UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

ý       QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2020

OR

o         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____        

Commission File No. 814-00663

ARES CAPITAL CORPORATION

(Exact name of Registrant as specified in its charter) 

Maryland	33-1089684
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification Number)

245 Park Avenue, 44th Floor, New York, NY 10167

(Address of principal executive office)   (Zip Code)

(212) 750-7300

(Registrant’s telephone number, including area code)

____________________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol	Name of each exchange on which registered
Common stock, $0.001 par value	ARCC	NASDAQ Global Select Market
6.875% Senior Notes due 2047	AFC	The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days:   Yes ýNo  o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes o No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one): 

Large accelerated filer x	Accelerated filer o
Non-accelerated filer o	Smaller reporting company o
	Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Securities Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o  No ý

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at April 29, 2020
Common stock, $0.001 par value	422,622,119

ARES CAPITAL CORPORATION

INDEX

Part I.	Financial Information
Item 1.	Financial Statements
	Consolidated Balance Sheet as of March 31, 2020 (unaudited) and December 31, 2019	3
	Consolidated Statement of Operations for the three months ended March 31, 2020 and 2019 (unaudited)	4
	Consolidated Schedule of Investments as of March 31, 2020 (unaudited) and December 31, 2019	5
	Consolidated Statement of Stockholders’ Equity for the three months ended March 31, 2020 (unaudited) and the year ended December 31, 2019	87
	Consolidated Statement of Cash Flows for the three months ended March 31, 2020 and 2019 (unaudited)	88
	Notes to Consolidated Financial Statements (unaudited)	89
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	123
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	148
Item 4.	Controls and Procedures	150
Part II.	Other Information
Item 1.	Legal Proceedings	150
Item 1A.	Risk Factors	150
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	152
Item 3.	Defaults Upon Senior Securities	152
Item 4.	Mine Safety Disclosures	153
Item 5.	Other Information	153
Item 6.	Exhibits	153

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

ARES CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(in millions, except per share data)

	As of
	March 31, 2020			December 31, 2019
	(unaudited)
ASSETS
Investments at fair value
Non-controlled/non-affiliate company investments	$	12,275		$	12,198
Non-controlled affiliate company investments	305			296
Controlled affiliate company investments	1,790			1,932
Total investments at fair value (amortized cost of $15,491 and $14,696, respectively)	14,370			14,426
Cash and cash equivalents	460			167
Restricted cash	655			9
Interest receivable	111			117
Other assets	93			78
Operating lease right-of-use asset	94			94
Receivable for open trades	23			14
Total assets	$	15,806		$	14,905
LIABILITIES
Debt	$	8,179		$	6,971
Payable to participants	655			9
Base management fees payable	55			54
Income based fees payable	44			48
Capital gains incentive fees payable	—			58
Interest and facility fees payable	38			54
Accounts payable and other liabilities	122			90
Payable for open trades	11			33
Operating lease liabilities	119			121
Total liabilities	9,223			7,438
Commitments and contingencies (Note 7)
STOCKHOLDERS’ EQUITY
Common stock, par value $0.001 per share, 600 common shares authorized; 423 and 431 common shares issued and outstanding, respectively	—			—
Capital in excess of par value	7,660			7,760
Accumulated overdistributed earnings	(1,077		)	(293		)
Total stockholders’ equity	6,583			7,467
Total liabilities and stockholders’ equity	$	15,806		$	14,905
NET ASSETS PER SHARE	$	15.58		$	17.32

See accompanying notes to consolidated financial statements.

3

ARES CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

(in millions, except per share data)

(unaudited)

