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OFFON

ARES CAPITAL CORPORATION

(ARCC)
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Ares Capital : August 2021 Debt Investor Presentation

08/20/2021 | 08:14am EDT

Debt Investor Presentation

August 2021

Contact:

John Stilmar, Investor Relations jstilmar@aresmgmt.com (678) 538 - 1983

Confidential - Not for Publication or Distribution

Disclaimer

IMPORTANT NOTICE:

Statements included herein may constitute "forward-looking statements," which may relate to future events or the future performance or financial condition of Ares Capital Corporation ("ARCC"), its investment adviser Ares Capital Management LLC ("ACM"), a subsidiary of Ares Management Corporation ("Ares Management"), or of Ares Management. These statements are not guarantees of future results or financial condition and involve a number of risks and uncertainties. Actual results and conditions may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in the filings of ARCC and Ares Management with the Securities and Exchange Commission ("SEC"). These factors include, but are not limited to the effects of the COVID-19 global pandemic.

The information contained in this presentation is summary information that is intended to be considered in the context of the SEC filings of ARCC and Ares Management and other public announcements that ARCC or Ares Management may make, by press release or otherwise, from time to time. Neither ARCC nor Ares Management undertakes any duty or obligation to publicly update or revise the forward-looking statements or other information contained in this presentation. These materials contain information about ARCC, ACM and Ares Management, and certain of their respective personnel and affiliates, information about their respective historical performance and general information about the market. You should not view information related to the past performance of ARCC, ACM or Ares Management or information about the market, as indicative of future results, the achievement of which cannot be assured.

Nothing in these materials should be construed as a recommendation to invest in any securities that may be issued by ARCC or Ares Management or as legal, accounting or tax advice. None of ARCC, ACM, Ares Management or any affiliate of ARCC, ACM or Ares Management makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein and nothing contained herein shall be relied upon as a promise or representation whether as to the past or future performance. Certain information set forth herein includes estimates and projections and involves significant elements of subjective judgment and analysis. Further, such information, unless otherwise stated, is before giving effect to management and incentive fees and deductions for taxes. No representations are made as to the accuracy of such estimates or projections or that all assumptions relating to such estimates or projections have been considered or stated or that such estimates or projections will be realized.

These materials may contain confidential and proprietary information, and their distribution or the divulgence of any of their contents to any person, other than the person to whom they were originally delivered and such person's advisers, without the prior consent of ARCC, ACM or Ares Management, as applicable, is prohibited. You are advised that United States securities laws restrict any person who has material, non-public information about a company from purchasing or selling securities of such company (and options, warrants and rights relating thereto) and from communicating such information to any other person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell such securities. You agree not to purchase or sell such securities in violation of any such laws.

These materials are not intended as an offer to sell, or the solicitation of an offer to purchase, any security, the offer and/or sale of which can only be made by definitive offering documentation. Any offer or solicitation with respect to any securities that may be issued by ARCC, Ares Management or any of their affiliates will be made only by means of definitive offering memoranda or an effective registration statement, which will be provided to prospective investors and will contain material information that is not set forth herein, including risk factors relating to any such investment.

S&P Disclaimer Notice

This may contain information obtained from third parties, including ratings from credit ratings agencies such as Standard & Poor's. Reproduction and distribution of third party content in any form is prohibited except with the prior written permission of the related third party. Third party content providers do not guarantee the accuracy, completeness, timeliness or availability of any information, including ratings, and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such content. THIRD PARTY CONTENT PROVIDERS GIVE NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. THIRD PARTY CONTENT PROVIDERS SHALL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, EXEMPLARY, COMPENSATORY, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES, COSTS, EXPENSES, LEGAL FEES, OR LOSSES (INCLUDING LOST INCOME OR PROFITS AND OPPORTUNITY COSTS OR LOSSES CAUSED BY NEGLIGENCE) IN CONNECTION WITH ANY USE OF THEIR CONTENT, INCLUDING RATINGS. Credit ratings are statements of opinions and are not statements of fact or recommendations to purchase, hold or sell securities. They do not address the suitability of securities or the suitability of securities for investment purposes, and should not be relied on as investment advice.

Bank of America Disclaimer Notice

This may contain information sourced from Bank of America, used with permission. BANK OF AMERICA IS LICENSING THE ICE BOFA INDICES AND RELATED DATA "AS IS," MAKES NO WARRANTIES REGARDING SAME, DOES NOT GUARANTEE THE SUITABILITY, QUALITY, ACCURACY, TIMELINESS, AND/OR COMPLETENESS OF THE ICE BOFA INDICES OR ANY DATA INCLUDED IN, RELATED TO, OR DERIVED THEREFROM, ASSUMES NO LIABILITY IN CONNECTION WITH THEIR USE, AND DOES NOT SPONSOR, ENDORSE, OR RECOMMEND ARES MANAGEMENT, OR ANY OF ITS PRODUCTS OR SERVICES.

