Latest news with #Ares'
Yahoo
21-05-2025
- Business
- Yahoo
Is Ares Capital Corporation Stock a Buy Now?
Ares Capital is paying a generous 8.8% yield. It looks reasonably valued relative to its net assets per share and earnings. It should be a safe place to park your cash in this volatile market. 10 stocks we like better than Ares Capital › Ares Capital (NASDAQ: ARCC), the world's largest business development company (BDC), has been a dependable income investment for long-term investors. If you had invested $10,000 in its IPO on Oct. 5, 2004 and continuously reinvested your dividends, your investment would be worth $122,000 today and paying out nearly $10,700 in annual dividends. Ares still pays a hefty forward yield of 8.8%, which is nearly double the 10-Year Treasury's 4.5% yield. So should you buy it as a stable dividend play in this unstable macro environment? As a BDC, Ares provides financing to "middle market" companies which generate about $10 million to $250 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) annually. It aims to invest $30 million to $500 million in debt and equity per company. These companies often struggle to secure financing from traditional banks, which consider them higher-risk clients, but they're also usually too small to attract investments from private equity firms. BDCs fill that gap by providing higher-interest-rate loans than traditional banks. That strategy might seem risky, but Ares spreads its investments across 566 companies backed by 245 different private equity sponsors in its $27.1 billion portfolio. It allocates 58.6% of that portfolio to first lien secured loans, 5.7% to second lien secured loans, and 5% to senior subordinated debt -- which all put it ahead of a lot of other creditors if its clients go bankrupt. Ares' closest competitor, Blue Owl Capital Corporation (NYSE: OBDC), had a portfolio of 236 companies with a fair value of $17.7 billion at the end of the first quarter of 2025. It locked up 81% of its portfolio in senior secured investments. To gauge Ares' health, we should review its debt-to-equity ratio (net of available cash) and its net assets per share. Over the past four years, it kept the former under control as it steadily grew the latter -- even as inflation, rising rates, and other macro headwinds rattled the markets. Metric 2021 2022 2023 2024 Q1 2025 Debt-to-equity ratio* 1.21 1.26 1.02 0.99 0.98 Net assets per share $18.96 $18.40 $19.24 $19.89 $19.82 Data source: Ares Capital. *Net of available cash. Ares has historically traded at a $1 to $2 premium to its net assets per share. As of this writing, it trades within that range at just under $22. However, analysts expect its earnings per share (EPS) to drop 13% in 2025 and dip 1% in 2026 on a generally accepted accounting principles (GAAP) basis. That decline can be largely attributed to declining interest rates, since its floating rate loans are pinned to the Federal Reserve's benchmark rate. Higher interest rates boosted its spreads on its new loans and net interest income, but those tailwinds dissipated as interest rates declined. On the bright side, declining interest rates will reduce the macro pressure on its portfolio companies and reduce its own floating rate interest expenses. Therefore, Ares and other BDCs need interest rates to stay in a "Goldilocks zone" to grow at a sustainable rate. The Federal Reserve is expected to cut its rates two to three times this year, but the Trump administration's unpredictable tariffs, unresolved trade wars, and other macro headwinds could disrupt those plans. However, Ares has already weathered two major recessions since its public debut, and it should continue growing as long as there's a demand for middle market loans. Ares' projected EPS of $2.02 for 2025 will still comfortably cover its forward annual dividend of $1.92 per share. It also looks cheap at 11 times that estimate. Blue Owl trades at an even lower 9 times forward earnings, but its projected EPS of $1.59 for 2025 -- which translates to a forward yield of 11.2% -- can't quite cover its forward annual dividend of $1.65. Ares' low valuation and high yield limit its downside potential, even if interest rates continue to fall and the trade wars ripple through the economy. So if you're looking for a safe place to park your cash and earn some extra income, Ares checks a lot of the right boxes. Before you buy stock in Ares Capital, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Ares Capital wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Leo Sun has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Is Ares Capital Corporation Stock a Buy Now? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
14-05-2025
- Business
- Business Wire
Ares Management Opens Milan Office
LONDON & MILAN--(BUSINESS WIRE)--Ares Management Corporation (NYSE: ARES) ('Ares'), a leading global alternative investment manager, announced today the opening of a new office in Milan, the firm's latest office in Europe. The office will enhance Ares' access to the Italian market, and its ability to raise and invest capital across its strategies, particularly within its European Direct Lending business, as well as the Wealth Management and European Real Estate platforms. This latest opening underscores Ares' commitment to a highly localized approach to investing in Europe, which the firm entered in 2007 through the opening of a London office, followed by Paris, Frankfurt and Stockholm in 2009 and, most recently, Amsterdam and Madrid in 2019. Across its investment strategies, including European Direct Lending and European Real Estate, Ares has deployed over €1.6 billion to support Italian businesses and assets, as of March 31, 2025, and Ares expects to accelerate this activity in the coming years. Tyrone Cooney, Partner & Head of France and Southern Europe for European Direct Lending, will harness his significant experience investing in the Italian market to support the development of the new office, leading a team of senior investment professionals in Milan. 