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ARES CAPITAL CORP - Quarter Report: 2023 March (Form 10-Q)



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, 2023

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 classTrading symbolName of each exchange on which registered
Common stock, par value $0.001 per shareARCCNASDAQ Global Select Market

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  ý  No  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 ý 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 25, 2023
Common stock, $0.001 par value 544,581,080
1


ARES CAPITAL CORPORATION
 
INDEX
 
Part I. 
Item 1. 
 
 
 
 
 
 
Item 2.
Item 3.
Item 4.
   
Part II. 
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.

2


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, 2023December 31, 2022
(unaudited)
ASSETS
Investments at fair value  
Non-controlled/non-affiliate company investments$16,572 $17,296 
Non-controlled affiliate company investments381 364 
Controlled affiliate company investments4,195 4,120 
Total investments at fair value (amortized cost of $21,430 and $22,043, respectively)
21,148 21,780 
Cash and cash equivalents359 303 
Restricted cash18 34 
Interest receivable187 176 
Receivable for open trades
Other assets75 81 
Operating lease right-of-use asset18 20 
Total assets$21,812 $22,398 
LIABILITIES 
Debt$11,164 $12,210 
Base management fees payable79 79 
Income based fees payable157 81 
Capital gains incentive fees payable29 35 
Interest and facility fees payable84 105 
Payable to participants18 34 
Payable for open trades22 
Accounts payable and other liabilities117 167 
Secured borrowings80 79 
Operating lease liabilities28 31 
Total liabilities11,763 12,843 
Commitments and contingencies (Note 7)
STOCKHOLDERS’ EQUITY 
Common stock, par value $0.001 per share, 700 common shares authorized; 545 and 519 common shares issued and outstanding, respectively
Capital in excess of par value10,033 9,556 
Accumulated undistributed (overdistributed) earnings15 (2)
Total stockholders’ equity10,049 9,555 
Total liabilities and stockholders’ equity$21,812 $22,398 
NET ASSETS PER SHARE$18.45 $18.40 

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,
 20232022
INVESTMENT INCOME:  
From non-controlled/non-affiliate company investments:  
Interest income (excluding payment-in-kind (“PIK”) interest income)$367 $242 
PIK interest income37 27 
Capital structuring service fees10 26 
Dividend income57 41 
Other income16 10 
Total investment income from non-controlled/non-affiliate company investments487 346 
From non-controlled affiliate company investments:  
Interest income (excluding PIK interest income)
PIK interest income
Total investment income from non-controlled affiliate company investments
From controlled affiliate company investments:  
Interest income (excluding PIK interest income)59 37 
PIK interest income
Capital structuring service fees— 
Dividend income64 47 
Other income
Total investment income from controlled affiliate company investments127 92 
Total investment income618 440 
EXPENSES:  
Interest and credit facility fees139 93 
Base management fees79 73 
Income based fees76 51 
Capital gains incentive fees (6)
Administrative fees
Other general and administrative
Total expenses298 229 
NET INVESTMENT INCOME BEFORE INCOME TAXES320 211 
Income tax expense, including excise tax13 
NET INVESTMENT INCOME318 198 
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS, FOREIGN CURRENCY AND OTHER TRANSACTIONS:  
Net realized gains (losses):  
Non-controlled/non-affiliate company investments(20)50 
Controlled affiliate company investments— 19 
Foreign currency and other transactions(30)(11)
Net realized (losses) gains(50)58 
Net unrealized gains (losses):  
Non-controlled/non-affiliate company investments(7)
Non-controlled affiliate company investments14 (1)
Controlled affiliate company investments(32)(2)
Foreign currency and other transactions25 13 
Net unrealized gains10 
Net realized and unrealized (losses) gains on investments, foreign currency and other transactions(40)61 
REALIZED LOSS ON EXTINGUISHMENT OF DEBT— (48)
NET INCREASE IN STOCKHOLDERS’ EQUITY RESULTING FROM OPERATIONS$278 $211 
NET INCOME PER COMMON SHARE (see Note 10)
Basic$0.52 $0.44 
Diluted$0.51 $0.43 
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING (see Note 10)
Basic534 479 
Diluted555 500 
See accompanying notes to consolidated financial statements.
4

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
Software and Services
2U, Inc.Provider of course design and learning management system to educational institutionsFirst lien senior secured loan11.32%SOFR (S)6.50%01/202312/20265.1 4.8 4.8 (2)(6)(11)
AffiniPay Midco, LLC and AffiniPay Intermediate Holdings, LLC (15)Payment processing solution providerFirst lien senior secured revolving loan02/202006/2028— — — 
First lien senior secured loan10.64%SOFR (A)5.75%06/202206/2028120.3 118.2 114.2 (2)(11)
First lien senior secured loan10.45%SOFR (A)5.75%02/202006/202863.2 63.2 60.0 (2)(11)
Senior subordinated loan
14.83% PIK
02/202006/203032.7 32.7 31.1 (2)
Senior subordinated loan
14.83% PIK
02/202006/203027.3 27.3 25.9 (2)
241.4 231.2 
Anaplan, Inc. (15)Provider of cloud-based connected planning platforms for business analyticsFirst lien senior secured loan11.31%SOFR (M)6.50%06/202206/20291.8 1.8 1.7 (2)(11)
Anaqua Parent Holdings, Inc. & Astorg VII Co-Invest Anaqua (15)Provider of intellectual property management lifecycle softwareFirst lien senior secured revolving loan10.19%LIBOR (Q)5.25%04/201910/20250.1 0.1 0.1 (2)(11)
First lien senior secured loan7.58%Euribor (S)5.50%04/201904/20264.4 4.6 4.4 (2)
First lien senior secured loan10.19%LIBOR (S)5.25%06/202104/20261.0 1.0 1.0 (2)(11)
Limited partnership units06/20194,400,0004.2 7.7 (2)(6)
9.9 13.2 
APG Intermediate Holdings Corporation and APG Holdings, LLC (4)(15)Aircraft performance software providerFirst lien senior secured loan10.39%LIBOR (Q)5.25%01/202001/202513.3 13.3 13.3 (2)(11)
Class A membership Units01/20209,750,0009.8 10.6 (2)
23.1 23.9 
Appriss Health, LLC and Appriss Health Intermediate Holdings, Inc. (15)Software platform for identification, prevention and management of substance use disorderFirst lien senior secured loan11.96%LIBOR (M)7.25%05/202105/20275.6 5.6 5.6 (2)(11)
Series A preferred shares
11.00% PIK
05/202132,23639.8 36.2 (2)
45.4 41.8 
Apptio, Inc. (15)Provider of cloud-based technology business management solutionsFirst lien senior secured revolving loan10.80%LIBOR (Q)6.00%01/201901/20253.8 3.8 3.8 (2)(11)
First lien senior secured loan9.81%LIBOR (Q)5.00%01/201901/202515.1 15.1 15.1 (2)(11)
18.9 18.9 
Auctane, Inc. (fka Stamps.com Inc.)Provider of mailing and shipping solutionsFirst lien senior secured loan10.59%LIBOR (M)5.75%10/202110/2028146.4 146.4 140.5 (2)(11)
Avalara, Inc. (15)Provider of cloud-based solutions for transaction tax compliance worldwideFirst lien senior secured loan12.15%SOFR (Q)7.25%10/202210/202872.2 72.2 70.4 (2)(11)
Avetta, LLC (15)Supply chain risk management SaaS platform for global enterprise clientsFirst lien senior secured loan10.58%LIBOR (Q)5.75%07/202104/20240.2 0.2 0.1 (2)(11)
5

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
AxiomSL Group, Inc. and Calypso Group, Inc. (15)Provider of risk data management and regulatory reporting softwareFirst lien senior secured loan10.59%LIBOR (M)5.75%07/202112/20270.1 0.1 0.1 (2)(11)
Banyan Software Holdings, LLC and Banyan Software, LP (15)Vertical software businesses holding companyFirst lien senior secured revolving loan10.32%SOFR (Q)5.50%01/202310/20251.0 1.0 1.0 (2)(6)(11)
First lien senior secured loan11.91%LIBOR (M)7.00%10/202010/20261.0 1.0 1.0 (2)(6)(11)
First lien senior secured loan11.91%LIBOR (M)7.00%12/202110/20260.2 0.2 0.2 (2)(6)(11)
Preferred units01/2022120,9994.1 7.8 (2)(6)
6.3 10.0 
Borrower R365 Holdings LLC (15)Provider of restaurant enterprise resource planning systemsFirst lien senior secured loan
8.66% (3.00% PIK)
LIBOR (Q)3.50%06/202106/202716.0 15.8 16.0 (2)(11)
First lien senior secured loan
8.66% (3.00% PIK)
LIBOR (Q)3.50%01/202206/20272.0 1.9 2.0 (2)(11)
17.7 18.0 
Bottomline Technologies, Inc. and Legal Spend Holdings, LLC (15)Provider of payment automation solutionsFirst lien senior secured loan10.26%SOFR (M)5.50%05/202205/202918.0 18.0 17.6 (2)(11)
Businessolver.com, Inc. (15)Provider of SaaS-based benefits solutions for employers and employeesFirst lien senior secured loan10.06%LIBOR (S)5.50%12/202112/20270.4 0.4 0.4 (2)(11)
CallMiner, Inc.Provider of cloud-based conversational analytics solutionsWarrant to purchase shares of Series 1 preferred stock07/201407/20242,350,636— — 
Cardinal Parent, Inc. and Packers Software Intermediate Holdings, Inc. (15)Provider of software and technology-enabled content and analytical solutions to insurance brokersFirst lien senior secured revolving loan11.50%Base Rate (Q)3.50%11/202011/20255.0 5.0 4.7 (2)(11)
Second lien senior secured loan12.90%LIBOR (Q)7.75%11/202011/202864.3 64.3 61.0 (2)(11)
Series A preferred shares
16.19% PIK
LIBOR (Q)11.00%11/202024,89833.4 29.0 (2)
Series A-2 preferred shares
16.19% PIK
LIBOR (Q)11.00%12/20208,96311.9 10.3 (2)
Series A-3 preferred shares
11.00% PIK
11/202111,95213.9 12.1 (2)
128.5 117.1 
Community Brands ParentCo, LLC (15)Software and payment services provider to non-profit institutionsFirst lien senior secured loan10.66%SOFR (M)5.75%02/202202/202810.6 10.6 10.4 (2)(11)
Class A units12/2016500,0005.0 6.0 (2)
15.6 16.4 
Computer Services, Inc.Infrastructure software provider to community banksFirst lien senior secured loan11.66%SOFR (Q)6.75%11/202211/202934.1 34.1 33.0 (2)(11)
Consilio Midco Limited, Compusoft US LLC, and Consilio Investment Holdings, L.P. (15)Provider of sales software for the interior design industryFirst lien senior secured revolving loan10.72%SOFR (Q)5.75%11/202105/20280.7 0.7 0.7 (2)(6)(11)
First lien senior secured revolving loan9.07%Euribor (Q)6.25%11/202105/20280.2 0.2 0.2 (2)(6)(11)
First lien senior secured loan10.80%SOFR (Q)5.75%06/202205/202811.7 11.7 11.3 (2)(6)(11)
First lien senior secured loan10.79%SOFR (Q)5.75%05/202105/202874.6 74.6 72.4 (2)(6)(11)
First lien senior secured loan9.24%Euribor (Q)6.25%11/202105/202828.0 29.0 27.1 (2)(6)
Common units05/20214,799,0004.8 7.2 (2)(6)
6

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
Series A common units09/202223,3400.2 — (2)(6)
121.2 118.9 
CoreLogic, Inc. and T-VIII Celestial Co-Invest LP (15)Provider of information, insight, analytics, software and other outsourced services primarily to the mortgage, real estate and insurance sectorsSecond lien senior secured loan11.38%LIBOR (M)6.50%06/202106/2029155.7 155.7 132.3 (2)(11)
Limited partnership units04/202159,665,98959.7 48.8 (2)
215.4 181.1 
Cority Software Inc., Cority Software (USA) Inc., and Cority Parent, Inc. (15)Provider of environmental, health and safety software to track compliance dataFirst lien senior secured loan10.09%SOFR (Q)5.50%10/201907/20264.4 4.4 4.3 (2)(6)(11)
First lien senior secured loan10.59%SOFR (Q)6.00%09/202207/20260.2 0.2 0.2 (2)(6)(11)
First lien senior secured loan12.09%SOFR (Q)7.50%09/202007/20260.1 0.1 0.1 (2)(6)(11)
First lien senior secured loan10.09%SOFR (Q)5.50%07/201907/20266.3 6.3 6.2 (2)(6)(11)
Preferred equity
9.00% PIK
07/20191980.3 0.7 (2)(6)
Common equity07/2019190,143— — (2)(6)
11.3 11.5 
Cornerstone OnDemand, Inc. and Sunshine Software Holdings, Inc. (15)Provider of a cloud-based, SaaS platform for talent managementFirst lien senior secured revolving loan7.96%LIBOR (M)3.25%10/202110/202623.8 23.8 21.7 (2)(14)
Second lien senior secured loan11.34%LIBOR (M)6.50%10/202110/2029137.5 137.5 127.9 (2)(11)
Series A preferred shares
10.50% PIK
10/2021116,413131.8 112.0 (2)
Class A-1 common stock10/20211,360,10013.6 17.4 (2)
306.7 279.0 
Coupa Holdings, LLC and Coupa Software Incorporated (15)Provider of business spend management softwareFirst lien senior secured loan12.29%SOFR (M)7.50%03/202302/20309.0 9.0 8.8 (2)(11)
Datix Bidco LimitedGlobal healthcare software company that provides software solutions for patient safety and risk managementFirst lien senior secured loan9.00%SOFR (S)4.50%11/202204/20254.3 4.2 4.2 (2)(6)
Second lien senior secured loan12.68%SOFR (S)7.75%11/202204/20260.7 0.7 0.7 (2)(6)
4.9 4.9 
Dcert Buyer, Inc., DCert Preferred Holdings, Inc. and Destiny Digital Holdings, L.P.Provider of internet security tools and solutionsSecond lien senior secured loan11.70%SOFR (S)7.00%05/202202/202911.0 10.3 10.8 (2)
Series A preferred shares
10.50% PIK
05/2021129,822153.0 137.7 (2)
Series A units05/2021817,19413.3 12.2 (2)
176.6 160.7 
Denali Holdco LLC and Denali Apexco LP (15)Provider of cybersecurity audit and assessment servicesFirst lien senior secured revolving loan12.50%Base Rate (Q)4.50%09/202109/20272.1 2.1 2.1 (2)(11)
First lien senior secured revolving loan10.53%LIBOR (Q)5.50%09/202109/20271.8 1.8 1.8 (2)(11)
First lien senior secured loan10.62%LIBOR (Q)5.75%07/202209/20270.1 0.1 0.1 (2)(11)
7

