Ares Capital : Fourth Quarter 2021 Tear Sheet

Ares Capital Corporation (NASDAQ: ARCC) is the largest publicly traded business development company1 in the U.S. and focuses on providing direct loans and other corporate investments to private middle market companies

Key Statistics

$10.3b	7.8%	10+	13%	~60%
MARKET	DIVIDEND YIELD2*	YEARS OF STABLE	AVERAGE ANNUAL	HIGHER STOCK
CAPITALIZATION2		TO INCREASING	SHAREHOLDER	BASED TOTAL
		QUARTERLY	RETURN SINCE	RETURN THAN THE
		DIVIDENDS PAID	INCEPTION3	S&P 500 SINCE IPO4

Increased the core dividend to $0.42 per share for Q1-22 and $0.12 per share additional dividend for 2022

Market Leading Company in Direct Lending

$20b	145+	387
Portfolio5	Investment Professionals	Portfolio Companies
Senior-Oriented	Experienced & Tenured	Diverse & High Quality
Portfolio	Team	Portfolio

• 75% senior secured loans6
• Focus on defensively positioned companies in less cyclical industries

• We believe we have one of the largest industry investment teams
• Investment Committee members have average tenure at Ares of 17 years
• Extensive restructuring capabilities

• Highly diverse portfolio with significant downside protection7
• Average position size of 0.3%8
• Largest investment is 1%9
• Cumulative net realized losses less than 0% since inception10

Diverse Portfolio by Asset Class and Industry11

Portfolio by Asset Class5ARCC Portfolio by Industry5

Senior-	23 Diverse
Oriented	Industries

		Software & Services - 22%	Healthcare Services - 11%
First Lien Senior Secured Loans - 47%		Commercial & Professional Services - 9%	Diversified Financials - 7%
	Insurance Services - 6%	Senior Direct Lending Program - 5%12
Second Lien Senior Secured Loans - 23%	12	Capital Goods - 5%	Automobiles & Components - 5%
Senior Direct Lending Program, LLC - 5%
Power Generation - 4%	Consumer Durables & Apparel - 4%
Senior Subordinated Loans - 4%
	Consumer Services - 4%	Retailing & Distribution - 3%
Preferred Equity - 8%		Media & Entertainment - 2%	Food & Beverage - 2%
Other Equity - 13%		Materials - 2%	Other - 9%

All information as of December 31, 2021, unless otherwise noted. Past performance is not indicative of future results *There Is no assurance that dividends will continue to be paid at these levels or at all. Refer to endnotes and Index Definitions for additional important information.

www.arescapitalcorp.com

ARCC has

leading

investment

performance on $47 billion of realized investments13

Annualized Net Realized Loss Rate16	$8.66
< 0.0%				$5.91
	What $1
		invested at
	-0.6%	ARCC's IPO in			$2.07
	2004 is worth
		today17
		-1.2%
ARCC 10	Banks14	BDC Peers 15	ARCC 3	S&P 5004	BKX TR	18
					Bank Index

Cumulative Core Earnings Plus Net Realized Gains vs. Cumulative Dividends19

$ Millions

$9,000								ARCC has a long history of strong dividend coverage
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
				Cumulative Core Earnings Plus Net Realized Gains						Cumulative Dividends Declared

Accolades20

ARCC Received Most Honored	Top Quartile Rankings for	Lender of the Year	Global Fund Manager of the
Designation & Highest	Several Funds	(North America)	Year and selected Ares Capital
Rankings for Best Investor	3Q'21 22	202023	Corporation for BDC of the
Relations Program21			year (Americas)24

All information as of December 31, 2021, unless otherwise noted. Past performance is not indicative of future results. Refer to endnotes and Index Definitions for additional

important information.

www.arescapitalcorp.com

Endnotes and Additional Important Information.

