Ares Capital has reported one other profitable yr, pushed by “sturdy credit score outcomes”.
The asset supervisor noticed a file yr of core earnings, with its share worth rising to $2.37 (£1.88) over the course of the yr. The corporate’s ebook worth per share additionally hit a brand new excessive of $19.24.
Kipp deVeer, chief government of Ares Capital, stated that the agency’s dedication to sourcing, underwriting and portfolio administration has led to the success of its credit score efficiency.
“Our file fourth quarter core EPS and web asset worth per share concluded one other profitable yr for our firm,” stated deVeer.
“We proceed to drive sturdy credit score and monetary outcomes utilizing our in depth sourcing, underwriting and portfolio administration capabilities.
“We imagine we’re heading into 2024 from a place of energy and can search to construct upon our 14-year observe file of paying a steady common quarterly dividend for our shareholders.”
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In the course of the fourth quarter of 2023, Ares Capital made new funding commitments of roughly $2.4bn, of which roughly $1.6bn have been funded.
87 per cent of those new funding commitments have been in first lien senior secured loans, with the rest unfold between subordinated certificates of the senior direct lending program, senior subordinated loans, most popular fairness and ‘different’ fairness.
The weighted common yield of debt and different revenue producing securities funded throughout the interval at amortized price was 12.3 per cent, in keeping with Ares. The weighted common yield on whole investments funded throughout the interval at amortized price was 11.8 per cent.
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The corporate stated that its sturdy funds imply that it’s nicely positioned to make extra opportunistic investments within the yr forward.
“In the course of the fourth quarter and up to now this yr, we additional strengthened our liquidity by elevating $1.3bn of unsecured notes on market main phrases,” added Penni Roll, chief monetary officer of Ares Capital.
“With over $6bn of obtainable capital after contemplating the January notes issuance, we stay nicely positioned to speculate opportunistically in a extra energetic market atmosphere.”
Between 1 January 2024 and 1 February 2024, Ares Capital made new funding commitments of roughly $705m, together with 89 per cent in first lien senior secured loans.
The weighted common yield of debt and different revenue producing securities funded throughout the interval at amortized price was 11.3 per cent and the weighted common yield on whole investments funded throughout the interval at amortized price was 10.7 per cent.
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