Summary
In terms of the yield demanded by the market, very large, externally managed BDCs are among the highest. Ares (ARCC) is an exception with an attractive but not distressed-level 9.3% yield.
Ares manages to combine the talent and scale associated with being the largest BDC with much of the efficiency and portfolio quality of a smaller, internally managed company.
For instance, Ares obtained medium-term fixed rate debt at only 3.50% and has among if not the lowest leverage costs in the industry.
Distribution coverage improvement and a successful reshuffling of its portfolio have resulted