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
First lien senior secured loan10.62%LIBOR (Q)5.75%09/202109/20270.1 0.1 0.1 (2)(11)
Class A units02/20222,549,0002.5 2.7 (2)
6.6 6.8 
Diligent Corporation and Diligent Preferred Issuer, Inc. (15)Provider of secure SaaS solutions for board and leadership team documentsFirst lien senior secured revolving loan11.09%LIBOR (M)6.25%08/202008/20250.7 0.6 0.7 (2)(11)
First lien senior secured loan11.06%LIBOR (M)6.25%08/202008/202514.9 14.7 14.6 (2)(11)
First lien senior secured loan11.09%LIBOR (M)6.25%07/202108/20250.1 0.1 0.1 (2)(11)
First lien senior secured loan10.59%LIBOR (M)5.75%03/202108/20250.1 0.1 0.1 (2)(11)
First lien senior secured loan10.59%LIBOR (M)5.75%04/202108/20250.1 0.1 0.1 (2)(11)
Preferred stock
10.50% PIK
04/202113,14015.8 14.5 (2)
31.4 30.1 
Drilling Info Holdings, Inc. and Titan DI Preferred Holdings, Inc.SaaS based business analytics company focused on oil and gas industrySecond lien senior secured loan13.09%LIBOR (M)8.25%02/202007/202625.0 25.0 24.8 (2)
Preferred stock
13.50% PIK
02/20203043.9 42.5 (2)
68.9 67.3 
DS Admiral Bidco, LLC (15)Tax return software provider for government institutionsFirst lien senior secured loan11.40%LIBOR (Q)6.50%03/202103/20280.1 0.1 0.1 (2)(11)
Dye & Durham Corporation (15)Provider of cloud-based software and technology solutions for the legal industryFirst lien senior secured revolving loan10.78%CDOR (Q)5.75%12/202112/20265.0 5.0 5.0 (2)(6)(11)
First lien senior secured loan10.78%CDOR (Q)5.75%12/202112/20273.2 3.2 3.2 (2)(6)(11)
8.2 8.2 
Elemica Parent, Inc. & EZ Elemica Holdings, Inc. (15)SaaS based supply chain management software provider focused on chemical marketsFirst lien senior secured revolving loan10.86%SOFR (M)6.00%09/201909/20253.4 3.4 3.3 (2)(11)
First lien senior secured loan11.00%LIBOR (Q)6.00%09/201909/202549.9 49.9 48.9 (2)(11)
First lien senior secured loan11.18%SOFR (Q)6.00%09/201909/202511.3 11.3 11.1 (2)(11)
First lien senior secured loan11.18%SOFR (Q)6.00%12/202009/20255.7 5.7 5.6 (2)(11)
Preferred equity09/20194,5994.6 6.3 
74.9 75.2 
EP Purchaser, LLC and TPG VIII EP Co-Invest II, L.P.Provider of entertainment workforce and production management solutionsSecond lien senior secured loan11.66%LIBOR (Q)6.50%11/202111/2029177.9 177.9 177.9 (2)(11)
Partnership units05/20195,034,4833.2 12.7 (2)(6)
181.1 190.6 
EpiServer Inc. and Episerver Sweden Holdings AB (15)Provider of web content management and digital commerce solutionsFirst lien senior secured loan8.99%Euribor (Q)6.00%03/201904/20265.7 5.9 5.5 (2)(6)
First lien senior secured loan10.91%LIBOR (Q)5.75%12/202104/20260.1 0.1 0.1 (2)(6)(11)
First lien senior secured loan10.91%LIBOR (Q)5.75%10/201804/20260.1 0.1 0.1 (2)(6)(11)
6.1 5.7 
8

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
eResearch Technology, Inc. and Astorg VII Co-Invest ERT (15)Provider of mission-critical, software-enabled clinical research solutionsSecond lien senior secured loan12.84%LIBOR (M)8.00%04/202102/202830.6 29.8 28.8 (2)
Second lien senior secured loan12.84%LIBOR (M)8.00%02/202002/202817.2 16.9 16.1 (2)
Limited partnership interest01/20203,988,0004.5 4.2 (2)(6)
51.2 49.1 
ESHA Research, LLC and RMCF VI CIV XLVIII, L.P. (15)Provider of nutritional information and software as a services (SaaS) compliance solutionsFirst lien senior secured loan10.99%SOFR (Q)6.25%06/202206/20286.8 6.8 6.7 (2)(11)
Limited partner interests06/20226,046,6286.0 6.5 
12.8 13.2 
Extrahop Networks, Inc. (15)Provider of real-time wire data analytics solutions for application and infrastructure monitoringFirst lien senior secured loan12.41%LIBOR (M)7.50%07/202107/202716.6 16.6 16.6 (2)(11)
First lien senior secured loan12.41%LIBOR (M)7.50%07/202107/20274.3 4.3 4.3 (2)(11)
First lien senior secured loan12.41%SOFR (M)7.50%03/202307/20273.9 3.9 3.8 (2)(11)
24.8 24.7 
First Insight, Inc.Software company providing merchandising and pricing solutions to companies worldwideWarrant to purchase shares of Series C preferred stock03/201403/2024122,827— — 
FM:Systems Group, LLC (15)Provider of facilities and space management software solutionsFirst lien senior secured loan10.96%LIBOR (Q)5.75%06/202112/20240.1 0.1 0.1 (2)(11)
First lien senior secured loan10.60%LIBOR (M)5.75%12/201912/20240.1 0.1 0.1 (2)(11)
0.2 0.2 
Forescout Technologies, Inc. (15)Network access control solutions providerFirst lien senior secured revolving loan13.44%LIBOR (Q)8.50%08/202008/20250.1 0.1 0.1 (2)(11)
First lien senior secured loan
14.66% (9.50% PIK)
LIBOR (Q)9.50%08/202008/202624.3 24.1 24.3 (2)(11)
First lien senior secured loan
14.16% PIK
LIBOR (Q)9.00%07/202208/202612.9 12.9 12.9 (2)(11)
37.1 37.3 
Genesis Acquisition Co. and Genesis Ultimate Holding Co. (15)Child care management software and services providerFirst lien senior secured revolving loan8.96%LIBOR (Q)3.75%07/201807/20241.5 1.5 1.5 (2)
First lien senior secured loan8.96%LIBOR (Q)3.75%07/201807/20240.2 0.2 0.2 (2)
First lien senior secured loan9.46%LIBOR (Q)4.25%11/202107/20240.1 0.1 0.1 (2)(11)
Second lien senior secured loan12.25%LIBOR (Q)7.50%07/201807/202532.4 32.4 31.7 (2)
Second lien senior secured loan12.25%LIBOR (Q)7.50%11/202107/202521.1 21.1 20.7 (2)(11)
Second lien senior secured loan12.25%LIBOR (Q)7.50%06/202107/20257.5 7.5 7.4 (2)
Class A common stock07/201880.8 1.3 (2)
63.6 62.9 
9

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
GI Ranger Intermediate LLC (15)Provider of payment processing services and software to healthcare providersFirst lien senior secured revolving loan11.05%SOFR (Q)6.00%10/202110/20270.4 0.4 0.4 (2)(11)
First lien senior secured loan11.05%SOFR (Q)6.00%10/202110/202810.1 10.1 9.9 (2)(11)
First lien senior secured loan11.05%SOFR (Q)6.00%03/202210/20281.8 1.8 1.7 (2)(11)
12.3 12.0 
GraphPAD Software, LLC, Insightful Science Intermediate I, LLC and Insightful Science Holdings, LLC (15)Provider of data analysis, statistics, and visualization software solutions for scientific research applicationsFirst lien senior secured loan11.21%LIBOR (Q)6.00%12/201704/20270.2 0.2 0.2 (2)(11)
First lien senior secured loan10.71%LIBOR (Q)5.50%11/202104/20270.1 0.1 0.1 (2)(11)
First lien senior secured loan10.71%LIBOR (Q)5.50%10/202104/20270.1 0.1 0.1 (2)(11)
First lien senior secured loan10.43%LIBOR (Q)5.50%04/202104/20270.1 0.1 0.1 (2)(11)
Senior subordinated loan
10.50% PIK
04/202104/203245.8 45.8 41.7 (2)
Preferred units
14.00% PIK
04/20211,828,64557.6 57.6 
103.9 99.8 
GSV PracticeTek Holdings, LLCSoftware provider for medical practitionersClass A units
8.00% PIK
03/202112,827,4821.1 9.0 (2)
Heavy Construction Systems Specialists, LLC (15)Provider of construction softwareFirst lien senior secured loan10.34%LIBOR (M)5.50%11/202111/20280.1 0.1 0.1 (2)(11)
Huskies Parent, Inc., GI Insurity Parent LLC and GI Insurity TopCo LP (15)Insurance software providerFirst lien senior secured revolving loan10.66%LIBOR (Q)5.50%11/202111/20279.4 9.4 8.8 (2)(11)
First lien senior secured loan10.49%LIBOR (Q)5.50%11/202111/202860.2 60.2 56.6 (2)(11)
Senior subordinated loan
10.00% PIK
11/202111/2031102.0 102.0 85.7 (2)
Company units11/20214,243,6578.8 7.6 (2)
180.4 158.7 
Imprivata, Inc.Provider of identity and access management solutions to the healthcare industrySecond lien senior secured loan11.06%SOFR (M)6.25%04/202212/202816.1 16.0 15.0 (2)(11)
Inmar, Inc.Technology-driven solutions provider for retailers, wholesalers and manufacturersSecond lien senior secured loan12.84%LIBOR (M)8.00%04/201705/202528.3 28.2 27.7 (2)(11)
IQN Holding Corp. (15)Provider of extended workforce management softwareFirst lien senior secured loan10.38%SOFR (S)5.25%05/202205/20290.5 0.5 0.5 (2)(11)
IV Rollover Holdings, LLCProvider of cloud based IT solutions, infrastructure and servicesClass B units05/2017170,490— — (2)
Class X units05/20175,000,0002.0 2.1 (2)
2.0 2.1 
Kaseya Inc. and Knockout Intermediate Holdings I Inc. (15)Provider of cloud-based software and technology solutions for small and medium sized businessesFirst lien senior secured revolving loan06/202206/2029— — — (13)
First lien senior secured loan10.65%SOFR (Q)5.75%06/202206/2029167.0 167.0 162.0 (2)(11)
10

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
Perpetual preferred stock
11.75% PIK
06/202238,79841.2 40.0 (2)
208.2 202.0 
LeanTaaS Holdings, Inc. (15)Provider of SaaS tools to optimize healthcare asset utilizationFirst lien senior secured loan12.40%SOFR (Q)7.50%07/202207/202837.2 37.2 37.2 (2)(11)
Majesco and Magic Topco, L.P. (15)Insurance software providerFirst lien senior secured loan12.41%LIBOR (Q)7.25%09/202009/20270.1 0.1 0.1 (2)(11)
Class A units
9.00% PIK
09/20202,5393.2 4.3 (2)
Class B units09/2020570,625— — (2)
3.3 4.4 
Mimecast Borrowerco, Inc. and Magnesium Co- Invest SCSp (15)(16)Cybersecurity solutions providerFirst lien senior secured loan10.66%SOFR (M)5.75%05/202205/2029101.9 101.9 98.8 (2)(6)(11)
First lien senior secured loan9.93%SONIA (Q)5.75%05/202205/202935.4 35.5 34.4 (2)(6)(11)
Limited partnership interest05/20223,97538.8 40.0 (2)(6)
176.2 173.2 
Ministry Brands Holdings, LLC and RCP MB Investments B, L.P. (15)Software and payment services provider to faith-based institutionsFirst lien senior secured revolving loan10.30%LIBOR (M)5.50%12/202112/20272.0 2.0 1.9 (2)(11)
First lien senior secured loan10.52%LIBOR (Q)5.50%12/202112/202835.4 35.4 33.6 (2)(11)
Limited partner interests12/20219,574,0009.6 8.7 (2)
47.0 44.2 
Mitchell International, Inc.Provider of technology, connectivity, and information solutions to the property and casualty insurance industrySecond lien senior secured loan11.34%LIBOR (M)6.50%10/202110/202998.1 96.1 84.8 (2)(11)(18)
Moonraker AcquisitionCo LLC and Moonraker HoldCo LLC (15)Leading technology solution provider for casing and auditioning to the entertainment industryFirst lien senior secured loan10.63%SOFR (Q)5.75%08/202208/202825.0 25.0 25.0 (2)(11)
Class A units
8.00% PIK
08/202245,3204.5 4.5 
29.5 29.5 
MRI Software LLC (15)Provider of real estate and investment management softwareFirst lien senior secured loan10.66%LIBOR (Q)5.50%02/202002/202647.0 47.0 45.5 (2)(11)
First lien senior secured loan10.66%LIBOR (Q)5.50%08/202002/202620.0 20.0 19.4 (2)(11)
67.0 64.9 
n2y Holding, LLC (15)Developer of cloud-based special education platformFirst lien senior secured revolving loan10.60%LIBOR (M)5.75%11/201911/20250.1 0.1 0.1 (2)(11)
OpenMarket Inc.Provider of cloud-based mobile engagement platformFirst lien senior secured loan11.41%LIBOR (Q)6.25%09/202109/202614.9 14.9 14.8 (2)(6)(11)
PDDS HoldCo, Inc. (15)Provider of cloud-based dental practice management softwareFirst lien senior secured loan12.54%SOFR (S)7.50%07/202207/20289.5 9.5 9.5 (2)(11)
11

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
PDI TA Holdings, Inc., Peachtree Parent, Inc. and Insight PDI Holdings, LLC (15)Provider of enterprise management software for the convenience retail and petroleum wholesale marketFirst lien senior secured revolving loan9.29%LIBOR (Q)4.50%03/201910/20243.8 3.8 3.8 (2)(11)
First lien senior secured loan9.30%LIBOR (Q)4.50%03/201910/202452.8 52.8 52.2 (2)(11)
Second lien senior secured loan13.41%LIBOR (Q)8.50%03/201910/202570.1 70.1 69.4 (2)(11)
Second lien senior secured loan13.41%LIBOR (Q)8.50%04/202110/20258.7 8.7 8.7 (2)(11)
Second lien senior secured loan13.41%LIBOR (Q)8.50%12/202010/20258.3 8.3 8.2 (2)(11)
Second lien senior secured loan13.41%LIBOR (Q)8.50%12/202110/20257.2 7.2 7.1 (2)(11)
Series A preferred stock
13.25% PIK
03/201913,65623.0 23.3 (2)
Class A units03/20192,062,4932.1 3.5 (2)
176.0 176.2 
Pegasus Global Enterprise Holdings, LLC, Mekone Blocker Acquisition, Inc. and Mekone Parent, LLC (15)Provider of plant maintenance and scheduling softwareFirst lien senior secured revolving loan10.41%LIBOR (Q)5.25%05/201905/20253.9 3.9 3.9 (2)(11)
First lien senior secured loan10.87%LIBOR (Q)5.75%10/202005/20250.3 0.3 0.3 (2)(11)
First lien senior secured loan10.91%LIBOR (Q)5.75%06/202005/20250.1 0.1 0.1 (2)(11)
First lien senior secured loan10.41%LIBOR (Q)5.25%05/201905/20250.2 0.2 0.2 (2)(11)
Class A units05/20195,0005.0 12.7 
9.5 17.2 
Petvisor Holdings, LLC (15)Provider of veterinarian-focused SaaS solutionsFirst lien senior secured loan10.69%SOFR (S)5.50%06/202206/20286.0 6.0 6.0 (2)(11)
Ping Identity Holding Corp. (15)Provider of identity and access management solutionsFirst lien senior secured loan11.76%SOFR (M)7.00%10/202210/202911.3 11.3 11.0 (2)(11)
Pluralsight, Inc. (15)Online education learning platformFirst lien senior secured revolving loan12.78%LIBOR (Q)8.00%04/202104/20270.2 0.2 0.1 (2)(11)
First lien senior secured loan12.78%LIBOR (Q)8.00%04/202104/2027106.2 106.2 104.0 (2)(11)
106.4 104.1 
Poplicus IncorporatedBusiness intelligence and market analytics platform for companies that sell to the public sectorWarrant to purchase shares of Series C preferred stock06/201506/20252,402,9910.1 — 
ProfitSolv Purchaser, Inc. and PS Co-Invest, L.P. (15)Provider of practice management software to law firmsFirst lien senior secured loan10.33%LIBOR (M)5.50%03/202103/20279.9 9.9 9.6 (2)(11)
Limited partnership units03/20211,624,0001.6 1.5 (2)
11.5 11.1 
Project Alpha Intermediate Holding, Inc. and Qlik Parent, Inc.Provider of data visualization software for data analyticsFirst lien senior secured loan8.85%LIBOR (M)4.00%06/202204/20242.8 2.8 2.8 (2)(18)
Class A common stock08/20167,4457.4 18.1 (2)
Class B common stock08/20161,841,6090.1 0.2 (2)
10.3 21.1 
12

