Ares Capital Announces Acquisition of MidCap Financial Investment Corporation in Q3 2026
During its third-quarter 2026 earnings call, Ares Capital (ARCC) announced a strategic agreement to acquire MidCap Financial Investment Corporation. This acquisition is expected to add over 200 portfolio companies to Ares' roster, expanding its middle-market footprint and increasing deal flow through enhanced scale. Despite slower quarterly closings due to extended transaction timelines, the company reported a significant increase in underwriting activity, with year-to-date transaction reviews up approximately 25% compared to the previous year. Management also highlighted successful low-cost debt issuance, including $750 million in 7-year unsecured notes, which strengthens their competitive position against peers. The acquisition is expected to be modestly accretive to core earnings per share. Leadership expressed confidence in the company's liquidity and dividend stability, positioning Ares Capital to pursue new investment opportunities as they emerge.
Topics: Business Development Company Direct Lending Earnings Call M&A