'Over the last 18 years, Ares has strategically expanded its European footprint and solutions across its Credit, Real Estate, Infrastructure, Private Equity and Secondaries strategies to better tailor solutions to the evolving needs of managers, companies and communities,' said Blair Jacobson, Co-President of Ares. 'We are very excited to announce this latest step forward in our regional positioning, reflecting the natural evolution of our platform in line with the growing private markets opportunity set in Italy to the benefit of both institutional and individual investors.' 'We have long taken pride in our differentiated talent, strong local networks and scaled resources, and the Milan office builds on this legacy,' said Matt Theodorakis, Partner and Co-Head of European Direct Lending at Ares. 'With Italy's expanding opportunity for middle-market buyouts, long-term financings and growth capital, we believe our leading European Direct Lending business is well positioned for long-term value creation.' 'Over the last several years, we have seen Italian stakeholders gain greater awareness and acceptance of private capital as an attractive alternative to traditional financing sources,' said Mr. Cooney. 'As local business owners and asset managers continue to the navigate through dynamic European markets, we are pleased to formally establish Ares' presence in Italy and provide greater access to our flexible and creative capital solutions.' Inclusive of the acquisition of GCP International, which closed on March 1, 2025, Ares now has offices in 13 countries in Europe. About Ares Management Corporation Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, real estate, private equity and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of March 31, 2025, Ares Management Corporation's global platform had approximately $546 billion of assets under management, with operations across North America, South America, Europe, Asia Pacific and the Middle East. For more information, please visit
Yahoo
24-04-2025
- Business
- Yahoo
Where Will Ares Capital Corporation Be in 1 Year?
Ares Capital (NASDAQ: ARCC) is often considered a reliable income investment. It's the world's largest business development company (BDC), with a $26.8 billion portfolio at the end of 2024, and it pays out most of its profits as dividends. It currently pays a hefty forward dividend yield of 9.1%, and it has paid continuous dividends since its IPO in 2004. BDCs also need to pay out at least 90% of their taxable profits as dividends to maintain a lower tax rate. But over the past 12 months, Ares' stock has stayed nearly flat as the S&P 500 rose 5%. Should investors expect it to hold steady and keep generating big dividends over the next 12 months? Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » As a BDC, Ares mainly provides loans to "middle market" companies, which generate $10 million to $250 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) each year. It usually invests $30 million to $500 million in debt and equity in each company in its portfolio. Traditional banks are often reluctant to provide loans to middle-market companies because they're considered higher-risk clients, yet these companies are also too small to attract funding from private investors or venture capital firms. Ares fills that gap by providing higher-interest loans than traditional banks. That strategy sounds risky, but it spreads its investments across 550 companies. It also mainly offers first and second lien secured loans (63.8% of its portfolio), preferred equity securities (9.9%), and senior subordinated debt (5.1%) -- all of which provide it with some protection from bankruptcies. Ares' closest competitor, Blue Owl Capital Corporation (NYSE: OBDC), had a portfolio of 227 companies with a fair value of $13.2 billion at the end of 2024. Blue Owl Capital has locked up 81% of its portfolio in senior secured investments. Ares' floating rate loans are pinned to the Federal Reserve's benchmark rate, so rising interest rates usually boost its net income. But if interest rates are too high, they'll stifle economic growth, hurt its clients, and make its loans less attractive. Therefore, Ares needs interest rates to stay in a "Goldilocks" zone to gain new clients and maintain a healthy investment portfolio. Investors often evaluate a BDC with three key performance metrics: its net asset value (NAV) per share, if it's trading at a discount or premium to its NAV, and its debt-to-equity ratio. From 2004 to 2024, Ares' year-end NAV per share rose from $14.43 to $19.89 as it grew organically and acquired a long list of its industry peers. At its current trading price of $20.40, Ares Capital only trades $0.51 above its NAV per share at the end of 2024. It's historically traded at a $1 to $2 premium to its NAV per share. It also looks cheap at less than 10 times its forward earnings. But analysts expect its earnings per share (EPS) to drop 7% in 2025 and dip another 2% in 2026 as the Federal Reserve continues to cut its benchmark rate. However, its projected EPS of $2.16 this year should still easily cover its forward annual dividend rate of $1.92 per share. Ares' year-end debt-to-equity ratio rose from 0.38 to 0.99 from 2014 to 2024 as it issued more loans, but