	For the Three Months Ended March 31,
	2020			2019
INVESTMENT INCOME:
From non-controlled/non-affiliate company investments:
Interest income from investments (excluding payment-in-kind (“PIK”) interest income)	$	235		$	233
PIK interest income from investments	19			12
Capital structuring service fees	27			39
Dividend income	18			15
Other income	6			8
Total investment income from non-controlled/non-affiliate company investments	305			307
From non-controlled affiliate company investments:
Interest income from investments (excluding PIK interest income)	3			5
PIK interest income from investments	1			1
Capital structuring service fees	1			2
Dividend income	—			1
Total investment income from non-controlled affiliate company investments	5			9
From controlled affiliate company investments:
Interest income from investments (excluding PIK interest income)	37			33
PIK interest income from investments	3			5
Capital structuring service fees	—			4
Dividend income	18			15
Other income	1			—
Total investment income from controlled affiliate company investments	59			57
Total investment income	369			373
EXPENSES:
Interest and credit facility fees	82			67
Base management fees	55			49
Income based fees	44			48
Capital gains incentive fees	(58		)	2
Administrative fees	4			4
Other general and administrative	5			8
Total expenses	132			178
Waiver of income based fees	—			(10		)
Total expenses, net of waiver of income based fees	132			168
NET INVESTMENT INCOME BEFORE INCOME TAXES	237			205
Income tax expense, including excise tax	3			4
NET INVESTMENT INCOME	234			201
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS, FOREIGN CURRENCY AND OTHER TRANSACTIONS:
Net realized gains (losses):
Non-controlled/non-affiliate company investments	46			7
Non-controlled affiliate company investments	(7		)	—
Controlled affiliate company investments	(4		)	—
Foreign currency and other transactions	(1		)	49
Net realized gains	34			56
Net unrealized gains (losses):
Non-controlled/non-affiliate company investments	(740		)	(33		)
Non-controlled affiliate company investments	(18		)	(7		)
Controlled affiliate company investments	(131		)	1
Foreign currency and other transactions	9			(4		)
Net unrealized losses	(880		)	(43		)
Net realized and unrealized gains (losses) on investments, foreign currency and other transactions	(846		)	13
NET INCREASE (DECREASE) IN STOCKHOLDERS’ EQUITY RESULTING FROM OPERATIONS	$	(612	)	$	214
BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE (see Note 10)	$	(1.42	)	$	0.50
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING (see Note 10)	430			426

See accompanying notes to consolidated financial statements.

4

ARES CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS

As of March 31, 2020

(dollar amounts in millions)

(unaudited)

Company(1)	Business Description	Investment	Interest(3)(7)	Acquisition Date	Amortized Cost		Fair Value			Percentage of Net Assets
Health Care Services
42 North Dental, LLC (fka Gentle Communications, LLC) (16)	Dental services provider	First lien senior secured revolving loan ($1.5 par due 5/2022)	8.50% (Base Rate + 5.25%/Q)	5/26/2017	$	1.5	$	1.4	(2)(12)