1. Based on market capitalization as of December 31, 2021.
2. Based on market prices as of February 14, 2022. Dividend yield excludes the $0.03 supplemental dividend declared in Q1-22. Including the supplemental, the dividend yield is 8.3%
3. Source: SNL Financial. As of December 31, 2021. Ares Capital Corporation's stock price-based total return is calculated assuming dividends are reinvested at the end of the day stock price on the relevant quarterly ex-dividend dates. Total return is calculated assuming investors did not participate in Ares Capital Corporation's rights offering issuance as of March 20, 2008.
4. Source: SNL Financial. As of December 31, 2021. S&P 500 returns measured by the S&P 500 Index, which measures the performance of the large-cap segment of the market. The S&P 500 is considered to be a proxy of the U.S. equity market and is composed of 500 constituent companies.
5. At fair value.
6. Including First Lien Senior Secured Loans, Second Lien Senior Secured Loans and investments in the subordinated certificates of the Senior Direct Lending Program, through which Ares Capital co-invests with Varagon Capital Partners and its clients to fund first lien senior secured loans.
7. References to downside protection are not guarantees against loss of investment capital or value.
8. Average of the amortized cost divided by total portfolio at amortized cost for each portfolio company.
9. Based on fair value. Excludes IHAM and the subordinated certificates of the Senior Direct Lending Program.
10. ARCC has a net realized gain rate of 1.0% since inception. Calculated as an average of the historical annual net realized gain/loss rates (where annual net realized
    gain/loss rate is calculated as the amount of net realized gains/losses for a particular period from Ares Capital IPO in October 2004 to December 31, 2021 divided by the average quarterly investments at amortized cost in such period). Excludes $196 million one‐time gain on the acquisition of Allied Capital Corporation in Q2‐10 and gains/losses from extinguishment of debt and sale of other assets. Diversification does not assure profit or protect against market loss.
11. As of December 31, 2021, the Senior Direct Lending Program, LLC's (the "SDLP") loan portfolio totaled approximately $4.2 billion in aggregate principal amount and had loans to 19 different borrowers. As of December 31, 2021, the SDLP's largest loan to a single borrower was $342 million in aggregate principal amount and the five largest loans to borrowers totaled $1.5 billion in aggregate principal amount. The portfolio companies in the SDLP are in industries similar to the companies in Ares Capital's portfolio.
12. Based on original cash invested, net of syndications, of approximately $36.6 billion and total proceeds from such exited investments of approximately $46.9 billion from inception on October 8, 2004 through December 31, 2021.
13. Source: KBW and FDIC Commercial Banking Data. Calculated as net charge-offs for commercial and industrial loans divided by net commercial and industrial loans and leases for the respective periods.
14. BDC peer group consists of BDCs with a total portfolio at fair value greater than $1.5 billion or a combined portfolio at fair value greater than $2 billion if under common management and have been publicly traded for at least one year, as of December 31, 2021. Peers include: AINV, BBDC, BCSF, BKCC, CGBD, OCSL, ORCC, FSK, GBDC, GSBD, HTGC, MAIN, NMFC, PFLT, PNNT, PSEC, SLRC, SUNS, TCPC and TSLX. Net realized gain/(loss) rate calculated as an average of a BDC's historical annual net realized gain/loss rates, where annual net realized gain/loss rate is calculated as the amount of net realized gains/losses for a particular period divided by the average quarterly investments at amortized cost in such period.
15. Annual average for ARCC is December 31, 2004 through December 31, 2021. Annual average for the BDC peer group and Banks is from December 31, 2004 through September 30, 2021, as not all BDC peers have filed December 31, 2021 financial results as of February 15, 2022.
16. As of December 31, 2021. Hypothetical value of $1 invested in ARCC's IPO in October 2004 and kept invested through December 31, 2021, assuming reinvestment income. Graph shown for illustrative purposes only and is not indicative of any investment. Past performance is not guarantee of future results. Ares Capital's stock price-based total return is calculated assuming dividends are reinvested at the end of day stock price on the relevant quarterly ex-dividend dates, and assuming investors did not participate in Ares Capital's rights offering issuance as of March 20, 2008. Time period selected to include Ares Capital IPO in October 2004. The benchmarks included represent investments in either the U.S. non-investment grade credit or equity market. Performance to indices and peers is shown for illustrative purposes only and may not be directly comparable.
17. Banks as measured by the BKX TR Index. Refer to Index Definitions for further information.
18. As of December 31, 2021. There can be no assurance that dividends will continue to be paid at historic levels or at all. Past performance is not indicative of future
    results. Core Earnings is a non-GAAP financial measure. Core Earnings is the net increase (decrease) in stockholders' equity resulting from operations less professional fees and other costs related to the American Capital Acquisition, expense reimbursement from Ares Capital Management LLC (the "Ares Reimbursement"), 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. Net increase (decrease) in stockholders' equity is the most directly comparable GAAP financial measure. Ares Capital believes that Core Earnings 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. See Note 16 to Ares Capital's consolidated financial statements included in the annual report on Form 10-K for the year ended December 31, 2019 for information regarding the American Capital Acquisition. See Note 13 to Ares Capital's consolidated financial statements included in the annual report on Form 10-K for the year ended December 31, 2020 for information regarding the Ares Reimbursement. Note our 2021 spillover income is $1.30 per share.
19. The performance, awards/ratings noted herein relate only to selected funds/strategies and may not be representative of any given client's experience and should not be viewed as indicative of Ares' past performance or its funds' future performance. All investments involve risk, including loss of principal.
20. ARCC received the 2021 All-America Executive Team Most Honored designation alongside 136 other companies. Various Ares personnel received first place awards as part of the "Brokers, Asset Managers & Exchanges" category for: Investor Relations, CEO, CFO, Investor Day and Communication of Strategy and Risk
    Management amid COVID-19. Six other institutions also received a first-,second-, or third-place ranking in this category. Institutional Investor based these awards on the opinions of 3,029© portfolio managers and buy-side analysts, and 497 sell-side analysts who participated in this survey. Institutional Investor logo from Institutional Investor, 2021 Institutional Investor, LLC. All rights reserved. Used by permission and protected by the Copyright Laws of the United States.