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
Project Essential Bidco, Inc. and Project Essential Super Parent, Inc. (15)Saas provider of automated crew callout and scheduling software for the utility industryFirst lien senior secured loan10.56%LIBOR (Q)5.75%04/202104/202836.1 36.1 35.0 (2)(11)
Preferred shares
14.69% PIK
LIBOR (Q)9.50%04/202126,43633.1 31.4 (2)(11)
69.2 66.4 
Project Potter Buyer, LLC and Project Potter Parent, L.P. (15)Software solutions provider to the ready-mix concrete industryFirst lien senior secured revolving loan12.56%SOFR (M)7.75%04/202004/20262.1 2.0 2.1 (2)(11)
First lien senior secured loan12.56%SOFR (M)7.75%04/202004/202743.5 43.5 43.5 (2)(11)
First lien senior secured loan12.56%SOFR (M)7.75%11/202004/202712.0 12.0 12.0 (2)(11)
First lien senior secured loan12.56%SOFR (M)7.75%10/202004/20270.1 0.1 0.1 (2)(11)
Class B units04/2020588,636— 5.1 (2)
57.6 62.8 
Proofpoint, Inc. (15)Cybersecurity solutions providerFirst lien senior secured loan8.09%LIBOR (M)3.25%06/202108/20281.0 0.9 1.0 (2)(11)(18)
Second lien senior secured loan11.09%LIBOR (M)6.25%06/202108/202934.6 34.4 34.6 (2)(11)
35.3 35.6 
QF Holdings, Inc. (15)SaaS based electronic health record software providerFirst lien senior secured revolving loan11.06%SOFR (M)6.25%09/201912/20270.2 0.2 0.2 (2)(11)
First lien senior secured loan11.16%LIBOR (M)6.25%12/202112/20278.1 8.1 8.1 (2)(11)
First lien senior secured loan11.12%LIBOR (M)6.25%08/202012/20274.9 4.9 4.9 (2)(11)
First lien senior secured loan11.16%LIBOR (M)6.25%09/201912/20276.8 6.8 6.8 (2)(11)
20.0 20.0 
Raptor Technologies, LLC, Sycamore Bidco LTD and Rocket Parent, LLC (15)Provider of SaaS-based safety and security software to the K-12 school marketFirst lien senior secured loan10.66%LIBOR (Q)5.50%10/202110/20288.5 8.5 8.4 (2)(6)(11)
Class A common units12/20182,880,5823.5 6.7 
12.0 15.1 
RealPage, Inc.Provider of enterprise software solutions to the residential real estate industrySecond lien senior secured loan11.34%LIBOR (M)6.50%04/202104/202984.1 83.1 79.9 (2)(11)
Regent Education, Inc.Provider of software solutions designed to optimize the financial aid and enrollment processesWarrant to purchase shares of common stock12/201612/2026987— — 
Warrant to purchase shares of common stock12/201612/20265,393,194— — 
— — 
Relativity ODA LLC (15)Electronic discovery document review software platform for use in litigations and investigationsFirst lien senior secured loan
12.35% PIK
LIBOR (M)7.50%05/202105/202722.8 22.8 22.8 (2)(11)
Revalize, Inc. (15)Developer and operator of software providing configuration, price and quote capabilitiesFirst lien senior secured loan10.66%SOFR (M)5.75%05/202204/20270.7 0.7 0.7 (2)(11)
13

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
RMS HoldCo II, LLC & RMS Group Holdings, Inc. (15)Developer of revenue cycle management solutions, process automation, analytics and integration for the healthcare industryFirst lien senior secured loan11.30%SOFR (Q)6.25%08/202212/20270.2 0.2 0.2 (2)(11)
First lien senior secured loan10.91%LIBOR (Q)5.75%12/202112/20270.1 0.1 0.1 (2)(11)
Class A common stock12/20214654.6 5.5 (2)
4.9 5.8 
Smarsh Inc. and Skywalker TopCo, LLC (15)SaaS based communication archival service providerFirst lien senior secured revolving loan11.40%SOFR (Q)6.50%02/202202/20290.1 0.1 0.1 (2)(11)
First lien senior secured loan11.29%SOFR (S)6.50%02/202202/202911.9 11.9 11.9 (2)(11)
Common units11/20201,742,6236.3 9.8 (2)
18.3 21.8 
SocialFlow, Inc.Social media optimization platform providerWarrant to purchase shares of Series C preferred stock01/201601/2026215,331— — 
Sophia, L.P.Provider of ERP software and services for higher education institutionsSecond lien senior secured loan13.16%LIBOR (Q)8.00%10/202010/2028105.9 105.9 102.7 (2)(11)
SoundCloud LimitedPlatform for receiving, sending, and distributing musicCommon stock08/201773,4220.4 0.7 (2)(6)
Spirit RR Holdings, Inc. and Winterfell Co-Invest SCSp (15)Provider of data, analytics, news, and workflow tools to customers in the counter-cyclical distressed debt spaceFirst lien senior secured loan11.50%SOFR (Q)6.50%09/202209/20282.6 2.6 2.5 (2)(11)
Limited partner interests09/20221,01010.2 10.7 (2)
12.8 13.2 
Storable, Inc. and EQT IX Co-Investment (E) SCSPPMS solutions and web services for the self-storage industrySecond lien senior secured loan11.54%SOFR (S)6.75%04/202104/202942.8 42.8 41.5 (2)(11)
Second lien senior secured loan11.54%SOFR (S)6.75%03/202204/202910.3 10.3 10.0 (2)(11)
Limited partnership interests04/2021614,9506.2 8.1 (2)(6)
59.3 59.6 
Sundance Group Holdings, Inc. (15)Provider of cloud-based document management and collaboration solutionsFirst lien senior secured revolving loan11.18%LIBOR (M)6.25%07/202107/20270.3 0.3 0.3 (2)(11)
First lien senior secured loan10.99%SOFR (M)6.25%07/202107/202720.1 19.8 19.9 (2)(11)
First lien senior secured loan11.16%SOFR (M)6.25%11/202207/20270.8 0.8 0.8 (2)(11)
20.9 21.0 
Tamarack Intermediate, L.L.C. and Tamarack Parent, L.L.C. (15)Provider of environment, health, safety, and sustainability softwareFirst lien senior secured revolving loan10.37%SOFR (M)5.50%03/202203/20281.2 1.2 1.2 (2)(11)
First lien senior secured loan10.76%SOFR (Q)5.50%03/202203/202835.0 35.0 35.0 (2)(11)
Class A-2 units03/20224,8494.8 5.8 
41.0 42.0 
14

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
TCP Hawker Intermediate LLC (15)Workforce management solutions providerFirst lien senior secured loan10.41%LIBOR (Q)5.25%08/201908/202634.3 34.3 34.3 (2)(11)
First lien senior secured loan10.41%LIBOR (Q)5.25%12/202008/20266.5 6.5 6.5 (2)(11)
First lien senior secured loan10.38%LIBOR (Q)5.25%10/202108/20260.1 0.1 0.1 (2)(11)
40.9 40.9 
TibCo Software Inc., Picard Parent, Inc., Picard MidCo, Inc., Picard HoldCo, LLC and Elliott Alto Co-Investor Aggregator L.P. (15)Provider of server, application and desktop virtualization, networking, software as a service, and cloud computing technologiesFirst lien senior secured notes6.50%09/202203/202988.9 86.6 78.4 (2)(18)
First lien senior secured loan9.50%SOFR (Q)4.50%09/202203/202910.9 10.4 9.8 (2)(11)(18)
Second lien senior secured loan9.00%SOFR (Q)7.00%09/202209/202985.3 84.0 68.2 (2)(11)
Series A preferred stock
16.91% PIK
SOFR (Q)12.00%09/2022141,928149.6 153.7 (2)(11)
Limited partnership interests09/202212,250,00012.3 12.6 (2)
342.9 322.7 
UKG Inc. and H&F Unite Partners, L.P. (15)Provider of cloud based HCM solutions for businessesFirst lien senior secured revolving loan8.56%LIBOR (M)3.75%05/201902/202610.9 10.9 10.6 (2)(6)(14)
Limited partnership interests05/201912,583,55612.6 15.4 (2)(6)
23.5 26.0 
UserZoom Technologies, Inc.User experience research automation softwareFirst lien senior secured loan11.63%SOFR (S)7.00%02/202304/20295.8 5.7 5.7 (2)(11)
WebPT, Inc. (15)Electronic medical record software providerFirst lien senior secured revolving loan11.62%LIBOR (Q)6.75%08/201901/20280.6 0.6 0.6 (2)(11)
First lien senior secured loan11.74%LIBOR (Q)6.75%08/201901/20280.1 0.1 0.1 (2)(11)
0.7 0.7 
Wellness AcquisitionCo, Inc. (15)Provider of retail consumer insights and analytics for manufacturers and retailers in the natural, organic and specialty products industryFirst lien senior secured loan10.49%LIBOR (Q)5.50%01/202101/20270.1 0.1 0.1 (2)(11)
WorkWave Intermediate II, LLC (15)Provider of cloud-based field services and fleet management solutionsFirst lien senior secured loan
12.25% PIK
SOFR (Q)7.25%06/202106/202769.5 69.5 69.5 (2)(11)
First lien senior secured loan
12.25% PIK
SOFR (Q)7.25%02/202206/202718.2 18.2 18.2 (2)(11)
87.7 87.7 
ZenDesk, Inc., Zoro TopCo, Inc. and Zoro TopCo, LP (15)Provider of cloud-based customer support solutionsFirst lien senior secured loan11.88%SOFR (Q)7.00%12/202211/202842.4 42.4 41.6 (2)(11)
Series A preferred stock
12.50% PIK
11/202227,22628.5 27.6 (2)
Class A common units11/2022269,1002.7 3.0 (2)
73.6 72.2 
4,700.8 4,557.7 45.35%
Financial Services
15

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
AQ Sage Buyer, LLC (15)Provider of actuarial consulting and comprehensive wealth management servicesFirst lien senior secured loan11.38%SOFR (S)6.00%05/202201/20271.9 1.9 1.8 (2)(6)(11)
BCC Blueprint Holdings I, LLC and BCC Blueprint Investments, LLCProvider of comprehensive suite of investment management and wealth planning solutionsFirst lien senior secured loan11.12%LIBOR (Q)6.25%09/202109/20270.2 0.2 0.2 (2)(11)
Senior subordinated loan
9.30% PIK
09/202109/20265.1 5.1 5.1 (2)
Common units09/20214,857,5064.9 4.3 (2)
10.2 9.6 
Beacon Pointe Harmony, LLC (15)Provider of comprehensive wealth management servicesFirst lien senior secured loan9.92%SOFR (M)5.25%12/202112/202818.8 18.8 18.6 (2)(6)(11)
Convera International Holdings Limited and Convera International Financial S.A R.L. (15)Provider of B2B international payment and FX risk management solutionsFirst lien senior secured loan10.65%SOFR (Q)5.75%03/202203/20280.1 0.1 0.1 (2)(6)(11)
CrossCountry Mortgage, LLCMortgage company originating loans in the retail and consumer direct channelsFirst lien senior secured loan11.95%LIBOR (Q)7.00%11/202111/202793.8 93.8 92.8 (2)(11)
DFC Global Facility Borrower III LLC (15)Non-bank provider of alternative financial servicesFirst lien senior secured revolving loan12.16%LIBOR (M)7.50%06/202106/2026162.0 176.2 162.0 (2)(6)(9)(11)
eCapital Finance Corp.Consolidator of commercial finance businessesSenior subordinated loan12.52%SOFR (M)7.75%04/202212/202555.8 55.8 55.2 (2)(11)
Senior subordinated loan12.52%SOFR (M)7.75%01/202012/202556.0 56.0 55.4 (2)(11)
Senior subordinated loan12.52%SOFR (M)7.75%01/202212/202524.3 24.3 24.1 (2)(11)
Senior subordinated loan12.52%SOFR (M)7.75%11/202012/20255.4 5.4 5.3 (2)(11)
141.5 140.0 
EP Wealth Advisors, LLC (15)Wealth management and financial planning firmFirst lien senior secured loan10.73%SOFR (Q)5.75%11/202209/20264.2 4.2 4.2 (2)(11)
First lien senior secured loan10.55%SOFR (Q)5.50%11/202109/20260.4 0.4 0.4 (2)(11)
First lien senior secured loan10.55%SOFR (Q)5.50%09/202009/20260.1 0.1 0.1 (2)(11)
First lien senior secured loan10.42%SOFR (Q)5.38%09/202009/20260.1 0.1 0.1 (2)(11)
4.8 4.8 
HighTower Holding, LLCProvider of investment, financial and retirement planning servicesSenior subordinated loan6.75%06/202204/20298.1 6.8 6.8 (2)(6)(18)
Ivy Hill Asset Management, L.P. (5)Asset management servicesSubordinated revolving loan11.55%SOFR (Q)6.50%02/201801/2030438.0 438.0 438.0 (6)(11)
Member interest06/2009100 %1,700.5 1,857.4 (6)
2,138.5 2,295.4 
Lido Advisors, LLC (15)Wealth management and financial planning firmFirst lien senior secured revolving loan9.34%LIBOR (M)4.50%06/202106/20270.6 0.6 0.6 (2)(11)
LS DE LLC and LM LSQ Investors LLCAsset based lenderSenior subordinated loan10.50%06/201706/20213.0 3.0 2.9 (2)(6)
Senior subordinated loan10.50%06/201503/202437.0 37.0 36.3 (2)(6)
Membership units06/20153,275,0003.3 2.6 (6)
43.3 41.8 
16

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
Monica Holdco (US) Inc. (15)Investment technology and advisory firmFirst lien senior secured revolving loan11.69%LIBOR (Q)6.75%01/202101/20263.6 3.6 3.5 (2)(11)
First lien senior secured loan11.91%LIBOR (Q)6.75%01/202101/20282.6 2.6 2.5 (2)(11)
6.2 6.0 
Petrus Buyer, Inc. (15)Provider of REIT research data and analyticsFirst lien senior secured loan11.18%SOFR (Q)6.50%11/202210/20295.1 5.1 4.9 (2)(11)
Priority Holdings, LLC and Priority Technology Holdings, Inc.Provider of merchant acquiring and payment processing solutionsFirst lien senior secured loan10.70%LIBOR (Q)5.75%04/202104/20270.7 0.7 0.7 (2)(6)(11)
Senior preferred stock
17.19% (8.06% PIK)
LIBOR (Q)12.00%04/202165,76170.5 74.5 (2)(6)(11)
Warrant to purchase shares of common stock04/202104/2031527,2264.0 1.9 (2)(6)(18)
75.2 77.1 
Rialto Management Group, LLC (15)Investment and asset management platform focused on real estateFirst lien senior secured revolving loan11/201812/2025— — — (13)
First lien senior secured loan10.34%LIBOR (M)5.50%11/201812/20250.3 0.3 0.3 (2)(6)(11)
First lien senior secured loan10.34%LIBOR (M)5.50%12/202112/20250.1 0.1 0.1 (2)(6)(11)
First lien senior secured loan10.34%LIBOR (M)5.50%04/202112/20250.1 0.1 0.1 (2)(6)(11)
0.5 0.5 
TA/WEG Holdings, LLC (15)Wealth management and financial planning firmFirst lien senior secured loan10.81%SOFR (A)6.00%06/202110/20270.1 0.1 0.1 (2)(11)
First lien senior secured loan11.26%SOFR (Q)6.25%11/202010/20270.1 0.1 0.1 (2)(11)
First lien senior secured loan11.00%SOFR (A)6.25%10/201910/20270.1 0.1 0.1 (2)(11)
First lien senior secured loan11.10%SOFR (A)6.25%08/202110/20270.1 0.1 0.1 (2)(11)
0.4 0.4 
The Edelman Financial Center, LLCProvider of investment, financial and retirement planning servicesFirst lien senior secured loan8.59%LIBOR (M)3.75%03/202304/20280.5 0.4 0.5 (2)(6)(11)
Second lien senior secured loan11.59%LIBOR (M)6.75%09/202207/202615.8 14.1 14.7 (2)(6)
14.5 15.2 
The Mather Group, LLC, TVG-TMG Topco, Inc., and TVG-TMG Holdings, LLC (15)Provider of comprehensive wealth management servicesFirst lien senior secured loan10.53%SOFR (S)5.50%03/202203/20283.7 3.7 3.7 (2)(6)(11)
Senior subordinated loan
12.00% PIK
03/202203/20293.1 3.1 2.9 (2)(6)
Series A preferred units03/20227,1997.2 4.3 (2)(6)
Common units03/20227,199— — (2)(6)
14.0 10.9 
The Ultimus Group Midco, LLC, The Ultimus Group, LLC, and The Ultimus Group Aggregator, LP (15)Provider of asset-servicing capabilities for fund managersFirst lien senior secured loan9.75%LIBOR (Q)4.50%02/201902/202637.3 37.3 36.6 (2)(11)
Class A units
8.00% PIK
09/20191,4432.0 3.2 
Class A units02/20192450.2 — 
Class B units02/2019245,194— — 
17

