Ares Management's Hidden Gem: Ares Capital Corporation

Ares Management Corporation, founded by Tony Ressler and Michael Arougheti, has created one of the world's largest private credit platforms since 2004. The firm's breakthrough came with the launch of Ares Capital Corporation, a Business Development Company focused on direct lending to middle-market companies. Ares has expanded into Europe, Asia Pacific, and continually innovated with new credit strategies, making it a leader in the private credit industry.

Ares Management Corporation, founded by Tony Ressler and Michael Arougheti, has carved out a significant presence in the private credit industry since its inception in 2004. The firm's breakthrough came with the launch of Ares Capital Corporation (ARCC), a Business Development Company (BDC) focused on direct lending to middle-market companies. Ares has since expanded its operations globally, entering Europe and Asia Pacific, and continually innovating with new credit strategies, cementing its status as a leader in the private credit sector [1].

Ares Capital Corporation, the cornerstone of Ares' private credit empire, is the largest BDC in the United States by market capitalization. With approximately $25 billion in total assets and a diversified portfolio of over 400 companies, ARCC has consistently paid quarterly dividends since its inception. The BDC structure allows ARCC to pass through substantially all of its income to shareholders while maintaining the flexibility to hold illiquid investments for extended periods [1].

Ares Management's success can be attributed to its disciplined approach to credit investing, rooted in the insights pioneered during the junk bond revolution of the 1980s. The firm's resilience through multiple market cycles, including the 2008 financial crisis and the 2020 pandemic, underscores the enduring value of these concepts [1].

In addition to its own investments, Ares has been actively acquiring other BDCs for its clients and itself. According to the latest 13F filing with the SEC, Ares feels that several BDCs are worth buying around current levels. Among these, Blue Owl Capital OBDC, Barings BDC BBDC, and Goldman Sachs BDC GSBD stand out for their scale, credit quality, and unique positioning [1].

Gulf International Bank UK Ltd recently reduced its stake in Ares Management Corporation by 23.7%, selling 3,404 shares and ending up with a total of 10,960 shares valued at approximately $1.6 million. Meanwhile, other institutional investors have increased their holdings in Ares, indicating continued confidence in the firm's investment strategy [2].

In conclusion, Ares Management Corporation's strategic expansion and innovative credit strategies have positioned it as a dominant player in the private credit industry. For investors seeking exposure to this rapidly growing asset class, Ares offers a unique combination of deep historical expertise and global scale.

References:
[1] https://www.benzinga.com/trading-ideas/long-ideas/25/08/47166264/3-income-stocks-the-best-in-the-business-are-buying-now
[2] https://www.marketbeat.com/instant-alerts/filing-gulf-international-bank-uk-ltd-decreases-stock-holdings-in-ares-management-corporation-nyseares-2025-08-15/