Ares Capital Corporation Significantly Expands Middle Market Asset Management Platform
2009-06-16 22:40:06 -
Ares Capital Corporation (NASDAQ: ARCC) announced today two transactions that will significantly expand its middle market asset management platform.
Ivy Hill Asset Management LP (“Ivy Hill”), an affiliate of Ares Capital, has entered into agreements to manage approximately $770 million of middle market loan assets in three CLO vehicles managed by affiliates of Wells Fargo & Company. Ivy Hill has also acquired certain equity interests in these three CLOs. The management of these portfolios is expected to generate fee income and distributions during the life of the vehicles.
Ares Capital also announced today that Ivy Hill has entered into an agreement to manage approximately $600 million of the remaining middle market bank loan assets previously managed by Firstlight Financial Corporation (“Firstlight”), an existing Ares Capital portfolio company that is focused on middle market lending. As part of the arrangement, Ivy Hill will receive a management fee for providing investment advisory and administrative services to Firstlight. Given the scale and middle market expertise of Ares Capital and Ivy Hill, Ivy Hill’s management of Firstlight’s assets is expected to enable Ares Capital to maximize the return on its existing investment in Firstlight through significant cost savings and more proactive portfolio management.
Together, the two deals increase Ivy Hill’s total committed capital under management to over $2.0 billion across 210 companies and increase Ares Capital’s total committed capital under management (including committed capital managed by Ivy Hill), to over $4.4 billion across more than 250 companies.
“These transactions support Ares Capital’s strategy of building a leading middle market asset management business,” commented Mitchell Goldstein, Partner of Ares Capital Management LLC, Ares Capital’s investment adviser. “In addition to incremental fee income, we believe these transactions will further strengthen Ares Capital’s collective knowledge, experience and investment opportunities within the middle market sector as well as provide attractive returns on the incremental capital invested. We hope to continue to increase the value of this strategically important business segment over time both organically and through additional acquisitions.”
ABOUT ARES CAPITAL CORPORATION
Ares Capital Corporation is a specialty finance company that provides integrated debt and equity financing solutions to U.S. middle market companies. Ares Capital Corporation invests primarily in first and second lien loans and mezzanine debt, which in some cases includes an equity component. To a lesser extent, Ares Capital Corporation also makes equity investments. Ares Capital Corporation is externally managed by Ares Capital Management LLC, an affiliate of Ares Management LLC, an SEC registered investment advisor and alternative asset investment management firm with approximately $27.5 billion of committed capital under management as of March 31, 2009. Ares Capital Corporation is a closed-end, non-diversified management investment company that has elected to be regulated as a Business Development Company under the Investment Company Act of 1940.
FORWARD-LOOKING STATEMENTS
Statements included herein may constitute “forward-looking statements,” which relate to future events or our future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties.
Actual results and condition may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Ares Capital Corporation’s filings with the Securities and Exchange Commission. Ares Capital Corporation undertakes no duty to update any forward-looking statements made herein.
AVAILABLE INFORMATION
Ares Capital Corporation’s filings with the Securities and Exchange Commission, press releases, earnings releases and other financial information are available on its website at www.arescapitalcorp.com : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww .. .
Ares Capital CorporationCarl G. Drake, CFA, 310-201-4200