REF: DLUS-01317

Confidential - Not for Publication or Distribution

2

ARCC is a Leader in Middle Market Lending

ARCC is one of the largest direct lenders with the scale and capabilities necessary to successfully invest across a variety of market environments, including a downcycle

• Externally managed by Ares Management which amongst other things provides informational

advantages across its global platform

Scale, Team &

• Large U.S. direct lender with $17.1 billion portfolio1

Capabilities

• Highly experienced and tenured team with 27 years average investing experience2

• Disciplined underwriting process supports highly selective approach

• Incumbency creates differentiated investment opportunities

• Diversified, high quality, senior-oriented portfolio

• Less cyclically positioned investment portfolio focused on upper middle market

Attractive Portfolio &

• Use lead position to help drive outcomes

Robust Investment

• Invested approximately $70 billion3 with realized asset level gross IRR of 14%4 since IPO

Track Record

• 1.0% average annual net realized gains in excess of losses since IPO5

• 83% of portfolio companies are controlled by PE sponsors that we believe have significant resources

to support businesses6

• Deep sources of liquidity and committed capital with $6.2 billion of available liquidity*7

Strong Balance Sheet

• Fortified balance sheet with significant unsecured, long dated financing and low leverage

& Liquidity

• Leverage long-term capital to target attractive risk-adjusted returns

• Well-laddered debt maturities with no maturities until 2022

Potential for

• Track record of generating strong returns to shareholders

Long Term

• Compelling historical investment and credit performance during periods of volatility

Shareholder Value

• ~60% higher returns than the S&P 500 since IPO in 20048

As of June 30, 2021, unless otherwise stated. Past performance is not indicative of future results. Please see notes at the end of this presentation for additional important information. *Proforma for (i) the issuance of $400 million aggregate principal amount of 2028 notes and (ii) the 12.5 million share equity issuance and the associated paydowns of secured revolving facilities with net proceeds, completed subsequent to quarter-end.

Confidential - Not for Publication or Distribution

3

ARCC's Positioning and Team Advantages

4

Confidential - Not for Publication or Distribution

ARCC is Well Positioned in a Growing Market

ARCC has a leading market position with many distinct competitive advantages developed over our 16+ years

Leading Credit Manager

ARCC's manager has significant capabilities and reach

  • Ares operates one of the largest non- investment grade credit platforms with $168 billion of Credit AUM1
  • Ares has a global presence with 5 integrated groups

Expanding Market

Opportunity

The addressable

market for ARCC is

increasing

  • Long-termsecular shift to private capital
  • Traditional providers not adequately serving middle market needs
  • Growth in private equity is driving growth in private capital
  • Increased demand by borrowers

Largest Investment

Team and Market

Coverage2

ARCC is led by a

highly experienced investment team

  • Leading, cycle-tested investment team
  • 145+ investment professionals
  • Members of our Investment Committee have invested ~$70 billion since 20043

Company Position

ARCC is the largest BDC4

  • Deep industry relationships and stable capital
  • Significant credit and sourcing advantages from incumbency
  • Expanding deal flow

As of June 30, 2021.

  1. AUM amounts include funds managed by Ivy Hill Asset Management, L.P., a wholly owned portfolio company of Ares Capital Corporation and registered investment adviser.
  2. Based on Ares' view of the market.
  3. Includes invested capital from inception on October 8, 2004 through June 30, 2021. Includes investments made through Ares Capital Corporation, the Senior Secured Loan Program and the Senior Direct Lending Program. Excludes sales within one year of origination, $1.8 billion of investments acquired from Allied Capital on April 1, 2010 and $2.5 billion of investments acquired from American Capital on January 3, 2017.
  4. By market capitalization as of June 30, 2021.

Confidential - Not for Publication or Distribution

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Ares Capital Corporation published this content on 20 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 August 2021 12:13:11 UTC.


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Net income 2021 1 253 M - -
Net Debt 2021 8 919 M - -
P/E ratio 2021 7,47x
Yield 2021 7,61%
Capitalization 9 497 M 9 497 M -
EV / Sales 2021 10,7x
EV / Sales 2022 10,5x
Nbr of Employees -
Free-Float 99,1%
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Technical analysis trends ARES CAPITAL CORPORATION
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Mean consensus BUY
Number of Analysts 13
Last Close Price 21,30 $
Average target price 21,62 $
Spread / Average Target 1,48%
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R. Kipp deVeer Chief Executive Officer & Director
Mitchell S. Goldstein Co-President
Michael Lewis Smith Co-President
Penelope F. Roll Chief Financial Officer
Bennett Rosenthal Co-Chairman
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