ARCC - Ares Capital: Keep Riding On Your Winning BDC Bets

2024-06-30 11:30:00 ET

Summary

• Ares Capital is the largest publicly-traded BDC by market cap.
• ARCC's market leadership is supported by a broader integration into Ares Management's credit platform.
• Ares Capital's significant scale affords it substantial ability to obtain NAV-accretive deals.
• Ares Capital can benefit from a resurgence in M&A activity levels, bolstering its growth opportunities.
• I argue why ARCC's winning run seems far from over. Read on.

Ares Capital: Market-Leading BDC With Scale

Ares Capital ( ARCC ) investors are likely riding on the higher-for-longer Fed posture with much satisfaction. With a 1Y total return of more than 23%, it has underperformed Main Street Capital's ( MAIN ) more than 40% total return. Despite that, ARCC's consistency in lifting its NAV per share and well-diversified portfolio should continue to help it perform relatively well....

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