Investment Commitments and Performance - New investment commitments for Q3 2025 totaled $3.924 billion, slightly up from $3.919 billion in Q3 2024[551] - The principal amount of investments funded in Q3 2025 was $3.507 billion, compared to $3.283 billion in Q3 2024, reflecting a 6.8% increase[551] - The net investment commitments for Q3 2025 were $1.299 billion, slightly down from $1.321 billion in Q3 2024[551] - The percentage of new investment commitments at floating rates was 93% in Q3 2025, compared to 95% in Q3 2024[551] - The company realized a gross internal rate of return of approximately 13% on exited investments since its IPO, with total proceeds of approximately $68.6 billion from $53.1 billion originally invested[542] - The principal amount of investments sold or repaid in Q3 2025 was $2.635 billion, compared to $2.542 billion in Q3 2024[551] - Total investment income for Q3 2025 was $782 million, a slight increase from $775 million in Q3 2024, while for the nine months ended September 30, 2025, it rose to $2,259 million from $2,231 million in 2024[597] - Net investment income for Q3 2025 was $338 million, down from $361 million in Q3 2024, and for the nine months, it decreased to $1,045 million from $1,074 million[597] Asset Management and Financial Metrics - Ivy Hill Asset Management, L.P. had assets under management of approximately $13.5 billion as of September 30, 2025[564] - For the three months ended September 30, 2025, Ivy Hill Asset Management reported management and incentive fee income of $15 million, an increase from $13 million in the same period of 2024[564] - The total investment in Ivy Hill Asset Management as of September 30, 2025, was $2,018 million at amortized cost and $1,800 million at fair value[565] - The weighted average grade of the investments in the portfolio at fair value was 3.1 as of September 30, 2025, unchanged from December 31, 2024[562] - IHAM's net income attributable to Ivy Hill Asset Management, L.P. for the nine months ended September 30, 2025, was $216 million, demonstrating robust profitability despite market fluctuations[576] - The company's investment income for the three months ended September 30, 2025, was $84 million, while for the nine months, it reached $228 million, showcasing consistent revenue generation[576] Debt and Liabilities - The total principal amount of outstanding debt was $20.878 billion as of September 30, 2025, compared to $18.948 billion as of December 31, 2024[644] - The ratio of total principal amount of outstanding debt to stockholders' equity was 1.09:1.00 as of September 30, 2025, up from 1.03:1.00 as of December 31, 2024[649] - Total liabilities for IHAM as of September 30, 2025, were $1,007 million, with consolidated liabilities at $9,017 million, reflecting a strategic management of debt[573] - The company has a senior secured revolving credit facility allowing borrowing up to $5.5 billion, with $4.4 billion in a revolving tranche and $1.1 billion in a term loan tranche[650] Market Conditions and Risks - The macroeconomic environment showed positive total returns in leveraged corporate credit markets, supported by stable inflation and low unemployment rates[549] - The company is exposed to significant financial market risks, including changes in interest rates and the valuations of its investment portfolio, influenced by global economic conditions and geopolitical events[687] - The ongoing war between Russia and Ukraine and other geopolitical conflicts have introduced significant volatility in financial markets, impacting the company's market risks[687] Valuation and Fair Value Measurements - The fair value of investments is determined using a multi-step valuation process, with significant reliance on independent third-party valuation providers[4] - The company follows ASC 820-10 for fair value measurements, categorizing inputs into three levels based on observability[4] - The company’s investment valuation process involves independent third-party valuation providers to support fair value determinations for investments without readily available market quotations[688] Tax and Dividend Information - The company intends to continue making requisite distributions to stockholders to qualify for tax treatment applicable to RICs, thereby avoiding U.S. federal corporate-level income taxes[613] - For the three months ended September 30, 2025, the company recorded a net tax expense of $72 million, compared to $5 million for the same period in 2024, indicating a significant increase in tax liabilities[615] - The cash dividend declared per share for the third quarter of 2025 was $0.48, consistent across the previous quarters[640] Investment Backlog and Future Commitments - As of October 23, 2025, the company had an investment backlog of approximately $3.0 billion, indicating potential future investments[4] - From October 1, 2025 to October 23, 2025, the company made new investment commitments of approximately $735 million, with 95% in first lien senior secured loans[3][4]