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
Class B units02/20192,167,424— — 
39.5 39.8 
Waverly Advisors, LLC (15)Wealth management and financial planning firmFirst lien senior secured loan10.80%SOFR (Q)5.75%03/202203/20280.6 0.6 0.6 (2)(6)(11)
2,792.5 2,929.7 29.15%
Health Care Services
Absolute Dental Group LLC and Absolute Dental Equity, LLC (5)(15)Dental services providerFirst lien senior secured revolving loan
14.16% (5.00% PIK)
LIBOR (Q)9.00%06/202106/20246.9 6.9 6.9 (2)(11)
First lien senior secured loan
14.16% (5.00% PIK)
LIBOR (Q)9.00%06/202106/202452.8 52.8 52.8 (2)(11)
Class A common units06/20217,617,2804.7 14.2 (2)
64.4 73.9 
ADG, LLC and RC IV GEDC Investor LLC (15)Dental services providerFirst lien senior secured revolving loan
12.25% (0.51% PIK)
Base Rate (M)4.25%09/201609/202312.6 12.6 10.5 (2)(11)
First lien senior secured loan
12.25% (0.51% PIK)
Base Rate (Q)4.25%03/202309/20237.9 7.9 6.5 (2)(11)
Second lien senior secured loan09/201603/2024131.7 105.8 52.7 (2)(10)
Membership units09/20163,000,0003.0 — (2)
129.3 69.7 
Advarra Holdings, Inc. (15)Provider of central institutional review boards over clinical trialsFirst lien senior secured loan10.56%SOFR (M)5.75%08/202208/20294.1 4.1 3.9 (2)(11)
AHR Funding Holdings, Inc. and AHR Parent Holdings, LPProvider of revenue cycle management solutions to hospitalsSeries A preferred shares
12.75% PIK
07/202207/202835,00038.1 37.8 (2)
Preferred units
8.00% PIK
07/20229,90010.5 10.6 (2)
Class B common units07/2022100,0000.1 0.1 (2)
48.7 48.5 
AthenaHealth Group Inc., Minerva Holdco, Inc. and BCPE Co-Invest (A), LP (15)(16)Revenue cycle management provider to the physician practices and acute care hospitalsSeries A preferred stock
10.75% PIK
02/2022198,505224.0 201.6 (2)
Class A units02/202210,487,95110.5 9.5 (2)
234.5 211.1 
BAART Programs, Inc., MedMark Services, Inc., and Canadian Addiction Treatment Centres LPOpiod treatment providerFirst lien senior secured loan10.16%LIBOR (Q)5.00%05/202206/20276.0 6.1 5.9 (2)(11)
Bambino Group Holdings, LLCDental services providerClass A preferred units12/20161,000,0001.0 0.8 (2)
CCS-CMGC Holdings, Inc. (15)Correctional facility healthcare operatorFirst lien senior secured revolving loan10.24%LIBOR (M)5.50%10/201810/20234.2 4.2 3.7 (2)(14)(18)
First lien senior secured loan10.33%LIBOR (Q)5.50%09/201810/202533.5 33.4 22.0 (2)(18)
37.6 25.7 
Center for Autism and Related Disorders, LLC (15)Autism treatment and services provider specializing in applied behavior analysis therapyFirst lien senior secured revolving loan11/201811/20236.8 6.8 0.5 (2)(10)(14)
18

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
First lien senior secured revolving loan01/202211/20230.8 0.2 0.1 (2)(10)(14)
First lien senior secured loan
15.15% PIK
SOFR (Q)10.00%12/202210/202312.2 12.8 12.2 (2)(11)
First lien senior secured loan
15.16% PIK
SOFR (Q)10.00%10/202210/20239.9 10.1 9.9 (2)(11)
29.9 22.7 
Color Intermediate, LLCProvider of pre-payment integrity software solutionFirst lien senior secured loan10.50%SOFR (Q)5.50%10/202210/202920.3 20.3 19.9 (2)(11)
Comprehensive EyeCare Partners, LLC (15)Vision care practice management companyFirst lien senior secured revolving loan11.44%SOFR (M)6.50%02/201802/20241.9 1.9 1.8 (2)(11)
First lien senior secured loan11.66%SOFR (Q)6.50%02/201802/20240.3 0.3 0.3 (2)(11)
2.2 2.1 
Convey Health Solutions, Inc.Healthcare workforce management software providerFirst lien senior secured loan10.25%SOFR (Q)5.25%09/201909/20262.7 2.7 2.6 (2)(6)(11)
First lien senior secured loan10.25%SOFR (Q)5.25%10/202209/20260.1 0.1 0.1 (2)(6)(11)
First lien senior secured loan10.25%SOFR (Q)5.25%02/202209/20260.1 0.1 0.1 (2)(6)(11)
2.9 2.8 
Crown CT Parent Inc., Crown CT HoldCo Inc. and Crown CT Management LLC (15)Provider of medical devices and services for the treatment of positional plagiocephalyFirst lien senior secured loan10.59%SOFR (Q)5.50%03/202203/202924.5 24.5 24.2 (2)(11)
Class A shares03/20221761.8 1.8 (2)
Common units03/2022280.3 0.3 (2)
26.6 26.3 
CVP Holdco, Inc. and OMERS Wildcats Investment Holdings LLC (15)Veterinary hospital operatorFirst lien senior secured loan11.24%LIBOR (M)6.40%01/202210/202540.4 40.4 40.4 (2)(11)
First lien senior secured loan11.24%LIBOR (M)6.40%10/201910/202538.8 38.8 38.8 (2)(11)
First lien senior secured loan11.08%LIBOR (M)6.25%10/202210/20254.9 4.9 4.9 (2)(11)
First lien senior secured loan11.24%LIBOR (M)6.40%04/202110/20250.1 0.1 0.1 (2)(11)
Common stock10/201941,44314.5 24.6 (2)
98.7 108.8 
Ensemble RCM, LLCProvider of technology-enabled revenue cycle management services to the health care industryFirst lien senior secured loan9.78%SOFR (Q)5.00%04/202208/20262.5 2.5 2.5 (2)(11)
Evolent Health LLC and Evolent Health, Inc.Medical technology company focused on value based care services and payment solutionsFirst lien senior secured loan10.79%SOFR (Q)6.00%01/202301/202934.0 34.0 33.0 (2)(6)(11)
First lien senior secured loan11.04%SOFR (Q)6.00%08/202201/20297.8 7.8 7.6 (2)(6)(11)
Series A preferred shares11.06%SOFR (Q)6.00%01/202301/20293,8343.8 4.3 (2)(6)(11)
45.6 44.9 
GHX Ultimate Parent Corporation, Commerce Parent, Inc. and Commerce Topco, LLC (15)On-demand supply chain automation solutions provider to the healthcare industrySecond lien senior secured loan11.59%LIBOR (M)6.75%05/202105/2029114.0 114.0 112.9 (2)(11)
Class A units06/201714,853,57015.7 29.5 (2)
129.7 142.4 
Global Medical Response, Inc. and GMR Buyer Corp.Emergency air medical services providerFirst lien senior secured loan9.20%LIBOR (Q)4.25%06/202203/202512.4 11.6 8.7 (2)(11)(18)
19

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
First lien senior secured loan9.24%LIBOR (Q)4.25%06/202210/202526.0 24.2 18.1 (2)(11)(18)
Second lien senior secured loan11.59%LIBOR (M)6.75%12/202112/202995.4 95.4 66.8 (2)(11)
Warrant to purchase units of common stock03/201803/2028115,7330.9 1.8 (2)
Warrant to purchase units of common stock12/202112/20311,9270.1 — (2)
132.2 95.4 
Hanger, Inc.Provider of orthotic and prosthetic equipment and servicesFirst lien senior secured loan10.95%SOFR (M)6.25%10/202210/202854.2 54.2 52.3 (2)(11)
Second lien senior secured loan14.45%SOFR (M)9.75%10/202210/2029110.6 110.6 106.8 (2)(11)
164.8 159.1 
HealthEdge Software, Inc. (15)Provider of financial, administrative and clinical software platforms to the healthcare industryFirst lien senior secured revolving loan14.00%Base Rate (Q)6.00%12/202104/20262.4 2.4 2.4 (2)(11)(14)
First lien senior secured loan11.94%LIBOR (Q)7.00%12/202104/202687.2 87.2 87.2 (2)(11)
First lien senior secured loan11.94%LIBOR (Q)7.00%12/202204/20262.8 2.8 2.8 (2)(11)
92.4 92.4 
Honor Technology, Inc.Nursing and home care providerFirst lien senior secured loan14.67%LIBOR (M)10.00%08/202108/20262.5 2.4 2.3 (2)(11)
Warrant to purchase shares of Series D-2 preferred stock08/202108/2031133,3330.1 — (2)
2.5 2.3 
JDC Healthcare Management, LLC (15)Dental services providerFirst lien senior secured revolving loan04/201704/20244.9 3.7 2.3 (2)(10)
First lien senior secured loan04/201704/202441.4 31.4 19.9 (2)(10)
35.1 22.2 
KBHS Acquisition, LLC (d/b/a Alita Care, LLC) (15)Provider of behavioral health servicesFirst lien senior secured revolving loan
9.85% (1.24% PIK)
LIBOR (M)5.00%03/201703/20244.2 4.2 4.1 (2)(11)
First lien senior secured revolving loan
12.00% (1.24% PIK)
Base Rate (M)4.00%03/201703/20240.1 0.1 0.1 (2)(11)
4.3 4.2 
Lifescan Global CorporationProvider of blood glucose monitoring systems for home and hospital useFirst lien senior secured loan10.75%LIBOR (Q)6.00%05/202210/202414.0 13.5 10.4 (2)(18)
Second lien senior secured loan14.25%LIBOR (Q)9.50%05/202210/20250.2 0.2 0.2 (2)(18)
13.7 10.6 
Medline Borrower, LP (15)Manufacturer and distributor of medical suppliesFirst lien senior secured revolving loan10/202110/2026— — — (13)
Napa Management Services Corporation and ASP NAPA Holdings, LLCAnesthesia management services providerSenior preferred units
8.00% PIK
06/20205,3200.3 0.3 (2)
Preferred units
15.00% PIK
06/20201,8420.2 0.2 (2)
Class A units04/201625,2772.5 3.6 (2)
3.0 4.1 
20

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
NMN Holdings III Corp. and NMN Holdings LP (15)Provider of complex rehabilitation technology solutions for patients with mobility lossFirst lien senior secured revolving loan8.59%LIBOR (M)3.75%11/201811/20235.3 5.3 4.9 (2)(14)
Partnership units11/201830,0003.0 2.3 (2)
8.3 7.2 
NSPC Intermediate Corp. and NSPC Holdings, LLCAcute and chronic pain treatment providerCommon units02/20231,182— — (2)
Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC (5)(15)Behavioral health and special education platform providerFirst lien senior secured loan09/201902/202752.2 49.3 31.4 (2)(10)
First lien senior secured loan02/202202/202710.2 9.7 6.1 (2)(10)
Preferred stock02/20227,9833.1 — (2)
Preferred units07/202104/2024417,1890.3 — (2)
Common units02/20227,584— — (2)
Class A common units09/20199,549,0009.5 — (2)
71.9 37.5 
OMH-HealthEdge Holdings, LLCRevenue cycle management provider to the healthcare industryFirst lien senior secured loan10.03%LIBOR (Q)5.25%10/201910/202525.7 25.7 25.7 (2)(11)
First lien senior secured loan10.02%LIBOR (Q)5.25%03/202110/202515.2 15.2 15.2 (2)(11)
First lien senior secured loan10.03%LIBOR (A)5.25%03/202210/20250.1 0.1 0.1 (2)(11)
First lien senior secured loan11.05%LIBOR (Q)6.00%10/201910/20250.1 0.1 0.1 (2)(11)
41.1 41.1 
Pathway Vet Alliance LLC and Jedi Group Holdings LLC (15)Veterinary hospital operatorSecond lien senior secured loan12.59%LIBOR (M)7.75%03/202003/202876.3 76.3 66.4 (2)(11)
Class R common units03/20206,004,7686.0 4.6 (2)
82.3 71.0 
PetVet Care Centers, LLCVeterinary hospital operatorFirst lien senior secured loan9.81%SOFR (M)5.00%06/202202/20255.3 5.1 5.1 (2)(11)(18)
Premise Health Holding Corp. and OMERS Bluejay Investment Holdings LP (15)Provider of employer-sponsored onsite health and wellness clinics and pharmaciesFirst lien senior secured revolving loan07/201804/2025— — — (13)
First lien senior secured loan8.91%LIBOR (Q)3.75%07/201807/20258.5 8.5 8.0 (2)(11)
Second lien senior secured loan12.66%LIBOR (Q)7.50%07/201807/202667.1 66.8 63.7 (2)
Class A units07/20189,7759.8 11.8 (2)
85.1 83.5 
Project Ruby Ultimate Parent Corp.Provider of care coordination and transition management software solutionsSecond lien senior secured loan11.34%LIBOR (M)6.50%03/202103/2029193.1 193.1 181.5 (2)(11)
RTI Surgical, Inc. and Pioneer Surgical Technology, Inc. (15)Manufacturer of biologic, metal and synthetic implants/devicesFirst lien senior secured revolving loan11.53%LIBOR (M)6.75%07/202007/20266.1 6.1 6.1 (2)(11)
First lien senior secured loan11.86%LIBOR (Q)6.75%07/202007/202622.4 22.4 22.4 (2)(11)
21

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
28.528.5
SiroMed Physician Services, Inc. and SiroMed Equity Holdings, LLC (15)Outsourced anesthesia providerFirst lien senior secured loan9.91%LIBOR (Q)4.75%03/201803/20249.29.29.2(2)(11)
Common units03/2018684,8544.81.0(2)
14.010.2
SM Wellness Holdings, Inc. and SM Holdco, LLC (15)Breast cancer screening providerSeries D units
8.00% PIK
03/20235650.60.7(2)
Series A units08/20188,0418.010.3(2)
Series B units08/2018860,643— — (2)
8.611.0
SOC Telemed, Inc. and PSC Spark Holdings, LPProvider of acute care telemedicineFirst lien senior secured loan
13.18% PIK
SOFR (Q)8.50%08/202208/202784.780.580.4(2)(11)
Class A-2 units08/20224,8124.95.0(2)
Warrant to purchase units of common stock08/202208/20296,1184.74.2(2)
90.189.6
Symplr Software Inc. and Symplr Software Intermediate Holdings, Inc. (15)SaaS based healthcare compliance platform providerFirst lien senior secured loan9.28%SOFR (Q)4.50%02/202212/202712.312.311.0(2)(11)(18)
Second lien senior secured loan12.65%SOFR (Q)7.88%12/202012/202876.276.268.6(2)(11)
Series C-1 preferred shares
11.00% PIK
06/202175,93997.579.0(2)
Series C-2 preferred shares
11.00% PIK
06/202140,11548.839.6(2)
Series C-3 preferred shares
11.00% PIK
10/202116,20119.015.4(2)
253.8213.6
Synergy HomeCare Franchising, LLC and NP/Synergy Holdings, LLC (15)Franchisor of private-pay home care for the elderlyFirst lien senior secured loan10.80%SOFR (Q)5.75%04/201804/202613.113.113.1(2)(11)
Common units04/20185500.51.0
13.614.1
Tempus Labs, Inc.Provider of technology enabled precision medicine solutionsFirst lien senior secured loan11.59%SOFR (Q)7.00%09/202209/202771.471.471.4(2)(11)
Therapy Brands Holdings LLCProvider of software solutions for the mental and behavioral health market segmentsSecond lien senior secured loan11.53%LIBOR (M)6.75%06/202105/202929.128.927.9(2)(11)
Touchstone Acquisition, Inc. and Touchstone Holding, L.P.Manufacturer of consumable products in the dental, medical, cosmetic and consumer/industrial end-marketsClass A preferred units
8.00% PIK
11/20182,1493.02.4(2)
U.S. Anesthesia Partners, Inc. & U.S. Anesthesia Partners Holdings, Inc.Anesthesiology service providerSecond lien senior secured loan12.16%LIBOR (M)7.50%10/202110/2029147.8147.8141.9(2)(11)
Common stock12/20213,671,42912.912.7(2)
160.7154.6
United Digestive MSO Parent, LLC and Koln Co-Invest Unblocked, LP (15)Gastroenterology physician groupFirst lien senior secured loan11.64%SOFR (Q)6.75%03/202303/202910.410.410.1(2)(11)
Class A interests03/20234,6234.64.6(2)
15.014.7
22

