Ares Capital : ARCC Q2-20 Earnings Presentation

Second Quarter 2020

Earnings Presentation

Important Notice

This presentation contains "forward looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, that are subject to risks and uncertainties, including the impact of the novel coronavirus ("COVID-19") pandemic and related changes in base interest rates and significant market volatility on our business, our portfolio companies, our industry and the global economy. Actual outcomes and results could differ materially from those suggested by this presentation due to the impact of many factors beyond the control of Ares Capital Corporation ("Ares Capital"), including those listed in the "Risk Factors" section of our filings with the Securities and Exchange Commission ("SEC"). Any such forward-looking statements are made pursuant to the safe harbor provisions available under applicable securities laws and Ares Capital assumes no obligation to update or revise any such forward-looking statements.

Certain information discussed in this presentation (including information relating to portfolio companies) was derived from third party sources and has not been independently verified and, accordingly, Ares Capital makes no representation or warranty in respect of this information.

The following slides contain summaries of certain financial and statistical information about Ares Capital. The information contained in this presentation is summary information that is intended to be considered in the context of our SEC filings and other public announcements that we may make, by press release or otherwise, from time to time. We undertake no duty or obligation to publicly update or revise the information contained in this presentation. In addition, information related to past performance, while helpful as an evaluative tool, is not necessarily indicative of future results, the achievement of which cannot be assured. You should not view the past performance of Ares Capital, or information about the market, as indicative of Ares Capital's future results. This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities of Ares Capital.

2

Financial and Portfolio Highlights

Financial Highlights

		Q2-20			Q1-20			Q2-19
(all per share amounts, excluding net asset value per share, are basic and diluted)
Core EPS*(1)	$	0.39	$	0.41	$	0.49
Net Investment Income Per Share	$	0.39	$	0.54	$	0.49
Net Realized Gains Per Share	$	0.02	$	0.08	$	0.05
Net Unrealized Gains (Losses) Per Share	$	0.24	$	(2.04)	$	(0.07)
GAAP Net Income (Loss) Per Share	$	0.65	$	(1.42)	$	0.47
Net Asset Value Per Share	$	15.83	$	15.58	$	17.27

Portfolio Highlights

		Q2-20			Q1-20			Q2-19
(dollar amounts in millions)
Gross Commitments(2)	$	867	$	1,272	$	1,307
Exits of Commitments(3)	$	1,484	$	918	$	1,348
Total Fair Value of Investments	$	13,842	$	14,370	$	12,992
Weighted Average Yield of Debt & Other Income Producing Securities at Amortized Cost(4)		8.9%			8.9%			10.4%
Weighted Average Yield on Total Investments at Amortized Cost(5)		7.7%			7.9%			9.2%

Note: Endnotes begin on page 24.

• See page 23 hereof for reconciliations of basic and diluted Core EPS to GAAP net income (loss) per share, the most directly comparable GAAP financial measure.

3

Selected Historical Financial Information

(dollar amounts in millions, except per share data and stock prices)					As of and for the Three Months Ended
Core EPS - Basic and Diluted*(1)		6/30/20			3/31/20			12/31/19			9/30/19			6/30/19
$	0.39	$	0.41	$	0.45	$	0.48	$	0.49
Net Investment Income Per Share - Basic and Diluted	$	0.39	$	0.54	$	0.44	$	0.50	$	0.49
Net Realized and Unrealized Gains (Losses) Per Share - Basic and Diluted	$	0.26	$	(1.96)	$	0.04	$	(0.09)	$	(0.02)
GAAP Net Income (Loss) Per Share - Basic and Diluted	$	0.65	$	(1.42)	$	0.48	$	0.41	$	0.47
Dividend Declared and Payable Per Share	$	0.40	$	0.40	$	0.40	$	0.40	$	0.40
Additional Dividend Declared and Payable Per Share	$	-	$	-	$	0.02	$	0.02	$	0.02
Stockholders' Equity	$	6,691	$	6,583	$	7,467	$	7,373	$	7,368
Net Asset Value Per Share	$	15.83	$	15.58	$	17.32	$	17.26	$	17.27
Debt/Equity Ratio		1.12x			1.26x			0.95x			0.91x			0.83x
Debt/Equity Ratio, Net of Available Cash(6)		1.08x			1.19x			0.93x			0.89x			0.77x
Unsecured Debt to Total Debt		61.7%			55.8%			54.8%			66.8%			68.9%
Weighted Average Stated Interest on Debt(7)		3.3%			3.4%			3.9%			4.0%			4.1%
Net Interest and Dividend Margin(8)		7.0%			7.3%			7.6%			7.7%			7.8%
Ratio of Earnings to Fixed Charges(9)		3.2			3.2			3.5			3.8			4.1
Market Capitalization
Principal Debt	$	7,488	$	8,274	$	7,060	$	6,691	$	6,124
Equity		6,107			4,556			8,040			7,963			7,655
Total Market Capitalization	$	13,595	$	12,830	$	15,100	$	14,654	$	13,779
Common Stock Data:
High Price during the period	$	16.20	$	19.23	$	19.02	$	19.19	$	18.12
Low Price during the period	$	9.13	$	8.08	$	18.10	$	17.99	$	17.22
Closing Price	$	14.45	$	10.78	$	18.65	$	18.64	$	17.94

• See page 23 hereof for reconciliations of basic and diluted Core EPS to GAAP net income (loss) per share, the most directly comparable GAAP financial measure.

