Debt Investor Presentation - August 2018 John Stilmar, Investor Relations (678) 538 1983 - Ares Capital Corporation ...

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Debt Investor Presentation - August 2018 John Stilmar, Investor Relations (678) 538 1983 - Ares Capital Corporation ...
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       Debt Investor Presentation                                John Stilmar, Investor Relations
                                                                 jstilmar@aresmgmt.com
       August 2018                                               (678) 538 - 1983

Ares Capital Corporation - Not for Publication or Distribution
Debt Investor Presentation - August 2018 John Stilmar, Investor Relations (678) 538 1983 - Ares Capital Corporation ...
Disclaimer
    IMPORTANT NOTICE:

    Statements included herein may constitute “forward-looking statements,” which may relate to future events or the future performance or financial condition of Ares Capital Corporation
    (“ARCC”), its investment adviser Ares Capital Management LLC (“ACM”), a subsidiary of Ares Management, L.P. (“Ares Management”), or of Ares Management. These statements are not
    guarantees of future results or financial condition and involve a number of risks and uncertainties. Actual results and conditions may differ materially from those in the forward-looking
    statements as a result of a number of factors, including those described from time to time in the filings of ARCC and Ares Management with the Securities and Exchange Commission (“SEC”).

    The information contained in this presentation is summary information that is intended to be considered in the context of the SEC filings of ARCC and Ares Management and other public
    announcements that ARCC or Ares Management may make, by press release or otherwise, from time to time. Neither ARCC nor Ares Management undertakes any duty or obligation to publicly
    update or revise the forward-looking statements or other information contained in this presentation. These materials contain information about ARCC, ACM and Ares Management, and certain
    of their respective personnel and affiliates, information about their respective historical performance and general information about the market. You should not view information related to the
    past performance of ARCC, ACM or Ares Management or information about the market, as indicative of future results, the achievement of which cannot be assured.

    Nothing in these materials should be construed as a recommendation to invest in any securities that may be issued by ARCC or Ares Management or as legal, accounting or tax advice. None of
    ARCC, ACM, Ares Management or any affiliate of ARCC, ACM or Ares Management makes any representation or warranty, express or implied, as to the accuracy or completeness of the
    information contained herein and nothing contained herein shall be relied upon as a promise or representation whether as to the past or future performance. Certain information set forth
    herein includes estimates and projections and involves significant elements of subjective judgment and analysis. Further, such information, unless otherwise stated, is before giving effect to
    management and incentive fees and deductions for taxes. No representations are made as to the accuracy of such estimates or projections or that all assumptions relating to such estimates or
    projections have been considered or stated or that such estimates or projections will be realized.

    These materials may contain confidential and proprietary information, and their distribution or the divulgence of any of their contents to any person, other than the person to whom they were
    originally delivered and such person’s advisers, without the prior consent of ARCC, ACM or Ares Management, as applicable, is prohibited. You are advised that United States securities laws
    restrict any person who has material, non-public information about a company from purchasing or selling securities of such company (and options, warrants and rights relating thereto) and
    from communicating such information to any other person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell such securities. You agree not
    to purchase or sell such securities in violation of any such laws.

    These materials are not intended as an offer to sell, or the solicitation of an offer to purchase, any security, the offer and/or sale of which can only be made by definitive offering
    documentation. Any offer or solicitation with respect to any securities that may be issued by ARCC, Ares Management or any of their affiliates will be made only by means of definitive offering
    memoranda or prospectus, which will be provided to prospective investors and will contain material information that is not set forth herein, including risk factors relating to any such
    investment.

    S&P Disclaimer Notice
    This may contain information obtained from third parties, including ratings from credit ratings agencies such as Standard & Poor’s. Reproduction and distribution of third party content in any
    form is prohibited except with the prior written permission of the related third party. Third party content providers do not guarantee the accuracy, completeness, timeliness or availability of
    any information, including ratings, and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such content.
    THIRD PARTY CONTENT PROVIDERS GIVE NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
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    suitability of securities or the suitability of securities for investment purposes, and should not be relied on as investment advice.

REF: DLUS-0254
Ares Capital Corporation - Not for Publication or Distribution                                          2
Leading Lender to the Middle Market
         Ares Capital is a leading specialty finance company that is focused on providing debt and equity financing solutions to
         U.S. middle market companies

                                                                                              Well Positioned with               Active, Investment Grade
          Attractive Industry &                           Significant Competitive
                                                                                               Strong Investment                   Rated, Index Eligible
          Corporate Structure                                   Advantages
                                                                                                  Performance                              Issuer

     •    Middle market has exhibited                 •    Largest BDC with significant   •   Highly diversified portfolio   •   Investment grade rated by Fitch
          strong growth, creating                          direct origination platform                                           and S&P, and under review for
          demand for financing                                                            •   Strong long term credit            upgrade by Moody’s
                                                      •    Consistent and experienced
                                                                                              performance
     •    Bank consolidation and                           team                                                              •   Completed 17 debt capital
          regulations have created the                                                    •   Strong asset coverage as           markets transactions / $5.7
                                                      •    Disciplined underwriting
          non-bank lending opportunity                                                        well as modest leverage            billion of financings (2)
                                                           process supports highly
     •    Low leverage profile and                         selective approach                 ratio                          •   Lowered spreads on all
          moving to expanded cushion to                                                   •   Deep sources of liquidity          issuances for similar tenor and
                                                      •    Incumbency benefits from
          the new regulatory limit                                                            from the portfolio and             structures since inception
                                                           large portfolio, providing
     •    All BDC industry debt that has                   attractive future investing        diverse financing options      •   Demonstrated access to
          matured has been repaid at                       opportunities                                                         liquidity - 35 debt and equity
          par (1)                                                                         •   Identified and distinct            transactions totaling ~$10
                                                      •    Deep asset management              opportunities for future           billion (2)
                                                           capabilities that seek to          earnings growth
                                                           enhance investment
                                                           performance

Past performance is not a guarantee of future results.
1) Information based on Ares’ knowledge.
2) Since inception in October of 2004 through June 30, 2018.
Ares Capital Corporation - Not for Publication or Distribution                            3
ARCC’s Competitive Advantages in an Attractive Market

Ares Capital Corporation - Not for Publication or Distribution
Supply Constraints Create an Attractive Market Opportunity
       We believe supply constraints in the middle market have resulted in attractive risk adjusted returns
       for direct lenders

                                                                                                          Banks' Share of the U.S. Leveraged Loan Market
        Total Number of U.S. Banks Continues to Decline (1)
                                                                                                                      Continues to Shrink (2)

    11,000                                                                                          100%
                                                                                                      90%
    10,000                                                                                                         29%
                                                                                                      80%
                                                                                                      70%                         55%
      9,000
                                                                                                      60%                                         82%
                                                                                                                                                              88%       93%
      8,000                                                                                           50%
                                                                                                      40%
      7,000                                                                                                        71%
                                                                                                      30%
      6,000                                                                                           20%                         45%

                                                                                                      10%                                         18%
      5,000                                                                                                                                                   12%        7%
                                                                                                       0%
                                                                                                                  1994            2000            2006        2012      1H18

                                                                                                              Foreign/Domestic Banks                Non-Bank Companies/Funds

(1) Source: Federal Deposit Insurance Corp Quarterly Banking Profile Q1-18.
(2) Source: S&P Global Market Intelligence U.S. Leverage Loan Data as of Q2-18. Amounts are based on administrative, syndication and documentation agent as
well as arranger roles.
Ares Capital Corporation - Not for Publication or Distribution                                       5
ARCC’s Proven Business Model and Processes
   ARCC’s time-tested strategy and business model have driven strong performance and returns for
   shareholders

                                                                 Active, Investment Grade Rated,
                                                                       Index Eligible Issuer

Past performance is not indicative of future results.
Ares Capital Corporation - Not for Publication or Distribution                       6
Direct Origination & Scale Provide Distinct Competitive Advantages
                                              Broad and Deep U.S. Origination Coverage with Experienced Team