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
Viant Medical Holdings, Inc.Manufacturer of plastic and rubber components for health care equipmentFirst lien senior secured loan8.59%LIBOR (M)3.75%05/202207/20255.8 5.2 5.4 (2)(18)
VPP Intermediate Holdings, LLC and VPP Group Holdings, L.P. (15)Veterinary hospital operatorFirst lien senior secured revolving loan13.25%Base Rate (Q)5.25%12/202112/20270.2 0.2 0.2 (2)(11)
First lien senior secured loan11.30%LIBOR (M)6.50%08/202212/20274.2 4.2 4.1 (2)(11)
First lien senior secured loan11.06%LIBOR (M)6.25%12/202112/20276.2 6.2 6.1 (2)(11)
Class A-2 units12/20217,5247.5 8.2 (2)
Class A-2 units03/2023450.1 — (2)
18.2 18.6 
WSHP FC Acquisition LLC and WSHP FC Holdings LLC (15)Provider of biospecimen products for pharma researchFirst lien senior secured revolving loan11.28%SOFR (Q)6.25%03/201803/202812.7 12.7 12.4 (2)(11)(14)
First lien senior secured loan11.30%SOFR (Q)6.25%03/201803/202833.0 33.0 32.3 (2)(11)
First lien senior secured loan11.30%SOFR (Q)6.25%07/202203/202814.5 14.5 14.2 (2)(11)
First lien senior secured loan11.30%SOFR (Q)6.25%10/201903/202810.7 10.7 10.5 (2)(11)
First lien senior secured loan11.29%SOFR (Q)6.25%08/201903/202812.9 12.9 12.6 (2)(11)
First lien senior secured loan11.30%SOFR (Q)6.25%02/201903/20284.5 4.5 4.4 (2)(11)
First lien senior secured loan11.30%SOFR (Q)6.25%10/202103/20280.1 0.1 0.1 (2)(11)
First lien senior secured loan11.30%SOFR (Q)6.25%11/202103/20280.1 0.1 0.1 (2)(11)
Common units07/202233,2934.7 4.9 
93.2 91.5 
2,623.2 2,382.6 23.71%
Commercial and Professional Services
Accommodations Plus Technologies LLC and Accommodations Plus Technologies Holdings LLC (15)Provider of outsourced crew accommodations and logistics management solutions to the airline industryFirst lien senior secured revolving loan12.80%SOFR (Q)7.75%05/201805/20244.1 4.1 4.1 (2)(11)
Class A common units05/2018236,3584.3 7.5 
8.4 11.6 
Aero Operating LLCProvider of snow removal and melting service for airports and marine terminalsFirst lien senior secured loan13.74%SOFR (Q)9.00%02/202002/202636.1 36.1 33.9 (2)(11)
First lien senior secured loan13.74%SOFR (Q)9.00%12/202102/20261.1 1.1 1.1 (2)(11)
37.2 35.0 
AI Fire Buyer, Inc. and AI Fire Parent LLC (15)Provider of fire safety and life safety servicesFirst lien senior secured revolving loan11.26%SOFR (S)6.00%03/202103/20271.9 1.9 1.9 (2)(11)
First lien senior secured loan11.13%SOFR (S)6.00%03/202103/202730.6 30.6 30.6 (2)(11)
First lien senior secured loan11.57%SOFR (S)6.00%06/202203/20273.4 3.4 3.4 (2)(11)
Second lien senior secured loan
16.11% PIK
SOFR (S)11.00%03/202109/202747.4 47.4 47.4 (2)(11)
Second lien senior secured loan
16.11% PIK
SOFR (S)11.00%05/202209/202710.7 10.7 10.7 (2)(11)
23

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
Second lien senior secured loan
16.11% PIK
SOFR (S)11.00%06/202209/202710.4 10.4 10.4 (2)(11)
Common units03/202146,9904.7 6.0 (2)
109.1 110.4 
Applied Technical Services, LLC (15)Provider engineering, testing, and inspection services to various industrial, commercial and consumer customersFirst lien senior secured revolving loan12.75%Base Rate (Q)4.75%05/202212/20262.6 2.5 2.6 (2)(11)
First lien senior secured loan10.91%LIBOR (Q)5.75%05/202212/20260.9 0.9 0.9 (2)(11)
3.4 3.5 
Argenbright Holdings V, LLC and Amberstone Security Group Limited (15)Provider of outsourced security guard services, outsourced facilities management and outsourced aviation servicesFirst lien senior secured loan12.09%SOFR (Q)7.25%08/202211/20266.0 5.9 6.0 (2)(6)(11)
First lien senior secured loan12.08%SOFR (Q)7.25%11/202111/20260.1 0.1 0.1 (2)(6)(11)
6.0 6.1 
BH-Sharp Holdings LPProvider of commercial knife sharpening and cutlery services in the restaurant industryCommon units03/20172,950,0003.0 2.9 (2)
Capstone Acquisition Holdings, Inc. and Capstone Parent Holdings, LP (15)Outsourced supply chain solutions provider to operators of distribution centersFirst lien senior secured revolving loan11/202011/2025— — — (13)
First lien senior secured loan9.66%LIBOR (M)4.75%11/202011/20270.2 0.2 0.2 (2)(11)
Second lien senior secured loan13.66%LIBOR (M)8.75%11/202011/202868.3 68.3 68.3 (2)(11)
Class A units11/202010,58110.6 19.6 (2)
79.1 88.1 
Compex Legal Services, Inc. (15)Provider of outsourced litgated and non-litigated medical records retrieval servicesFirst lien senior secured revolving loan10.45%SOFR (Q)5.45%05/202202/20252.0 1.9 2.0 (2)(11)
First lien senior secured revolving loan10.20%LIBOR (Q)5.25%05/202202/20250.2 0.2 0.2 (2)(11)
2.1 2.2 
DTI Holdco, Inc. and OPE DTI Holdings, Inc.Provider of legal process outsourcing and managed servicesClass A common stock08/20147,5007.5 6.3 (2)
Class B common stock08/20147,500— — (2)
7.5 6.3 
Elevation Services Parent Holdings, LLC (15)Elevator service platformFirst lien senior secured revolving loan11.40%LIBOR (Q)6.25%12/202012/20261.4 1.4 1.3 (2)(11)(14)
First lien senior secured loan11.38%LIBOR (Q)6.25%05/202212/20269.1 9.1 8.7 (2)(11)
First lien senior secured loan11.39%LIBOR (Q)6.25%12/202012/202610.2 10.2 9.7 (2)(11)
20.7 19.7 
24

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
HAI Acquisition Corporation and Aloha Topco, LLC (15)Professional employer organization offering human resources, compliance and risk management servicesFirst lien senior secured loan10.91%SOFR (M)6.00%11/201711/202560.4 60.4 60.4 (2)(11)
First lien senior secured loan11.66%SOFR (M)6.75%12/202211/20250.1 0.1 0.1 (2)(11)
First lien senior secured loan10.91%SOFR (M)6.00%09/202111/20250.1 0.1 0.1 (2)(11)
Class A units11/201716,9801.7 3.1 (2)
62.3 63.7 
HH-Stella, Inc. and Bedrock Parent Holdings, LP (15)Provider of municipal solid waste transfer management servicesFirst lien senior secured revolving loan10.38%LIBOR (M)5.50%04/202104/20272.8 2.8 2.6 (2)(11)
First lien senior secured loan10.63%LIBOR (Q)5.50%04/202104/20288.9 8.9 8.6 (2)(11)
Class A units04/202125,4902.5 1.8 (2)
14.2 13.0 
ISQ Hawkeye Holdco, Inc. and ISQ Hawkeye Holdings, L.P. (15)Provider of commercial and industrial waste processing and disposal servicesFirst lien senior secured revolving loan13.25%Base Rate (Q)5.25%08/202208/20283.5 3.5 3.5 (2)(11)(14)
First lien senior secured loan11.01%SOFR (M)6.25%08/202208/20293.5 3.5 3.4 (2)(11)
Class A units09/202212,50112.5 13.1 (2)
19.5 20.0 
Kellermeyer Bergensons Services, LLCProvider of janitorial and facilities management servicesFirst lien senior secured loan10.83%LIBOR (Q)6.00%11/201911/202656.6 56.5 49.3 (2)(11)
First lien senior secured loan10.83%LIBOR (Q)6.00%07/202111/20260.1 0.1 0.1 (2)(11)
56.6 49.4 
KPS Global LLC and Cool Group LLCManufacturer of walk-in cooler and freezer systemsFirst lien senior secured loan10.41%SOFR (M)5.50%04/201704/202411.7 11.7 11.7 (2)(11)
First lien senior secured loan10.41%SOFR (M)5.50%11/201804/20243.1 3.1 3.1 (2)(11)
Class A units09/201813,2921.1 5.4 
15.9 20.2 
Laboratories Bidco LLC and Laboratories Topco LLC (15)Lab testing services for nicotine containing productsFirst lien senior secured revolving loan10.59%LIBOR (M)5.75%07/202107/202713.4 13.4 12.7 (2)(11)
First lien senior secured loan10.78%LIBOR (Q)5.75%10/201907/202740.2 40.6 38.2 (2)(11)
First lien senior secured loan10.88%LIBOR (Q)5.75%07/202107/20274.4 4.4 4.2 (2)(11)
First lien senior secured loan10.89%LIBOR (Q)5.75%10/202007/20270.1 0.1 0.1 (2)(11)
Class A units07/20213,099,3354.6 4.4 (2)
63.1 59.6 
LJP Purchaser, Inc. and LJP Topco, LP (15)Provider of non-hazardous solid waste and recycling servicesFirst lien senior secured loan11.25%SOFR (Q)6.25%09/202209/20288.5 8.5 8.4 (2)(11)
Class A units
8.00% PIK
09/20225,098,0005.3 5.2 (2)
13.8 13.6 
Marmic Purchaser, LLC and Marmic Topco, L.P. (15)Provider of recurring fire protection servicesFirst lien senior secured loan11.80%SOFR (S)6.00%02/202203/20271.2 1.2 1.2 (2)(11)
First lien senior secured loan11.04%SOFR (S)6.00%03/202103/20270.2 0.2 0.2 (2)(11)
25

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
Limited partnership units
8.00% PIK
03/20211,929,2372.3 3.1 (2)
3.7 4.5 
Microstar Logistics LLC, Microstar Global Asset Management LLC, MStar Holding Corporation and Kegstar USA Inc.Keg management solutions providerSecond lien senior secured loan
15.86% (11.20% PIK)
SOFR (S)11.00%08/202007/2025163.7 163.7 163.7 (2)(11)
Series A preferred stock08/20201,5071.5 2.9 (2)
Common stock12/201254,7104.9 8.3 (2)
170.1 174.9 
NAS, LLC and Nationwide Marketing Group, LLC (15)Buying and marketing services organization for appliance, furniture and consumer electronics dealersFirst lien senior secured revolving loan11.55%SOFR (Q)6.50%11/202006/20240.6 0.6 0.6 (2)(11)
First lien senior secured loan11.55%SOFR (Q)6.50%11/202006/20246.3 6.3 6.3 (2)(11)
First lien senior secured loan11.55%SOFR (Q)6.50%12/202106/20242.3 2.3 2.3 (2)(11)
First lien senior secured loan11.55%SOFR (Q)6.50%05/202206/20241.3 1.3 1.3 (2)(11)
10.5 10.5 
Neptune Bidco US Inc. and Elliott Metron Co-Investor Aggregator L.P. (15)Provider of audience insights, data and analytics to entertainment industryFirst lien senior secured loan9.74%SOFR (Q)5.00%10/202204/202999.3 90.8 89.1 (2)(11)
First lien senior secured loan9.49%SOFR (Q)4.75%10/202210/202874.0 68.7 64.4 (2)(11)
First lien senior secured note9.29%11/202204/202952.8 51.4 49.0 (2)(18)
First lien senior secured loan7.27%Euribor (Q)5.00%10/202204/202916.4 13.5 13.9 (2)
Second lien senior secured loan14.49%SOFR (Q)9.75%10/202210/2029221.3 221.3 201.4 (2)(11)
Limited partnership interests10/20224,040,0004.0 4.0 (2)
449.7 421.8 
Nest Topco Borrower Inc., KKR Nest Co-Invest L.P., and NBLY 2021-1Operator of multiple franchise concepts primarily related to home maintenance or repairsSenior subordinated loan13.46%LIBOR (Q)8.50%09/202108/2029119.1 119.1 117.9 (2)(11)
Limited partner interest09/20219,725,0009.7 10.2 (2)
128.8 128.1 
North American Fire Holdings, LLC and North American Fire Ultimate Holdings, LLC (15)Provider of fire safety and life safety servicesFirst lien senior secured loan10.55%SOFR (Q)5.50%05/202105/202719.9 19.9 19.9 (2)(11)
First lien senior secured loan10.55%SOFR (Q)5.50%03/202205/20272.8 2.8 2.8 (2)(11)
Common units05/2021884,9160.9 2.8 (2)
23.6 25.5 
North Haven Fairway Buyer, LLC, Fairway Lawns, LLC and Command Pest Control, LLC (15)Provider of lawncare servicesFirst lien senior secured loan11.32%SOFR (Q)6.50%12/202205/202811.1 11.0 10.7 (2)(11)
North Haven Stack Buyer, LLC (15)Provider of environmental testing servicesFirst lien senior secured revolving loan10.37%SOFR (Q)5.50%07/202107/20271.0 1.0 1.0 (2)(11)
First lien senior secured loan10.35%SOFR (Q)5.50%07/202107/20277.7 7.6 7.4 (2)(11)
26

