Ares Capital has reported one other profitable 12 months, pushed by “sturdy credit score outcomes”.
The asset supervisor noticed a report 12 months of core earnings, with its share value rising to $2.37 (£1.88) over the course of the 12 months. The corporate’s guide worth per share additionally hit a brand new excessive of $19.24.
Kipp deVeer, chief govt 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 report fourth quarter core EPS and internet asset worth per share concluded one other profitable 12 months for our firm,” stated deVeer.
“We proceed to drive sturdy credit score and monetary outcomes utilizing our intensive sourcing, underwriting and portfolio administration capabilities.
“We consider we’re heading into 2024 from a place of energy and can search to construct upon our 14-year observe report of paying a secure common quarterly dividend for our shareholders.”
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Through 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 in the course of the interval at amortized value was 12.3 per cent, in line with Ares. The weighted common yield on whole investments funded in the course of the interval at amortized value was 11.8 per cent.
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The corporate stated that its sturdy funds imply that it’s effectively positioned to make extra opportunistic investments within the 12 months forward.
“Through the fourth quarter and to this point 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 obtainable capital after contemplating the January notes issuance, we stay effectively positioned to speculate opportunistically in a extra lively 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 in the course of the interval at amortized value was 11.3 per cent and the weighted common yield on whole investments funded in the course of the interval at amortized value was 10.7 per cent.
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