Business Development Company (BDC) / Specialty Finance
Strategic Profile
Founded in 2004, Ares Capital is a leading specialty finance company focused on providing direct loans and other investments in private middle-market companies, sourcing and investing in high-quality borrowers that need capital to achieve their business goals. The company is externally managed by a subsidiary of Ares Management Corporation, a leading global alternative investment manager.
Cyborg Score Rationale
The company achieved strong fourth quarter results with record investment commitments, stable credit performance with low non-accruals, and profits exceeding dividends. Ares Capital has maintained a stable or growing level of regular quarterly dividends for over 16 consecutive years. However, yield spread compression from falling rates may pressure net investment income margins in 2026.
Top Insights
In Q4 2025, Ares Capital made new investment commitments of approximately $5.8 billion across 30 new portfolio companies and 84 existing portfolio companies.
In 2025, the company added a record $4.5 billion of new gross debt commitments while maintaining ample levels of liquidity.
According to 9 analysts, the average rating for ARCC is "Buy" with a 12-month target of $22.11, representing 14.15% upside potential.
2025 revenue reached $3.05 billion, an increase of 2.07% from 2024.
Named Competitors
FS Investment Corporation — Business development company focused on middle-market lending
Main Street Capital — BDC providing direct lending and equity investments to small businesses
Apollo Investment Corporation — Business development company with diversified debt and equity portfolio
Recent Developments
(February 2026) Declared first quarter 2026 dividend of $0.48 per share, continuing over 16 years of stable or growing dividends
(February 2026) Announced Q4 2025 and full year 2025 financial results with record investment activity
(January 2026) Priced $750 million public offering of 5.250% unsecured notes due 2031
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