Absolute Dental Management LLC and ADM Equity, LLC	Dental services provider	First lien senior secured loan ($0.8 par due 1/2022)	8.50% (Libor + 7.50%/Q)	1/15/2019	0.8		0.8		(2)(11)
		First lien senior secured loan ($24.6 par due 1/2022)		1/5/2016	24.2		11.5		(2)(12)
		Class A preferred units (4,000,000 units)		1/5/2016	4.0		—		(2)
		Class A common units (4,000,000 units)		1/5/2016	—		—		(2)
					29.0		12.3
Acessa Health Inc. (fka HALT Medical, Inc.)	Medical supply provider	Common stock (569,823 shares)		6/22/2017	0.1		—
ADCS Billings Intermediate Holdings, LLC (16)	Dermatology practice	First lien senior secured revolving loan ($5.0 par due 5/2022)	6.79% (Libor + 5.75%/Q)	5/18/2016	5.0		4.8		(2)(12)
ADG, LLC and RC IV GEDC Investor LLC (16)	Dental services provider	First lien senior secured revolving loan ($13.7 par due 9/2022)	6.82% (Libor + 3.00% Cash, 2.75% PIK/Q)	9/28/2016	13.7		11.8		(2)(12)
		Second lien senior secured loan ($94.9 par due 3/2024)		9/28/2016	89.0		66.4		(2)(11)
		Membership units (3,000,000 units)		9/28/2016	3.0		—		(2)
					105.7		78.2
Air Medical Group Holdings, Inc. and Air Medical Buyer Corp.	Emergency air medical services provider	Senior subordinated loan ($182.7 par due 3/2026)	9.49% (Libor + 7.88%/Q)	3/14/2018	182.7		177.2		(2)(12)
		Warrant to purchase up to 115,733 units of common stock (expires 3/2028)		3/14/2018	0.9		1.2		(2)
					183.6		178.4
Alteon Health, LLC	Provider of physician management services	First lien senior secured loan ($3.0 par due 9/2022)	7.95% (Libor + 6.50%/Q)	5/15/2017	3.0		2.6		(2)(12)
Athenahealth, Inc., VVC Holding Corp., Virence Intermediate Holding Corp., and Virence Holdings LLC (16)	Revenue cycle management provider to the physician practices and acute care hospitals	First lien senior secured loan ($7.0 par due 2/2026)	5.28% (Libor + 4.50%/Q)	2/11/2019	6.8		6.6		(2)
		Second lien senior secured loan ($210.3 par due 2/2027)	9.50% (Libor + 8.50%/Q)	2/11/2019	210.3		204.0		(2)
		Senior preferred stock (121,810 shares)	12.05% PIK (Libor + 11.13%/M)	2/11/2019	136.9		136.9		(2)
		Class A interests (0.39% interest)		2/11/2019	9.0		14.2		(2)
					363.0		361.7
Bearcat Buyer, Inc. and Bearcat Parent, Inc. (16)	Provider of central institutional review boards over clinical trials	First lien senior secured revolving loan ($0.4 par due 7/2024)	5.25% (Libor + 4.25%/M)	7/9/2019	0.4		0.4		(2)(12)
		First lien senior secured loan ($30.8 par due 7/2026)	5.70% (Libor + 4.25%/Q)	7/9/2019	30.8		29.9		(2)(12)
		First lien senior secured loan ($2.0 par due 7/2026)	5.70% (Libor + 4.25%/Q)	7/9/2019	2.0		2.0		(2)(12)
		First lien senior secured loan ($17.1 par due 7/2026)	5.70% (Libor + 4.25%/Q)	9/10/2019	17.1		16.6		(2)(12)
		Second lien senior secured loan ($64.2 par due 7/2027)	9.70% (Libor + 8.25%/Q)	7/9/2019	64.2		62.9		(2)(12)
		Second lien senior secured loan ($5.3 par due 7/2027)	9.70% (Libor + 8.25%/Q)	7/9/2019	5.3		5.2		(2)(12)
		Second lien senior secured loan ($12.7 par due 7/2027)	9.70% (Libor + 8.25%/Q)	9/10/2019	12.7		12.4		(2)(12)
		Class B common units (4,211 units)		7/9/2019	4.2		5.3		(2)
					136.7		134.7