4

Selected Historical Financial Information (cont'd)

(dollar amounts in millions)								As of
		6/30/20			3/31/20			12/31/19			9/30/19			6/30/19
Investments at Fair Value	$	13,842		$	14,370		$	14,426		$	13,892		$	12,992
Number of Portfolio Companies(10)		352			355			354			352			345
Asset Class (at fair value):
First Lien Senior Secured Loans(11)		44%			48%			44%			45%			41%
Second Lien Senior Secured Loans		30%			28%			30%			32%			33%
Senior Direct Lending Program(12)		6%			6%			6%			6%			7%
Senior Subordinated Loans		7%			6%			6%			4%			5%
Preferred Equity		5%			5%			5%			5%			5%
Other Equity		8%			7%			9%			8%			9%
Interest Rate Type (at fair value)
% Floating Rate(13)		84%			85%			84%			86%			84%
% Fixed Rate		5%			5%			5%			5%			6%
% Equity and Other Non-Interest Earning		11%			10%			11%			9%			10%
Yields:
Weighted Avg. Yield on Debt and Other Income Producing Securities
at Amortized Cost(4)		8.9%			8.9%			9.6%			9.8%			10.4%
Weighted Avg. Yield on Debt and Other Income Producing Securities
at Fair Value(4)		9.3%			9.4%			9.7%			9.9%			10.5%
Weighted Average Yield on Total Investments at Amortized Cost(5)		7.7%			7.9%			8.6%			8.8%			9.2%
Weighted Average Yield on Total Investments at Fair Value(5)		8.3%			8.5%			8.7%			9.0%			9.5%

5

Selected Historical Financial Information (cont'd)

(dollar amounts in millions)For the Three Months Ended

	6/30/20			3/31/20				12/31/19			9/30/19			6/30/19
Commitments:
Gross Commitments(2)	$	867	$	1,272	$	1,608	$	2,409	$	1,307
Exits of Commitments(3)		(1,484)			(918)			(1,224)			(1,424)			(1,348)
Net Commitments(14)	$	(617)	$	354	$	384	$	985	$	(41)
Gross Commitments Information:
Number of Transactions		22			37			43			50			33
Weighted Average Commitment Term in Months		55			70			75			70			93
Average Commitment in Period	$	39	$	34	$	37	$	48	$	40
Fundings:
Gross Fundings	$	953	$	1,760	$	1,540	$	2,098	$	1,249
Net Fundings(14)	$	(702)	$	752	$	379	$	788	$	(90)
Portfolio Turnover		0.07			0.07			0.08			0.10			0.10

6

Quarterly Operating Results

(amounts in millions, except per share data)					For the Three Months Ended
	6/30/20			3/31/20				12/31/19			9/30/19			6/30/19
Investment income	$	350	$	369	$	386	$	387	$	382
Expenses, net of waiver of income based fees (15)		180			132			193			170			170
Net investment income before income taxes		170			237			193			217			212
Income tax expense, including excise tax		5			3			3			5			4
Net investment income		165			234			190			212			208
Net realized and unrealized gains (losses)		112			(846)			14			(37)			(8)
Net Income (Loss)	$	277	$	(612)	$	204	$	175	$	200
Per Share:
Core EPS - Basic and Diluted*(1)	$	0.39		$	0.41		$	0.45		$	0.48		$	0.49
Net Income (Loss) - Basic and Diluted	$	0.65		$	(1.42)		$	0.48		$	0.41		$	0.47
Dividends Declared and Payable**	$	0.40	$	0.40	$	0.42	$	0.42	$	0.42
Weighted average shares of common stock outstanding - Basic and Diluted		423			430			429			427			426
Common shares outstanding at end of period		423			423			431			427			427

(amounts in millions, except per share data)		For the Six Months Ended
		6/30/20			6/30/19
Investment income	$	719	$	755
Expenses, net of waiver of income based fees (15)		312			338
Net investment income before income taxes		407			417
Income tax expense, including excise tax		8			8
Net investment income		399			409
Net realized and unrealized gains (losses)		(734)			5
Net Income (Loss)	$	(335)	$	414
Per Share:
Core EPS - Basic and Diluted*(1)	$	0.80		$	0.96
Net Income (Loss) - Basic and Diluted	$	(0.79)	$	0.97
Dividends Declared and Payable**		0.80			0.84
Weighted average shares of common stock outstanding - Basic and Diluted		426			426
Common shares outstanding at end of period		423			427

• See page 23 hereof for reconciliations of basic and diluted Core EPS to GAAP net income (loss) per share, the most directly comparable GAAP financial measure. ** For each of the quarters ended December 31, 2019, September 30, 2019 and June 30, 2019, dividends declared and payable included additional
  dividends of $0.02/share in each quarter. For the six months ended June 30, 2019, dividends declared and payable included additional dividends of $0.04/share.

7

Quarterly Operating Results Detail

(amounts in millions)					For the Three Months Ended
	6/30/20			3/31/20				12/31/19			9/30/19			6/30/19
Net Investment Income Before Income Taxes:
Investment Income:
Interest income from investments	$	287	$	298	$	296	$	299	$	296
Capital structuring service fees		16			28			38			41			38
Dividend income		36			36			44			39			38
Other income		11			7			8			8			10
Total investment income		350			369			386			387			382
Expenses:
Interest and credit facility fees		76			82			79			76			69
Base management fees		53			55			54			52			50
Income based fees*		41			44			48			49			49
Capital gains incentive fees**		-			(58)			3			(8)			(1)
Administrative fees		3			4			3			4			3
Other general and administrative		7			5			6			7			10
Total operating expenses		180			132			193			180			180
Waiver of income based fees(15)		-			-			-			(10)			(10)
Total expenses, net of waiver of income based fees(15)		180			132			193			170			170
Net investment income before income taxes		170			237			193			217			212
Income tax expense, including excise tax		5			3			3			5			4
Net investment income	$	165	$	234	$	190	$	212	$	208

• Pursuant to the terms under the Investment Advisory and Management Agreement, payment of the income based fees payable of $41 million for the three months ended June 30, 2020 will be deferred.

• Accrued in accordance with GAAP. As of June 30, 2020, Ares Capital had no incentive fees payable related to capital gains under GAAP. The actual amount of any capital gains incentive fee due under the Investment Advisory and Management Agreement is only determined annually at the end of each calendar year and may be different from the amount accrued under GAAP. No capital gains incentive fee were actually payable under Ares Capital's investment advisory and management agreement with its investment adviser, Ares Capital Management (the "Investment Advisory and Management Agreement") for any periods presented.