                                                              87 portfolio                            Direct Origination and Scale Improve Asset Selectivity, Credit
                                                                                                      Quality and Control
                                                              companies
                                                                                                      • Over 100 investment professionals in six U.S. offices
                                                                                                      • Drives asset selectivity and enhances returns
                                                                                                      • Improves due diligence, access and influence over terms
                                                                                                      • Focus on lead investing and controlling the tranche
                                                                                                      • Active investor post-closing with board seats or observation
                                                                                                        rights on 48% of the portfolio (2)
                                                                                                      Larger/Broader Product Capability Enhances Returns
                                                                                                      • Commit and hold up to $500 million in a single transaction(1)
                                                                                                      • Incumbency creates organic growth opportunities within
                                                                                                        existing portfolio
                                                                                                      • Ability to underwrite and syndicate to drive fee income
                                                                                                      Deep PE Sponsor Network
                                                                                                      • Relationships with over 450 sponsors
         67 portfolio                                                                                 • Closed at least one investment with approximately 350
                                                                                                        financial sponsors and multiple investments with over 175
         companies                                                                                      financial sponsors in the U.S.
                                                             157 portfolio
                                                              companies                               Scale Creates Cost of Capital Advantages
                                                                                                      • Enhances access to capital
                                                                                                      • Leads to diversified funding sources and more efficient
                        Ares office locations                                                           access to capital

Note: portfolio company locations excludes 35 portfolio companies outside of the United States.
All data is as of June 30, 2018 unless otherwise noted.
(1) Includes Ares Capital and certain of its financial services portfolio companies.
(2) Based on fair value.
 Ares Capital Corporation - Not for Publication or Distribution                                   7
Why is Direct Origination Important?

   1
                         Widens the Funnel to Provide For a Larger Deal Universe                                Selectivity

   2
                 Primary Diligence on Thousands of Deals Reviewed Since Inception                          Better Investing

   3
                                                                                                          Differentiated and
                                  Control Over Structures and Better Economics
                                                                                                         Diversified Portfolios

   4
                                              Incumbency and Relationships                                Long-Term Annuity

                                    Origination is the core foundation of our disciplined investment strategy

Diversification does not assure profit or protect against market loss.
Ares Capital Corporation - Not for Publication or Distribution               8
Flexibility of Capital: Diversified Product Offerings
                             Going to market as a total solution provider to our prospective and existing borrowers
                                            allows us to see a broad view of market opportunities

                                                                 Corporate:                    $30 - $250 million
           TARGETED
                                                                 Project Finance:              $10 - $200 million
     INVESTMENT HOLD SIZES                                       EBITDA Range:                 Generally under $100 million

                                                                   Leveraged Buyouts               Restructurings
                                                                                                 General Refinancing          Power Generation
         TRANSACTION TYPES                                            Acquisitions
                                                                                                  Rescue Financing               Oil & Gas
                                                                    Recapitalizations
                                                                                                   Growth Capital

                                                                        Revolvers                Unitranche Loans
                                                                                                                              Junior Capital
               PRODUCTS                                              First Lien Loans            Second Lien Loans
              PRODUCTS                                                Stretch Senior              Mezzanine Debt
                                                                                                                              Minority Equity

                                                                 Private Equity Sponsors
                                                                                                 Project Developers            Entrepreneurs
                  PARTNERS                                        Management Teams
                                                                                                   Family Offices              Other Lenders
                                                                     Intermediaries

Ares Capital Corporation - Not for Publication or Distribution                             9
Long Tenured & Highly Experienced Investment Team
       ARCC benefits from a long tenured and highly experienced team with significant
       experience in direct lending and extensive middle market knowledge
    • ARCC’s investment team has invested approximately $47 billion across over 1,000 transactions since 2004(1)
    • Over 75% of senior investment professionals in our direct lending team have been with Ares for at least 5 years(2)
    • The members of the investment committee possess an average of 22 years of investing experience and every member has been
      with Ares at least 10 years
    • ARCC receives referrals from other teams across the Ares Platform
                                                                       U.S. Direct Lending Investment Committee
                           Mark              Michael               Kipp              Mitch                                    Kort                Dave              Michael
      Partners                                                                                          Jim Miller                                                             Average
                          Affolter          Arougheti             deVeer            Goldstein                               Schnabel            Schwartz             Smith
     Industry
                          29 Years            25 Years           23 Years            24 Years            19 Years           20 Years            17 Years            23 Years   22 Years
    Experience
     Years with
                          10 Years            14 Years           14 Years            13 Years            11 Years           17 Years            14 Years            14 Years   13 Years
       Ares

                                                                                     Extensive Direct Lending Team
                                                                                                Direct Lending                                Commercial Finance
                                   No. Investment Professionals                                        100+                                              50+
                                   No. Senior Investment
                                                                                                         40                                               13
                                   Professionals (2)
                                   Average Industry Experience of
                                                                                                     17 years                                         20 years
                                   Sr. Professionals
                                   No. of Offices                                                         6                                                6
As of June 30, 2018.
(1) Includes invested capital from inception on October 8, 2004 through June 30, 2018. Includes investments made through Ares Capital Corporation, the Senior Secured
Loan Program and the Senior Direct Lending Program. Excludes syndications within one year of origination, $1.8 billion of investments acquired from Allied Capital on April
1, 2010 and $2.5 billion of investments acquired from American Capital on January 3, 2017.
(2) Includes principals, managing directors and partners.
Ares Capital Corporation - Not for Publication or Distribution                                        10
Extensive Ares Credit Group Provides Many Benefits to ARCC
      Integrated scaled global platform combines direct origination, deep fundamental credit research
      and broad perspective of relative value

                            $86.9 billion AUM(1)                                                                                          Advantages

             ~30 Partners averaging 24 years of experience
                                                                                                                                Access to Differentiated
                                                                                          Deep Investment                                                                     Ability to Express
                ~235 dedicated investment professionals                                                                          Information to Inform
                                                                                          Opportunity Set                                                                      Relative Value
                                                                                                                                    Credit Decisions

           Origination, Research & Investment Management                             Leading Platform of Liquid Credit, Structured Credit & Direct Lending Strategies

                           14 portfolio managers                                                                                                        Middle
                                                                                     Syndicated                            Structured                                                 Private Mezz/
                                                                                                                                                      Market Cash
          50+ industry research and structured credit professionals                    Loans                             Credit / CMBS                                                Opportunistic
                                                                                                                                                      Flow Loans
                    ~120 direct origination professionals
                 11 distressed and restructuring specialists
                                                                                                                                        Asset Based                         Project
                                                                                                        High Yield                        Lending                           Finance
                     Syndication, Trading & Servicing

                       5 traders in the U.S. and Europe                              Liquid Credit                                                                               Illiquid Credit
                  5 dedicated capital markets professionals
    30+ direct lending professionals focused solely on asset management
                                                                                                                                          Accolades(2)

                Investor Relations & Business Operations

    Established investor relations and client service across the Americas,              ARCC Received Most Honored
                                                                                           Designation & Highest                                                                  Global Fund Manager,
                 Europe, Asia, Australia and the Middle East                            Rankings for Best CEO, CFO, IR          Top Quartile         Lender of the Year           Lender (Americas), &
                                                                                          Professional and Investor            Rankings for            North America              Deal (Americas) of the
                                                                                             Relations Program                 Several Funds      2014, 2015, 2016 & 2017               Year - 2017

                    We have experienced teams across the platform that are positioned for excellence in investing and client service
  Note: As of June 30, 2018, unless otherwise noted.
  1. As of June 30, 2018, AUM amounts include funds managed by Ivy Hill Asset Management, L.P., a wholly owned portfolio company of Ares Capital Corporation and a
        registered investment adviser.
  2. The performance, awards/ratings noted herein relate only to selected funds/strategies and may not be representative of any given client’s experience and should
        not be viewed as indicative of Ares’ past performance or its funds’ future performance. All investments involve risk, including loss of principal.
  Please refer to the Performance Notes on slides 39 - 43 for additional definitions, information and notes
Ares Capital Corporation - Not for Publication or Distribution                                              11
Rigorous Underwriting and Credit Management
        Our in-depth process often spans several months, allowing for thoughtful decision making

