Ares Capital Remains The Gold Standard In BDCs

Summary The direct lending space is not a monolith; disciplined underwriting separates top-tier managers from the pack. Ares Capital has operated as an upper-middle-market direct lending flagship for over 22 years, navigating the 2008 Great Financial Crisis, the 2015–2016 energy downturn, and the 2020 pandemic. Over its two-decade operating history, ARCC's net realized gains from equity kickers and structuring fees have consistently exceeded gross loan losses, protecting long-term book value. Don't abandon direct lending over sensationalized headlines; anchor your high-yield portfolio in battle-tested veterans like ARCC to harvest reliable double-digit income. Looking for a portfolio of ideas like this one? Members of High Dividend Opportunities get exclusive access to our subscriber-only portfolios. Learn More » Mihail Mihaylov/iStock via Getty Images Co-authored with Beyond Saving You've seen it all over the news. There is a lot of concern in the BDC sector about the credit risk of "private credit ." This isn't a completely irrelevant concern, as This article was written by Rida Morwa 127.15K Followers Follow Rida Morwa is a former investment and commercial Banker, with over 35 years of experience. He has been advising individual and institutional clients on high-yield investment strategies since 1991. Rida Morwa leads the Investing Group High Dividend Opportunities where he teams up with some of Seeking Alpha's top income investing analysts. The service focuses on sustainable income through a variety of high yield investments with a targeted safe +9% yield. Features include: model portfolio with buy/sell alerts, preferred and baby bond portfolios for more conservative investors, vibrant and active chat with access to the service’s leaders, dividend and portfolio trackers, and regular market updates. The service philosophy focuses on community, education, and the belief that nobody should invest alone. Learn More. Analyst’s Disclosure: I/we have a beneficial long position in the shares of ARCC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Beyond Saving, Philip Mause, and Hidden Opportunities, all are supporting contributors for High Dividend Opportunities. Any recommendation posted in this article is not indefinite. We closely monitor all of our positions. We issue Buy and Sell alerts on our recommendations, which are exclusive to our members. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.