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
8.6 8.4 
Petroleum Service Group LLC (15)Provider of operational services for US petrochemical and refining companiesFirst lien senior secured revolving loan11.06%LIBOR (Q)6.00%07/201907/20251.6 1.6 1.6 (2)(11)(14)
First lien senior secured loan10.83%LIBOR (Q)6.00%07/201907/202534.4 34.4 34.4 (2)(11)
First lien senior secured loan10.99%LIBOR (Q)6.00%12/202107/202511.4 11.4 11.4 (2)(11)
First lien senior secured loan9.75%LIBOR (Q)4.75%12/202107/20250.1 0.1 0.1 (2)(11)
47.5 47.5 
Pritchard Industries, LLC and LJ Pritchard TopCo Holdings, LLCProvider of janitorial and facilities management servicesFirst lien senior secured loan10.52%SOFR (S)5.50%10/202110/202768.2 68.2 65.5 (2)(11)
Class A units10/20217,900,0007.9 6.5 (2)
76.1 72.0 
PS Operating Company LLC and PS Op Holdings LLC (5)(15)Specialty distributor and solutions provider to the swine and poultry marketsFirst lien senior secured revolving loan11.16%LIBOR (Q)6.00%12/202112/20244.5 4.5 4.5 (2)(11)
First lien senior secured loan11.16%LIBOR (Q)6.00%12/202112/202414.9 14.9 14.9 (2)(11)
Common unit12/2021279,2007.4 7.5 (2)
26.8 26.9 
R2 Acquisition Corp.Marketing servicesCommon stock05/2007250,0000.2 0.2 (2)
RC V Tecmo Investor LLCTechnology based aggregator for facility maintenance servicesCommon member units08/20209,624,0008.3 22.8 (2)
RE Community Holdings GP, LLC and RE Community Holdings, LPOperator of municipal recycling facilitiesLimited partnership interest03/20112.86 %— — (2)
Limited partnership interest03/20112.49 %— — (2)
— — 
Registrar Intermediate, LLC and PSP Registrar Co-Investment Fund, L.P. (15)Provider of FDA registration and consulting servicesFirst lien senior secured loan9.84%LIBOR (M)5.00%08/202108/20272.7 2.7 2.7 (2)(11)
Limited partner interests08/20211.13 %2.7 3.2 (2)
5.4 5.9 
Rodeo AcquisitionCo LLC (15)Provider of food inspection and recovery servicesFirst lien senior secured revolving loan10.94%LIBOR (Q)6.00%07/202107/20271.7 1.7 1.6 (2)(11)
First lien senior secured loan10.95%LIBOR (Q)6.00%07/202107/202716.9 16.9 16.0 (2)(11)
18.6 17.6 
Schill Landscaping and Lawn Care Services LLC, Tender Lawn Care ULC and Landscape Parallel Partners, L.P. (15)Provider of landscape design and planning, and snow removal servicesFirst lien senior secured revolving loan10.59%LIBOR (M)5.75%12/202112/20270.5 0.5 0.5 (2)(11)
First lien senior secured loan10.59%LIBOR (M)5.75%12/202112/20271.9 1.9 1.9 (2)(11)
Class A units12/20215,15412.9 17.9 (2)
15.3 20.3 
Shermco Intermediate Holdings, Inc. (15)Provider of electrician servicesFirst lien senior secured revolving loan11.31%SOFR (M)6.50%05/202206/20241.6 1.5 1.6 (2)
27

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
SSE Buyer, Inc., Supply Source Enterprises, Inc., Impact Products LLC, The Safety Zone, LLC and SSE Parent, LPManufacturer and distributor of personal protection equipment, commercial cleaning, maintenance and safety productsSecond lien senior secured loan06/202006/202622.5 21.0 11.2 (2)(10)
Limited partnership class A-1 units06/20202,1731.1 — (2)
Limited partnership class A-2 units06/20202,1731.1 — (2)
23.2 11.2 
Startec Equity, LLC (5)Communication servicesMember interest04/2010190,581— — 
Stealth Holding LLC and UCIT Online Security Inc.Live video monitoring solutions providerFirst lien senior secured loan11.53%SOFR (Q)6.75%03/202103/202652.8 52.8 52.3 (2)(6)(11)
First lien senior secured loan11.59%SOFR (Q)6.75%03/202203/20265.2 5.2 5.1 (2)(6)(11)
First lien senior secured loan13.75%Base Rate (Q)5.75%03/202103/20260.8 0.8 0.8 (2)(6)(11)
58.8 58.2 
Systems Planning and Analysis, Inc. (15)Provider of systems engineering and technical assistance to the US Department of DefenseFirst lien senior secured revolving loan11.10%SOFR (Q)5.75%05/202208/20271.1 1.0 1.1 (2)(11)
First lien senior secured loan10.76%SOFR (Q)5.75%05/202208/20271.0 1.0 1.0 (2)(11)
2.0 2.1 
The NPD Group, L.P., IRI Group Holdings, Inc., Information Resources, Inc. and IRI-NPD Co-Invest Aggregator, L.P. (15)Market research company focused on the consumer packaged goods industryFirst lien senior secured revolving loan10.49%SOFR (M)5.75%08/202212/20272.0 2.0 2.0 (2)(11)(14)
First lien senior secured loan
10.95% (2.85% PIK)
SOFR (M)6.25%08/202212/2028214.5 214.5 210.2 (2)(11)
Class A units08/202211,24211.6 15.7 (2)
228.1 227.9 
Thermostat Purchaser III, Inc. (15)Provider of commercial HVAC equipment maintenance and repair servicesFirst lien senior secured revolving loan08/202108/2026— — — (13)
Second lien senior secured loan12.20%LIBOR (Q)7.25%08/202108/202923.0 23.0 22.1 (2)(11)
23.0 22.1 
Visual Edge Technology, Inc.Provider of outsourced office solutions with a focus on printer and copier equipment and other parts and suppliesFirst lien senior secured loan
11.96% (1.25% PIK)
LIBOR (Q)7.00%08/201708/202232.6 32.6 29.4 (2)(11)
Senior subordinated loan08/201709/2024108.0 87.5 48.5 (2)(10)
Warrant to purchase shares of common stock08/201708/202710,358,5723.9 — (2)
124.0 77.9 
VRC Companies, LLC (15)Provider of records and information management servicesSenior subordinated loan
12.00% (2.00% PIK)
05/202206/20285.1 5.1 4.8 (2)
28

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
Wash Encore Holdings, LLCProvider of outsourced healthcare linen management solutionsFirst lien senior secured loan10.85%LIBOR (S)5.75%07/202107/202798.3 98.3 96.3 (2)(11)
XIFIN, Inc. and ACP Charger Co-Invest LLC (15)Revenue cycle management provider to labsFirst lien senior secured revolving loan10.74%LIBOR (Q)5.75%02/202002/20262.2 2.2 2.2 (2)(11)
First lien senior secured loan10.91%LIBOR (Q)5.75%12/202102/202636.9 36.9 36.1 (2)(11)
First lien senior secured loan10.91%LIBOR (Q)5.75%07/202102/20260.1 0.1 0.1 (2)(11)
Class A units02/2020180,0001.8 3.5 (2)
Class B units12/202146,3630.9 0.9 (2)
41.9 42.8 
2,132.0 2,067.8 20.58%
Investment Funds and Vehicles
ACAS Equity Holdings Corporation (5)Investment companyCommon stock01/20175890.4 0.4 (6)
ARES 2007-3RInvestment vehicleSubordinated notes01/201704/202120,000,000— 0.1 (6)
Blue Wolf Capital Fund II, L.P. (4)Investment partnershipLimited partnership interest01/20178.50 %— 0.1 (6)(18)
CoLTs 2005-1 Ltd. (5)Investment vehiclePreferred shares01/201703/2015360— — (6)
CREST Exeter Street Solar 2004-1Investment vehiclePreferred shares01/201706/20393,500,000— — (6)
European Capital UK SME Debt LP (4)(16)Investment partnershipLimited partnership interest01/201745.00 %18.0 27.1 (6)
HCI Equity, LLC (5)Investment companyMember interest04/2010100.00 %— — (6)(18)
Partnership Capital Growth Investors III, L.P.Investment partnershipLimited partnership interest10/20112.50 %1.8 4.0 (2)(6)(18)
PCG-Ares Sidecar Investment II, L.P. (4)(16)Investment partnershipLimited partnership interest10/2014100.00 %7.1 16.6 (2)(6)
PCG-Ares Sidecar Investment, L.P. (4)(16)Investment partnershipLimited partnership interest05/2014100.00 %4.3 0.7 (6)
Piper Jaffray Merchant Banking Fund I, L.P.Investment partnershipLimited partnership interest08/20122.00 %0.1 0.5 (6)(18)
Senior Direct Lending Program, LLC (5)(17)Co-investment vehicleSubordinated certificates13.19%LIBOR (Q)8.00%07/201612/20361,281.7 1,281.7 1,230.4 (6)(12)
Membership interest87.50 %— — (6)
1,281.7 1,230.4 
VSC Investors LLCInvestment companyMembership interest01/20081.95 %— 0.5 (2)(6)(18)
1,313.4 1,280.4 12.74%
Insurance Services
Alera Group, Inc.Insurance service providerFirst lien senior secured loan10.91%SOFR (M)6.00%09/202110/202860.5 60.5 59.3 (2)(11)
Amynta Agency Borrower Inc. and Amynta Warranty Borrower Inc.Insurance service providerFirst lien senior secured loan9.89%SOFR (Q)5.00%02/202302/20281.0 1.0 1.0 (2)(18)
AQ Sunshine, Inc. (15)Specialized insurance brokerFirst lien senior secured revolving loan11.22%LIBOR (Q)6.25%04/201904/20243.0 3.0 2.9 (2)(11)
First lien senior secured loan11.41%LIBOR (Q)6.25%01/202204/20258.9 8.9 8.6 (2)(11)
29

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
First lien senior secured loan11.41%LIBOR (Q)6.25%04/201904/20258.5 8.5 8.1 (2)(11)
First lien senior secured loan11.41%LIBOR (Q)6.25%10/202004/20255.6 5.6 5.3 (2)(11)
First lien senior secured loan11.41%LIBOR (Q)6.25%05/202204/20251.0 1.0 1.0 (2)(11)
First lien senior secured loan11.41%LIBOR (Q)6.25%06/202104/20250.1 0.1 0.1 (2)(11)
27.1 26.0 
Ardonagh Midco 2 plc and Ardonagh Midco 3 plc (15)Insurance broker and underwriting servicerFirst lien senior secured loan11.25%LIBOR (S)6.00%08/202107/202690.0 90.0 89.1 (2)(6)(11)
First lien senior secured loan9.57%Euribor (S)6.75%08/202207/202667.8 64.5 67.8 (2)(6)(11)
First lien senior secured loan11.74%SONIA (S)7.25%06/202007/202676.6 79.4 76.6 (2)(6)(11)
First lien senior secured loan12.22%SOFR (S)7.00%08/202207/202615.6 15.6 15.6 (2)(6)(11)
First lien senior secured loan10.07%Euribor (S)7.25%06/202007/20267.1 7.5 7.1 (2)(6)(11)
Senior subordinated loan
11.50% PIK
06/202001/20271.4 1.4 1.3 (2)(6)(18)
258.4 257.5 
Benecon Midco II LLC and Locutus Holdco LLC (15)Employee benefits provider for small and mid-size employersCommon units12/20209,803,68210.0 24.5 
Benefytt Technologies, Inc. (15)Health insurance sales platform providerFirst lien senior secured loan08/202108/202729.7 29.0 14.8 (2)(10)
Captive Resources Midco, LLC (15)Provider of independent consulting services to member-owned group captivesFirst lien senior secured loan7.43%SOFR (M)2.63%07/202207/20290.1 0.1 0.1 (2)(11)
Foundation Risk Partners, Corp. (15)Full service independent insurance agencyFirst lien senior secured loan11.00%SOFR (Q)6.00%10/202110/2028104.4 104.4 102.3 (2)(11)
First lien senior secured loan11.00%SOFR (Q)6.00%04/202210/202830.2 30.2 29.6 (2)(11)
134.6 131.9 
Galway Borrower LLC (15)Insurance service providerFirst lien senior secured revolving loan10.41%LIBOR (Q)5.25%09/202109/20271.9 1.9 1.8 (2)(11)(14)
First lien senior secured loan10.15%LIBOR (Q)5.25%09/202109/202834.1 34.1 33.1 (2)(11)
36.0 34.9 
High Street Buyer, Inc. and High Street Holdco LLC (15)(16)Insurance brokerage platformFirst lien senior secured loan11.05%LIBOR (Q)6.00%04/202104/202822.7 22.7 22.5 (2)(11)
First lien senior secured loan10.80%LIBOR (Q)5.75%02/202204/202814.7 14.7 14.4 (2)(11)
First lien senior secured loan11.05%LIBOR (Q)6.00%08/202104/202812.2 12.2 12.1 (2)(11)
Series A preferred units
10.00% PIK
04/2021119,432,528137.6 125.3 (2)
Series A common units04/20214,649,0005.5 6.7 (2)
Series C common units04/20216,107,5210.7 8.8 (2)
193.4 189.8 
Inszone Mid, LLC and INSZ Holdings, LLC (15)Insurance brokerage firmFirst lien senior secured loan11.91%SOFR (M)7.00%11/202211/202819.1 19.1 18.5 (2)(11)
Limited partnership interests11/2022265,2851.7 1.8 
20.8 20.3 
K2 Insurance Services, LLC and K2 Holdco LP (15)Specialty insurance and managing general agencyFirst lien senior secured loan10.16%LIBOR (Q)5.00%07/201907/202650.3 50.3 50.3 (2)(11)
30

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
First lien senior secured loan10.16%LIBOR (Q)5.00%12/202107/20263.2 3.2 3.2 (2)(11)
First lien senior secured loan10.01%LIBOR (Q)5.00%08/202107/20260.2 0.2 0.2 (2)(11)
Common units07/2019799,0000.8 2.9 (2)
54.5 56.6 
OneDigital Borrower LLC (15)Benefits broker and outsourced workflow automation platform provider for brokersFirst lien senior secured revolving loan11/202011/2025— — (2)(13)
Patriot Growth Insurance Services, LLC (15)National retail insurance agencyFirst lien senior secured loan10.35%LIBOR (Q)5.50%10/202110/202815.9 15.7 15.3 (2)(11)
People Corporation (15)Provider of group benefits, group retirement and human resources servicesFirst lien senior secured revolving loan11.28%CDOR (Q)6.25%02/202102/20271.3 1.3 1.3 (2)(6)(11)
First lien senior secured loan11.24%LIBOR (Q)6.25%02/202102/202826.1 27.8 26.1 (2)(6)(11)
First lien senior secured loan11.24%CDOR (Q)6.25%02/202102/202812.7 13.9 12.7 (2)(6)(11)
First lien senior secured loan10.49%CDOR (Q)5.50%09/202102/20288.5 8.9 8.3 (2)(6)(11)
51.9 48.4 
Riser Merger Sub, Inc. (15)Insurance program administratorFirst lien senior secured revolving loan12.75%Base Rate (Q)4.75%08/202208/20280.4 0.4 0.4 (2)(11)
First lien senior secured loan10.65%SOFR (Q)5.75%08/202208/20281.5 1.5 1.5 (2)(11)
First lien senior secured loan9.93%SONIA (Q)5.75%08/202208/20280.7 0.7 0.6 (2)(11)
2.6 2.5 
RSC Acquisition, Inc. and RSC Insurance Brokerage, Inc. (15)Insurance brokerFirst lien senior secured revolving loan10.68%LIBOR (Q)5.50%11/201910/20260.3 0.3 0.3 (2)(11)
First lien senior secured loan10.35%SOFR (Q)5.50%11/201910/202632.7 32.7 31.7 (2)(11)
33.0 32.0 
SageSure Holdings, LLC & Insight Catastrophe Group, LLC (15)Insurance service providerSecond lien senior secured loan10.67%SOFR (M)5.75%01/202201/20280.7 0.7 0.7 (2)(11)
Series A units02/202273215.6 18.3 
16.3 19.0 
SCM Insurance Services Inc. (15)Provider of claims management, claims investigation & support and risk management solutions for the Canadian property and casualty insurance industryFirst lien senior secured loan11.27%CDOR (Q)6.25%06/202208/20240.1 0.1 0.1 (2)(6)(11)
SelectQuote, Inc.Direct to consumer insurance distribution platformFirst lien senior secured loan
12.91% (2.08% PIK)
SOFR (M)8.00%11/201911/202422.2 22.2 19.5 (2)(11)
SG Acquisition, Inc.Provider of insurance solutions for car salesFirst lien senior secured loan9.84%LIBOR (M)5.00%01/202001/202733.8 33.8 33.5 (2)(11)
Spring Insurance Solutions, LLCTechnology-based direct to consumer sales and marketing platform for insurance productsFirst lien senior secured loan11.66%LIBOR (Q)6.50%11/202011/202522.0 22.0 19.3 (2)(11)
THG Acquisition, LLC (15)Multi-line insurance brokerFirst lien senior secured revolving loan10.59%LIBOR (M)5.75%12/201912/20251.0 1.0 1.0 (2)(11)
First lien senior secured loan10.34%LIBOR (M)5.50%12/202112/202620.4 20.4 20.0 (2)(11)
31

