Financial Data and Key Metrics Changes - The company reported GAAP net income per share of $0.55 for Q4 2024, down from $0.62 in Q3 2024 and $0.72 in Q4 2023 [19] - For the full year, GAAP net income per share was $2.44, compared to $2.75 in 2023 [19] - The total portfolio at fair value increased to $26.7 billion at the end of Q4 2024, up from $25.9 billion at the end of Q3 2024 and $22.9 billion a year ago [21] - The weighted average yield on debt and other income-producing securities at amortized costs was 11.1% at December 31, down from 11.7% at September 30 and 12.5% at the end of 2023 [21] Business Line Data and Key Metrics Changes - The company originated approximately $3.8 billion of new investment commitments in Q4 2024, a more than 50% increase over Q4 2023 [26] - Total new commitments for the year reached $15 billion, more than double the commitment volumes of 2023 [26] - The non-accrual rate at cost ended the quarter at 1.7%, up 40 basis points from the prior quarter but below the historical average of 2.8% [29] Market Data and Key Metrics Changes - The company ended 2024 with a record NAV per share of $19.89, marking the eighth consecutive quarter of NAV growth [13] - The organic weighted average LTM EBITDA growth rate of portfolio companies reached 11% in Q4, up from 10% in the prior quarter [16] Company Strategy and Development Direction - The company aims to out-origin its competition, which is seen as a key driver of long-term credit performance [14] - The focus on financing incumbent borrowers has increased, with over 70% of new commitments made to existing borrowers [15] - The company is well-positioned for a successful 2025, anticipating a healthy economy and increased M&A activity [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate potential impacts from new government policies, stating no material direct impact is expected [17] - The company is monitoring the economic environment closely, with a focus on maintaining strong credit performance despite potential challenges [18] - Management highlighted the importance of their diversified portfolio and strong credit performance in comparison to peers [16][18] Other Important Information - The company declared a first-quarter 2025 dividend of $0.48 per share, consistent with the Q4 2024 dividend [24] - The company has a taxable income spillover estimated at $922 million or $1.37 per share available for distribution to stockholders in 2025 [24] Q&A Session Summary Question: Activity during Q4 and its impact on NII - Management noted that Q4 activity levels were flat compared to Q3, with some delays due to the election, but January has been busy [35][36] Question: Asset allocation within the portfolio - Management confirmed no change in the mix of the portfolio over time, maintaining a balance between junior and senior deals [39][41] Question: Sports franchise investment - Management discussed the recent investment in the Dolphins, emphasizing its uniqueness and potential for growth [48] Question: Impact of base rate declines on portfolio yields - Management indicated a lag effect in yield declines, with expectations for similar levels of decline in Q1 [61][63] Question: Outlook for credit losses - Management expressed confidence in the portfolio's performance, noting strong underlying profit growth and low non-accrual rates [87] Question: Ivy Hill distribution increase - Management confirmed that Ivy Hill's increased distribution is due to strong performance and a special dividend, with a new run rate expected [92][93] Question: Exposure to government contracts - Management indicated minimal exposure to government contracts, suggesting no significant impact on the portfolio [96][109]

Earnings Presentation Fourth Quarter 2024 0 42 65 155 112 42 4 94 109 127 127 127 0 42 65 2 87 133 71 126 163 120 163 198 Credit Private Equity Real Estate Strategic Initiative s BUSINESS SECTOR PALETTE GENERAL PALETTE Important Notice This presentation has been prepared for Ares Capital Corporation ("Ares Capitalˮ) for the benefit of its public stockholders. This presentation is solely for information purposes in connection with evaluating the business, operations and financial results of Ares Capital. Thi ...

Ares Capital (ARCC) reported $759 million in revenue for the quarter ended December 2024, representing a year-over-year increase of 7.4%. EPS of $0.55 for the same period compares to $0.63 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $784.96 million, representing a surprise of -3.31%. The company delivered an EPS surprise of -5.17%, with the consensus EPS estimate being $0.58.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall ...

Ares Capital (ARCC) came out with quarterly earnings of $0.55 per share, missing the Zacks Consensus Estimate of $0.58 per share. This compares to earnings of $0.63 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -5.17%. A quarter ago, it was expected that this private equity firm would post earnings of $0.59 per share when it actually produced earnings of $0.58, delivering a surprise of -1.69%.Over the last four quarters, the ...