8

Quarterly Gain/Loss Detail

(amounts in millions)					For the Three Months Ended
	6/30/20			3/31/20				12/31/19			9/30/19			6/30/19
Net Realized and Unrealized Gains (Losses):
Realized gains (losses) on investments:
Gains	$	33	$	47	$	21	$	25	$	20
Losses		(23)			(12)			(99)			(99)			(2)
Net realized gains (losses) on investments		10			35			(78)			(74)			18
Unrealized gains (losses) on investments:
Unrealized appreciation		311			37			129			82			77
Unrealized depreciation		(237)			(912)			(129)			(139)			(98)
Net unrealized gains (losses) on investments		74			(875)			-			(57)			(21)
Net unrealized (appreciation) depreciation reversed related to
net realized gains or losses on investments		33			(14)			100			81			(3)
Total net unrealized gains (losses) on investments		107			(889)			100			24			(24)
Net realized and unrealized gains (losses) on foreign currency
and other transactions		(5)			8			(8)			13			(2)
Net realized and unrealized gains (losses)	$	112	$	(846)	$	14	$	(37)	$	(8)

9

Quarterly Balance Sheets

(amounts in millions, except per share data)								As of
		6/30/20			3/31/20			12/31/19			9/30/19			6/30/19
ASSETS
Investments at fair value	$	13,842	$	14,370	$	14,426	$	13,892	$	12,992
Cash and cash equivalents		278			460			167			179			541
Restricted cash		23			655			9			74			31
Interest receivable		116			111			117			121			105
Other assets		101			93			78			89			76
Operating lease right-of-use asset		90			94			94			99			101
Receivable from participants		61			-			-			-			-
Receivable for open trades		6			23			14			4			-
Total assets	$	14,517	$	15,806	$	14,905	$	14,458	$	13,846
LIABILITIES
Debt	$	7,398	$	8,179	$	6,971	$	6,598	$	6,024
Payable to participants		23			655			9			74			31
Base management fees payable		53			55			54			52			50
Income based fees payable*		41			44			48			39			39
Capital gains incentive fees payable**		-			-			58			55			63
Interest and facility fees payable		63			38			54			44			62
Accounts payable and other liabilities		114			122			90			95			76
Payable for open trades		21			11			33			-			2
Operating lease liabilities		113			119			121			128			131
Total liabilities		7,826			9,223			7,438			7,085			6,478
STOCKHOLDERS' EQUITY
Common stock		-			-			-			-			-
Capital in excess of par value		7,660			7,660			7,760			7,194			7,185
Accumulated undistributed (overdistributed) earnings		(969)			(1,077)			(293)			179			183
Total stockholders' equity		6,691			6,583			7,467			7,373			7,368
Total liabilities and stockholders' equity	$	14,517		$	15,806		$	14,905		$	14,458		$	13,846
NET ASSETS PER SHARE	$	15.83	$	15.58	$	17.32	$	17.26	$	17.27

• Pursuant to the terms under the Ares Capital's Investment Advisory and Management Agreement, payment of the income based fees payable of $41 million at June 30, 2020 will be deferred.

• Accrued in accordance with GAAP. No capital gains incentive fees were actually payable under the Ares Capital's Investment Advisory and Management Agreement for any periods presented.

10

Investment Portfolio by Issuer as of June 30, 2020*

Remaining Comprised of

337 Investments

68.5%

6.4%

	Top 15
4.8%	Investments
31.5%
	2.6%
	1.9%
	1.9%
	1.6%
	1.6%
	1.5%

1.5% 1.3%

1.3%

1.3% 1.3%

1.3%

1.2%

(12)

Senior Direct Lending Program, LLC

Ivy Hill Asset Management, L.P.

Athenahealth, Inc.

GHX Ultimate Parent Corporation

Singer Sewing Company

The Ultimate Software Group, Inc.

Mac Lean-Fogg Company

Ministry Brands, LLC

IRI Holdings, Inc.

Air Medical Group Holdings, Inc.

Mavis Tire Express Services Corp.

Spin HoldCo Inc.

OTG Management, LLC

Wand Newco 3, Inc.

DFS Holding Company, Inc.

Remaining Investments

Diversified $13.8 billion portfolio with 352 investments

• At fair value.

11

Investment Portfolio as of June 30, 2020*

Asset Class

Industry

8%

6%

2%

	5%	2%
	2%
		3%
7%		3%

4%

44%

6%

5%

6%

6%

30%

6%

7%

7%

19%

14%

8%

			First Lien Senior Secured Loans(11)			Health Care Services		Automobiles & Components
			Second Lien Senior Secured Loans			Software & Services		Capital Goods
			Senior Direct Lending Program(12)			Commercial & Professional Services		Insurance Services
			Senior Subordinated Loans			Diversified Financials		Energy
			Preferred Equity			Power Generation		Food & Beverage
			Other Equity			Senior Direct Lending Program(12)		Retailing & Distribution
						Consumer Services		Materials
						Consumer Durables & Apparel		Other
*	At fair value.
				12

Portfolio Activity

Gross Commitments by Asset Class		Exits of Commitments by Asset Class

100%	3%	2%	1%	4%	3%	100%	1%	1%	1%	3%	2%
4%	1%		3%	3%	1%		1%		3%
	12%		10%	6%
	7%		6%	17%	3%
	13%			8%	18%		3%	7%	1%
80%		7%		80%	11%
		5%	16%			9%
			7%
									39%
60%	31%					60%

40%

90%

40%

81%

92%

75%

69%

69%

78%

73%

20%

49%

20%

51%

0%

0%

Q2-19

Q3-19

Q4-19

Q1-20

Q2-20

Q2-19

Q3-19

Q4-19

Q1-20

Q2-20

First Lien Senior Secured Loans

Second Lien Senior Secured Loans

First Lien Senior Secured Loans

Second Lien Senior Secured Loans

Senior Direct Lending Program(12)

Senior Subordinated Loans

Senior Direct Lending Program(12)

Senior Subordinated Loans

Preferred Equity

Other Equity and Other

Collateralized Loan Obligations

Preferred Equity

% Floating

Other Equity and Other

% Floating

13

Portfolio Company EBITDA and Credit Statistics

	$136.7	$138.9		$141.0
$135.1	$135.0		$140.0
					$130.0
8.0x					$120.0
					$110.0
					$100.0
6.0x					$90.0
5.7x	5.7x	5.7x	5.4x	5.7x
			$83.9	$80.0	($ Millions)
			$80.6
		$75.4
$70.9	$72.8			$70.0
4.0x					$60.0
			2.7x	2.9x	$50.0
	2.3x	2.3x		$40.0
2.2x
2.0x					$30.0
					$20.0
					$10.0
0.0x				Q2-20*	$0.0
Q2-19	Q3-19	Q4-19	Q1-20

