ARES CAPITAL Business Summary

Ares Capital Corporation (ARCC) is the largest publicly traded Business Development Company (BDC) in the United States, operating as a specialty finance firm that provides debt and equity financing to private middle-market companies. The company generates revenue primarily through interest income derived from a diversified portfolio of first lien senior secured loans, second lien senior secured loans, and unitranche debt, as well as dividend income and capital gains from minority equity investments. ARCC targets companies with annual EBITDA typically ranging from $10 million to $250 million, focusing on non-cyclical sectors such as healthcare, software, and business services. Its primary business segments are structured around these investment types, with a strategic emphasis on senior secured debt to prioritize capital preservation. ARCC competes directly with other major BDCs including FS KKR Capital Corp (FSK), Blue Owl Capital Corp (OBDC), and Main Street Capital (MAIN). As the industry’s "blue chip" leader, ARCC maintains a dominant market position through its massive scale, institutional-grade underwriting, and deep integration with the broader Ares Management platform. The leadership of Ares Capital is composed of veteran executives from its parent firm, Ares Management Corporation, which was co-founded by Michael Arougheti and Antony Ressler. As of March 2026, the executive team is led by Chief Executive Officer Kort Schnabel, who succeeded Kipp deVeer in 2025, and President Jim R. Miller, who oversees the firm’s direct lending and investment strategies. Financial operations are managed by Chief Financial Officer Scott Lem, a long-tenured executive who transitioned into the role in 2024. The Board of Directors is led by Co-Chairmen Mitchell Goldstein and Michael L. Smith, both of whom have been instrumental in the firm’s growth since its inception. The board also features notable members such as former CEO Kipp deVeer and Ares Management CEO Michael Arougheti, ensuring strategic continuity within the $450B+ Ares ecosystem. This institutional pedigree provides ARCC with superior deal flow and proprietary market insights, distinguishing it from independent competitors and supporting its status as a premier yield-generating vehicle for investors.