Fusion Research
Research analyst, oil & gas, tech, mid-cap

Why Ares Capital Is A Buy At This Level

Ares Capital (ARCC) is a specialty finance company that caters to the financial needs of middle market companies. Ivy Hills is its asset management company, which focuses on middle-market loans. Being a Registered Investment Advisor, or RIA, Ivy Hills acquired middle-market managers and invested in collateralized loan obligations during the past U.S. downturn. This strategy has helped the company generate dividends for Ares Capital. Being a wholly owned subsidiary, Ivy Hills distributed $27 million worth of dividends in the first quarter this year, which included regular dividends of $10 million, and $17 million from a special dividend.

Based on past performance and analyzing the current scenario, Ivy Hills will continue experiencing consistent asset management fees and strong performance...

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