                                                                                                      Key Attributes of ARCC Borrowers (1)

                                                                                                    Defensive oriented franchise businesses

                                                                                                                  High free cash flow

                                                                                                         Above market growth prospects

                                                                                                         Diverse sources of profitability

                                                                                                         Premier financial sponsors with
                                                                                                          meaningful “skin in the game”

                                                                                                           Leading management teams

                                                                                                          Appropriate capital structure

                                                                                                                  ARCC has lead role
Ares’ Approach:
• Seek to invest in leading, non-cyclical businesses with attractive growth prospects and high free cash flows
• Use direct origination and scale to provide greater influence on loan structures to maintain high selectivity
• Seek to be the lead lender with voting control to have the ability to impact outcomes
• Use incumbent positions to support growth of leading portfolio companies and to help enhance credit quality
• Be proactive managing investments and use our robust process to preserve capital and create value

(1) Not every investment meets each of the criteria.
 Ares Capital Corporation - Not for Publication or Distribution           12
Differentiated Asset Management Capabilities and Focus
                                                                 Longstanding Process with Clear Differentiation

    •    23 person dedicated asset management                                                                •     For the past 7 years, Ares has spent a
         team is enhanced by Ares firm resources                                                                   significant amount of time and effort
         such as legal, industry experts, etc.                                                                     creating a cloud based platform which
    •    7 have restructuring experience                                                                           enhances access, speed and quality of
                                                                                                                   information
    •    Team has deep capabilities:
             •     Restructuring                                     Large Asset              Proprietary              • System architecture provides
             •     Valuation                                        Management                Technology                 extensive reporting capabilities and
                                                                                                                         data to support investment and
             •     Due diligence                                           Team
                                                                                                                         portfolio management decisions
             •     Valuation

•       Investment teams work                                                                                               •   Be early, be smart, be flexible
        alongside asset management                                      Active                Extensive workout
        team once loan is originated –                             Management                 Restructuring               • Deep ability to protect capital
        life of loan approach                                        Approach                 Experience                    while avoiding unnecessary
•       Ongoing dialogue with company                                                                                       damage to sponsor relationships
        and sponsors/owners                                                                                        •   Generated net positive realized gains
•       Ares Management provides                                                                                       vs losses since inception
        operational and informational
        advantages to maximize value

As of June 30, 2018, unless otherwise noted.
Ares Capital Corporation - Not for Publication or Distribution                           13
ARCC’s Strong Financial Results
        Lead to an Attractive Credit Profile

Ares Capital Corporation - Not for Publication or Distribution
Portfolio Diversification and Industry Selection
        Attractively positioned portfolio, diversified by asset class, industry and borrower size

          Focus on defensively                                   Well diversified                             Extensive investment
                                                                                                                                                              Focus on high free cash
          positioned, attractive                                   portfolio –                               discipline and focus on
                                                                                                                                                                 flow businesses
                industries                                       346 companies                                downside protection

                           Portfolio by Asset Class (1)                                                                    Portfolio by Industry (1)

                                    9%                                                                                                  8%
                                                                                                                            2%
                          6%                                                                                               2%                                22%
                                                                                                                         2%
                        1%                                                                                              3%
                                                                                                                      3%
                   9%                                            40%
                                                                                                                     3%
                                                                                                                     4%
                   5%
                                                                                                                      4%                                            16%
                                                                                                                          5%

                                                                                                                               6%
                                                                                                                                                           7%
                                   30%                                                                                                6%        7%

                                                                                                                Healthcare Services                       Business Services
              Senior oriented portfolio: 75% senior secured loans(2)                                            Consumer Products                         Financial Services
                                                                                                                Investment Funds and Vehicles             Other Services
          First Lien Senior Secured Loans           Second Lien Senior Secured Loans                            Manufacturing                             Power Generation
          Senior Direct Lending Program             Senior Subordinated Loans                                   Restaurants and Food Services             Education
                                                                                                                Food and Beverage                         Oil and Gas
          Collateralized Loan Obligations           Preferred Equity
                                                                                                                Automotive Services                       Wholesale Distribution
          Other Equity and Other                                                                                Containers and Packaging                  Remaining

(1) At fair value as of June 30, 2018.
(2) Including First Lien Senior Secured Loans, Second Lien Senior Secured Loans and investments in the subordinated certificates of the Senior Direct Lending Program.
 Ares Capital Corporation - Not for Publication or Distribution                                        15
Growth Has Enhanced the Portfolio Benefits of Scale
                 A larger balance sheet allows ARCC to finance larger, high quality companies

                                                                                                                                          We have placed a greater emphasis on
         We have invested in larger and more stable                                         We have funded the growth of our highest
                                                                                                                                           incumbency, unlocking attractive
           businesses as our portfolio has grown                                                performing portfolio companies
                                                                                                                                                     opportunities
             90                                                                             100%
                                                          82
             80                                                                             90%                                                   Enables us to finance and
                                                                                                                                            grow with leading portfolio companies
                                                                                            80%
             70                                  65 67                                                                  72%
                                            60                                              70%                                     67%

                                                                   % of Total $ Committed
             60                        55                                                                                     63%
                                  50                                                                                                              Helps reduce portfolio risk
                                                                                            60%
                             46
$ Millions

             50
                     38 40                                                                  50%           43%
             40                                                                                                                           Allows us to remain active with deployment
                                                                                            40%     35%         33%                                  while being defensive
             30
                                                                                            30%
             20
                                                                                            20%                                           Enables us to leverage our history with the
             10                                                                                                                                            borrower
                                                                                            10%
             -                                                                               0%                                           Enhances our ability to maintain better than
                                                                                                    2013 2014 2015 2016 2017 1H18
                                                                                                                                           market terms, documentation and pricing
                    Wtd. Avg. Portfolio Company EBITDA(1)(2)                                       Commitments to Existing Borrowers

                                                                                                                                            We believe lending to incumbent
                                                                                              We have committed over 50% of our
                  Weighted average portfolio company                                                                                         borrowers has significant credit
                                                                                             aggregate capital to existing borrowers
                    EBITDA has doubled since 2010                                                                                          advantages that have supported our
                                                                                                           since 2013
                                                                                                                                                 long term performance

Note: As of June, 30, 2018, unless otherwise stated. Refer to Endnotes on slides 39 - 43 for additional important information.
Ares Capital Corporation - Not for Publication or Distribution                                                     16
Sustained Market Premium for ARCC Yields with Lower Losses
       ARCC’s portfolio has historically generated premium performance to middle market and syndicated
       bank loans and high yield bonds

                                                       ARCC’s Portfolio Yield vs. Leveraged Loans & High Yield Bonds

       11%
                                                                                                                                                                              Premium to
         9%                                                                                                                                                                   Middle Market
                                                                                                                                                                              Leveraged Loans
         7%

         5%
                            2013                          2014                          2015                          2016                             2017           Q2-18

                            ARCC Yield on Debt and Income Producing Securities (1)                                    S&P LSTA Leveraged Loan Yields (2)
                            S&P LSTA Middle Market Leveraged Loan Yields (3)                                          ICE BofAML US HY Master II (4)

                                      Premium yields...                                                                                 ...with lower loss rates
                                                                      Yield            ARCC                                                                        Non-Accrual Rate/
                                                                     6/30/18         Premium                                                                         Default Rate
    ARCC Yield on Debt and Income Producing                                                               Average ARCC Non-Accrual Rate
                                                                       10.5%                                                                                             2.7%
    Securities at Fair Value (1)                                                                          at Amortized Cost (5)
    ICE BofAML U.S. High Yield Master II                                6.6%            3.9%              High Yield Bond Default Rate (6)                              5.1%
    S&P LSTA Leveraged Loan Yields                                      5.7%            4.8%                                                                       Average Annual
                                                                                                                                                                   Gain/(Loss) Rate
    S&P LSTA Middle Market Leveraged Loan
                                                                        7.9%            2.6%              ARCC (7)                                                       1.0%
    Yields
    3-month LIBOR                                                       2.3%            8.2%              High Yield Bonds (8)                                          (2.7)%

