ARCC About Ares Capital Corp Targeted Investments

Targeted Investments

Market Leaders. Stable Cash Flow. Lead Investor Focus.

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:

  • Light manufacturing
  • Business services
  • Consumer products
  • Healthcare services
  • Education
  • Distribution
  • Food and beverage
  • Information technology services

 

Additionally, we are experienced/have expertise investing in certain cyclical industries including: 

  • Restaurants
  • Retail
  • Technology 
  • Oil and gas

 

Our project finance product focus is on financing long lived assets that generate electricity or provide other essential services, including:

  • Power generation
  • Energy efficiency projects
  • Energy services

 

Attractive sectors for our venture finance focus include: 

  • Communications
  • Information technology and services
  • Semiconductor
  • Electronics
  • Clean and alternative energy
  • Life sciences

 

Our Approach

 

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: 

  • Intensive due diligence
  • Structuring expertise
  • Disciplined underwriting
  • Active portfolio management

 

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.