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
First lien senior secured loan10.59%LIBOR (M)5.75%12/202012/202614.8 14.8 14.7 (2)(11)
First lien senior secured loan10.59%LIBOR (M)5.75%12/201912/20260.1 0.1 0.1 (2)(11)
36.3 35.8 
1,059.3 1,042.1 10.37%
Power Generation
Apex Clean Energy TopCo, LLC (4)(16)Developer, builder and owner of utility-scale wind and solar power facilitiesClass A common units11/20211,335,61098.7 150.6 
Ferrellgas, L.P. and Ferrellgas Partners, L.P.Distributor of propane and related accessoriesSenior preferred units8.96%03/202159,42259.5 60.0 
Class B units09/202259,42814.9 14.9 (2)
74.4 74.9 
Heelstone Renewable Energy, LLC and Heelstone Renewable Energy Investors, LLC (5)Developer of utility scale solar systemsFirst lien senior secured loan
11.00% (8.54% PIK)
04/202104/202481.5 81.5 81.5 (2)
Class A1 units04/202176,446,35277.1 134.4 
Class A2 units03/20224,072,2783.8 7.2 
162.4 223.1 
Opal Fuels LLC and Opal Fuels Inc.Owner of natural gas facilitiesSenior subordinated loan
8.00% PIK
07/202212/202629.1 25.5 29.1 (6)
Class A common stock07/20223,059,53323.3 21.3 (6)(18)
48.8 50.4 
PosiGen, Inc.Seller and leaser of solar power systems for residential and commercial customersWarrant to purchase shares of series D-1 preferred stock06/202106/2028101,555— — (2)
Warrant to purchase shares of common stock01/202001/20271,112,022— — (2)
— — 
Potomac Intermediate Holdings II LLC (5)Gas turbine power generation facilities operatorSeries A units11/2021226,884,442185.7 134.0 
Riverview Power LLCOperator of natural gas and oil fired power generation facilitiesFirst lien senior secured loan14.16%LIBOR (Q)9.00%08/202106/202442.4 41.8 42.4 (2)(11)
SE1 Generation, LLCSolar power developerSenior subordinated loan
12.25% (9.70% PIK)
12/201905/202355.9 55.9 55.9 (2)
Sunrun Atlas Depositor 2019-2, LLC and Sunrun Atlas Holdings 2019-2, LLCResidential solar energy providerFirst lien senior secured loan3.61%10/201902/20550.1 0.1 0.1 (2)
Senior subordinated loan
11.55% (6.70% PIK)
LIBOR (Q)6.75%11/201911/2025150.3 150.3 138.3 (2)(11)
150.4 138.4 
Sunrun Luna Holdco 2021, LLC (15)Residential solar energy providerSenior subordinated revolving loan10.15%SOFR (Q)5.25%03/202204/202465.3 65.3 64.0 (2)(6)
Sunrun Xanadu Issuer 2019-1, LLC and Sunrun Xanadu Holdings 2019-1, LLCResidential solar energy providerFirst lien senior secured loan3.98%06/201906/20540.3 0.3 0.3 (2)
Senior subordinated loan
10.00% (5.50% PIK)
LIBOR (Q)6.75%06/201907/203073.7 73.7 68.6 (2)(11)
74.0 68.9 
32

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
957.41002.69.98%
Consumer Durables and Apparel
Badger Sportswear Acquisition, Inc.Provider of team uniforms and athletic wearSecond lien senior secured loan13.89%LIBOR (Q)9.00%09/201606/202456.856.856.8(2)(11)
Bowhunter Holdings, LLCProvider of branded archery and bowhunting accessoriesCommon units04/20144214.2— 
Centric Brands LLC and Centric Brands GP LLC (15)Designer, marketer and distributor of licensed and owned apparelFirst lien senior secured revolving loan10.39%SOFR (Q)5.75%05/202010/20245.45.45.2(2)(11)
First lien senior secured loan
13.81% (6.70% PIK)
SOFR (Q)9.00%10/201810/202576.776.669.0(2)(11)
Membership interests10/2018279,3922.9— (2)
84.974.2
DRS Holdings III, Inc. and DRS Holdings I, Inc. (15)Footwear and orthopedic foot-care brandFirst lien senior secured loan10.90%LIBOR (Q)5.75%11/201911/202527.927.926.2(2)(11)
First lien senior secured loan10.90%LIBOR (Q)5.75%06/202111/202525.725.724.2(2)(11)
Common stock11/20198,5498.57.2(2)
62.157.6
Implus Footcare, LLCProvider of footwear and other accessoriesFirst lien senior secured loan
14.30% (1.50% PIK)
SOFR (Q)9.25%06/201704/2024116.9116.999.4(2)(11)
First lien senior secured loan
14.30% (0.25% PIK)
SOFR (Q)9.25%07/201804/20245.05.04.3(2)(11)
First lien senior secured loan
14.30% (0.25% PIK)
SOFR (Q)9.25%06/201604/20241.31.31.1(2)(11)
123.2104.8
Johnnie-O Inc. and Johnnie-O Holdings Inc.Apparel retailerFirst lien senior secured loan
11.14% (4.71% PIK)
SOFR (Q)6.25%03/202203/202719.218.419.2(2)(11)
First lien senior secured loan11.21%SOFR (Q)6.25%02/202303/20274.03.54.0(2)(11)
Series A convertible preferred stock03/2022144,2104.24.1(2)
Warrant to purchase shares of common stock03/202203/203293,5771.52.7(2)
27.630.0
Lew's Intermediate Holdings, LLC (15)Outdoor brand holding companyFirst lien senior secured loan9.89%SOFR (Q)5.00%02/202102/20281.01.00.9(2)(11)
New Era Cap, LLCSports apparel manufacturing companyFirst lien senior secured loan10.82%LIBOR (Q)6.00%01/202207/202727.427.427.4(2)(11)
Pelican Products, Inc. (15)Flashlights manufacturerSecond lien senior secured loan12.91%LIBOR (Q)7.75%12/202112/202960.060.054.6(2)(11)
Rawlings Sporting Goods Company, Inc. and Easton Diamond Sports, LLCSports equipment manufacturing companyFirst lien senior secured loan11.91%LIBOR (Q)6.75%12/202012/202649.649.649.6(2)(11)
First lien senior secured loan11.91%LIBOR (Q)6.75%11/202112/20260.10.10.1(2)(11)
49.749.7
Reef Lifestyle, LLCApparel retailerFirst lien senior secured revolving loan
14.82% (2.00% PIK)
SOFR (Q)10.00%10/201802/202550.250.247.7(2)(11)(14)
First lien senior secured revolving loan
14.81% PIK
SOFR (M)10.00%07/202002/20251.41.41.4(2)(11)(14)
33

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
First lien senior secured loan
14.89% (2.00% PIK)
LIBOR (Q)10.00%10/201810/202423.3 23.3 22.2 (2)(11)
First lien senior secured loan
14.89% PIK
LIBOR (Q)5.75%07/202010/20241.6 1.6 1.5 (2)(11)
76.5 72.8 
S Toys Holdings LLC (fka The Step2 Company, LLC) (5)Toy manufacturerClass B common units10/2014126,278,000— — 
Common units04/20111,116,879— — 
Warrant to purchase units04/201012/20503,157,895— — 
— — 
SHO Holding I CorporationManufacturer and distributor of slip resistant footwearSecond lien senior secured loan10/201510/2024128.6 120.4 70.7 (2)(10)
Shock Doctor, Inc. and Shock Doctor Holdings, LLC (4)(15)Developer, marketer and distributor of sports protection equipment and accessoriesFirst lien senior secured revolving loan12.00%Base Rate (Q)4.00%05/201905/20241.7 1.7 1.7 (2)(11)
First lien senior secured loan10.41%SOFR (Q)5.25%05/201905/20240.1 0.1 0.1 (2)(11)
Class A preferred units03/201450,0005.0 0.8 (2)
Class C preferred units04/201550,0005.0 0.8 (2)
Preferred units05/201914,5911.6 2.4 (2)
13.4 5.8 
SVP-Singer Holdings Inc. and SVP-Singer Holdings LPManufacturer of consumer sewing machinesFirst lien senior secured loan11.91%LIBOR (Q)6.75%07/202107/202844.3 43.4 34.2 (2)(11)
Class A common units07/20216,264,70626.1 — (2)
69.5 34.2 
Totes Isotoner Corporation and Totes Ultimate Holdco, Inc. (4)Designer, marketer, and distributor of rain and cold weather productsFirst lien senior secured loan10.84%LIBOR (M)6.00%12/201912/20242.2 2.2 1.9 (2)(11)
First lien senior secured loan8.84%LIBOR (M)4.00%12/201906/20241.6 1.6 1.6 (2)(11)
Common stock12/2019861,0006.0 0.3 (2)
9.8 3.8 
Varsity Brands Holding Co., Inc., Hercules Achievement, Inc. and BCPE Hercules Holdings, LPLeading manufacturer and distributor of textiles, apparel & luxury goodsFirst lien senior secured loan9.87%SOFR (M)5.00%12/201712/202614.7 14.1 13.7 (2)(11)(18)
Second lien senior secured loan
15.17% (2.03% PIK)
SOFR (M)10.25%07/201804/2027144.1 144.1 141.3 (2)(11)
Class A Units07/20181,4001.4 1.0 (2)
159.6 156.0 
946.1 799.3 7.95%
Consumer Services
ADF Capital, Inc., ADF Restaurant Group, LLC, and ARG Restaurant Holdings, Inc. (5)Restaurant owner and operatorFirst lien senior secured loan12/201608/20228.7 — — (2)(10)
Aimbridge Acquisition Co., Inc.Hotel operatorSecond lien senior secured loan12.16%LIBOR (M)7.50%02/201902/202722.5 22.3 21.8 (2)
American Residential Services L.L.C. and Aragorn Parent Holdings LP (15)Heating, ventilation and air conditioning services providerFirst lien senior secured revolving loan9.75%Base Rate (M)1.75%10/202010/20251.1 1.1 1.1 (2)
34

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
First lien senior secured revolving loan7.56%LIBOR (M)2.75%10/202010/20251.0 1.0 1.0 (2)
Second lien senior secured loan13.66%LIBOR (Q)8.50%10/202010/202856.4 56.4 56.4 (2)(11)
Series A preferred units
10.00% PIK
10/20202,531,5003.1 6.6 (2)
61.6 65.1 
Apex Service Partners, LLC (15)Provider of residential HVAC, plumbing, and electrical maintenance and repair servicesFirst lien senior secured loan10.26%SOFR (Q)5.50%01/202307/202524.7 22.8 23.2 (2)(11)
ATI Restoration, LLC (15)Provider of disaster recovery servicesFirst lien senior secured revolving loan12.00%Base Rate (Q)4.00%07/202007/20264.7 4.7 4.7 (2)(11)(14)
First lien senior secured loan10.03%SOFR (Q)5.00%05/202207/202645.3 45.3 45.3 (2)(11)
First lien senior secured loan9.86%SOFR (Q)5.00%07/202007/202632.9 32.9 32.9 (2)(11)
82.9 82.9 
Belfor Holdings, Inc. (15)Disaster recovery services providerFirst lien senior secured revolving loan8.38%LIBOR (M)3.75%04/201904/202416.6 17.3 17.1 (2)(14)
CMG HoldCo, LLC and CMG Buyer Holdings, Inc. (15)Provider of commercial HVAC equipment maintenance and repair servicesFirst lien senior secured revolving loan10.05%SOFR (Q)5.00%05/202205/20280.8 0.8 0.8 (2)(11)
First lien senior secured loan9.80%SOFR (Q)5.00%05/202205/202825.5 25.5 25.0 (2)(11)
Common stock05/20222902.9 4.4 (2)
29.2 30.2 
CST Holding Company (15)Provider of ignition interlock devicesFirst lien senior secured revolving loan11.66%SOFR (M)6.75%11/202211/20280.2 0.2 0.2 (2)(11)
First lien senior secured loan11.66%SOFR (M)6.75%11/202211/202811.7 11.7 11.4 (2)(11)
11.9 11.6 
Essential Services Holding Corporation and OMERS Mahomes Investment Holdings LLC (15)Provider of plumbing and HVAC servicesFirst lien senior secured revolving loan10.59%LIBOR (Q)5.75%11/202011/20252.8 2.8 2.7 (2)(11)(14)
First lien senior secured loan10.50%LIBOR (Q)5.75%04/202111/202677.9 77.9 76.4 (2)(11)
First lien senior secured loan10.50%LIBOR (Q)5.75%11/202011/202648.1 48.1 47.1 (2)(11)
First lien senior secured loan10.50%LIBOR (Q)5.75%11/202111/202625.1 25.1 24.7 (2)(11)
Class A units11/20206,44722.9 43.7 (2)
176.8 194.6 
GroundWorks, LLC (15)Provider of residential foundation repair and water management servicesFirst lien senior secured loan11.36%SOFR (M)6.50%03/202303/203010.0 9.7 9.7 (2)(11)
Infinity Home Services HoldCo, Inc. and IHS Parent Holdings, L.P. (15)Provider of residential roofing and exterior repair and replacement servicesFirst lien senior secured revolving loan13.75%Base Rate (Q)5.75%12/202212/20280.4 0.4 0.4 (2)(11)
First lien senior secured loan11.73%SOFR (Q)6.75%12/202212/202812.0 12.0 11.6 (2)(11)
Class A units12/20229,524,0009.5 9.5 (2)
21.9 21.5 
Jenny C Acquisition, Inc.Health club franchisorSenior subordinated loan
8.00% PIK
04/201904/20251.6 1.6 1.6 (2)
35

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
Leviathan Intermediate Holdco, LLC and Leviathan Holdings, L.P. (15)Franchising platform offering adolescent development programsFirst lien senior secured revolving loan12.54%SOFR (S)7.50%12/202212/20270.2 0.2 0.2 (2)(11)
First lien senior secured loan12.54%SOFR (S)7.50%12/202212/202716.2 16.2 15.7 (2)(11)
Limited partnership interests12/20221,972,7322.0 1.6 
18.4 17.5 
ME Equity LLCFranchisor in the massage industryCommon stock09/20123,000,0003.0 4.3 (2)
Movati Athletic (Group) Inc.Premier health club operatorFirst lien senior secured loan
10.91% (0.50% PIK)
CDOR (Q)6.00%10/201710/20244.7 4.9 4.7 (2)(6)(11)
OTG Management, LLCAirport restaurant operatorClass A preferred units08/20163,000,00025.3 13.1 (2)
Common units01/20113,000,0003.0 — 
Warrant to purchase common units06/200806/20287.73 %0.1 — (2)
28.4 13.1 
PestCo Holdings, LLC and PestCo, LLC (15)Provider of pest control services to the residential and commercial marketsFirst lien senior secured loan11.86%SOFR (S)6.75%02/202302/20281.7 1.7 1.6 (2)(11)
Class A units01/20231341.7 1.7 
3.4 3.3 
Pueblo Mechanical and Controls, LLC and OMERS PMC Investment Holdings LLC (15)Provider of commercial HVAC servicesFirst lien senior secured revolving loan13.00%Base Rate (Q)5.00%08/202208/20270.4 0.4 0.4 (2)(11)
First lien senior secured loan10.78%SOFR (Q)6.00%08/202208/20282.8 2.8 2.8 (2)(11)
Class A units08/20221,0019.7 11.8 (2)
12.9 15.0 
Pyramid-BMC IntermediateCo I, LLC and Pyramid Investors, LLC (15)Hotel operatorFirst lien senior secured loan12.85%SOFR (Q)8.00%01/202301/20277.7 7.7 7.5 (2)(11)
Preferred membership units07/2016996,8331.0 1.0 
8.7 8.5 
Redwood Services, LLC and Redwood Services Holdco, LLC (15)Provider of residential HVAC and plumbing servicesFirst lien senior secured loan11.66%SOFR (M)6.75%09/202212/20251.4 1.4 1.4 (2)(11)
First lien senior secured loan11.66%SOFR (M)6.75%12/202112/20250.1 0.1 0.1 (2)(11)
First lien senior secured loan11.66%SOFR (M)6.75%12/202012/20250.2 0.2 0.2 (2)(11)
Series D units
8.00% PIK
12/202019,592,99920.8 42.2 
22.5 43.9 
Safe Home Security, Inc., Security Systems Inc., Safe Home Monitoring, Inc., National Protective Services, Inc., Bright Integrations LLC and Medguard Alert, Inc.Provider of safety systems for business and residential customersFirst lien senior secured loan12.09%LIBOR (M)7.25%08/202008/202447.7 47.7 47.7 (2)(11)
Service Logic Acquisition, Inc. and MSHC, Inc.Provider of aftermarket maintenance, repair, and replacement services for commercial HVAC equipmentsFirst lien senior secured loan10.18%SOFR (Q)5.50%10/202210/20270.1 0.1 0.1 (2)(11)
36

