A stable growth in dynamic times: Ares Capital Corporation

The recent conference call of Ares Capital Corporation (ARCC) provided an engaging insight into the latest developments and strategic directions of the company. The discussion, led by CEO Kipp DeVeer, primarily revolved around notable leadership changes, impressive quarterly figures, and the diverse opportunities in the M&A market. Jim Miller was appointed as the new Co-President, bringing fresh energy to Ares Capital's leadership. Miller, with the company since 2006, will steer ARCC's course alongside Kort Schnabel. Simultaneously, Mitch Goldstein, former Co-President, joins the board and assumes a Co-Chair role. Economically, Ares shone with a strong Q3 2024. The company reported core EPS of $0.58 and achieved a record level net asset value per share of $19.77. The dynamic M&A landscape has fueled deal volume, with ARCC reviewing almost 30% more transactions than the previous year. Surprisingly, over 75% of the new commitments were to existing borrowers, indicating successful business development. The company's financial health is reflected in the reduced default rates, which remain below the industry average. Ares continues to be praised for its solid balance sheet and significant investment flexibility, supported by a recent upgrade from Moody's. Overall, Ares is distinguished by its historical consistency and successful adaptation to various market conditions. The company proudly celebrates 20 years of innovation in direct lending and sees itself well-positioned for further success.