The printing, copying, redistribution, or retransmission of this Content without express written permission is prohibited.

1. Lipper Rankings reported in Lipper Marketplace Best Money Managers, September 30, 2021. Lipper Marketplace is the source of the long-only and multi-strategy credit rankings. Lipper's Best Money Managers rankings consider only those funds that meet the following qualification: performance must be calculated "net" of all fees and commissions; must include cash; performance must be calculated in U.S. dollars; asset base must be at least $10 million in size for "traditional" U.S. asset classes (equity, fixed income, and balanced accounts); and, the classification of the product must fall into one of the categories which they rank. Lipper defines Short Duration as 1-5 years. Lipper's Active Duration definition does not specify a time period but rather refers to an Active rather than Passive strategy. Ares Institutional Loan Fund was ranked 5 out of 43 for the 40 quarters ended September 30, 2021. Composites for Ares U.S. Bank Loan Aggregate and Ares U.S. High Yield additionally received rankings of 4 of 43 and 2 of 29, respectively, for the 40 quarters ended September 30, 2021.
2. Private Equity International selected Ares Management as Lender of the Year in North America - 2020. Awards based on an industry wide global survey across 77 categories conducted by Private Equity International. Survey participants voted independently. In addition, survey participants could nominate another firm not listed in the category.
3. Private Debt Investor selected Ares Management for 2020 Global Fund Manager of the Year and selected Ares Capital Corporation for BDC of the year in the Americas. Awards based on an industry wide global survey across 47 categories conducted by Private Debt Investor. Survey participants voted independently. In addition, survey participants could nominate another firm not listed in the category.

