Tuesday, March 5, 2024

Ares Capital hails “sturdy credit score outcomes” in 2023 financials


Ares Capital has reported one other profitable 12 months, pushed by “sturdy credit score outcomes”.

The asset supervisor noticed a file 12 months of core earnings, with its share worth rising to $2.37 (£1.88) over the course of the 12 months.  The corporate’s ebook worth per share additionally hit a brand new excessive of $19.24.

Kipp deVeer, chief govt of Ares Capital, mentioned 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 internet asset worth per share concluded one other profitable 12 months for our firm,” mentioned deVeer.

“We proceed to drive sturdy credit score and monetary outcomes utilizing our in depth sourcing, underwriting and portfolio administration capabilities.

“We consider we’re heading into 2024 from a place of power and can search to construct upon our 14-year monitor file of paying a steady common quarterly dividend for our shareholders.”

Learn extra: Personal credit score secondaries set to hit $30bn this 12 months

Throughout 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 well-liked fairness and ‘different’ fairness.

The weighted common yield of debt and different earnings producing securities funded through the interval at amortized value was 12.3 per cent, in response to Ares. The weighted common yield on complete investments funded through the interval at amortized value was 11.8 per cent.

Learn extra: Ares appoints co-head of European different credit score

The corporate mentioned that its sturdy funds imply that it’s nicely positioned to make extra opportunistic investments within the 12 months forward.

“Throughout the fourth quarter and to date this 12 months, 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 accessible capital after contemplating the January notes issuance, we stay nicely positioned to speculate opportunistically in a extra energetic market setting.”

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 earnings producing securities funded through the interval at amortized value was 11.3 per cent and the weighted common yield on complete investments funded through the interval at amortized value was 10.7 per cent.

Learn extra: Ares promotes Julie Solomon to co-head of actual property



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