Ares Capital : Second Quarter 2022 Equity Investor Presentation

Investor Presentation

Quarter Ended June 30, 2022

Confidential - Not for Publication or Distribution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 prospectus, 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.

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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.

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Confidential - Not for Publication or Distribution

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Market Leading Company in Direct Lending

Market Leading Business Development Company

Compelling Track Record

Largest publicly traded BDC1 with Significant Direct Origination and Long Tenured Management Team

Invested Approximately

$82 billion2 with a

Realized Asset Level Gross

IRR of 14%3 since IPO

Competitive Advantages

Incumbency from Large		Disciplined Underwriting
Portfolio Provides
	Process Supports Highly
Attractive Investment
	Selective Approach
Opportunities
Key Statistics/Track Record
1.0%4 Average Annual Net		10+ years of stable to
Realized Gains in Excess
	increasing dividends
of Losses since IPO

Significant Competitive Advantages

Attractive Portfolio and Diverse Sources of Funding

$16.47

Durable Balance Sheet to

Support Investing

Through Varying Market

Conditions

Generated ~80% Higher

Stock Based Total Returns

than the S&P 500 since

IPO5

Leader in Middle Market Direct Lending With a Compelling Long Term Track Record of Delivering Shareholder Value

As of June 30, 2022, unless otherwise stated. Past performance is not indicative of future results. Please see the notes at the end of this presentation for additional

important information.

Confidential - Not for Publication or Distribution

3

Overview of Ares Management

With approximately $334 billion in assets under management, Ares Management Corporation is a global alternative investment manager operating an integrated platform across five business groups

Profile				Global Footprint2
Founded		1997
AUM		$334bn
Employees		~2,310
Investment Professionals		~810
Global Offices		30+
Direct Institutional Relationships	~1,900
Listing: NYSE - Market Capitalization	$21.1bn1
The Ares Edge				Credit	Private	Real	Secondary	Strategic
				Equity	Assets	Solutions	Initiatives
Power of a broad and scaled	Deep management team with	AUM	$201.9bn	$33.4bn	$62.6bn	$23.9bn	$12.5bn
platform enhancing	integrated and collaborative
investment capabilities	approach				Corporate Private		Private Equity &
				Direct Lending	Real Estate Equity	Ares SSG
				Equity	Credit Secondaries
			Strategies
20+ year track record of	Pioneer and a leader in	Liquid Credit	Special	Real Estate Debt	Real Estate	Ares Insurance
	Opportunities	Secondaries	Solutions3
compelling risk adjusted	leveraged finance, private
returns through market	credit and secondaries		Alternative Credit		Infrastructure	Infrastructure	Ares Acquisition
cycles
				Opportunities	Secondaries	Corporation

Infrastructure

Debt

Note: As of June 30, 2022. 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. Past performance is not indicative of future results.

1. As of August 2, 2022

2. Jakarta and New Delhi offices are operated by third parties with whom Ares SSG maintains an ongoing relationship relating to the sourcing, acquisition and/or management of investments.

3. AUM managed by Ares Insurance Solutions excludes assets which are sub-advised by other Ares' investment groups or invested in Ares funds and investment vehicles.

Confidential - Not for Publication or Distribution

4

Market Opportunity and Industry Shift

We believe that addressable market continues to expand which provides additional opportunities for ARCC

Banks Continue to Retrench from Middle Market Direct Lending1

Increased Borrower Size2,3,4

80.0%

Banks Share of the Leveraged Loan Market

ARCC Portfolio Weighted Average EBITDA

70.0%

76% reduction in participation from 1994-2022

60.0%

50.0%

40.0%	Leveraged Lending
Guidelines (2013)	Basel III
30.0%		(2014)
20.0%
10.0%	Dodd Frank
0.0%	(2010)

$45

$180

$73

20112016 Q2-22

The Shift to Megadeals in the Liquid Markets has Created Opportunity

~$1.5 Trillion High Yield Market5	~$1.4 Trillion Leveraged Loan Market6
% of deals with less than $300 mm	% of loans with less than $300 mm
tranche size	tranche size

37%	34%

1%	5%

2004

Q2-22

2004

Q2-22

Growing Demand for Direct Lending

• Ease and surety to close
• Speed of Execution
• Value in Partnership
• Reliable during times of volatility

As of June 30, 2022, unless otherwise indicated. Please see the notes at the end of this presentation for additional important information.

Confidential - Not for Publication or Distribution

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