BDCs are investment firms that help small and medium-sized businesses raise capital (which typically have a difficult time acquiring funding from larger financiers). BDCs were created by Congress in 1980 to promote U.S. business growth, and they must meet certain criteria, such as investing at least 70% of their assets in American companies with a market value of less than $250 million.
The fact that BDCs are licensed investment organizations appeals to income investors. They, like REITs, are eligible for tax breaks. They, like REITs, must pay out at least 90% of taxable revenue in dividends, producing in yields in the mid- to high-single digits (with 10%+ yields not uncommon).
What kind of company is ARCC?
Ares Capital Corporation (NASDAQ: ARCC) is a major Business Development Company and one of the country’s largest direct lenders. (1) Our dynamic global platform combines significant origination capabilities with in-depth knowledge to provide comprehensive solutions to fulfill the unique and underserved financial needs of our customers.
Is Ares Capital Corp a REIT?
With approximately $36.5 billion in assets under management as of September 30, 2021, our Real Estate Group administers comprehensive public and private equity and debt strategies. Non-traded Real Estate Investment Trusts (REITs), a publicly traded commercial mortgage Real Estate Investment Trust (“REIT”), Ares Commercial Real Estate Corporation (NYSE: ACRE), U.S. and European real estate private equity commingled funds, U.S. real estate private debt commingled funds, and real estate equity and debt separately managed accounts are all vehicles through which we provide investors access to our capabilities.
Is ARCC a good investment?
2 (33.33 percent) analysts recommend ARCC as a Strong Buy, 3 (50 percent) analysts recommend ARCC as a Buy, 1 (16.67 percent) analyst recommends ARCC as a Hold, 0 (0%) analyst recommends ARCC as a Sell, and 0 (0%) analyst recommends ARCC as a Strong Sell.
Is ARCC a MLP?
Business development businesses, in addition to standard high-yield income investments in REITs or MLPs, offer tremendous yield potential to investors. Ares Capital Corporation is one of those companies worth investigating further (NASDAQ:ARCC).
What does ARCC company do?
Ares Capital Corporation is a specialized lending firm. The Company is a non-diversified, closed-end managed investment company. Through loan and equity investments, the Company’s investment objective is to provide both current income and capital appreciation. It typically invests in first lien senior secured loans and second lien senior secured loans (including unitranche loans, which are loans that incorporate both senior and subordinated debt in a first lien position). It also invests in subordinated debt, which sometimes contains an equity component, and preferred equity, in addition to senior secured loans. Health care services, software and services, commercial and professional services, consumer services, consumer durables and clothes, autos and components, power generation, and insurance services are among the industries in which the Company invests. The Company’s investment adviser is Ares Capital Management LLC.
Who is Ares Capital?
Ares Capital Corporation is an investment management firm. The Company typically invests in U.S. middle market companies in order to produce income and capital appreciation through loan and equity investments.
Is ARCC a closed end fund?
Ares Capital Corp is a closed-ended specialized finance firm established in the United States. Through loan and equity investments, it seeks to provide both current income and capital appreciation.
Is Ares Capital a safe investment?
ARES is a global investment manager with $262 billion in assets under management. It was created in 1997. ARCC also has a relatively solid investment portfolio, with 71 percent of its assets consisting of senior secured loans (47 percent first lien, and 24 percent second lien).