5

ARES CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS

As of March 31, 2020

(dollar amounts in millions)

(unaudited)

Company(1)	Business Description	Investment	Interest(3)(7)	Acquisition Date	Amortized Cost	Fair Value		Percentage of Net Assets
CCS-CMGC Holdings, Inc. (16)	Correctional facility healthcare operator	First lien senior secured revolving loan ($7.5 par due 10/2023)	7.50% (Base Rate + 4.25%/M)	10/1/2018	7.5	7.0	(2)(15)
		First lien senior secured revolving loan ($0.9 par due 10/2023)	6.24% (Libor + 5.25%/M)	10/1/2018	0.9	0.9	(2)(15)
		First lien senior secured loan ($34.6 par due 10/2025)	6.84% (Libor + 5.50%/Q)	9/25/2018	34.3	32.1	(2)
					42.7	40.0
Center for Autism and Related Disorders, LLC (16)	Autism treatment and services provider specializing in applied behavior analysis therapy	First lien senior secured revolving loan ($7.8 par due 11/2023)	5.40% (Libor + 4.00%/Q)	11/21/2018	7.8	7.0	(2)(15)
Comprehensive EyeCare Partners, LLC (16)	Vision care practice management company	First lien senior secured revolving loan ($1.8 par due 2/2024)	5.75% (Libor + 4.50%/Q)	2/14/2018	1.8	1.6	(2)(12)
		First lien senior secured loan ($5.3 par due 2/2024)	5.95% (Libor + 4.50%/Q)	2/14/2018	5.3	5.0	(2)(12)
		First lien senior secured loan ($1.0 par due 2/2024)	6.75% (Base Rate + 3.50%/Q)	2/14/2018	1.0	1.0	(2)(12)
		First lien senior secured loan ($2.4 par due 2/2024)	5.95% (Libor + 4.50%/Q)	2/14/2018	2.4	2.2	(2)(12)
					10.5	9.8
Convey Health Solutions, Inc.	Workforce management solutions provider	First lien senior secured loan ($20.1 par due 9/2026)	7.01% (Libor + 5.25%/Q)	9/4/2019	20.1	19.5	(2)(12)
CVP Holdco, Inc. and OMERS Wildcats Holdings Inc. (16)	Veterinary hospital operator	First lien senior secured revolving loan ($0.7 par due 10/2024)	6.87% (Libor + 5.75%/M)	10/31/2019	0.7	0.7	(2)(12)(15)
		First lien senior secured loan ($66.1 par due 10/2025)	7.34% (Libor + 5.75%/Q)	10/31/2019	66.1	62.1	(2)(12)
		First lien senior secured loan ($14.1 par due 10/2025)	7.34% (Libor + 5.75%/Q)	10/31/2019	14.1	13.3	(2)(12)
		Common stock (31,005 shares)		10/31/2019	9.6	9.7	(2)
					90.5	85.8
D4C Dental Brands HoldCo, Inc. and Bambino Group Holdings, LLC (16)	Dental services provider	First lien senior secured revolving loan ($4.8 par due 12/2022)	9.50% (Base Rate + 6.25%/Q)	12/21/2016	4.8	4.6	(2)(12)(15)
		Class A preferred units (1,000,000 units)		12/21/2016	1.0	1.0	(2)
					5.8	5.6
DCA Investment Holding, LLC (16)	Multi-branded dental practice management	First lien senior secured revolving loan ($5.7 par due 7/2021)	6.25% (Libor + 5.25%/M)	7/2/2015	5.7	5.4	(2)(12)(15)
		First lien senior secured loan ($18.3 par due 7/2021)	6.32% (Libor + 5.25%/Q)	7/2/2015	18.2	17.5	(2)(12)
					23.9	22.9
Emerus Holdings, Inc.	Freestanding 24-hour emergency care micro-hospitals operator	First lien senior secured loan ($16.5 par due 2/2022)	14.00%	2/21/2019	16.5	16.5	(2)
Evolent Health LLC and Evolent Health, Inc. (16)	Medical technology company focused on value based care services and payment solutions	First lien senior secured loan ($67.1 par due 12/2024)	9.45% (Libor + 8.00%/Q)	12/30/2019	61.2	61.1	(2)(6)(12)
		Warrant to purchase up to 1,354,968 shares of common stock (expires 1/2025)		12/30/2019	5.9	5.9	(2)(6)
					67.1	67.0
GHX Ultimate Parent Corporation, Commerce Parent, Inc. and Commerce Topco, LLC	On-demand supply chain automation solutions provider to the healthcare industry	Second lien senior secured loan ($34.5 par due 6/2025)	9.37% (Libor + 8.00%/Q)	6/30/2017	34.2	33.2	(2)(12)
		Second lien senior secured loan ($55.0 par due 6/2025)	9.37% (Libor + 8.00%/Q)	1/13/2020	55.0	52.8	(2)(12)
		Series A preferred stock (110,425 shares)	12.20% PIK (Libor + 10.75%/Q)	6/30/2017	157.2	150.9	(2)(12)