its total liabilities haven't eclipsed its shareholder equity yet. Ares, like many other BDCs, issues new shares to fund its acquisitions and new investments. It has already increased its outstanding share count by 118% over the past 10 years. That might sound alarming, but it typically issues its new shares at a premium to its NAV -- so those offerings are accretive to its EPS. I believe Ares' stock will trade sideways over the next 12 months. Interest rate cuts could throttle its near-term earnings growth, but lower rates should also drive more income investors from fixed-income investments (like CDs and T-bills) toward higher dividend stocks like Ares. Ares' high yield and low valuation should further limit its downside potential -- even if its core middle market companies grapple with tariffs, sticky inflation, and other macro headwinds. Before you buy stock in Ares Capital, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Ares Capital wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $566,035!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $629,519!* Now, it's worth noting Stock Advisor's total average return is 829% — a market-crushing outperformance compared to 155% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 21, 2025 Leo Sun has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Where Will Ares Capital Corporation Be in 1 Year? was originally published by The Motley Fool
Yahoo
03-03-2025
- Business
- Yahoo
Ares Management Corporation Completes Acquisition of GCP International
Establishes Over $115 Billion Global Real Assets Platform With Enhanced Capabilities Across New Economy Sectors and Attractive Geographies NEW YORK, March 03, 2025--(BUSINESS WIRE)--Ares Management Corporation (NYSE: ARES) ("Ares") announced today that it has completed its acquisition of the international business of GLP Capital Partners Limited, excluding its operations in Greater China, and certain of its affiliates ("GCP International"). With the addition of GCP International, Ares' leading global alternative investment platform managed over $525 billion in assets, including more than $115 billion in its global Real Assets business, as of December 31, 2024. The transaction adds important geographic exposure in Asia with a significant presence in Japan through one of the largest logistics platforms in the country, local logistics platforms in emerging economies such as Brazil and Vietnam and an expanded presence in Europe and the U.S. The addition of GCP International alongside the recently completed acquisition of Walton Street Mexico cements Ares as a top three global owner and operator of logistics assets with over 570 million square feet of logistics properties around the world. Further, the acquisition of GCP International has enhanced Ares' capabilities in other high-conviction sectors, including digital infrastructure and self-storage. More broadly, Ares has reinforced its position as a leading global real estate investor, differentiated by its local investment approach and vertically integrated operating and development capabilities across sectors and regions. In addition, Ares now operates a digital infrastructure business with several large hyperscale projects in process across key global markets that collectively represent over 1GW of IT capacity, including approximately 500MW in projects currently underway, as well as a substantial pipeline of future growth. These projects have attracted strong investor interest and, in combination with Ares' existing climate, real estate and digital infrastructure capabilities, should enable Ares to achieve significant scale for this business. Ares' strong presence in logistics, digital infrastructure and traditional real estate sectors positions the platform as a leader in fast-growing new economy sectors. Ares believes the opportunities in these sectors will continue to be fueled by rising demand for new technologies, significant changes in global supply chains and evolving demographic trends that are transforming how communities live and work. Ming Mei, currently CEO of GLP and GCP's remaining business, will continue to support Ares' growth initiatives as a Partner and Senior Advisor, and Michael Steele, most recently President at GCP International, has joined Ares as a Partner in its Real Assets Group. In addition, colleagues across GCP International's global team have joined Ares Real Estate, which will continue to be led by Co-Heads Bill Benjamin and Julie Solomon. "We are proud to welcome our new team members as we establish a powerhouse in the critical real asset sectors driving the new economy," said Michael Arougheti, Chief Executive Officer of Ares. "Together, we have the scale, relationships and experience to benefit from the long-term secular tailwinds that are facilitating unprecedented growth in logistics, digital infrastructure and clean energy assets. We look forward to accelerating execution against our strategic objectives, including growing our global footprint and expanding across asset classes and institutional and retail investor offerings, to deliver an enhanced value proposition for our investors, stockholders and other market participants." "Over the last decade, we have aimed to solidify Ares Real Estate as a leading global investor through our skilled team, longstanding investor and sponsor relationships and performance across market cycles," said Mr. Benjamin and Ms. Solomon. "As we start on this next chapter, the combination of our collaborative cultures, strong sector focus and deep local networks gives us conviction in the power of our platform. We are more excited than ever to be