As of June 30, 2018. Past performance is not indicative of future results. Refer to Endnotes on slides 39 - 43 for additional important information.
Ares Capital Corporation - Not for Publication or Distribution                                          17
Strong Credit and Investment Performance
       ARCC’s net realized gain/(loss) rates have consistently outperformed BDC peers and banks

   Since IPO in October 2004 through June 30, 2018:                                                                                                              ARCC generated 220 bps of average annual
                                                                                                                                                                       incremental gain differential
                                            Cumulative internal rate of return on ~$23                                                                                     vs. peers since 2004
           14% IRR (1)(2)
                                            billion of original amounts invested                                                                                 1.20%

                                                                                                                                                                 0.80%

                                                                                                                                 Net realized gain/(loss) rate
       ~$630 million                                                                                                                                                        ARCC
                                            Cumulative net realized gains generated                                                                              0.40%
    Net Realized Gains(3)
                                                                                                                                                                 0.00%
                                            Average annualized net realized gain rate on the                                                                                            Banks
                                                                                                                                                                 -0.40%
      1.0% Net Realized                     principal amount of its investments. ARCC had a                                                                                                              BDC
        Gain Rate%(3)                       net realized loss in only one fiscal year since                                                                                                             Peers
                                                                                                                                                                 -0.80%
                                            inception
                                                                                                                                                                 -1.20%
                                                                                                                                                                            ARCC        Banks         BDC Peers

                                             Net Realized Gain/(Loss) and Net Charge Off Rates of ARCC, BDC Peers, and Banks
                                                                                                                                 LTM
                                                   CY2007 CY2008 CY2009 CY2010 CY2011 CY2012 CY2013 CY2014 CY2015 CY2016 CY2017 CQ1-18                                                                            Avg(6)

ARCC(3)                                              0.4%        0.3%      (2.0)%       1.3%        2.1%        0.9%         1.0%                                  1.2%    1.5%     1.2%     0.2%        0.1%     1.0%
BDC Peer Group Average(4)                            0.3%        0.3%      (7.6)%      (4.3)%      (1.4)%      (0.5)%       (0.9)%                                 0.7%    (0.1)%   (1.4)%   (2.7)%     (2.0)%    (1.2)%

Outperformance vs. BDCs (%)                          0.1%         —%        5.6%        5.6%        3.5%        1.4%         1.9%                                  0.5%    1.6%     2.6%     2.9%        2.1%     2.2%

Bank C&I Net Charge Off Rate(5)                     (0.5)%       (1.0)%    (2.3)%      (1.7)%      (1.0)%      (0.5)%       (0.3)%                                (0.2)%   (0.2)%   (0.4)%   (0.4)%     (0.4)%    (0.7)%
Outperformance vs. Banks (%)                         0.9%        1.3%       0.3%        3.0%        3.1%        1.4%         1.3%                                  1.4%    1.7%     1.6%     0.6%        0.5%     1.7%

Note: Past performance is not indicative of future results. Refer to Endnotes on slides 39 - 43 for additional important information.

Ares Capital Corporation - Not for Publication or Distribution                                         18
Compelling Core Earnings and Return on Equity
       ARCC has generated strong core earnings(1) and stable core ROE(2) since our IPO

            Long standing track record of stable core ROE ranging                                                 We’ve out-earned our dividend with cumulative core earnings
              from ~9% to ~12% annually over the past 10 years                                                                plus net realized gains since our IPO

                                     Consistent Core                                                                  Cumulative Core Earnings Plus Net Realized Gains vs.
                                    Return on Equity (2)                                                                           Cumulative Dividends (1)
    14%

    12%                                                                                                          $6,000

                                                                                                                 $5,000
    10%
                                                                                                                 $4,000
      8%

                                                                                                    $ Millions
                                                                                                                 $3,000
      6%
                                                                                                                 $2,000
      4%
                                                                                                                 $1,000
      2%
                                                                                                                      $0
      0%

                                                                                                                           Cumulative Core Earnings Plus Net Realized Gains
                                                                                                                           Cumulative Dividends Paid
                           Core Earnings ROE                     10 Yr US T-Note

Note: All data as of June 30, 2018. There can be no assurance that dividends will continue to be paid at historic levels or at all. Past performance is not
indicative of future results. See Endnotes on slides 39 - 43 for additional important information.
Ares Capital Corporation - Not for Publication or Distribution                                                   19
Deep Sources of Liquidity and Well Laddered Maturities
       Investment portfolio provides ample cash flows to support upcoming debt maturities

                              Sales & Repayments                                                                                       Cumulative Assets Maturing Well In Excess
                       as % of Portfolio at Amortized Cost                                                                             of Cumulative Debt Maturing ($ in millions)

        60%                                                                                                                   $4,500                                                      $12,000
                                                                                                                              $4,000

                                                                                                   Maturities at Fair Value
        50%

                                                                                                                                                                                                    Cumulative Maturities
                                                                                                                                                                                          $10,000
                                                                                                                              $3,500
        40%                                                                                                                   $3,000                                                      $8,000
        30%                                                                                                                   $2,500
                                                                                                                                                                                          $6,000
                                                                                                                              $2,000
        20%                                                                                                                   $1,500                                                      $4,000
        10%                                                                                                                   $1,000
                                                                                                                                                                                          $2,000
                                                                                                                               $500
         0%
                                                                                                                                  $0                                                      $0

                     Exists as % of Portfolio at Amortized Cost                  Average
                                                                                                                                          Investment Maturities (at fair value) (1)
                                                                                                                                          Debt Maturities (at par)
                                                                                                                                          Cumulative Investment Maturities (at fair value) (1)
                                                                                                                                          Cumulative Debt Maturities (at par)

                Assuming the long term average of 35% sales and repayments on our current portfolio of $11.4 billion at amortized cost
                implies $4.0 billion of annual liquidity, our portfolio liquidity is significantly in excess of debt maturities in any one year

Note: As of June, 30, 2018, unless otherwise stated. Past performance is not indicative of future results.
1) Investments with contractual maturity dates are included in the year of the stated maturity. The investments in the subordinated certificates of the SDLP (2) and investments with no
     contractual maturity dates are included in the “Thereafter” years.
2) 2018 unsecured notes have been effectively resolved with notes issued during 2017 and 2018.
Ares Capital Corporation - Not for Publication or Distribution                                               20
Additional Sources of Repayment
            In addition to the liquidity from our portfolio we have ~$3.1B of availability on lines of credit as well
            as a history of issuing debt to refinance maturities
                          Sources of Borrowings & Capacity                                                                        Contractual Maturities (4)

                                      ~$3.1 billion of
                 $8,000                                              $7,751
                                      available borrowing                                                2,500
                                      capacity
                 $7,000
                                                                                                         2,000
                 $6,000                                              $3,533
                                                                                                                                                                           $414
                 $5,000           $4,632
                                                                                                         1,500
    $ Millions

                                                                                            $ Millions
                                   $414
                 $4,000            $688                                $688
                 $3,000                                                                                  1,000
                                                                                                                                                                          $1,580
                 $2,000                                                                                                                                           $600
                                  $3,530                             $3,530
                                                                                                          500
                 $1,000                                                                                          $750
                                                                                                                                            $600
                                                                                                                              $300                                $388
                    $0                                                                                      0
                              Outstanding (1)            Committed Capacity (2)                                  2018         2019          2020          2021    2022   Thereafter

