Strong performance and exits
On June 30, 2017, the portfolio companies of Ares Capital Corporation (ARCC) witnessed strong credit performance. The portfolio companies of Ares Capital have also witnessed a rise in their aggregate earnings.
Weighted average EBITDA[1. earnings before interest, tax, depreciation, and amortization] of the Ares Capital’s portfolio companies witnessed an increase of ~5% on a last-12-months (or LTM) basis.
Coming to the exits made by the Ares Capital in 2Q17, the company made exits valued at $1.8 billion, out of which 28% and 57% constituted exits from the second-lien and first-lien senior secured loans, respectively. Other exits were as follows:
- preferred equity securities: 4%
- other equity securities: 5%
- collateralized loan obligations (or CLOs): 2%
- senior subordinated debt: 4%