Added to YB: 2026-05-01
Pitch date: 2026-04-29
ARCC [neutral]
Ares Capital Corporation
+2.24%
current return
Author Info
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Company Info
Ares Capital Corporation is a business development company specializing in growth capital, acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies.
Market Cap
$13.6B
Pitch Price
$18.74
Price Target
N/A
Dividend
N/A
EV/EBITDA
N/A
P/E
11.67
EV/Sales
N/A
Sector
Capital Markets
Category
dividend
The Ares Lies
ARCC (deep dive): Extensive analysis reveals systemic mark manipulation across $4.5B AI-exposed software book (32% NAV vs 1% claimed). Pluralsight shows 94¢ gap on identical 1L loans due to undisclosed AAL waterfall. True non-accruals ~10-12% at cost vs 2.1% reported; $1B PIK pref at par + ~$1B PIK 1Ls = phantom income funding dividend above core EPS. 30+ distressed names (Cornerstone w/ AlixPartners, Symplr, ATI, Eagle Football admin, KBS, AllClear recap, etc) vs 3 disclosed 'high risk.' Spreadsheet EV model vs market pricing; marks catching up to reality. IHAM $12.5B AUM + SDLP JV hide impairments. RIC forces 90% payout of non-cash PIK income. 1.10x debt-to-equity amplifies NAV erosion risk.
Read full article (14 min)