                             Unsecured Debt            Convertible debt                                                 Convertible Unsecured Notes (5)
                             Revolver (3)              SBA Debentures                                                   Other Unsecured Notes (6)(7)
                                                                                                                        Secured Revolving Credit Facilities (8)

                     Market access supplements existing liquidity - completed 17 debt capital markets transactions / $5.7 billion of financings to date

Note: As of June, 30, 2018, unless otherwise stated. Past performance is not indicative of future results.
Refer to Endnotes on slides 39 - 43 for additional important information.
Ares Capital Corporation - Not for Publication or Distribution                                           21
Active & Index Eligible Investment Grade Issuer

Ares Capital Corporation - Not for Publication or Distribution
Long Standing Investment Grade Ratings
       Investment grade rated by Fitch and S&P, and under review for upgrade by Moody’s (1)

      Current Rating                                 BBB                                           BBB-                                                    Ba1
     Current Outlook                               Stable                                         Stable                                           Positive
                                                                                                                                           Under Review for Upgrade

                                                                                                                                                 “Moody's expects that Ares
              “Fitch continues to believe that Ares has the                      “We also believe ARCC has one of the
                                                                                                                                                 Capital's portfolio quality would
              strongest capital structure in the BDC space”                      most diversified funding profiles
                                                                                                                                                 result in minimal losses to
              – June 25, 2018 (2)                                                relative to peers…” – June 25, 2018 (3)
                                                                                                                                                 creditors in the event of default”
                                                                                                                                                 – June 25, 2018 (4)

               “The proposed increase in leverage is                             “ARCC has performed well, with                                    “Moody's expect[s] that Ares
               sufficiently mitigated by an expected                             realized return on average assets                                 Capital will maintain a cushion
               incremental improvement in the risk                               typically above 5%, coverage of                                   in relation to the revised 150%
               profile of the portfolio, Ares’ peer-                             interest through what we consider to                              regulatory minimum asset
               superior track record in credit, and an                           be stable and recurring earnings of                               coverage ratio (ACR) that is
               expectation that the covenant cushion will                        more than 3x, and the coverage of                                 stronger than the cushion the
               be maintained at a sufficient level to                            interest and dividends above 1x”                                  company has maintained
               account for potential valuation volatility                        – June 25, 2018 (3)                                               historically…”– June 25, 2018 (4)
               in the portfolio” – June 25, 2018 (2)

1) As of June 30, 2018.
2) FitchRatings, “Fitch Affirms Ares Capital at ‘BBB’ On Expected Leverage Increase; Outlook stable,” June 25, 2018.
3) S&P Global Ratings, “Ares Capital Corp. Downgraded To 'BBB-' On Board Approval For Lower Asset Coverage Requirement, Outlook Stable,” June 25, 2018.
4) Moody’s Investors Services, “Rating Action: Moody’s Reviews Ares Capital’s Ba1 Ratings for Upgrade,” June 25, 2018.

Ares Capital Corporation - Not for Publication or Distribution                                    23
Expanded Market Access and Growing Liquidity
      Our growth has supported improved pricing, expanded access and more actively traded bonds

                                                 Improved funding cost and increased liquidity over time

                                        $750mm                                                                                     $750mm
                                         4.875%                                                                                     3.500%
                                        5Y notes                                                                                   5Y notes
                                  3.0    T+366                                                                                      T+170

                                  2.5
                                  2.0
                     $ Billions

                                  1.5
                                  1.0
                                  0.5
                                  0.0
                                          2013                       2014                 2015                       2016            2017
                                                                      5 Yr Term Unsecured Notes Outstanding

                        Expanded Liquidity:                                                         New Tenors:
                        • 2018 quarterly average trading volume in                                  • In 2018, we closed on our inaugural $600
                          ARCC unsecured debt was ~$550mm or ~17%                                     million 7 year note with a 4.25% coupon
                          of total unsecured debt outstanding (1)                                     (T+190 bps)

1) As of July 13, 2018; trading volumes based on estimated TRACE data and includes all trades >=100k per JP Morgan
Ares Capital Corporation - Not for Publication or Distribution                                    24
Strong Execution on Unsecured Notes Offerings
        Continued to improve interest rate since our first issuance, which has also led to new markets, such
        as our 7-year issuance in 2018

                           Spread on 5 Year Unsecured Notes                                                                Spread on 5 Year Convertible Notes

              6.0%                                                                                      6.0%

              5.0%                                                                                      5.0%

              4.0%                3.66%                                                                 4.0%                  3.70%
     Spread

                                                                                               Spread
              3.0%                                                                                      3.0%

              2.0%                                                    1.70%                             2.0%                                                              1.80%

              1.0%                                                                                      1.0%

              0.0%                                                                                      0.0%
                                  Nov-13                              Aug-17                                                  Jan-11                                      Jan-17
                                                 Issuance Date                                                                                Issuance Date

              Spreads have declined by ~200 bps since November 2013(1)                                         Spreads have declined by 190 bps since January 2011(2)

                                                                    In January 2018, we completed our inaugural 7-year
                                                                   notes offering at 4.25%, representing a 190 bps spread

(1) Measured as the spread to 5 Year U.S. Treasuries on day of pricing of our 2018 Notes issued at a stated interest rate of 4.875% on November 19, 2013 as compared to
the spread to 5 Year U.S. Treasuries of our 2023 Notes issued at a stated rate of 3.5% on August 10, 2017.
(2) Measured as the spread to 5 Year U.S. Treasuries on day of pricing of our 2016 Convertible Notes issued at a stated interest rate of 5.750% on January 25, 2011 as
compared to the spread to 5 Year U.S. Treasuries of our 2022 Convertible Notes issued at a stated rate of 3.750% on January 27, 2017.
Ares Capital Corporation - Not for Publication or Distribution                                          25
Small Business Credit Availability Act

Ares Capital Corporation - Not for Publication or Distribution
ARCC Board Approved Reducing Asset Coverage Requirement Under the SBCAA
  We have taken a methodical approach to evaluating the benefits of the SBCAA, which has resulted in our
  Board approving a lower asset coverage requirement pursuant to the SBCAA

                                    • The Small Business Credit Availability Act (the “SBCAA”) was included in the Omnibus Spending Bill and was signed
                                      into law on March 23, 2018
          SBCAA                     • The SBCAA, among other things, modifies the applicable provisions of the Investment Company Act to reduce the
                                      required asset coverage ratio applicable to BDCs from 200% to 150%, subject to certain approval, timing and disclosure
        Overview                      requirements
                                                 o Upon approval and implementation, this effectively raises the regulatory debt to equity ceiling from 1.0x to
                                                   2.0x Debt to Equity (“D:E”)

                                     • Solicited Broad Input: In addition to significant internal resources focused on evaluating the opportunity, we have
                                       considered input from a wide array of constituencies, which included:
                                                 o Lenders
                                                 o Rating agencies
   Comprehensive                                 o Fixed income investors
     Process for                                 o Shareholders
   Evaluating and
                                                 o Investment banks
   Approving the
       SBCAA                         • Deep Board Engagement: Our majority-independent Board of Directors has convened multiple times since passage of
                                       the SBCAA to consider many factors in evaluating our approach
                                     • Approval of Increased Leverage Flexibility Under the SBCAA: On June 21, 2018, our Board of Directors approved
                                       reducing our regulatory asset coverage ratio to 150% under the SBCAA. This change will go into effect on June 21,
                                       2019, following the required 12 month cooling off period under the SBCAA
                                                 o We reserve the right to seek a shareholder vote if we would like to accelerate the implementation

 As of June 21, 2018, unless otherwise stated.
 Ares Capital Corporation - Not for Publication or Distribution                          27
ARCC Adopted Reducing the Asset Coverage Requirement Under the SBCAA
        The adoption of the 150% asset coverage ratio and the use of modest incremental leverage provides increased flexibility and
        potential for incremental earnings while maintaining our conservative risk profile