6

ARES CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS

As of March 31, 2020

(dollar amounts in millions)

(unaudited)

Company(1)	Business Description	Investment	Interest(3)(7)	Acquisition Date	Amortized Cost	Fair Value		Percentage of Net Assets
		Class A units (14,013,303 units)		6/30/2017	14.0	16.9	(2)
					260.4	253.8
Hygiena Borrower LLC (16)	Adenosine triphosphate testing technology provider	Second lien senior secured loan ($2.5 par due 8/2023)	9.20% (Libor + 7.75%/Q)	8/26/2016	2.5	2.4	(2)(12)
		Second lien senior secured loan ($10.7 par due 8/2023)	9.20% (Libor + 7.75%/Q)	2/27/2017	10.7	10.2	(2)(12)
		Second lien senior secured loan ($11.1 par due 8/2023)	9.20% (Libor + 7.75%/Q)	6/29/2018	11.1	10.7	(2)(12)
		Second lien senior secured loan ($0.6 par due 8/2023)	9.20% (Libor + 7.75%/Q)	6/29/2018	0.6	0.6	(2)(12)
					24.9	23.9
JDC Healthcare Management, LLC (16)	Dental services provider	First lien senior secured revolving loan ($4.0 par due 4/2022)	8.75% (Libor + 7.75%/M)	4/10/2017	4.0	3.2	(2)(12)
		First lien senior secured loan ($29.6 par due 4/2023)	8.75% (Libor + 6.75% Cash, 1.00% PIK/M)	4/10/2017	29.6	23.7	(2)(12)
		First lien senior secured loan ($4.2 par due 4/2023)	8.75% (Libor + 6.75% Cash, 1.00% PIK/M)	4/10/2017	4.2	3.3	(2)(12)
					37.8	30.2
KBHS Acquisition, LLC (d/b/a Alita Care, LLC) (16)	Provider of behavioral health services	First lien senior secured revolving loan ($4.5 par due 3/2022)	6.00% (Libor + 5.00%/M)	3/17/2017	4.5	4.1	(2)(12)
Key Surgical LLC (16)	Provider of sterile processing, operating room and instrument care supplies for hospitals	First lien senior secured revolving loan ($1.1 par due 6/2022)	5.75% (Libor + 4.75%/Q)	6/1/2017	1.1	1.0	(2)(12)
		First lien senior secured loan ($16.1 par due 6/2023)	6.00% (EURIBOR + 5.00%/Q)	6/1/2017	16.4	15.7	(2)(12)
		First lien senior secured loan ($5.4 par due 6/2023)	6.00% (Libor + 5.00%/M)	8/28/2019	5.4	5.2	(2)(12)
					22.9	21.9
MB2 Dental Solutions, LLC (16)	Dental services provider	First lien senior secured revolving loan ($4.6 par due 9/2023)	7.25% (Base Rate + 4.00%/Q)	9/29/2017	4.6	4.3	(2)(12)
MCH Holdings, Inc. and MC Acquisition Holdings I, LLC	Healthcare professional provider	First lien senior secured loan ($0.8 par due 7/2020)	7.75% (Base Rate + 4.50%/M)	7/26/2017	0.8	0.8	(2)(12)
		First lien senior secured loan ($115.2 par due 7/2020)	7.00% (Libor + 5.50%/M)	7/26/2017	115.2	114.0	(2)(12)
		Class A units (1,438,643 shares)		1/17/2014	1.5	1.2	(2)
					117.5	116.0
Minerva Surgical, Inc. (16)	Medical device company focused on women's health	First lien senior secured loan ($30.1 par due 12/2022)	11.50% (Libor + 9.50%/Q)	12/30/2019	29.0	28.9	(2)(12)
MW Dental Holding Corp. (16)	Dental services provider	First lien senior secured revolving loan ($10.2 par due 4/2021)	8.25% (Libor + 6.75%/Q)	4/12/2011	10.2	9.9	(2)(12)
		First lien senior secured loan ($125.4 par due 4/2021)	8.25% (Libor + 6.75%/Q)	4/12/2011	125.4	121.6	(2)(12)
		First lien senior secured loan ($24.4 par due 4/2021)	8.25% (Libor + 6.75%/Q)	3/19/2018	24.4	23.6	(2)(12)
					160.0	155.1
NMN Holdings III Corp. and NMN Holdings LP (16)	Provider of complex rehab technology solutions for patients with mobility loss	First lien senior secured revolving loan ($8.8 par due 11/2023)	4.42% (Libor + 3.50%/M)	11/13/2018	8.8	8.3	(2)(15)
		Partnership units (30,000 units)		11/13/2018	3.0	3.1	(2)
					11.8	11.4
NMSC Holdings, Inc. and ASP NAPA Holdings, LLC	Anesthesia management services provider	Second lien senior secured loan ($72.8 par due 10/2023)	11.62% (Libor + 10.00%/B)	4/19/2016	72.8	68.4	(2)(12)