Portfolio Weighted Average EBITDA(16)(17)(18)

Portfolio Weighted Average EBITDA(25)**

Portfolio Average EBITDA (16)(18)

Portfolio Average EBITA (25) (27)

PortfolioPortfolioWeightedWeightedAverageAverageTotalTotalNetNet Leverage

(16)(18)(19)	***
LeveragMultiple Multiple

Portfolio Weighted Average Interest

Portfolio Weighted Average Interest Coverage

Coverage(16)(18)(20)Ratio ****

Ratio

• For the portfolio companies included in the portfolio weighted average EBITDA data above (subject to additional exclusions described in the following sentence), the
  weighted average EBITDA growth rate as of Q2-20 was approximately 1% on a comparable basis for the most recently reported LTM period versus prior year LTM period. In addition to those portfolio companies excluded as noted, this calculation excludes 13 companies where prior year comparable data was not available.(21)

14

Portfolio By Grade(22)

% By Fair Value		% By Number of Companies

100%							6%	9%
	10%		8%		8%
90%
80%
70%
60%								71%
50%			87%		86%		85%
85%
40%
30%
20%
10%								19%
	4%		4%		5%		8%
0%	1%	1%	1%	1%	1%
	Q2-19		Q3-19		Q4-19		Q1-20	Q2-20

	Grade 1		Grade 2

100%	4%	5%	6%	4%
	8%
90%
80%
70%
60%					67%
				82%
	85%	85%	85%
50%
40%
30%
20%					16%
10%	4%	4%	4%	8%	9%
	7%
	6%	6%
	5%
0%
	Q2-19	Q3-19	Q4-19	Q1-20	Q2-20

	Grade 3		Grade 4

15

Loans on Non-Accrual Status

Amortized Cost		Fair Value

6.0%						$1,000
5.5%						$900
5.0%						$800
4.5%					4.4%
					$700
4.0%
				$657
3.5%					$600	Millions)
			3.1%
3.0%						$500
				$477
2.5%	2.3%				$400	($
			1.9%
2.0%
	1.5%				$300
1.5%	$313
$272
				$200
1.0%		$211
0.5%						$100
0.0%						$0
	Q2-19	Q3-19	Q4-19	Q1-20	Q2-20

6.0%						$1,000
5.5%						$900
5.0%						$800
4.5%
					$700
4.0%
3.5%						$600	($ Millions)
3.0%					2.6%	$500
2.5%						$400
2.0%				1.7%		$300
1.5%
					$200
1.0%			0.9%		$356
			$240
0.5%		0.2%			$100
0.2%	$133
0.0%	$25	$23				$0
	Q2-19	Q3-19	Q4-19	Q1-20	Q2-20

Investments on Non-Accrual Status

Percentage of Total Investment Portfolio

16

Investment Activity from July 1, 2020 through July 29, 2020

• Ares Capital made approximately $63 million of new investment commitments
• • 96% were in first lien senior secured loans, 2% were in second lien senior secured loans and 2% were in preferred equity securities
  • 98% were floating rate and 2% were non-income producing
  • Weighted average yield of debt and other income producing securities funded at amortized cost of 8.2%
• Ares Capital exited approximately $146 million of investment commitments
• • 85% were second lien senior secured loans, 12% were first lien senior secured loans and 3% were subordinated certificates of the SDLP
  • 100% were floating rate
  • Weighted average yield of debt and other income producing securities exited or repaid at amortized cost was 9.6%
  • Weighted average yield on total investments exited or repaid during the period at amortized cost was 9.6%
  • Total net realized gains of approximately $5 million

17

Backlog and Pipeline

• As of July 29, 2020, Ares Capital had a backlog and pipeline of approximately $405 million and $470 million, respectively(23)
• The following is a breakdown of the backlog and pipeline by asset class and by industry

Asset Class		Industry

2%

14%

26%

26%

5%

15%

1%

2%

		69%
		23%
		17%
	First Lien Senior Secured Loans(11)			Retailing & Distribution
	Second Lien Senior Secured Loans			Commercial & Professional Services
	Senior Direct Lending Program(12)			Software & Services
	Senior Subordinated Loans			Health Care Services
	Preferred Equity			Capital Goods
	Other Equity			Other

18

Debt Summary

			As of 3/31/20									As of 6/30/20
		Aggregate							Aggregate						Weighted
		Principal							Principal						Average
		Amount		Principal	Carrying Value			Amount		Principal	Carrying Value	Stated
		Committed/		Amount	of Outstanding			Committed/		Amount	of Outstanding	Interest
(dollar amounts in millions)	Outstanding(25)	Outstanding		Debt		Outstanding(25)		Outstanding		Debt	Rate(28)	Interest Rate		Maturity Date
Secured Revolving Facilities(24):
Revolving Credit Facility	$	3,605	$	2,265	$	2,265	$	3,617	$	1,651	$	1,651		1.952%	LIBOR + 1.75%	(29)	March 2025	(29)
Revolving Funding Facility		1,525		913		913			1,525		763		763		2.183%	LIBOR + 2.00%	(30)	January 2025	(30)
SMBC Funding Facility		725		475		475			725		453		453		2.564%	LIBOR + 1.75% (31)	September 2024 (31)
BNP Funding Facility		-		-		-			300		-		-	-%	LIBOR + 2.75%	(32)	June 2025	(32)
Subtotal		5,855		3,653		3,653			6,167		2,867		2,867		2.366%

