Our investment professionals are industry and product generalists who are able to invest in a range of industries--principally targeting companies with a history of stable cash flows, demonstrated competitive advantages and experienced management teams. In addition, we place a high priority on market-leading companies with identifiable growth prospects that can generate significant free cash flow.
Highly attractive sectors include:
Additionally, we are experienced/have expertise investing in certain cyclical industries including:
Our project finance product focus is on financing long lived assets that generate electricity or provide other essential services, including:
Attractive sectors for our venture finance focus include:
As a long-term and value-oriented investor, we analyze each investment with a primary focus on minimizing downside risk, protecting invested principal and generating an appropriate risk-adjusted return.
Our investment strategy relies heavily on:
We prefer to agent and/or lead the transactions in which we invest. We also seek board representation or access as appropriate in order to enhance our ability to achieve our investment strategy and to be a more value-added partner for our portfolio companies. We believe this approach enables us to identify attractive investment opportunities throughout economic cycles and across a company's capital structure so we can make investments consistent with our stated investment objective and preserve principal while seeking appropriate risk adjusted returns. We also selectively consider third-party-led senior and subordinated debt financings, review portfolio purchases and opportunistically consider the purchase of stressed and discounted debt positions.
Target Investment Characteristics*
Commitment & Hold Range:(1)
$30 - $400 million (Corporate)
$10 - $200 million (Project Finance)
$1 - $25 million (Venture Finance)
$10 - $250 million (Corporate only)
*Not every investment meets each of the criteria.
(1) Includes Ares Capital and certain of its financial services portfolio companies
Market leading business
Defensive industry orientation
Entrenched positions with diverse customer base
Demonstrated competitive advantages
Strong free cash flow generation and growth
High return on invested capital
Experienced management team with strong financial commitment
Alignment with management team and equity sponsors
Quality institutional investor support