7

ARES CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS

As of March 31, 2020

(dollar amounts in millions)

(unaudited)

Company(1)	Business Description	Investment	Interest(3)(7)	Acquisition Date	Amortized Cost	Fair Value		Percentage of Net Assets
		Class A units (25,790 units)		4/19/2016	2.6	0.7	(2)
					75.4	69.1
NueHealth Performance, LLC (16)	Developer, builder and manager of specialty surgical hospitals and ambulatory surgery centers	First lien senior secured loan ($9.9 par due 9/2023)	7.50% (Libor + 6.50%/M)	9/27/2018	9.9	9.6	(2)(12)
		First lien senior secured loan ($1.5 par due 9/2023)	8.10% (Libor + 6.50%/M)	9/27/2018	1.5	1.4	(2)(12)
					11.4	11.0
Olympia Acquisition, Inc. and Olympia TopCo, L.P. (16)	Behavioral health and special education platform provider	First lien senior secured revolving loan ($10.1 par due 9/2024)	6.50% (Libor + 5.50%/Q)	9/24/2019	10.1	9.4	(2)(12)
		First lien senior secured loan ($42.9 par due 9/2026)	6.50% (Libor + 5.50%/M)	9/24/2019	42.9	39.9	(2)(12)
		Class A common units (9,549,000 units)		9/24/2019	9.5	7.4	(2)
					62.5	56.7
OMH-HealthEdge Holdings, LLC (16)	Revenue cycle management software provider for healthcare companies	First lien senior secured loan ($26.6 par due 10/2025)	6.50% (Libor + 5.50%/M)	10/24/2019	26.6	25.8	(2)(12)
OSYS Holdings, LLC	Provider of technology-enabled solutions to pharmacies	Limited liability company membership interest (1.57%)		11/21/2013	1.0	0.6	(2)
Pathway Vet Alliance LLC and Jedi Group Holdings LLC (16)	Veterinary hospital operator	First lien senior secured loan ($10.9 par due 3/2027)	4.24% (Libor + 3.25%/M)	3/31/2020	10.9	10.3	(2)
		Second lien senior secured loan ($76.3 par due 3/2028)	8.75% (Libor + 7.75%/M)	3/31/2020	76.3	73.5	(2)(12)
		Class R common units (6,004,768 units)		3/31/2020	6.0	6.0	(2)
					93.2	89.8
Patterson Medical Supply, Inc.	Distributor of rehabilitation supplies and equipment	Second lien senior secured loan ($78.0 par due 8/2023)	10.28% (Libor + 8.50%/Q)	9/2/2015	77.1	60.1	(2)(12)
PetIQ, LLC	Distributor and manufacturer of pet prescription medications and health products	First lien senior secured revolving loan ($21.0 par due 7/2025)	5.50% (Libor + 4.50%/M)	1/17/2018	21.0	20.3	(2)(6)
PetVet Care Centers, LLC	Veterinary hospital operator	First lien senior secured loan ($26.2 par due 2/2025)	5.25% (Libor + 4.25%/M)	10/31/2019	25.8	24.5	(2)(12)
PhyMED Management LLC	Provider of anesthesia services	Second lien senior secured loan ($47.2 par due 5/2021)	9.83% (Libor + 8.75%/Q)	12/18/2015	47.1	46.3	(2)(12)
Premise Health Holding Corp. and OMERS Bluejay Investment Holdings LP (16)	Provider of employer-sponsored onsite health and wellness clinics and pharmacies	First lien senior secured revolving loan ($34.4 par due 7/2023)	4.12% (Libor + 3.25%/B)	7/10/2018	34.4	32.7	(2)(15)
		First lien senior secured loan ($10.8 par due 7/2025)	4.95% (Libor + 3.50%/Q)	7/10/2018	10.8	10.3	(2)
		Second lien senior secured loan ($67.1 par due 7/2026)	8.95% (Libor + 7.50%/Q)	7/10/2018	66.6	64.4	(2)
		Class A units (9,775 units)		7/10/2018	9.8	10.6	(2)
					121.6	118.0
ProVation Medical, Inc.	Provider of documentation and coding software for GI physicians	First lien senior secured loan ($12.9 par due 3/2024)	8.85% (Libor + 7.00%/Q)	3/9/2018	12.7	12.7	(2)
Respicardia, Inc.	Developer of implantable therapies to improve cardiovascular health	Warrant to purchase up to 99,094 shares of Series C preferred stock (expires 6/2022)		6/28/2012	—	—	(2)
RTI Surgical, Inc.	Manufacturer of biologic, metal and synthetic implants/devices	Second lien senior secured loan ($96.1 par due 12/2023)	9.75% (Libor + 4.375% Cash, 4.375% PIK/Q)	3/8/2019	96.1	96.1	(2)(6)(12)
SCSG EA Acquisition Company, Inc. (16)	Provider of outsourced clinical services to hospitals and health systems	First lien senior secured revolving loan ($0.9 par due 9/2022)	5.00% (Libor + 4.00%/M)	9/1/2017	0.9	0.9	(2)(12)(15)
SiroMed Physician Services, Inc. and SiroMed Equity Holdings, LLC (16)	Outsourced anesthesia provider	First lien senior secured loan ($17.1 par due 3/2024)	6.20% (Libor + 4.75%/Q)	3/26/2018	17.1	16.5	(2)(12)
		Common units (684,854 units)		3/26/2018	4.9	3.0	(2)
					22.0	19.5