                              1                                                                          • We believe our high quality portfolio easily supports higher leverage
                                  BUILDS ON LEADING TRACK RECORD TO                                      • We expect to generate higher core earnings
                                DRIVE HIGHER EARNINGS WITH LOWER FEES                                    • We will reduce our base management fee to 1.0% on all assets financed
                                                                                                           using leverage over 1.0x debt to equity

                                                   2                                                     • Increases cushion to regulatory leverage limit and therefore reduces default
                                                          INCREASED FLEXIBILITY                            risk on our outstanding debt
                                                          DE-RISKS THE COMPANY
                                                                                                         • Increases flexibility to manage ARCC through credit cycles

                                                    3                                                    • Revised target leverage of 0.90x to 1.25x remains conservative
                                                         MAINTAINS CONSERVATIVE                          • Target leverage of 0.90x to 1.25x is lower than allowed by the advance
                                                                                                           rates of our credit facilities (1)
                                                        INVESTMENT GRADE PROFILE
                                                                                                         • We intend to operate in a manner whereby ARCC maintains its investment
                                                                                                           grade credit profile

                              4                                                                          •   Increases ARCC’s flexibility
                                         ENHANCES GROWTH, SCALE &                                        •   Adds to our potential investment opportunities
                                        DIVERSIFICATION OPPORTUNITIES                                    •   Increases opportunities for diversification and scale
                                                                                                         •   Should enhance ARCC’s access to capital

As of June 21, 2018, unless otherwise stated. As stated in “ARCC’s Plan for the Small Business Credit Availability Act,” an investor presentation which was included as Exhibit 99.2 to Form 8-K filed on June 25, 2018.
1. For assets pledged to our Revolving Credit Facility, advance rates are based on current advance rates under our Revolving Credit Facility. For assets not pledged to our
      Revolving Credit Facility, advance rates are based on our estimate of market allowable leverage. Such advance rates are subject to change.
     Ares Capital Corporation - Not for Publication or Distribution                                          28
The Relaxed Asset Coverage Ceiling Improves Risk Profile
       SBCAA election expands the cushion to the regulatory limit, which should make ARCC more durable
       through market cycles

                                                                                                                                              New Regulatory
          2.00x                                                                                                                               Leverage Limit
                                                                                                                                              Under SBCAA
          1.80x

          1.60x                                                                                                                               Expanded
                                                                                                                                              cushion
          1.40x
                                                                                                           1.25x
          1.20x
                                                                                          Old Regulatory
          1.00x                                                                           Leverage Limit
                                                                                                           0.90x
          0.80x                                                                           Old Cushion
                                    0.75x
                                    0.65x
          0.60x

          0.40x

          0.20x

          0.00x
                                            Old Target Leverage Range                                          New Target Leverage Range
                                            0.65x - 0.75x Debt to Equity                                       0.90x - 1.25x Debt to Equity

                                              We intend to operate with a greater cushion to our leverage limit,
                                                   which would reduce risk for debt and equity investors

Note: The degree of cushion depends on underlying asset volatility and use of leverage.
Ares Capital Corporation - Not for Publication or Distribution                                      29
Target Leverage Range is Still Below Borrowing Capacity
                       Based on our Q2-18 portfolio and current advance rates, our portfolio could be leveraged to ~1.5x D:E

                                                                                                                                                                                                   New Regulatory
                       2.0x
                                                                                                                                                                                                   Leverage Limit
                       1.8x                                                                                                                                                                        Under SBCAA

                       1.6x                                                                                                                                                               ~1.50x
                       1.4x
                                                                                                                                              1.25x
Debt to Equity Ratio

                       1.2x       New Target
                                  Leverage
                       1.0x       Range                                                         0.90x
                       0.8x
                                                  0.57x
                       0.6x

                       0.4x

                       0.2x

                       0.0x
                                         6/30/2018 Leverage                            Lower End of New                              Upper End of New                       Leverage Allowed by the
                                                                                        Targeted Range                                Targeted Range                     Advance Rates of our Revolving
                                                                                                                                                                                 Credit Facility (1)

1.                     For illustrative purposes only to demonstrate borrowing capacity without giving consideration to any regulatory or contractual constraints on leverage. For assets
                       pledged to our Revolving Credit Facility, advance rates are based on current advance rates under our Revolving Credit Facility. For assets not pledged to our Revolving
                       Credit Facility, advance rates are based on our estimate of market allowable leverage. Such advance rates are subject to change.
Ares Capital Corporation - Not for Publication or Distribution                                                          30
Our Conservative Leverage Profile is Favorable Compared to Other Entities
    After adopting benefits of the SBCAA, our long term debt to equity target is 0.9x-1.25x

                                           Illustration of Leverage Used to Invest in Loans by Investor Type

                         12.0x                                                                                                                                        50%
                                                                                 Leverage               Equity %                                          44%
                                 9.9x
                         10.0x                                9.3x

                                                                                                                                                                            % Equity of Total Capitalization
                                                                                                                                                                      40%
  Debt to Equity Ratio

                          8.0x
                                                                                                                                                                      30%
                                                                                                                           25%
                          6.0x
                                                                                             4.5x                                                                     20%
                          4.0x
                                                                                             18%                           3.0x
                                  9%                          10%
                                                                                                                                                                      10%
                          2.0x                                                                                                                           1.25x

                          0.0x                                                                                                                                        0%
                                 Banks   (1)
                                                     Broadly Syndicated               Middle Market                        SBICs *             ARCC Leverage Target
                                                            CLOs (2)                      CLOs (3)                                                 - Upper End

Refer to Endnotes on slides 39 - 43 for additional important information.
*The SBA has the ability to approve leverage requests in excess of 200 percent of Regulatory Capital up to 300 percent, but most often SBIC funds operate with a
leverage limit to Regulatory Capital of 200 percent. SBIC commitments are often made to much smaller companies than our typical portfolio companies without any
limitations on asset classes.
 Ares Capital Corporation - Not for Publication or Distribution                                        31
Conclusion
     We believe these factors lead to a company well positioned to continue to generate attractive future
     financial performance that benefits bondholders

                                         1              Attractive Industry & Corporate Structure

                                         2              Significant Competitive Advantages

                                         3              Well Positioned with Strong Investment Performance

                                         4              Active, Investment Grade Rated, Index Eligible Issuer

Note: Past performance is not indicative of future results.
Ares Capital Corporation - Not for Publication or Distribution                 32
Appendix:
        Additional Investment and Financial Considerations

Ares Capital Corporation - Not for Publication or Distribution
ARCC Serves Strong and Vibrant Middle Market Companies
                                                                           Defining the U.S. Middle Market
                                                  Nearly
     Annual Revenue
                                              200,000                              3rd Largest                         Nearly 33%                        1/3
     $10M–$1B                                  Businesses
                                                                                  Global Economy                   of Private Sector GDP          of All U.S. Jobs

                $
                                                                            Strong Industry Fundamentals
                                                                                                           7%
    10%
     8%                                                                                                    6%
     6%                                                                                                    5%
     4%                                                                                                    4%
     2%
                                                                                                           3%
     0%
    -2%                                                                                                    2%
    -4%                                                                                                    1%
    -6%                                                                                                    0%
               2012        2013         2014        2015        2016         2017        1H18                   2012   2013    2014     2015      2016     2017      1H18
                                                                                                                                Growth in Workforce Size
                             Middle Market Indicator                   S&P 500

              Middle Market Revenue Growth vs. S&P 500                                                             Middle Market Hiring Remains Strong

For illustrative purposes only. Source: National Center for the Middle Market. As of June 30, 2018.
Ares Capital Corporation - Not for Publication or Distribution                                        34
BDC Structure Offers Benefits to Creditors
       We believe creditors benefit from the leverage restrictions and diversification requirements of the
       BDC/RIC structure