Dividend Announcements - Ares Capital declared a fourth quarter 2025 dividend of $0.48 per share, payable on December 30, 2025[1]. - Ares Capital declared a third quarter 2025 dividend of $0.48 per share, totaling approximately $342 million, paid on September 30, 2025[22]. Financial Performance - For Q3 2025, GAAP net income per share was $0.57, down from $0.62 in Q3 2024, while core EPS decreased from $0.58 to $0.50[3]. - Net investment income for Q3 2025 was $338 million, compared to $361 million in Q3 2024[3]. - For the three months ended September 30, 2025, total investment income was $782 million, compared to $775 million for the same period in 2024[36]. - Basic and diluted net income per common share for the three months ended September 30, 2025, was $0.57, compared to $0.62 for the same period in 2024[36]. - For the nine months ended September 30, 2025, GAAP net income per share was $1.45, down from $1.90 in 2024, a decrease of 23.7%[39]. - Core EPS for the nine months ended September 30, 2025, was $1.50, compared to $1.78 in 2024, reflecting a decline of 15.7%[39]. - Core EPS for the three months ended September 30, 2025, was $0.50, down from $0.58 in 2024, representing a decline of 13.8%[39]. - The company believes that Core EPS provides useful information regarding financial performance, as it measures financial condition and results of operations[39]. - The presentation of Core EPS is not meant to be considered in isolation or as a substitute for GAAP financial results[39]. Investment Activities - Ares Capital made new investment commitments of approximately $3.9 billion in Q3 2025, with 85% in first lien senior secured loans[11]. - From October 1 to October 23, 2025, Ares Capital made new investment commitments of approximately $735 million, with 95% in first lien senior secured loans[23]. - Ares Capital exited approximately $2.6 billion of investment commitments in Q3 2025, with 67% being first lien senior secured loans[12]. - Ares Capital exited approximately $1.1 billion of investment commitments during the same period, with 81% being first lien senior secured loans[24]. - As of October 23, 2025, Ares Capital had an investment backlog of approximately $3.0 billion, indicating potential future investments[25]. Asset and Debt Management - Portfolio investments at fair value increased to $28.693 billion as of September 30, 2025, up from $26.720 billion at the end of 2024[7]. - As of September 30, 2025, Ares Capital had $1.0 billion in cash and cash equivalents and $15.6 billion in total debt outstanding[14]. - The debt/equity ratio increased to 1.09x as of September 30, 2025, compared to 1.03x at the end of 2024[3]. - The total assets as of September 30, 2025, were $30.806 billion, an increase from $28.254 billion as of December 31, 2024[34]. Realized Gains and Losses - Ares Capital recognized total net realized losses of approximately $67 million from exited investment commitments during the period from October 1 to October 23, 2025[24]. - Net realized and unrealized losses for the three months ended September 30, 2025, were $(0.09), compared to $(0.05) in 2024, indicating a worsening of 80%[39]. - Capital gains incentive fee attributable to net realized and unrealized gains and losses for the three months ended September 30, 2025, was $0.02, up from $0.01 in 2024, showing a 100% increase[39]. - Other income tax expense related to net realized gains and losses was $0 for both periods, indicating no change[39]. Shareholder Information - The company issued approximately 9.3 million shares of common stock in Q3 2025, generating net proceeds of approximately $204 million[21]. - The basic and diluted weighted average shares outstanding for the three months ended September 30, 2025, were approximately 709 million, an increase from approximately 635 million in 2024, indicating a growth of 11.6%[39].