Unsecured Notes Payable:*

2022 Notes		600		600		597	(26)		600		600		597
2022 Convertible Notes		388		388		379	(26)		388		388		380
2023 Notes		750		750		746	(26)		750		750		746
2024 Convertible Notes		403		403		390	(26)		403		403		391
2024 Notes		900		900		895	(26)		900		900		896
March 2025 Notes		600		600		594	(26)		600		600		595
July 2025 Notes		750		750		740	(26)		750		750		741
2047 Notes		230		230		185	(27)		230		230		185
Subtotal		4,621		4,621		4,526			4,621		4,621		4,531
Total Debt	$	10,476	$	8,274	$	8,179	$	10,788	$	7,488	$	7,398

(26)	3.625%	January 2022
(26)	3.750%	February 2022
(26)	3.500%	February 2023
(26)	4.625%	March 2024
(26)	4.200%	June 2024
(26)	4.250%	March 2025
(26)	3.250%	July 2025
(27)	6.875%	April 2047
	3.996%
	3.372%

Floating and Fixed rate debt as of June 30, 2020

						Weighted Average
Debt	Principal Amount		Weighted Average		Remaining Maturity**
(dollar amounts in millions)		Outstanding		Stated Interest Rate(28)		(in years)
Floating	$	2,473	2.24%	4.58
Fixed(29)		5,015		3.98%		4.63
Total	$	7,488	3.37%	4.61

*In July 2020, Ares Capital issued $750 million aggregate principal amount of unsecured notes that mature on January 15, 2026 and bear interest at a rate of 3.875% per annum (the ''2026 Notes'').

**Represents the weighted average remaining maturity of outstanding debt as of June 30, 2020.

19

Debt Summary

Debt Maturities*

($ in millions)

$5,000
$4,000
					(29)(30)
$3,000					$3,074
$2,000				(29)(31)
				$579
$1,000				$900
				$1,580
		$600
		$388	$750	$403
$0
2020	2021	2022	2023	2024	Thereafter**

As of March 31, 2020

($ in millions)

$5,000
$4,000
$3,000					(29)(30)
					$2,336
$2,000				(29)(31)
				$531
$1,000				$900	$1,580
		$600
		$388	$750	$403
$0
2020	2021	2022	2023	2024	Thereafter**

As of June 30, 2020

	Convertible Unsecured Notes		Other Unsecured Notes		Secured Revolving Facilities

• Represents the total aggregate principal amount outstanding due on the stated maturity date. ** Does not include the 2026 Notes, which Ares Capital issued in July 2020.

20

Quarterly Dividends

$0.50
$0.40										$0.02	$0.02	$0.02	$0.02
									$0.40	$0.40	$0.40	$0.40	$0.40	$0.40	$0.40
								$0.39	$0.39
$0.38	$0.38	$0.38	$0.38	$0.38	$0.38	$0.38	$0.38
$0.30
$0.20
$0.10
$0.00
Q3-16	Q4-16	Q1-17	Q2-17	Q3-17	Q4-17	Q1-18	Q2-18	Q3-18	Q4-18	Q1-19	Q2-19	Q3-19	Q4-19	Q1-20	Q2-20	Q3-20	(33)
					Regular Dividend		Additional Dividend

• ARCC estimates that it will carry forward excess taxable income of approximately $408 million (34) or $0.96 per share from 2019 for distribution to stockholders in 2020.

21

Corporate Data

Board of Directors

MICHAEL AROUGHETI

Co-Chairman and Executive Vice President of

Ares Capital Corporation

Co-Founder, Chief Executive Officer and

President of Ares

STEVE BARTLETT

Strategic Independent Consultant

ANN TORRE BATES

Former Executive Vice President, Chief Financial

Officer and Treasurer of NHP, Inc.

KIPP DEVEER

Director and Chief Executive Officer of Ares

Capital Corporation

Partner, Head of Credit Group

DANIEL KELLY, JR.

Former Partner of Davis Polk & Wardwell LLP

STEVEN MCKEEVER

Founder and Chief Executive Officer of Hidden

Beach Recordings

MICHAEL PARKS

Chief Executive Officer and President of

FlyawayHomes

ROBERT ROSEN

Strategic Adviser to Private Equity Group

BENNETT ROSENTHAL

Co-Chairman of Ares Capital Corporation

Co-Founder and Partner of Ares

Co-Chairman of Ares Private Equity Group

ERIC SIEGEL

Retired Partner of Apollo Advisors, L.P.

Investment Committee

MARK AFFOLTER

Partner of the Ares Credit Group

MICHAEL AROUGHETI

Co-Chairman and Executive Vice President of Ares

Capital Corporation

Co-Founder, Chief Executive Officer and Partner of

Ares

KIPP DEVEER

Chief Executive Officer of Ares Capital Corporation Head and Partner of the Ares Credit Group

MITCHELL GOLDSTEIN

Co-President of Ares Capital Corporation

Partner and Co-Head of Ares Credit Group

JIM MILLER

Partner, Co-Head of U.S. Direct Lending

KORT SCHNABEL

Partner, Co-Head of U.S. Direct Lending

DAVID SCHWARTZ

Partner, Co-Head of U.S. Direct Lending

MICHAEL SMITH

Co-President of Ares Capital Corporation

Co-Head of Ares Credit Group

Corporate Officers

MICHAEL AROUGHETI

Co-Chairman and Executive Vice

President

JOSHUA BLOOMSTEIN

Vice President, General Counsel and

Secretary

KIPP DEVEER

Director and Chief Executive Officer

MITCHELL GOLDSTEIN

Co-President

MIRIAM KRIEGER

Vice President

SCOTT LEM

Chief Accounting Officer,

Vice President and Treasurer

LISA MORGAN

Chief Compliance Officer

PENNI ROLL

Chief Financial Officer

NASEEM SAGATI AGHILI

Vice President

MICHAEL SMITH

Co-President

MICHAEL WEINER

Vice President

Research Coverage

BANK OF AMERICA MERRILL LYNCH Derek Hewett - [phone]

BARCLAYS

Mark Devries - [phone]

BMO CAPITAL MARKETS Lana Chan - [phone]

CITI RESEARCH

Arren Cyganovich - [phone]

COMPASS POINT

Casey Alexander - [phone]

JANNEY MONTGOMERY SCOTT Mitchel Penn - [phone]

JEFFERIES

John Hecht - [phone]

JMP SECURITIES

Chris York - [phone]

J.P. MORGAN SECURITIES INC. Richard Shane - [phone]

KBW, INC.

