Ares Capital Corp (NASDAQ:ARCC) Q1 2023 Earnings Conference Call April 25, 2023 11:00 AM ET Company Participants John Stilmar - MD, Public IR & Communications Kipp DeVeer - CEO & Director Penelope Roll - CFO Mitchell Goldstein - Senior Partner, Partner, Co-President & Co-Head of Ares Credit Group Conference Call Participants John Hecht - Jefferies Finian O'Shea - Wells Fargo Securities Melissa Wedel - JPMorgan Chase & Co. Robert Dodd - Raymond James Erik Zwick - Hovde Group Casey Alexander - Compass Point R ...

Title of each class Trading symbol Name of each exchange on which registered Common stock, par value $0.001 per share ARCC NASDAQ Global Select Market Class Outstanding at April 25, 2023 Common stock, $0.001 par value 544,581,080 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SE ...

Summary of Ares Capital Corp Conference Call Company Overview - **Company**: Ares Capital Corporation (NASDAQ: ARCC) - **Industry**: Specialty Finance, specifically Business Development Companies (BDCs) - **Assets Under Management**: Approximately $22 billion [2] - **Parent Company**: Ares Management Corporation, managing about $225 billion of credit [4] Key Points and Arguments Investment Strategy and Competitive Advantages - Ares Capital has evolved from focusing solely on private equity transactions to a broader origination strategy, now employing around 170 professionals in the U.S. [2] - The company has dedicated teams for various sectors including software, healthcare, oil and gas, and renewable energy [3] - Ares Capital benefits from its extensive network and relationships in the private equity space, enhancing its origination capabilities [2][4] Market Conditions and Outlook - The company experienced a record year in 2021 for direct lending, but faced challenges in 2022 due to rising interest rates and geopolitical risks [5][6] - The forecast for 2023 suggests origination volumes may align with 2022 levels, with potential for a slight decrease due to market uncertainties [6][7] - Despite rising rates, company performance has not yet shown significant negative impacts, although there is a cautious outlook regarding future defaults [9][10] Credit Quality and Risk Management - Ares Capital maintains a low nonaccrual rate of approximately 1.7% to 1.8%, significantly below historical averages [12] - The company has proactively managed its portfolio, focusing on larger businesses and industries with stable performance to mitigate risks [11][12] - There is an expectation of increased amendment activity and defaults due to higher interest servicing costs and operational pressures on portfolio companies [14] Competitive Landscape - The competitive environment has seen limited new entrants in the BDC space, with Ares Capital consolidating market share during periods of bank weakness [29][30] - The company is well-positioned to capitalize on the current market dynamics, benefiting from its size and experience compared to smaller BDCs [30][52] Financial Performance and Returns - Ares Capital has historically achieved a net cumulative negative realized credit loss of about 1%, indicating effective portfolio management [18][19] - The company has focused on maintaining a balanced mix of secured and unsecured funding, typically around a 50-50 split [56] Future Considerations - The company anticipates a "muddle through" year in 2023 as stakeholders navigate the implications of higher debt levels and interest rates [23] - Ares Capital is cautious about potential risks in the BDC sector but believes it is well-equipped to manage these challenges due to its robust platform and experienced team [52][53] Additional Important Insights - The average EBITDA of portfolio companies has increased significantly, reflecting a focus on larger companies, although the median EBITDA remains below $100 million [45][46] - The company has a strong track record of managing credit risk and achieving premium returns with fewer losses compared to competitors [17] - Ares Capital does not currently see significant stress in its portfolio, despite rising base rates, indicating strong underlying company performance [21][22] This summary encapsulates the key insights and strategic outlook of Ares Capital Corporation as discussed in the conference call, highlighting its competitive advantages, market conditions, and risk management strategies.

Ares Capital Corp (NASDAQ:ARCC) Q4 2022 Earnings Conference Call February 7, 2023 12:00 PM ET Company Participants John Stilmar - MD, Public IR & Communications Kipp DeVeer - CEO & Director Penelope Roll - CFO Kort Schnabel - Co-President Conference Call Participants Melissa Wedel - JPMorgan Chase & Co. Ryan Lynch - KBW Casey Alexander - Compass Point Research & Trading Robert Dodd - Raymond James Erik Zwick - Hovde Group Kenneth Lee - RBC Capital Markets Kevin Fultz - JMP Securities Mark Hughes - Truist S ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________________________ FORM 10-K ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File No. 814-00663 ____________________________________________________ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Title of each class Trading symbol Name of each exchange on which registered Common stock, $0.001 par value ARCC NASDAQ Global Select Market 6.875% Senior Notes due 2047 AFC The New York Stock Exchange Class Outstanding at October 27, 2020 Common stock, $0.001 par value 422,622,119 ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR o TR ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Title of each class Trading symbol Name of each exchange on which registered Common stock, $0.001 par value ARCC NASDAQ Global Select Market 6.875% Senior Notes due 2047 AFC The New York Stock Exchange Class Outstanding at August 4, 2020 Common stock, $0.001 par value 422,622,119 ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR o TRANSITIO ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Title of each class Trading symbol Name of each exchange on which registered Common stock, $0.001 par value ARCC NASDAQ Global Select Market 6.875% Senior Notes due 2047 AFC The New York Stock Exchange Class Outstanding at April 29, 2020 Common stock, $0.001 par value 422,622,119 ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR o TRANSITI ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________________________ FORM 10-K ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File No. 814-00663 ____________________________________________________ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File No. 814-00663 ARES CAPITAL CORPORATION (Exact name of Registrant as specified in its charter) Maryland 33-1089684 (State or other juri ...