Group 1 - Ares Capital (NASDAQ:ARCC) is set to announce Q3 earnings results on October 28th, before market open [4] - Analysts anticipate lower earnings for this quarter, with a consensus EPS estimate of $0.50, reflecting a year-over-year decrease of 13.8% [4] - The consensus revenue estimate for Ares Capital is $766.57 million, indicating a slight decline of 1.1% year-over-year [4]

Group 1 - Closed-end funds are being monitored for directional and arbitrage opportunities due to market price deviations, emphasizing the importance of timing in trades [1] - Business development companies (BDCs) are currently undervalued, which is seen as normal following their previous high valuations, attracting interest due to high dividend yields and decent historical returns [2]

Core Insights - Ares Capital Corporation (ARCC) is expected to report a decline in revenues and earnings for Q3 2025, with earnings projected at 50 cents, reflecting a 13.8% decrease year-over-year [1][3][7] - The company has a history of weak earnings surprises, having missed the Zacks Consensus Estimate in the last four quarters [2] Earnings and Sales Projections - The Zacks Consensus Estimate for ARCC's sales is $763.74 million, indicating a 1.5% decline from the previous year [3] - Interest income from investments is estimated at $545.92 million, down 3.9% year-over-year, while other income is projected at $17.43 million, reflecting a 3.2% decrease [4] Other Key Estimates - Capital structuring service fees are expected to grow by 8.2% to $41.1 million, and dividend income is projected to rise by 1.6% to $153.44 million [5] - The company has been facing higher expenses due to investments in venture growth stage companies, which are likely to impact quarterly performance [5][7] Earnings Whispers - The Earnings ESP for Ares Capital is 0.00%, and it currently holds a Zacks Rank of 4 (Sell), indicating a lack of favorable conditions for an earnings beat [6]

Core Insights - A primary concern for retirees is ensuring their retirement portfolios generate adequate income to sustain their lifestyles during retirement years [1] Group 1 - The focus on retirement income generation highlights the importance of effective portfolio management for retirees [1]

Core Insights - The company has released its latest top investment picks for October 2025, emphasizing the timeliness of the opportunity [1] - Significant resources are allocated to research, with an annual investment exceeding $100,000 to identify profitable investment opportunities [1] - The company claims to provide high-yield strategies at a fraction of the cost compared to traditional investment methods [1] Member Satisfaction - The approach has garnered over 190 five-star reviews from satisfied members, indicating a positive reception and effectiveness of the strategies [2] - The company encourages potential members to join now to start maximizing their returns based on the experiences of current members [2]

Core Insights - The article emphasizes the importance of generating alpha through independent investment strategies, focusing on a generalist approach across various sectors with potential alpha compared to the S&P 500 [1] Investment Strategy - The investment strategy involves managing a family portfolio primarily through a Self Managed Super Fund, with a typical holding period ranging from a few quarters to multiple years [1] - The analyst builds comprehensive spreadsheets that track historical financial data, key metrics, guidance trends, and valuation comparisons with peers [1] Research Methodology - The research methodology includes monitoring industry news, company filings, and other analysts' coverage, with a particular focus on leadership changes and their impact on company performance [1] - The analyst prefers not to use discounted cash flow (DCF) models for long-term projections, instead focusing on assessing a company's historical performance and key drivers of valuation [1] Key Drivers of Valuation - The five key drivers of DCF valuation highlighted are revenues, costs and margins, cash flow conversion, capital expenditures, and interest rates, which influence the opportunity cost of capital [1]

Group 1 - The approach has received over 190 five-star reviews from members who are experiencing benefits [1] - The company invests significant resources, over $100,000 annually, into researching profitable investment opportunities [1] - High-yield strategies are offered at a fraction of the cost to members [1] Group 2 - Samuel Smith has extensive experience as a lead analyst and Vice President at dividend stock research firms [2] - He holds degrees in Civil Engineering & Mathematics and a Masters in Engineering with a focus on applied mathematics and machine learning [2] - The High Yield Investor group focuses on balancing safety, growth, yield, and value, offering various portfolio services [2]

We do have these credit issues which are hanging over the markets. I think everybody at this point recognizes that. The key questions at this point being are they idiosyncratic and overblown or is this something more widespread.The cockroach issue as Jamie Diamond suggested this week and saying there usually isn't only one. We're trying to figure out investors are I think the markets are. What other issues are there.We've been talking about this on this show for the better part of the last 3 weeks since Sep ...