Ares Management’s business development company (BDC) announced $391.1 million in exits for the quarter, according to an earnings report released Tuesday.
“We reported record third quarter core earnings, reflecting the growth in our investment portfolio, an increase in our net interest and dividend margin and continued strong investment performance,” Ares Capital chief executive officer Michael Arougheti said in a statement. ‘Our portfolio continued to perform well with net realized and unrealized gains during the third quarter and non-accruals remaining near five-year lows.”
The BDC provides financing to private mid-market companies across a variety of industries. The subsidiary specialises in corporates with between $10 million and $250 million EBITDA, typically committing $30 million to $400 million per deal, according to its website.
Ares Capital invested $1.1 billion during the third quarter. Eight of the BDC’s deals for the quarter came through its Senior Secured Loan Program (SSLP), which the firm co-invests alongside GE Global Sponsor Finance.
It also made commitments to 14 new portfolio companies and three existing portfolio companies. Sponsored transactions comprised the entirety of the firm’s investments third quarter investments.
Approximately 67 percent of the firm’s invested capital for the quarter went to first lien senior secured debt, 20 percent went to subordinated certificates of the SSLP for co-investments with GE in first lien senior secured loans, and 12 percent went to second lien senior secured debt.
The BDC had $7.8 billion in total assets as of 30 September.