Ryan Lynch - [phone]

OPPENHEIMER & CO.

Chris Kotowski - [phone]

RAYMOND JAMES

Robert Dodd - [phone]

RBC CAPITAL MARKETS CORP. Kenneth Lee - [phone]

SUNTRUST ROBINSON HUMPHREY

Mark Hughes - [phone]

WEDBUSH

Henry Coffey - [phone]

WELLS FARGO SECURITIES LLC Finian O'Shea- [phone]

Corporate Counsel

KIRKLAND & ELLIS LLP

Los Angeles, CA

EVERSHEDS SUTHERLAND (US) LLP Washington, D.C.

Independent Registered Public Accounting Firm

KPMG LLP

Los Angeles, CA

Corporate Headquarters

245 Park Avenue, 44th Floor

New York, NY 10167

Tel: [phone]

Fax: [phone]

Securities Listing

NASDAQ: ARCC

Transfer Agent

Computershare, Inc.

Tel: [phone] www.computershare.com/investor

Investor Relations Contacts

CARL DRAKE

Partner and Head of Public Investor

Relations and Communications of Ares

Tel: [phone]

JOHN STILMAR

Managing Director, Investor Relations

Tel: [phone]

Please visit our website at:

www.arescapitalcorp.com

22

Reconciliations of Core EPS

The following are reconciliations of basic and diluted net income (loss) per share computed in accordance with GAAP to basic and diluted core earnings per share:

					For the Three Months Ended
		6/30/20			3/31/20			12/31/19			9/30/19			6/30/19
Basic and Diluted Core EPS(1)	$	0.39		$	0.41		$	0.45		$	0.48		$	0.49
Net realized and unrealized gains (losses)		0.26			(1.96)			0.04			(0.09)			(0.02)
Capital gains incentive fees attributable to net realized and unrealized gains and losses		-			0.13			(0.01)			0.02			-
Income tax expense related to net realized gains and losses		-			-			-			-			-
Basic and Diluted GAAP net income (loss) per share	$	0.65	$	(1.42)	$	0.48	$	0.41	$	0.47

		For the Six Months Ended
		6/30/20			6/30/19
Basic and Diluted Core EPS(1)	$	0.80		$	0.96
Net realized and unrealized gains (losses)		(1.73)			0.01
Capital gains incentive fees attributable to net realized and unrealized gains and losses		0.14			-
Income tax expense related to net realized gains and losses		-			-
Basic and Diluted GAAP net income (loss) per share	$	(0.79)	$	0.97

23

Endnotes

1. Basic and diluted Core EPS is a non-GAAP financial measure. Core EPS is the net per share increase (decrease) in stockholders' equity resulting from operations less net realized and unrealized gains and losses, any capital gains incentive fees attributable to such net realized and unrealized gains and losses, and any income taxes related to such net realized gains and losses. Basic and diluted GAAP net income (loss) per share is the most directly comparable GAAP financial measure. Ares Capital believes that Core EPS provides useful information to investors regarding financial performance because it is one method Ares Capital uses to measure its financial condition and results of operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Reconciliations of basic and diluted Core EPS to the most directly comparable GAAP financial measure are set forth on page 23 hereof.
2. Includes investment commitments to Ivy Hill Asset Management, L.P. ("IHAM"), a wholly owned portfolio company of Ares Capital, or vehicles managed by IHAM. Q2-20 includes investment commitments to IHAM or vehicles managed by IHAM of $175 million.
3. Includes sales to IHAM or vehicles managed by IHAM. Q2-20,Q1-20,Q4-19,Q3-19 and Q2-19 include sales of loans to IHAM or vehicles managed by IHAM of $747 million, $32 million, $265 million, $109 million and $464 million, respectively.
4. The weighted average yield on debt and other income producing securities is computed as (a) annual stated interest rate or yield earned plus the net annual amortization of original issue discount and market discount or premium earned on accruing debt and other income producing securities, divided by (b) total accruing debt and other income producing securities at amortized cost or at fair value, as applicable.
5. The weighted average yield on the total investment portfolio is computed as (a) annual stated interest rate or yield earned plus the net annual amortization of original issue discount and market discount or premium earned on accruing debt and other income producing securities, divided by (b) total investments at amortized cost or at fair value, as applicable.
6. Computed as total principal debt outstanding less available cash divided by stockholders' equity. Available cash excludes restricted cash as well as cash held for dividends payable and for uses specifically designated for paying interest and expenses on certain debt.
7. Computed as (a) the annual stated interest expense on our debt obligations divided by (b) total debt obligations at principal amount outstanding. Stated interest expense on debt excludes facility and other fees and the amortization of original issue discount or premium, market discounts and debt issuance costs. In December 2017, Ares Capital entered into a three-year interest rate swap agreement to effectively fix the interest rate in connection with $395 million of the term loan tranche of its Revolving Credit Facility. The stated interest rate for $395 million of the term loan tranche of the Revolving Credit Facility used to calculate weighted average stated interest on debt reflects the fixed base interest rate of 2.064% plus the applicable spread of 1.75%, or an all-in rate of 3.814%.
8. Net interest and dividend margin represents the difference between interest and dividend income and interest and credit facility fees expense for the last twelve month period divided by average total investments at amortized cost during the same period.
9. Excludes realized and unrealized gains (losses) and incentive fees attributable to net realized and unrealized gains (losses).
10. Includes portfolio companies for which there are outstanding commitments, but for which no amounts were funded at the end of the period.
11. First lien senior secured loans include certain loans that Ares Capital classifies as "unitranche" loans, which are loans that combine both senior and mezzanine debt, generally in a first lien position. As of June 30, 2020, the total amortized cost and fair value of loans that Ares Capital classified as "unitranche" loans were $1,913 million and $1,773 million, respectively.
12. Represents Ares Capital's portion of co-investments with Varagon Capital Partners and its clients in first lien senior secured loans, including certain loans that the SDLP classifies as "unitranche" loans, to U.S. middle-market companies. As of June 30, 2020, the Senior Direct Lending Program LLC's (the "SDLP") loan portfolio totaled approximately $3.9 billion in aggregate principal amount and had loans to 22 different borrowers. As of June 30, 2020, the SDLP's largest loan to a single borrower was $347 million in aggregate principal amount and the five largest loans to borrowers totaled $1.5 billion in aggregate principal amount. As of June 30, 2020, the total principal amount of loans in the SDLP portfolio that the SDLP classified as "unitranche" loans was $3.7 billion. The portfolio companies in the SDLP are in industries similar to companies in Ares Capital's portfolio. See Note 4 to Ares Capital's consolidated financial statements included in the quarterly report on Form 10-Q for the year ended June 30, 2020 for information regarding the SDLP.