Financial Performance and Strategy - As of December 31, 2024, the company's asset coverage was 196%, allowing it to borrow up to two dollars for every dollar in assets[34]. - The company managed approximately $12.8 billion in assets under management through its wholly owned portfolio company, Ivy Hill Asset Management, L.P. (IHAM) as of December 31, 2024[45]. - Since its IPO on October 8, 2004, the company has achieved a realized gross internal rate of return of approximately 13% on exited investments, with total proceeds of approximately $63.7 billion from $49.7 billion originally invested[55]. - The company’s average annualized net realized gain rate since its IPO was approximately 0.8%, excluding one-time gains and losses from specific transactions[56]. - The company primarily invests in first lien senior secured loans, second lien senior secured loans, subordinated debt, and preferred equity, with terms generally ranging from three to ten years[67]. - The company’s financial condition and results depend on effectively managing future growth and acquiring suitable investments[149]. - The company completed two debt securitizations through collateralized loan obligations (CLOs), with approximately $476 million and $544 million in aggregate principal amounts issued[169]. Investment Portfolio Composition - The investment portfolio is diversified across various industries, with the largest sectors being Software and Services (24.5%) and Health Care Equipment and Services (12.0%) as of December 31, 2024[52]. - The geographic composition of the portfolio as of December 31, 2024, included 25.2% in the West and 20.9% in the Midwest[59]. - As of December 31, 2024, the weighted average grade of the investments in the company's portfolio at fair value was 3.1, indicating a generally favorable risk profile[80]. - The company monitors 550 portfolio companies, with 15% entitled to board seats or observation rights, representing approximately 27% of the portfolio at fair value[77]. - As of December 31, 2024, IHAM represented 7.1% of the total investment portfolio at fair value and contributed approximately 9.6% of total investment income for the year[198]. Risk Management and Compliance - The company’s investment strategy emphasizes capital preservation, low volatility, and minimizing downside risk, supported by intensive credit investment analysis[61]. - The investment adviser employs a credit risk grading system, with grades ranging from 1 (high risk) to 4 (low risk) assessed quarterly[80]. - The company may incur significant expenses for evaluating potential strategic acquisition and investment transactions[76]. - The company is regulated as a Business Development Company (BDC) under the Investment Company Act, adhering to specific regulatory requirements[118]. - The company must distribute at least 90% of its investment company taxable income to maintain its RIC status, limiting available funds for new investments[151]. - The company is subject to financial and operating covenants that restrict business activities and could hinder financing additional loans[162]. Fees and Expenses - The annual base management fee rate was reduced from 1.5% to 1.0% for assets financed using leverage over 1.0x debt to equity, effective June 21, 2019[88]. - The income based fee is calculated quarterly based on pre-incentive fee net investment income, which includes interest and dividend income minus operating expenses[89]. - The hurdle rate for pre-incentive fee net investment income is set at 1.75% per quarter, with a "catch-up" provision for income exceeding this rate[90][91]. - The capital gains incentive fee is calculated at 20% of the positive difference between cumulative realized capital gains and cumulative realized capital losses at the end of each year[94]. - The investment advisory and management agreement was approved for continuation until June 6, 2025[101]. - The company bears all operational costs and expenses, including those related to investment advisory and management services[100]. Market and Economic Conditions - Rising interest rates may increase the cost of debt for underlying portfolio companies, potentially impacting their financial performance[144]. - Inflation has adversely affected the business and financial condition of portfolio companies, increasing costs of labor, energy, and raw materials[145]. - The current macroeconomic environment includes persistent inflation and supply chain disruptions, which could adversely affect the company's operations[227]. - Economic downturns could impair portfolio companies, leading to increased non-performing assets and decreased portfolio value[228]. Regulatory and Legal Risks - The company is subject to potential litigation and regulatory investigations, which could be time-consuming and costly[207][208]. - The SEC has adopted rules for enhancing climate-related disclosures, which may increase compliance costs and regulatory burdens[204]. - The Corporate Sustainability Reporting Directive (CSRD) requires broader sustainability reporting, potentially increasing management burdens and costs for portfolio companies[203]. - Changes in U.S. tax laws and regulations could negatively impact the company and its portfolio companies, affecting long-term business operations[214]. Operational Risks - The company relies on key personnel from Ares for future success, and their departure could materially affect operations[147]. - The company is highly dependent on Ares Management's information systems, which could disrupt operations and negatively affect stock prices and dividend payments[221]. - The company relies on third-party service providers for certain operations, increasing operational risks related to cybersecurity and service disruptions[224]. Investment Risks - The company primarily invests in privately held U.S. middle-market companies, which involve significant risks including limited financial resources and less predictable operating results[230]. - Investments in debt are typically below investment grade, indicating a higher risk of loss[231]. - The company may invest in "covenant-lite" loans, which could hinder the ability to monitor borrower performance and increase exposure to losses[232]. - Some portfolio companies may be highly leveraged, which could impair their ability to finance future operations and limit flexibility in responding to changing conditions[242].

Exhibit 99.1 ARES CAPITAL CORPORATION ANNOUNCES DECEMBER 31, 2024 FINANCIAL RESULTS AND DECLARES FIRST QUARTER 2025 DIVIDEND OF $0.48 PER SHARE DIVIDEND DECLARATIONS New York, NY — February 5, 2025 — Ares Capital Corporation ("Ares Capital") (NASDAQ: ARCC) announced that its Board of Directors has declared a first quarter 2025 dividend of $0.48 per share. The first quarter 2025 dividend is payable on March 31, 2025 to stockholders of record as of March 14, 2025. (1) All per share amounts and weighted averag ...

The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Ares Capital (ARCC) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Finance peers, we might be able to answer that question.Ares Capital is one of 873 companies in the Finance group. The Finance group currently sits at #1 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector gro ...

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