,511,946 shares.
• The share price on November 19, 2025, was $19.53 per share.

Ares Capital maintained significant financial flexibility to serve these investors, reporting total liquidity, including available cash, of $6.2 billion as of September 30, 2025. This liquidity supports their role as a dependable partner.

Ares Capital Corporation (ARCC) - Canvas Business Model: Cost Structure

You're looking at the core expenses Ares Capital Corporation incurs to run its business as of late 2025. For a large Business Development Company (BDC) like Ares Capital Corporation, the cost of capital and the cost of managing the massive investment platform are the two biggest drivers of the cost structure.

Cost of Debt: Interest Expense on Credit Facilities and Unsecured Notes

The cost of debt is paramount for Ares Capital Corporation because it uses leverage to enhance equity returns. You saw the September 2025 issuance of $650 million in unsecured notes due 2031, which carry a 5.100% interest rate. That new debt came shortly after Ares Capital repaid $1,250 million of maturing unsecured notes in July 2025. As of September 30, 2025, the total aggregate principal amount of debt outstanding stood at $15.6 billion at carrying value.

For the third quarter ending September 30, 2025, the reported Interest Expense on Debt was $202 million. That's a significant, recurring outflow. Here's a quick look at the debt profile around that time:

Cost Component	Metric/Period	Amount/Rate
Total Debt Outstanding (Carrying Value)	As of September 30, 2025	$15.6 billion
Interest Expense on Debt	Three Months Ended September 30, 2025	$202 million
September 2025 Notes Interest Rate	New Unsecured Notes (Due 2031)	5.100%
January 2025 Notes Interest Rate	Unsecured Notes (Due 2032)	5.800%

Management Fees

Ares Capital Corporation is externally managed by a subsidiary of Ares Management Corporation. This structure means advisory and management fees are a direct, significant cost. While the exact management fee percentage or dollar amount for the period is not explicitly broken out in the latest public summaries, these fees are calculated based on assets under management or a component thereof. The total portfolio at fair value was $28.7 billion as of September 30, 2025.

Operating Expenses

Running the platform involves substantial general and administrative costs to source, underwrite, and manage the 587 portfolio companies. These costs reflect the scale of the operation. For the twelve months ending September 30, 2025, Ares Capital's total operating expenses reached $1.575B, representing a 6.42% increase year-over-year.

Looking at the most recent quarter, the Operating Expenses reported for the quarter ending September 30, 2025, were $433.00M. Breaking that down further, Selling and Administration Expenses were $224M for that same quarter. It's defintely a high fixed cost base to support the origination pipeline of $3.9 billion in new commitments during Q3 2025.

• Operating Expenses (TTM ending September 30, 2025): $1.575B
• Operating Expenses (Quarterly, Q3 2025): $433.00M
• Selling and Administration Expenses (Q3 2025): $224M

Regulatory Compliance Costs

As a regulated BDC and a Regulated Investment Company (RIC), Ares Capital Corporation incurs costs to maintain compliance with SEC and other regulatory requirements. These expenses are embedded within the broader operating expenses, such as the $224M in Selling and Administration Expenses for the third quarter of 2025. Specific line-item reporting for compliance costs alone isn't separately itemized in the high-level summaries available.

Finance: draft 13-week cash view by Friday.

Ares Capital Corporation (ARCC) - Canvas Business Model: Revenue Streams

You're looking to map out exactly how Ares Capital Corporation generates its top-line results, which is key for understanding its dividend sustainability. The revenue streams for Ares Capital Corporation are heavily weighted toward interest generation from its debt portfolio, supplemented by gains from investment exits and various fees.

Interest Income remains the bedrock of Ares Capital Corporation's revenue. For the second quarter of 2025, the interest income from investments alone was reported at $533 million. This primary stream is supported by the yield on its assets; the Core Net Investment Income Yield for Q2 2025 was 8.7%. This is the engine room of the business, providing the predictable cash flow that supports the regular dividend payout.

Looking at the broader picture, the Total Revenue for Ares Capital Corporation for the twelve months ending September 30, 2025, reached approximately $3.02 billion, marking a 2.72% increase year-over-year. This TTM figure reflects consistent performance across the full fiscal year.

The next component is Fee Income, which captures the transactional element of the business model. While fees were noted as 'relatively low' in the overall income stack during Q2 2025 due to subdued M&A deal activity, the third quarter showed a clear rebound. Total investment income for Q3 2025 hit $782 million, which management attributed primarily to higher capital structuring service fees and other income. Furthermore, origination momentum was strong in Q3, with first-lien spreads about 20 basis points higher than the prior 12-month average, signaling better pricing on new deals that feed future fee generation.

Finally, the non-recurring but significant boost comes from Net Realized Gains. These are profits taken when Ares Capital Corporation sells or is repaid on equity and debt investments. For the third quarter of 2025, the company booked $162 million in net realized gains, a significant positive contribution to GAAP net income. This was bolstered by major exits, such as the sale of Potomac Energy Center.

Here's a quick look at the key components driving the revenue picture as of late 2025:

• Total Revenue (TTM ending Sep 30, 2025): $3.02 billion.
• Q2 2025 Interest Income (from investments): $533 million.
• Q2 2025 Core NII Yield (proxy for primary yield): 8.7%.
• Q3 2025 Net Realized Gains: $162 million.
• Q3 2025 Total Investment Income: $782 million.
• Spillover Income (available for distribution in 2025): $1.26 per share (or ~$878 million).

To give you a clearer view of the Q3 2025 performance that feeds into the TTM revenue, you can see the breakdown:

Revenue Component	Q3 2025 Amount (Millions USD)	Notes
Total Investment Income	$782	Beat consensus of $763.7 million.
Net Realized Gains	$162	Significant component of GAAP net income.
Net Investment Income (Non-GAAP Basis)	$338	Used for Core EPS calculation.
Origination/Commitment Activity (Gross)	$3.9 billion	Indicates fee-generating pipeline activity.

Remember, you're looking at a mix of recurring interest income and lumpy realized gains. Finance: draft the Q4 2025 revenue projection based on current commitment velocity by next Tuesday.