www.arescapitalcorp.com

Index Definitions

Indices are provided for illustrative purposes only and not indicative of any investment. They have not been selected to represent appropriate benchmarks or targets for ARCC. Rather, the indices shown are provided solely to illustrate the performance of well known and widely recognized indices. Any comparisons herein of the investment performance of ARCC to an index are qualified as follows: (i) the volatility of such index will likely be materially different from that of ARCC; (ii) such index will, in many cases, employ different investment guidelines and criteria than ARCC and, therefore, holdings in ARCC will differ significantly from holdings of the securities that comprise such index and ARCC may invest in different asset classes altogether from the illustrative index, which may materially impact the performance of ARCC relative to the index; and (iii) the performance of such index is disclosed solely to allow for comparison on ARCC's performance to that of a well known index. Comparisons to indices have limitations because indices have risk profiles, volatility, asset composition and other material characteristics that will differ from ARCC. The indices do not reflect the deduction of fees or expenses. You cannot invest directly in an index. No representation is being made as to the risk profile of any benchmark or index relative to the risk profile of ARCC. There can be no assurance that the future performance of any specific investment, or product will be profitable, equal any corresponding indicated historical performance, or be suitable for a portfolio.

• The Standard & Poor's 500 Index ("S&P 500") is a market capitalization-weighted index of the 500 largest U.S. publicly traded companies. The S&P 500 is a float-weighted index, meaning company market capitalizations are adjusted by the number of shares available for public trading. The S&P 500 is considered to be a proxy of the U.S. equity market.
• The KBW Nasdaq Bank Index ("BKX") is designed to track the performance of the leading banks and thrifts that are publicly traded in the U.S. The Index includes banking stocks representing the largest U.S. national money centers, regional banks and thrift institutions.

REF: DLUS-01522

THIS FACTSHEET IS BEING PROVIDED SOLELY FOR INFORMATIONAL PURPOSES FOR USE IN EVALUATING A POTENTIAL INVESTMENT IN THE INVESTMENT VEHICLE (THE "ACCOUNT") DESCRIBED HEREIN MANAGED BY ARES MANAGEMENT CORPORATION OR ONE OF ITS AFFILIATED ENTITIES (WHICH INCLUDE, WITHOUT LIMITATION, ARES MANAGEMENT LLC, ARES MANAGEMENT UK LIMITED AND ARES MANAGEMENT LIMITED, COLLECTIVELY WITH SUCH AFFILIATED ENTITIES, "ARES") AND DOES NOT PURPORT TO BE ALL-INCLUSIVE OR TO CONTAIN ALL OF THE INFORMATION THAT A PROSPECTIVE INVESTOR MAY DESIRE RESPECTING A POTENTIAL INVESTMENT. The Information contained herein has been prepared to assist the Recipient in making its own evaluation of Ares and the Account and does not purport to be all-inclusive or to contain all of the information that a prospective investor may desire respecting a potential investment. Before making a decision to invest in the Account, a prospective investor should carefully review information respecting Ares and the Account and consult with its own legal, accounting, tax and other advisors in order to independently assess the merits of such an investment. 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. In making a decision to invest in any securities of offered by Ares, prospective investors should rely only on the offering memorandum for such securities and not on these materials, which contain preliminary information that is subject to change and that is not intended to be complete or to constitute all the information necessary to adequately evaluate the consequences of investing in such securities. Ares makes no representation or warranty (express or implied) with respect to the Information contained herein (including, without limitation, information obtained from third parties) and expressly disclaims any and all liability based on or relating to the Information contained in, or errors or omissions from, these materials; or based on or relating to the Recipient's use of these materials; or any other written or oral communications transmitted to the Recipient in the course of its evaluation of a potential investment in the Account. Ares undertakes no duty or obligation to update or revise the Information contained herein. The Recipient should conduct its own investigations and analyses of Ares, the Account and the Information set forth herein. Certain Information provided herein may constitute "forward-looking statements" within the meaning of U.S. federal securities laws, which are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Certain Ares Funds may be offered through our affiliate, Ares Investor Services LLC, a broker-dealer registered with the SEC, and a member of FINRA and SIPC.

Past performance is not indicative of future results. As with any investment there is always the potential for gains as well as the possibility of losses.

www.arescapitalcorp.com