8

ARES CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS

As of March 31, 2020

(dollar amounts in millions)

(unaudited)

Company(1)	Business Description	Investment	Interest(3)(7)	Acquisition Date	Amortized Cost	Fair Value		Percentage of Net Assets
SM Wellness Holdings, Inc. and SM Holdco, Inc. (16)	Breast cancer screening provider	First lien senior secured revolving loan ($5.5 par due 8/2024)	5.95% (Libor + 4.50%/Q)	8/1/2018	5.5	5.3	(2)
		First lien senior secured loan ($7.0 par due 8/2024)	6.95% (Libor + 5.50%/Q)	8/1/2018	7.0	6.8	(2)
		Series A preferred stock (44,975 shares)	11.70% PIK (Libor + 10.25%/Q)	8/1/2018	55.5	55.5	(2)
		Series A units (7,475 units)		8/1/2018	7.5	0.1	(2)
		Series B units (747,500 units)		8/1/2018	—	6.1	(2)
					75.5	73.8
Synergy HomeCare Franchising, LLC and NP/Synergy Holdings, LLC (16)	Franchisor of private-pay home care for the elderly	First lien senior secured revolving loan ($2.5 par due 4/2024)	6.75% (Libor + 5.75%/M)	4/2/2018	2.5	2.5	(2)(12)
		First lien senior secured loan ($15.8 par due 4/2024)	7.20% (Libor + 5.75%/Q)	4/2/2018	15.8	15.8	(2)(12)
		Common units (550 units)		4/2/2018	0.6	0.8
					18.9	19.1
Teligent, Inc.	Pharmaceutical company that develops, manufactures and markets injectable pharmaceutical products	Second lien senior secured loan ($52.3 par due 6/2024)	9.75% (Libor + 7.75% Cash, 1.00% PIK/Q)	12/13/2018	52.3	48.1	(2)(12)
		Second lien senior secured loan ($29.8 par due 6/2024)	10.06% (Libor + 7.75% Cash, 1.00% PIK/Q)	12/13/2018	29.8	27.5	(2)(12)
					82.1	75.6
Touchstone Acquisition, Inc. and Touchstone Holding, L.P. (16)	Manufacturer of consumable products in the dental, medical, cosmetic and CPG/industrial end-markets	First lien senior secured loan ($25.4 par due 11/2025)	5.82% (Libor + 4.75%/Q)	11/15/2018	25.4	24.6	(2)
		Class A preferred units (2,149 units)	8.00% PIK	11/15/2018	2.4	1.9	(2)
					27.8	26.5
U.S. Acute Care Solutions, LLC (16)	Provider of physician management services	First lien senior secured revolving loan ($0.9 par due 11/2020)	6.00% (Libor + 5.00%/M)	2/8/2018	0.9	0.9	(2)
U.S. Anesthesia Partners, Inc.	Anesthesiology service provider	Second lien senior secured loan ($71.8 par due 6/2025)	8.85% (Libor + 7.25%/M)	6/16/2017	71.1	68.9	(2)(12)
United Digestive MSO Parent, LLC (16)	Gastroenterology physician group	First lien senior secured revolving loan ($8.4 par due 12/2023)	5.50% (Libor + 4.50%/Q)	12/14/2018	8.4	8.4	(2)(12)
		First lien senior secured loan ($12.4 par due 12/2024)	6.28% (Libor + 4.50%/Q)	12/14/2018	12.4	12.4	(2)(12)
					20.8	20.8
Urgent Cares of America Holdings I, LLC and FastMed Holdings I, LLC	Operator of urgent care clinics	Preferred units (7,696,613 units)		6/11/2015	7.7	—
		Series A common units (2,000,000 units)		6/11/2015	2.0	—
		Series C common units (5,288,427 units)		6/11/2015	—	—
					9.7	—
Urology Management Associates, LLC and JWC/UMA Holdings, L.P.	Urology private practice	First lien senior secured loan ($9.7 par due 8/2024)	6.00% (Libor + 5.00%/M)	8/31/2018	9.6	9.4	(2)(12)
		Limited partnership interests (3.64% interest)		8/31/2018	4.8	4.2	(2)
					14.4	13.6
WSHP FC Acquisition LLC (16)	Provider of biospecimen products for pharma research	First lien senior secured revolving loan ($3.5 par due 3/2024)	7.70% (Libor + 6.25%/Q)	3/30/2018	3.5	3.5	(2)(12)
		First lien senior secured loan ($28.1 par due 3/2024)	7.70% (Libor + 6.25%/Q)	3/30/2018	28.1	27.8	(2)(12)
		First lien senior secured loan ($5.9 par due 3/2024)	7.70% (Libor + 6.25%/Q)	3/30/2018	5.9	5.9	(2)(12)

9

ARES CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS

As of March 31, 2020

(dollar amounts in millions)

(unaudited)