                 BDCs are closed-end investment companies                                        The BDC/RIC structure provides limitation on
                            regulated by the SEC                                                leverage and requires portfolio diversification
    • Created to encourage investment in small and middle market                       • Portfolio must be well diversified
      companies
                                                                                               • No single investment can account for more than 25% of
                                                                                                 total assets
    • As of June 30, 2018, there were 53 publicly listed/active BDCs
      with a total market capitalization of $33.4 billion(1)                                   • At least 50% of total assets must be comprised of
                                                                                                 individual holdings of less than 5% of total assets each
    • Make debt and equity investments with ability to invest across
                                                                                       • ARCC chose to elect the benefits of the Small Business Credit
      a company’s capital structure
                                                                                         Availability Act which requires an asset coverage ratio of at least
    • Must generally invest at least 70% of assets in U.S. private                       150% (maximum debt to equity of approximately 2:1) in order to
      companies or U.S. public companies with market                                     borrow or pay dividends
      capitalizations under $250 million                                                       • This provision will go into effect on June 21, 2019 unless
                                                                                                 an earlier shareholder vote is requested and received
                                                                                               • The current 200% asset coverage ratio will remain in
                                                                                                 place until the effective date
                                                                                       • Required to pay at least 90% of taxable income as dividends to
                                                                                         shareholders to qualify as a RIC
                                                                                               • Portfolio must generate sufficient cash flows to pay
                                                                                                 interest as well as dividends to equity investors junior to
                                                                                                 debt holders

                                                                 Ares Capital Corporation is the Largest BDC

1) Source: SNL Financial
Ares Capital Corporation - Not for Publication or Distribution                        35
ARCC’s Earnings Will Likely Benefit from Higher LIBOR Rates
        ARCC has an asset sensitive balance sheet that we believe will benefit from an expected rise in base
        interest rates

                              3 Month LIBOR Forward Rates (1)                                                           Enhanced Ability to Benefit from Rising Rates (2)

       3.20%                                                                                              • Heavily weighted to floating-rate loans (3)
                                                                                                               o   91% floating rate loan portfolio
       3.00%
                                                                                                               o   8% fixed rate loan portfolio
       2.80%                                                                                              • 100% weighted to fixed-rate borrowings                      (4)

                                                                                                          • Conservative Leverage
       2.60%                                                                                                   o   0.57x net debt to equity

       2.40%
                                                                                                          Increase in LIBOR                           Annual Per Share Impact (2)(5)
       2.20%                                                                                              100 bps                                     $0.17 per share

       2.00%                                                                                              200 bps                                     $0.33 per share

       1.80%                                                                                              300 bps                                     $0.50 per share
                   July 2018      July 2019      July 2020       July 2021      July 2022

(1)   Source: Chatham Financial. Reflects the current and forward 3 month LIBOR rates for July 23, 2018 through 2022, all as of July 23, 2018.
(2)   As of June 30, 2018.
(3)   Remaining 1% consists of non-accruals and non-coupon bearing loans.
(4)   Includes the $395 million term loan tranche of Ares Capital's Revolving Credit Facility which Ares Capital effectively fixed the interest rate at 3.8% through an interest rate swap agreement.
(5)   Marginal EPS contributions include the impact of income-based fees.

Ares Capital Corporation - Not for Publication or Distribution                                           36
Deep and Diverse Access to Low Cost Debt Financing
       We believe that ARCC is a very efficient issuer of liabilities

                                              Aggregate Principal
                                                                                                        Weighted
                                                  Amount of                    Principal
     ($ in millions)                                                                                 Average Stated
                                                Commitments                   Outstanding
                                                                                                     Interest Rate (2)
                                                Outstanding (1)
     Secured Revolving Facilities (3)
     Revolving Credit Facility (4)                               $2,133                   $414              3.814%
     Revolving Funding Facility                                   1,000                     —                 —%            •     Significant access to long-dated, lower cost revolving
     SMBC Funding Facility (5)                                      400                     —                 —%                  debt facilities
     Subtotal                                                    $3,533                   $414              3.814%          •     No “mark to market” financing
                                                                                                                            •     Reduced pricing over time and continue to periodically
     SBA Debentures                                                $—                       $—               —%                   extend maturities (5-7 year terms)

     Unsecured Notes Payable
     2018 Notes                                                     750                    750              4.875%
     2019 Convertible Notes                                         300                    300              4.375%
     2020 Notes                                                     600                    600              3.875%          •     Seasoned issuer in the institutional unsecured debt
     January 2022 Notes                                             600                    600              3.625%                market
     2022 Convertible Notes                                         388                    388              3.750%          •     More than 100 investors have invested in ARCC’s
     2023 Notes                                                     750                    750              3.500%                Convertible and Investment Grade Notes
     2025 Notes                                                     600                    600              4.250%          •     Raised over $5.5 billion in unsecured notes since 2011
     2047 Notes                                                     230                    230              6.875%
     Subtotal                                                    $4,218                 $4,218              4.191%
     Total                                                       $7,751                 $4,632              4.158%
     Weighted Average Stated Interest
                                                             4.09%(6)                    4.16%
     Rate

All data as of June 30, 2018, unless otherwise noted. Refer to Endnotes on slides 39 - 43 for additional important information.
Ares Capital Corporation - Not for Publication or Distribution                                         37
Reconciliation of Core Earnings
       Reconciliations of Core Earnings to GAAP Earnings

                                                                                                        For the years ended                                            YTD             YTD
   (in millions)                                                             2012          2013          2014       2015                2016           2017           Q2-17           Q2-18

   Core Earnings (1)                                                     $       381 $          442 $          473 $         486 $          504 $          592 $           277 $           334

   Professional fees and other costs related to the                                —              —              —              —            (12)           (40)            (34)             (3)
   American Capital Acquisition (2)

   Ares Reimbursement (3)                                                          —              —              —              —             —              —               —               12

   Net realized and unrealized gains (losses)                                    159             58            153          (129)            (20)          156               78            191

   Incentive fees attributable to net realized and                                (32)          (11)           (29)            27               5           (41)            (26)            (38)
   unrealized gains and losses
   Income tax and other expenses related to net                                    —              —              (6)            (5)            (3)           —                1              —
   realized and unrealized gains and losses

   GAAP Earnings                                                         $       508 $          489 $          591 $         379 $          474 $          667 $           296 $           496

(1) Core Earnings is a non-GAAP financial measure. Core Earnings is the net increase (decrease) in stockholders’ equity resulting from operations less professional fees and other costs related to the
American Capital Acquisition, expense reimbursement from Ares Capital Management LLC (the “Ares Reimbursement”), net realized and unrealized gains and losses, any capital gains incentive fees
attributable to such net realized and unrealized gains and losses and any income taxes related to such net realized gains and losses. Net increase (decrease) in stockholders’ equity is the most directly
comparable GAAP financial measure. Ares Capital believes that Core Earnings provides useful information to investors regarding financial performance because it is one method Ares Capital uses to
measure its financial condition and results of operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in
accordance with GAAP.
(2) See Note 14 to Ares Capital's consolidated financial statements included in the annual report on Form 10-Q for the quarter ended June 30, 2018 for information regarding the American Capital
Acquisition.
(3) See Note 12 to Ares Capital's consolidated financial statements included in the annual report on Form 10-Q for the quarter ended June 30, 2018 for information regarding the Ares Reimbursement.