24

Endnotes (cont'd)

1. As of June 30, 2020, excluding Ares Capital's investment in the subordinated certificates of the SDLP, 82% of the floating rate investments at fair value contained interest rate floor features.
2. Represents gross commitments or fundings less commitments or investments exited, respectively.
3. In connection with the acquisition of American Capital, Ltd., Ares Capital Management LLC waived $10 million of income based fees for each of the ten calendar quarters beginning with the second calendar quarter of 2017 and ending with the third calendar quarter of 2019.
4. The portfolio weighted average EBITDA and average EBITDA for the underlying borrowers includes information solely in respect of corporate investments in Ares Capital's portfolio and the weighted average total net leverage multiple and interest coverage ratio data includes information solely in respect of corporate portfolio companies in which Ares Capital has a debt investment (in each case, subject to the exclusions described in the following sentence). Excluded from the data above is information in respect of the following: (i) the SDLP (and the underlying borrowers in the SDLP), (ii) portfolio companies that do not report EBITDA, including IHAM, (iii) portfolio companies with negative or de minimis EBITDA,
5. 1. investment funds/vehicles, (v) discrete projects in the project finance/power generation sector, (vi) certain oil and gas companies, (vii) venture capital backed companies and
   1. commercial real estate finance companies. The portfolio weighted average EBITDA for the underlying borrowers in the SDLP was $52.1 million, $51.1 million, $53.4 million, $55.3 million and $58.1 million as of 6/30/19, 9/30/19, 12/31/19, 3/31/20 and 6/30/20, respectively. The portfolio average EBITDA for the underlying borrowers in the SDLP was $45.1 million, $44.0 million, $45.4 million, $46.4 million and $47.1 million as of 6/30/19, 9/30/19, 12/31/19, 3/31/20 and 6/30/20, respectively.
6. Weighted average EBITDA amounts are weighted based on the fair value of the portfolio company investments. EBITDA amounts are estimated from the most recent portfolio company financial statements, have not been independently verified by Ares Capital and may reflect a normalized or adjusted amount. Accordingly, Ares Capital makes no representation or warranty in respect of this information.
7. EBITDA is a non-GAAP financial measure. For a particular portfolio company, EBITDA is generally defined as net income before net interest expense, income tax expense, depreciation and amortization. EBITDA amounts are estimated from the most recent portfolio company financial statements, have not been independently verified by Ares Capital and may reflect a normalized or adjusted amount. Accordingly, Ares Capital makes no representation or warranty in respect of this information.
8. Portfolio weighted average total net leverage multiples represent Ares Capital's last dollar of invested debt capital (net of cash) as a multiple of EBITDA. Portfolio weighted average total net leverage multiples for borrowers in the SDLP represent the SDLP's last dollar of invested debt capital (net of cash) as a multiple of EBITDA. The weighted average total net leverage multiple for the underlying borrowers in the SDLP was 5.9x, 6.0x, 6.1x, 5.8x and 5.9x as of 6/30/19, 9/30/19, 12/31/19, 3/31/20 and 6/30/20, respectively. Weighted average total net leverage multiples are weighted based on the fair value of the portfolio company investments. Portfolio company credit statistics for Ares Capital and the SDLP are derived from the most recently available portfolio company financial statements, have not been independently verified by Ares Capital and may reflect a normalized or adjusted amount. Accordingly, Ares Capital makes no representation or warranty in respect of this information.
9. Portfolio weighted average interest coverage ratio represents the portfolio company's EBITDA as a multiple of cash interest expense. The weighted average interest coverage ratio for the underlying borrowers in the SDLP was 2.0x, 2.1x, 2.1x, 2.2x and 2.4x as of 6/30/19, 9/30/19, 12/31/19, 3/31/20 and 6/30/20, respectively. Weighted average interest coverage ratios are weighted based on the fair value of the portfolio company investments. Portfolio company credit statistics for Ares Capital and the SDLP are derived from the most recently available portfolio company financial statements, have not been independently verified by Ares Capital and may reflect a normalized or adjusted amount. Accordingly, Ares Capital makes no representation or warranty in respect of this information.
10. The EBITDA growth rate for each included portfolio company is calculated as the percentage change for the most recently reported fiscal year to date comparable periods and is weighted based on the fair value of the portfolio company investments to calculate the portfolio weighted average EBITDA growth rate. For a particular portfolio company, EBITDA is generally defined as net income before net interest expense, income tax expense, depreciation and amortization. EBITDA amounts used in the calculation are estimated from the most recent portfolio company financial statements, have not been independently verified by Ares Capital and may reflect a normalized or adjusted amount. Accordingly, Ares Capital makes no representation or warranty in respect of this information.