Company(1)	Business Description	Investment	Interest(3)(7)	Acquisition Date	Amortized Cost	Fair Value		Percentage of Net Assets
		First lien senior secured loan ($4.6 par due 3/2024)	7.70% (Libor + 6.25%/Q)	2/11/2019	4.6	4.6	(2)(12)
		First lien senior secured loan ($5.8 par due 3/2024)	7.70% (Libor + 6.25%/Q)	2/11/2019	5.8	5.8	(2)(12)
		First lien senior secured loan ($8.7 par due 3/2024)	7.70% (Libor + 6.25%/Q)	8/30/2019	8.7	8.6	(2)(12)
		First lien senior secured loan ($11.0 par due 3/2024)	7.70% (Libor + 6.25%/Q)	10/31/2019	11.0	10.9	(2)(12)
					67.6	67.1
					2,869.1	2,715.5		41.24%
Software & Services
AffiniPay Midco, LLC and AffiniPay Intermediate Holdings, LLC (16)	Payment processing solution provider	First lien senior secured revolving loan ($1.8 par due 3/2026)	6.75% (Libor + 5.50%/Q)	2/28/2020	1.8	1.7	(2)(12)
		First lien senior secured loan ($65.0 par due 3/2026)	6.95% (Libor + 5.50%/Q)	2/28/2020	65.0	62.4	(2)(12)
		Senior subordinated loan ($22.0 par due 2/2028)	12.75% PIK	2/28/2020	22.0	20.9	(2)
					88.8	85.0
Anaqua Parent Holdings, Inc. & Astorg VII Co-Invest Anaqua (16)	Provider of IP management lifecycle software	First lien senior secured loan ($4.6 par due 4/2026)	5.50% (Euribor + 5.50%/Q)	4/10/2019	4.7	4.6	(2)
		First lien senior secured loan ($7.7 par due 4/2026)	7.07% (Libor + 5.25%/Q)	4/10/2019	7.7	7.7	(2)(12)
		Limited partnership units (4,400,000 units)		6/13/2019	5.0	5.9	(2)(6)
					17.4	18.2
APG Intermediate Holdings Corporation and APG Holdings, LLC (4)(16)	Aircraft performance software provider	First lien senior secured loan ($12.9 par due 1/2025)	6.75% (Libor + 5.25%/Q)	1/3/2020	12.9	12.6	(2)(12)
		First lien senior secured loan ($0.5 par due 1/2025)	6.75% (Libor + 5.25%/Q)	1/3/2020	0.5	0.5	(2)(12)
		Class A Membership units (9,750,000 units)		1/3/2020	9.8	9.0	(2)
					23.2	22.1
Apptio, Inc. (16)	Provider of cloud-based technology business management solutions	First lien senior secured loan ($62.2 par due 1/2025)	8.25% (Libor + 7.25%/M)	1/10/2019	62.2	60.9	(2)(12)
Avetta, LLC (16)	Supply chain risk management SaaS platform for global enterprise clients	First lien senior secured loan ($36.0 par due 4/2024)	6.82% (Libor + 5.75%/Q)	4/10/2018	36.0	34.9	(2)(12)
Blue Campaigns Intermediate Holding Corp. and Elevate Parent, Inc. (dba EveryAction) (16)	Provider of fundraising and organizing efforts and digital services to non-profits and political campaigns	First lien senior secured revolving loan ($2.3 par due 8/2023)	10.00% (Base Rate + 6.75%/M)	8/20/2018	2.3	2.2	(2)(12)
		First lien senior secured loan ($40.8 par due 8/2023)	8.45% (Libor + 6.75%/Q)	8/20/2018	40.8	40.0	(2)(12)
		Series A preferred stock (150,000 shares)		9/26/2018	1.5	1.7
					44.6	43.9
CallMiner, Inc.	Provider of cloud-based conversational analytics solutions	Warrant to purchase up to 2,350,636 shares of Series 1 preferred stock (expires 7/2024)		7/23/2014	—	—	(2)
Clearwater Analytics, LLC (16)	Provider of integrated cloud-based investment portfolio management, accounting, reporting and analytics software	First lien senior secured loan ($3.9 par due 12/2025)	7.41% (Libor + 5.50%/Q)	12/3/2019	3.9	3.9	(2)(12)
Command Alkon Incorporated (16)	Software solutions provider to the ready-mix concrete industry	First lien senior secured revolving loan		9/1/2017	—	—	(14)
		First lien senior secured loan ($20.2 par due 9/2023)	7.58% (Libor + 5.00% Cash, 1.00% PIK/M)	9/1/2017	20.2	20.2	(2)(12)

10

ARES CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS

As of March 31, 2020

(dollar amounts in millions)

(unaudited)

Company(1)	Business Description	Investment	Interest(3)(7)	Acquisition Date	Amortized Cost	Fair Value		Percentage of Net Assets
		Second lien senior secured loan ($34.0 par due 3/2024)	11.58% (Libor + 9.00% Cash, 1.00% PIK/M)	9/1/2017	34.0	34.0	(2)(12)
					54.2	54.2
Compuware Software Group LLC	Web and mobile cloud performance testing and monitoring services provider	Preferred units (4,132 units)	9.00% PIK	7/31/2019	0.8	1.9	(2)
		Common units (744,569 units)		7/31/2019	—	0.8	(2)
					0.8	2.7
Cority Software Inc., IQS, Inc. and Project Falcon Parent, Inc. (16)	Provider of environmental, health and safety software to track compliance data	First lien senior secured loan ($14.4 par due 7/2026)	7.66% (Libor + 5.75%/Q)	7/2/2019	14.4	13.9	(2)(6)
		First lien senior secured loan ($4.5 par due 7/2026)	7.66% (Libor + 5.75%/Q)	10/15/2019	4.5	4.3	(2)(6)
		First lien senior secured loan ($9.0 par due 7/2026)	7.56% (Libor + 5.75%/Q)	1/22/2020	9.0	8.8	(2)(6)(12)
		Preferred equity (198 shares)	9.00% PIK	7/2/2019	0.2	0.2	(2)(6)
		Common equity (190,143 shares)		7/2/2019	—	0.1	(2)(6)
					28.1	27.3
Datix Bidco Limited	Global healthcare software company that provides software solutions for patient safety and risk management	First lien senior secured loan ($5.8 par due 4/2025)	6.43% (Libor + 4.50%/Q)	4/27/2018	5.8	5.7	(2)(6)
		First lien senior secured loan ($10.0 par due 4/2025)	6.43% (Libor + 4.50%/Q)	5/28/2019	9.9	9.7	(2)(6)
		First lien senior secured loan ($3.1 par due 4/2025)	6.43% (Libor + 4.50%/Q)	10/7/2019	3.0	3.0	(2)(6)
					18.7	18.4
Directworks, Inc. and Co-Exprise Holdings, Inc.	Provider of cloud-based software solutions for direct materials sourcing and supplier management for manufacturers	First lien senior secured loan ($1.8 par due 4/2018)		12/19/2014	1.3