Ares Capital Corporation - Not for Publication or Distribution                                         38
Endnotes

Ares Capital Corporation - Not for Publication or Distribution
Endnotes
  Slide 11: Ares’ Extensive Credit Group Provides Many Benefits to ARCC
  Performance Notes:
  • ARCC received the 2018 All-America Executive Team award alongside 43 other companies. Various Ares personnel received first place awards in the following categories: CEO, CFO, IR Professional
      and IR program. 248 other institutions also received a first-, second-, or third-place ranking in one or more of those four categories. Institutional Investor based these awards on the opinions of 1,940
      portfolio managers and buy-side analysts, and 826 sell-side analysts who participated in this survey.
  •    Institutional Investor logo from Institutional Investor, ©2018 Institutional Investor, LLC. All rights reserved. Used by permission and protected by the Copyright Laws of the United States. The
       printing, copying, redistribution, or retransmission of this Content without express written permission is prohibited.
  •    Lipper Rankings reported in Lipper Marketplace Best Money Managers, March 31, 2018. Lipper Marketplace is the source of the long-only and multi-strategy credit rankings. Lipper’s Best Money
       Managers rankings consider only those funds that meet the following qualification: performance must be calculated “net” of all fees and commissions; must include cash; performance must be
       calculated in U.S. dollars; asset base must be at least $10 million in size for “traditional” U.S. asset classes (equity, fixed income, and balanced accounts); and, the classification of the product must
       fall into one of the categories which they rank. Lipper defines Short Duration as 1-5 years. Lipper’s Active Duration definition does not specify a time period but rather refers to an Active rather than
       Passive strategy. Ares Institutional Loan Fund was ranked 12 out of 58 for the 20 quarters ended March 31, 2018. Composites for Ares U.S. Bank Loan Aggregate and Ares U.S. High Yield additionally
       received rankings of 10 of 58 and 4 of 37, respectively, for the 20 quarters ended March 31, 2018.
  •    Private Equity International selected Ares Management as Mid-Cap Lender of the Year – North America for 2014 and Ares Capital Corporation as Lender of the Year – North America for 2015, 2016
       and 2017 – Awards based on an industry wide global survey across 60 categories conducted by Private Equity International. In the Mid-Cap Lender of the Year in North America category (renamed to
       Lender of the Year in 2015), Ares was listed as one of three shortlisted firms as suggested by the editorial board of PEI Media. Survey participants voted independently. In addition, survey
       participants could nominate another firm not listed in the category.
  •    Private Debt Investor selected Ares Capital Corporation as Global Sponsored Deal of the Year (Qlik Technologies) for 2017. Awards based on an industry wide global survey across 43 categories
       conducted by Private Debt Investor. In the Global Sponsored Deal of the Year category Ares was listed as one of four shortlisted firms as suggested by the editorial board of PEI Media. Survey
       participants voted independently. In addition, survey participants could nominate another firm not listed in the category.

  Slide 16: Growth Has Enhanced the Portfolio Benefits of Scale
  1.    Weighted average EBITDA amounts are weighted based on the fair value of the portfolio company investments. EBITDA amounts are estimated from the most recent portfolio company financial
        statements, have not been independently verified by Ares Capital Corporation and may reflect a normalized or adjusted amount. Accordingly, Ares Capital Corporation makes no representation or
        warranty in respect of this information.
  2.    This portfolio weighted average EBITDA data includes information solely in respect of corporate investments in Ares Capital Corporation's portfolio, subject to the exclusions described in the
        following sentence. Excluded from the data above is information in respect of the following: (i) the SSLP (and the underlying borrowers in the SSLP), (ii) the SDLP (and the underlying borrowers in
        the SDLP), (iii) portfolio companies that do not report EBITDA, including IHAM, (iv) investment funds/vehicles, (v) discrete projects in the project finance/power generation sector, (vi) certain oil and
        gas companies, (vii) venture capital backed companies and (viii) commercial real estate financial companies.

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Endnotes
  Slide 17: Sustained Market Premium for ARCC Yields with Lower Losses
  1.   The weighted average yield on debt and other income producing securities is computed as (a) annual stated interest rate or yield earned plus the net annual amortization of original issue discount
       and market discount or premium earned on accruing debt and other income producing securities, divided by (b) total accruing debt and other income producing securities at fair value.
  2.   The S&P/LSTA Leveraged Loan Index is a market value-weighted index designed to measure the performance of the U.S. leveraged loan market based upon market weightings, spreads and interest
       payments. Term loans from syndicated credits must meet the following criteria at issuance in order to be eligible for inclusion in the index: senior secured, minimum initial term of one year, US
       dollar denominated, minimum initial spread of LIBOR + 125 basis points, $50M initially funded loans. Inception date: January 1, 1997.
  3.   The Middle Market Index consists of middle market facilities drawn from the larger S&P/LSTA (Loan Syndications and Trading Association) Leveraged Loan Index. It is designed to measure the
       performance of the U.S. leveraged loan market. S&P/LSTA defines the middle market as deals with an EBITDA of less than $50 million.
  4.   The ICE BofAML US High Yield Index ("H0A0") tracks the performance of US dollar denominated below investment grade corporate debt publicly issued in the US domestic market. Qualifying
       securities must have a below investment grade rating (based on an average of Moody’s, S&P and Fitch), at least 18 months to final maturity at the time of issuance, at least one year remaining term
       to final maturity as of the rebalancing date, a fixed coupon schedule and a minimum amount outstanding of $100 million. Index constituents are capitalization‐weighted based on their current
       amount outstanding times the market price plus accrued interest. Inception date: August 31, 1986.
  5.   Represents ARCC’s average quarterly non-accrual rate at amortized cost from inception in October 8, 2004 to June 30, 2018.
  6.   Source: Moody's U.S. Trailing 12-month issuer-weighted spec-grade default rate. Actual speculative grade default data taken from January 2000 to December 31, 2017.
  7.   Calculated as an average of the historical annual net realized gain/loss rates (where annual net realized gain/loss rate is calculated as the amount of net realized gains/losses for a particular period
       from Ares Capital IPO in October 2004 to June 30, 2018 divided by the average quarterly investments at amortized cost in such period). Excludes $196 million one‐time gain on the acquisition of
       Allied Capital Corporation in Q2‐10 and gains/losses from extinguishment of debt and sale of other assets.
  8.   Source: Moody’s 2017 Annual Default Study. Reflects average annual loss rate for speculative grade bonds from 2000-2017.

  Slide 18: Strong Credit and Investment Performance
  1.   As of June 30, 2018. Based on original cash invested, net of syndications, of approximately $23.1 billion and total proceeds from such exited investments of approximately $29.3 billion from
       inception on October 8, 2004 through June 30, 2018.
  2.   Internal rate of return ("IRR") is the discount rate that makes the net present value of all cash flows related to a particular investment equal to zero. Internal rate of return is gross of management
       fees and expenses related to investments as these fees and expenses are not allocable to specific investments. The effect of such management and other expenses may reduce, maybe materially,
       the IRR’s shown herein. Investments are considered to be exited when the original investment objective has been achieved through the receipt of cash and/or non-cash consideration upon the
       repayment of Ares Capital’s debt investment or sale of an investment, or through the determination that no further consideration was collectible and, thus, a loss may have been realized. These
       IRR results are historical results relating to Ares Capital’s past performance and are not necessarily indicative of future results, the achievement of which cannot be assured.
  3.   Calculated as an average of the historical annual net realized gain/loss rates (where annual net realized gain/loss rate is calculated as the amount of net realized gains/losses for a particular period
       from Ares Capital IPO in October 2004 to June 30, 2018 divided by the average quarterly investments at amortized cost in such period). Excludes $196 million one‐time gain on the acquisition of
       Allied Capital Corporation in Q2‐10 and gains/losses from extinguishment of debt and sale of other assets.
  4.   BDC peer group consists of BDCs with a market capitalization of $400 million or greater as of March 31, 2018 or who are under common management with a BDC that meets these criteria. Peers
       include: AINV, BKCC, CGBD, CCT, OCSL, OCSI, FSIC, GBDC, GSBD, HTGC, MAIN, NMFC, PFLT, PNNT, PSEC, SLRC, SUNS, TCAP, TCPC and TSLX. Net realized gain/(loss) rate calculated as an average of a
       BDC’s historical annual net realized gain/loss rates, where annual net realized gain/loss rate is calculated as the amount of net realized gains/losses for a particular period divided by the average
       quarterly investments at amortized cost in such period.
  5.   Source: KBW and FDIC Commercial Banking Data. Calculated as net charge-offs for commercial and industrial loans divided by net commercial and industrial loans and leases for the respective
       periods.
  6.   Annual average from December 31, 2004 through March 31, 2018 as not all peers have reported as of August 1, 2018.

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