Co-produced with PendragonY
History
One of the largest and longest surviving business development companies (“BDC”) is Ares Capital (ARCC) which began publicly trading in 2004. Since November 2004 ARCC has generated some very attractive total returns of just under 11%, with dividends reinvested. Looking only up to the start of this year those returns slightly exceed 12%.
Unlike many companies, during the financial crisis more than 10 years ago, ARCC did not eliminate its dividend but only had a small cut of just under 7 cents a quarter while still paying over 34