bringing together two top-tier firms and are confident that our integrated team's breadth of experience and disciplined investment approach will fuel our ability to capitalize on attractive long-term structural trends in global real estate markets." Advisors Eastdil Secured, L.L.C., Barclays, Goldman Sachs & Co. LLC and Wells Fargo Securities, LLC served as financial advisors to Ares, with Latham & Watkins acting as legal counsel. Citigroup, Morgan Stanley & Co. LLC, Greenhill, a Mizuho affiliate, UOB Group and Deutsche Bank served as financial advisors to GCP International and Kirkland & Ellis LLP served as legal counsel. About Ares Management Corporation Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, real estate, private equity and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of December 31, 2024, including the acquisition of GCP International which closed on March 1, 2025, Ares Management Corporation's global platform had over $525 billion of assets under management, with operations across North America, South America, Europe, Asia Pacific and the Middle East. For more information, please visit Forward-Looking Statements Statements included herein contain forward-looking statements within the meaning of the federal securities laws. You can identify these forward-looking statements by the use of forward-looking words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates," "foresees" or negative versions of those words, other comparable words or other statements that do not relate to historical or factual matters. The forward-looking statements are based on Ares' beliefs, assumptions and expectations of Ares' future performance, taking into account all information currently available to Ares. Such forward-looking statements are subject to various risks and uncertainties, including Ares' ability to effectively integrate each of GCP International and Walton Street Mexico into Ares' operations and to achieve the expected benefits therefrom, and assumptions including those relating to the acquisitions of GCP International and Walton Street Mexico, Ares' operations, financial results, financial condition, business prospects, growth strategy and liquidity. Some of these factors are described in the Annual Report on Form 10-K for the year ended December 31, 2024, including under the headings "Item 1A. Risk Factors" and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations." These factors should not be construed as exhaustive and should be read in conjunction with the risk factors and other cautionary statements that are included in this report and in Ares' other periodic filings. If one or more of these or other risks or uncertainties materialize, or if Ares' underlying assumptions prove to be incorrect, Ares' actual results may vary materially from those indicated in these forward-looking statements. New risks and uncertainties arise over time, and it is not possible for Ares to predict those events or how they may affect Ares. Therefore, you should not place undue reliance on these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. Ares does not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. View source version on Contacts Media: Priscila Roney, +1-212-808-1185media@ Investors: Greg Mason, Carl Drakeirares@
Yahoo
11-02-2025
- Yahoo
Boy hurt in Plainfield crash that killed sister will not survive, family friend says
It is with extraordinary grief that I bring this update to you. Ares is not going to survive his injuries. The Facebook post came six days after Ares, 3, was severely injured in the vehicle crash that killed his infant sister. He had suffered multiple burns so severe, his mother couldn't even hold his hand while on life support at Riley Children's Hospital. Ares will be an organ donor. "[He was] the joy and the life of every room he entered," family friend Ashlee Vitz told IndyStar. A GoFundMe has been set up by Vitz to support the family. Ares' baby sister, 2-month-old Iris, was pronounced deat at the crash scene. The children's father also was injured in the crash. He is no longer hospitalized, but his ribs are healing. "He did everything he could to save the kids," Vitz said, "But he is still devastated at not being able to do it." S'Doni Pettis: Man who crashed stolen car killing 2-month-old in police chase told police he was late for work Ares' father had just taken him and his baby sister Iris for a visit with their grandparents. Before that, the family had finished a checkup at the doctor for the 2-month-old. The family was traveling on U.S. 40 and Ronald Reagan Parkway in Plainfield Feb. 5 when S'Doni Pettis, 25, was driving a vehicle reported stolen fleeing Avon Police. He drove 90 mph into the family's red Ford Explorer, according to a probable cause for his arrest. The collision caused the SUV to catch fire. Police at the scene of the crash said he was disoriented and smelled of marijuana, according to court documents. Pettis was arrested and indicted on eight counts connected to the deadly crash, including causing death while operating a vehicle and two counts of causing catastrophic injury while operating a vehicle. IndyStar reached out to the Hendricks Prosecutor's Office to see if charges will be updated after Ares' passing. They have not commented by the time of this article's publication. Pettis remained in the Hendricks County jail Tuesday afternoon. Jade Jackson is a Public Safety Reporter for the Indianapolis Star. You can email her at and follow her on X, formally Twitter @IAMJADEJACKSON. This article originally appeared on Indianapolis Star: Report: Boy, 3, hurt in Plainfield crash that killed sister won't survive