25

Endnotes (cont'd)

1. Based on our investment adviser's internal investment rating system scale from 1 to 4. Investments with a grade of 4 involve the least amount of risk to our initial cost basis and the trends and risk factors for these investments since origination or acquisition are generally favorable, which may include the performance of the portfolio company or a potential exit. Investments with a grade of 3 involve a level of risk to our initial cost basis that is similar to the risk to our initial cost basis at the time of origination or acquisition. This portfolio company is generally performing as expected and the risk factors to our ability to ultimately recoup the cost of our investment are neutral to favorable. Investments with a grade of 2 indicate that the risk to our ability to recoup the initial cost basis of such investment has increased materially since origination or acquisition, including as a result of factors such as declining performance and non-compliance with debt covenants; however, payments are generally not more than 120 days past due. Investments with a grade of 1 indicate that the risk to our ability to recoup the initial cost basis of such investment has substantially increased since origination or acquisition and our investment adviser does not anticipate that we will recoup our initial cost basis and we may realize a substantial loss on our initial cost basis upon exit. All investments or acquired investments in new portfolio companies are initially assessed a grade of 3.
2. Investment backlog includes transactions approved by our investment adviser's investment committee and/or for which a formal mandate, letter of intent or a signed commitment has been issued, and therefore we believe are likely to close. Investment pipeline includes transactions where due diligence and analysis are in process, but no formal mandate, letter of intent or signed commitment has been issued. The consummation of any of the investments in this backlog and pipeline depends upon, among other things, one or more of the following: satisfactory completion of our due diligence investigation of the prospective portfolio company, our acceptance of the terms and structure of such investment and the execution and delivery of satisfactory transaction documentation. In addition, Ares Capital may sell all or a portion of these investments and certain of these investments may result in the repayment of existing investments. Ares Capital cannot assure you that we will make any of these investments or that we will sell all or any portion of these investments.
3. Requires periodic payments of interest and may require repayments of a portion of the outstanding principal once their respective reinvestment periods end but prior to the applicable stated maturity.
4. Subject to borrowing base and other restrictions. Represents total aggregate amount committed or outstanding, as applicable, under such instrument.
5. Represents the aggregate principal amount of the notes outstanding adjusted for the unaccreted discount or premium initially recorded at the time of issuance.
6. Represents the aggregate principal amount of the notes outstanding less the unaccreted purchased discount initially recorded at the time of acquisition.
7. Effective stated rate as of June 30, 2020.
8. The interest rate charged on the Revolving Credit Facility is based on an applicable spread of either 1.75% or 1.875% over LIBOR or 0.75% or 0.875% over an "alternate base rate" (as defined in the agreements governing the Revolving Credit Facility), in each case, determined monthly based on the total amount of borrowing base relative to the total commitments of the Revolving Credit Facility and other debt, if any, secured by the same collateral as the Revolving Credit Facility. As of June 30, 2020, the interest rate in effect was LIBOR plus 1.75%. The Revolving Credit Facility consists of a $740 million term loan tranche and a $2,877 million revolving tranche. For $699 million of the term loan tranche, the stated maturity date is March 30, 2025. For the remaining $41 million of the term loan tranche, the stated maturity date is March 30, 2024. For $2,753 million of the revolving tranche, the end of the revolving period and the stated maturity date are March 30, 2024 and March 30, 2025, respectively. For the remaining $124 million of the revolving tranche, the end of the revolving period and the stated maturity date are March 30, 2023 and March 30, 2024, respectively. Subsequent to the end of the respective revolving periods and prior to the respective stated maturity dates, Ares Capital is required to repay the relevant outstanding principal amounts under both the term loan tranche and revolving tranche on a monthly basis in an amount equal to 1/12th of the outstanding principal amount at the end of the respective revolving period. In December 2017, Ares Capital entered into a three-year interest rate swap agreement to effectively fix the interest rate in connection with $395 million of the term loan tranche of the Revolving Credit Facility. See endnote 7 for additional information on the interest rate swap agreement.

26

Endnotes (cont'd)

1. The interest rate charged on the Revolving Funding Facility is based on LIBOR plus 2.00% per annum or a "base rate" (as defined in the agreements governing the Revolving Funding Facility) plus 1.00% per annum. As of June 30, 2020, the interest rate in effect was LIBOR plus 2.00%. The end of the reinvestment period and the stated maturity date for the Revolving Funding Facility are January 31, 2023 and January 31, 2025, respectively. Subsequent to the end of this reinvestment period and prior to the stated maturity date of January 31, 2025, any principal proceeds from sales and repayments of loan assets held by Ares Capital CP Funding LLC will be used to repay the aggregate principal amount outstanding.
2. The interest rate charged on the SMBC Funding Facility is based on an applicable spread of either 1.75% or 2.00% per annum over LIBOR or 0.75% or 1.00% per annum over a "base rate" (as defined in the agreements governing the SMBC Funding Facility), in each case, determined monthly based on the amount of the average borrowings outstanding under the SMBC Funding Facility. As of June 30, 2020, the interest rate in effect was LIBOR plus 1.75%. The end of the reinvestment period and the stated maturity date for the SMBC Funding Facility are September 10, 2022 and September 10, 2024, respectively. Subsequent to the end of this reinvestment period and prior to the stated maturity date of September 10, 2024, any principal proceeds from sales and repayments of loan assets held by our consolidated subsidiary, Ares Capital JB Funding LLC, will be used to repay the aggregate principal amount outstanding.
3. The interest rate charged on the BNP Funding Facility is based on LIBOR (subject to a floor of 0.45%), or over a "base rate" (as defined in the agreements governing the BNP Funding Facility) plus a margin that generally ranges between 2.65% and 3.15% (depending on the types of assets such advances relate to), with a weighted average margin floor for all classes of advances of (i) 2.75% during the reinvestment period and (ii) 3.25% following the reinvestment period. The end of the reinvestment period and the stated maturity date for the BNP Funding Facility are June 11, 2023 and June 11, 2025, respectively. Subsequent to the end of this reinvestment period and prior to the stated maturity date of June 11, 2025, any principal proceeds from sales and repayments of loan assets held by our consolidated subsidiary, ARCC FB Funding LLC will be used to repay the aggregate principal amount outstanding.
4. Declared. The third quarter 2020 dividend of $0.40 per share to be paid on September 30, 2020 to stockholders of record on September 15, 2020.
5. The amount of excess 2019 U.S. federal taxable income available for carry over into 2020 is only an estimate based on estimated 2019 U.S. federal taxable income. The calculation of estimated 2019 U.S. federal taxable income includes a number of estimated inputs, including information received from third parties and, as a result, actual 2019 U.S. federal taxable income will not be finally determined until Ares Capital's 2019 tax return is filed in 2020. Consequently, both 2019 U.S. federal taxable income and the amount of excess U.S. federal taxable income available for carry over into 2020 are subject to change. See Note 11 to Ares Capital's consolidated financial statements included in the annual report on Form 10-K for the year ended December 31, 2019 for more information.

27