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
SV-Burton Holdings, LLC and LBC Breeze Holdings LLC (15)Provider of HVAC and plumbing services to residential and commercial customersFirst lien senior secured revolving loan11.38%LIBOR (M)6.50%12/202112/20270.4 0.4 0.4 (2)(11)
First lien senior secured loan11.33%LIBOR (M)6.50%12/202112/20272.1 2.1 2.1 (2)(11)
First lien senior secured loan11.78%SOFR (Q)6.75%03/202312/20271.6 1.6 1.6 (2)(11)
First lien senior secured loan10.36%LIBOR (M)5.50%12/202112/20271.1 1.1 1.1 (2)(11)
Class A units12/20214,2964.3 7.5 
9.5 12.7 
Taymax Group, L.P., Taymax Group G.P., LLC, PF Salem Canada ULC and TCP Fit Parent, L.P. (15)Planet Fitness franchiseeFirst lien senior secured revolving loan10.64%SOFR (Q)5.63%07/201807/20251.1 1.1 1.1 (2)(11)
First lien senior secured loan10.67%SOFR (Q)5.63%03/202007/20251.0 1.0 1.0 (2)(11)
First lien senior secured loan10.63%SOFR (Q)5.58%03/202007/20250.3 0.3 0.3 (2)(11)
Class A units07/201837,0203.8 5.7 
6.2 8.1 
The Alaska Club Partners, LLC, Athletic Club Partners LLC and The Alaska Club, Inc. (15)Premier health club operatorFirst lien senior secured loan
13.50% (2.63% PIK)
Base Rate (Q)5.50%12/201912/202412.5 12.5 12.5 (2)(11)
The Arcticom Group, LLC and AMCP Mechanical Holdings, LP (15)Refrigeration, heating, ventilation and air conditioning services providerFirst lien senior secured revolving loan11.14%LIBOR (S)6.00%12/202112/20273.3 3.3 3.3 (2)(11)
First lien senior secured revolving loan11.36%LIBOR (S)6.25%12/202112/20272.7 2.7 2.7 (2)(11)
First lien senior secured revolving loan13.25%Base Rate (S)5.25%12/202112/20271.4 1.4 1.4 (2)(11)
First lien senior secured loan11.15%LIBOR (Q)6.00%08/202212/20270.2 0.2 0.2 (2)(11)
First lien senior secured loan11.19%LIBOR (Q)6.00%12/202112/20270.2 0.2 0.2 (2)(11)
Class A units12/20216,308,8666.3 10.5 
Class C units03/2023333,510— 0.6 (2)
14.1 18.9 
YE Brands Holdings, LLC (15)Sports camp operatorFirst lien senior secured loan10.25%SOFR (Q)5.25%06/202210/20278.1 8.1 8.1 (2)(11)
First lien senior secured loan10.00%SOFR (Q)5.00%10/202110/20270.1 0.1 0.1 (2)(11)
8.2 8.2 
ZBS Mechanical Group Co-Invest Fund 2, LLCProvider of residential HVAC and plumbing servicesMembership interest10/20212,771,0001.4 9.1 
659.9 706.9 7.03%
Capital Goods
AI Aqua Merger Sub, Inc.End to end provider of water solutions to a wide range of customer basesFirst lien senior secured loan8.48%SOFR (M)3.75%06/202107/20281.0 1.0 1.0 (2)(11)(18)
API Commercial Inc., API Military Inc., and API Space Intermediate, Inc.Provider of military aircraft aftermarket parts and distribution, repair and logistics servicesFirst lien senior secured loan05/202208/20257.2 3.2 3.6 (2)(10)
37

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
Arrowhead Holdco Company and Arrowhead GS Holdings, Inc.Distributor of non-discretionary, mission-critical aftermarket replacement partsFirst lien senior secured loan9.33%SOFR (Q)4.50%08/202108/20280.1 0.1 0.1 (2)(11)
Common stock08/20215,0545.1 3.4 (2)
5.2 3.5 
BlueHalo Financing Holdings, LLC, BlueHalo Global Holdings, LLC, and BlueHalo, LLC (15)Provides products and services to the Department of Defense and Intelligence CommunityFirst lien senior secured revolving loan11.62%LIBOR (Q)6.50%05/202210/20250.4 0.3 0.4 (2)(11)
First lien senior secured loan11.59%LIBOR (Q)6.50%05/202210/20251.0 1.0 1.0 (2)(11)
1.3 1.4 
Burgess Point Purchaser CorporationRemanufacturer of mission-critical and non-discretionary aftermarket vehicle, industrial, energy storage, and solar replacement partsFirst lien senior secured loan10.16%SOFR (M)5.25%07/202207/20294.7 4.3 4.4 (2)(11)(18)
Cadence Aerospace, LLC (15)Aerospace precision components manufacturerFirst lien senior secured revolving loan
13.33% (2.00% PIK)
LIBOR (Q)8.50%11/201708/202314.2 14.2 14.2 (2)(11)(14)
First lien senior secured revolving loan
13.33% (2.00% PIK)
LIBOR (Q)8.50%07/202011/20231.0 1.0 1.0 (2)(11)(14)
First lien senior secured loan
13.33% (2.00% PIK)
LIBOR (Q)8.50%11/201711/202331.0 31.0 31.0 (2)(11)
First lien senior secured loan
13.33% (2.00% PIK)
LIBOR (Q)8.50%10/201911/202311.8 11.8 11.8 (2)(11)
First lien senior secured loan
13.33% (2.00% PIK)
LIBOR (Q)8.50%07/201811/20239.7 9.7 9.7 (2)(11)
First lien senior secured loan
13.35% (2.00% PIK)
LIBOR (Q)8.50%02/202011/20237.8 7.8 7.8 (2)(11)
First lien senior secured loan
13.33% (2.00% PIK)
LIBOR (Q)8.50%07/202011/20235.7 5.6 5.7 (2)(11)
81.1 81.2 
DFS Holding Company, Inc. (15)Distributor of maintenance, repair, and operations parts, supplies, and equipment to the foodservice industryFirst lien senior secured loan11.78%SOFR (Q)7.00%01/202301/20292.0 1.9 1.9 (2)(11)
Dynamic NC Aerospace Holdings, LLC and Dynamic NC Investment Holdings, LP (15)Provider of aerospace technology and equipmentFirst lien senior secured revolving loan12.05%LIBOR (Q)7.00%12/202012/20250.9 0.9 0.9 (2)(11)
First lien senior secured loan11.65%SOFR (Q)7.00%12/202012/202623.2 23.2 23.2 (2)(11)
Common units12/20209,773,0009.8 7.1 
33.9 31.2 
EPS NASS Parent, Inc. (15)Provider of maintenance and engineering services for electrical infrastructureFirst lien senior secured revolving loan10.91%LIBOR (Q)5.75%04/202104/20261.0 1.0 0.9 (2)(11)
First lien senior secured loan10.91%LIBOR (Q)5.75%04/202104/20280.2 0.2 0.2 (2)(11)
1.2 1.1 
ESCP PPG Holdings, LLC (4)Distributor of new equipment and aftermarket parts to the heavy-duty truck industryClass A-1 units08/202296,8972.3 4.3 (2)
Class A-2 units12/20163,5003.5 0.2 (2)
38

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
5.84.5
Harvey Tool Company, LLC (15)Manufacturer of cutting tools used in the metalworking industryFirst lien senior secured revolving loan10.48%LIBOR (Q)5.50%10/202110/20275.25.25.1(2)(11)
First lien senior secured loan10.68%LIBOR (Q)5.50%10/202110/20271.11.11.1(2)(11)
6.36.2
Helix Acquisition Holdings, Inc.Manufacturer of springs, fasteners and custom componentsFirst lien senior secured loan12.00%SOFR (Q)7.00%03/202303/203012.612.612.2(2)(11)
Imaging Business Machines, L.L.C. and Scanner Holdings Corporation (5)Provider of high-speed intelligent document scanning hardware and softwareSenior subordinated loan14.00%01/201712/202316.616.616.6(2)
Series A preferred stock
8.00% PIK
01/201773,804,1351.633.2
Class A common stock01/201748,082— 0.2
Class B common stock01/2017431,0550.11.5
18.351.5
Kene Acquisition, Inc. and Kene Holdings, L.P. (15)National utility services firm providing engineering and consulting services to natural gas, electric power and other energy and industrial end marketsFirst lien senior secured revolving loan08/201908/2024— — — (13)
First lien senior secured loan9.41%LIBOR (Q)4.25%08/201908/202640.540.540.1(2)(11)
Class A units08/20194,549,0004.57.8(2)
45.047.9
Lower ACS, Inc. (15)Provider of commercial HVAC equipment and servicesFirst lien senior secured loan10.34%LIBOR (M)5.50%01/202201/20280.80.80.8(2)(11)
LTG Acquisition, Inc.Designer and manufacturer of display, lighting and passenger communication systems for mass transportation marketsClass A membership units01/20175,0005.1— 
Maverick Acquisition, Inc.Manufacturer of precision machined components for defense and high-tech industrial platformsFirst lien senior secured loan11.41%LIBOR (Q)6.25%06/202106/202727.527.524.5(2)(11)
MB Aerospace Holdings II Corp.Aerospace engine components manufacturerFirst lien senior secured loan8.66%LIBOR (Q)3.50%06/202101/202515.214.413.4(2)(11)(18)
Second lien senior secured loan14.16%LIBOR (Q)9.00%01/201801/202668.468.465.7(2)(11)
Second lien senior secured loan14.16%LIBOR (Q)9.00%05/201901/202623.623.722.7(2)(11)
106.5101.8
NCWS Intermediate, Inc. and NCWS Holdings LP (15)Manufacturer and supplier of car wash equipment, parts and supplies to the conveyorized car wash marketFirst lien senior secured loan10.84%LIBOR (M)6.00%11/202112/202696.796.793.8(2)(11)
First lien senior secured loan10.84%LIBOR (M)6.00%12/202012/20260.20.20.1(2)(11)
Class A-2 common units12/202012,296,00012.919.4(2)
109.8113.3
39

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
Noble Aerospace, LLC (15)Provider of metal finishing services to the aerospace, military and defense sectorsFirst lien senior secured revolving loan05/202209/2023— — (2)(13)
Osmose Utilities Services, Inc. and Pine Intermediate Holding LLCProvider of structural integrity management services to transmission and distribution infrastructureSecond lien senior secured loan11.59%LIBOR (M)6.75%06/202106/202955.3 55.3 51.9 (2)(11)
Precinmac (US) Holdings Inc., Trimaster Manufacturing Inc. and Blade Group Holdings, LP.Manufacturer of high-tolerance precision machined components and assemblies for the aerospace and defense industryFirst lien senior secured loan10.91%SOFR (M)6.00%08/202108/202711.6 11.6 11.4 (2)(6)(11)
First lien senior secured loan10.91%SOFR (M)6.00%04/202208/20274.0 4.0 3.9 (2)(6)(11)
Class A units08/202188,42013.4 27.9 (2)
29.0 43.2 
Prime Buyer, L.L.C. (15)Provider of track systems, cabs, hulls, doors, and various armored components for defense/military vehicle applicationsFirst lien senior secured revolving loan10.16%SOFR (M)5.25%05/202212/20260.7 0.1 0.6 (2)(11)
Qnnect, LLC and Connector TopCo, LP (15)Manufacturer of highly engineered hermetic packaging productsFirst lien senior secured loan11.69%SOFR (Q)7.00%11/202211/202910.7 10.7 10.4 (2)(11)
Limited partnership interests11/2022992,5009.9 9.9 (2)
20.6 20.3 
Radius Aerospace, Inc. and Radius Aerospace Europe Limited (15)Metal fabricator in the aerospace industryFirst lien senior secured revolving loan9.93%SONIA (M)5.75%11/201903/20250.3 0.3 0.3 (2)(6)(11)
First lien senior secured revolving loan10.70%SOFR (Q)5.75%03/201903/20250.3 0.3 0.3 (2)(6)(11)
0.6 0.6 
Radwell Parent, LLC (15)Distributor of maintenance, repair, and operations partsFirst lien senior secured revolving loan11.56%SOFR (M)6.75%12/202204/20280.6 0.5 0.6 (2)(11)
First lien senior secured loan11.65%SOFR (Q)6.75%12/202204/20290.1 0.1 0.1 (2)(11)
0.6 0.7 
Sunk Rock Foundry Partners LP, Hatteras Electrical Manufacturing Holding Company and Sigma Electric Manufacturing Corporation, Diecast Beacon (15)Manufacturer of metal castings, precision machined components and sub-assemblies in the electrical products, power transmission and distribution and general industrial marketsFirst lien senior secured revolving loan10/201710/2024— — (13)
577.0 609.3 6.06%
Media and Entertainment
Aventine Intermediate LLC & Aventine Holdings II LLC (15)Media and production companyFirst lien senior secured loan
10.84% (4.18% PIK)
LIBOR (M)6.00%12/202106/20279.5 9.5 9.5 (2)(11)
Senior subordinated loan
10.25% PIK
12/202112/203039.4 39.4 36.7 (2)
48.9 46.2 
40

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
Axiomatic, LLCPremiere e-sports and video game investment platformClass A-1 units05/2022500,0005.0 5.4 
CMW Parent LLC (fka Black Arrow, Inc.)Multiplatform media firmSeries A units09/201532— — 
Eagle Football Holdings BidCo Limited and Eagle Football Holdings LimitedMulti-club sports platformSenior subordinated loan12.83%12/202212/202843.1 43.1 39.6 (2)(6)
Senior subordinated loan
15.00% PIK
12/202212/202821.8 21.8 21.2 (2)(6)
Senior subordinated loan
15.00% PIK
12/202212/20284.5 4.5 4.3 (2)(6)
Warrant to purchase shares of ordinary shares12/202211/2028180— 3.4 (2)(6)
Warrant to purchase shares of ordinary shares12/202211/2028199— 0.6 (2)(6)
Warrant to purchase shares of ordinary shares12/202211/2028494— — (2)(6)
69.4 69.1 
Global Music Rights, LLC (15)Music right management companyFirst lien senior secured loan10.66%LIBOR (Q)5.50%08/202108/20280.1 0.1 0.1 (2)(11)
MailSouth, Inc.Provider of shared mail marketing servicesFirst lien senior secured loan05/202204/20248.7 5.8 3.5 (2)(10)
Miami Beckham United LLCAmerican professional soccer clubClass A preferred units
8.50% PIK
09/202185,00096.7 96.7 
OUTFRONT Media Inc.Provider of out-of-home advertisingSeries A convertible perpetual preferred stock7.00%04/202025,00025.0 32.6 (2)(6)
Production Resource Group, L.L.C. and PRG III, LLC (4)Provider of rental equipment, labor, production management, scenery, and other products to various entertainment end-marketsFirst lien senior secured loan
13.36% (1.00% PIK)
LIBOR (M)8.50%08/201808/202440.1 40.1 40.1 (2)(11)
First lien senior secured loan
12.36% (2.50% PIK)
LIBOR (M)7.50%07/202008/202415.3 15.3 15.3 (2)(11)
First lien senior secured loan
12.41% (2.50% PIK)
LIBOR (M)7.50%08/202108/20247.6 7.6 7.6 (2)(11)
First lien senior secured loan
12.41% (2.50% PIK)
LIBOR (M)7.50%06/202108/20240.9 0.9 0.9 (2)(11)
Class A units10/2020113,6174.9 45.2 (2)
68.8 109.1 
Professional Fighters League, LLC and PFL MMA, Inc.Mixed martial arts leagueFirst lien senior secured loan
12.00% PIK
01/202101/202617.7 16.7 17.7 (2)
Second lien senior secured loan
14.00% PIK
11/202201/20260.2 — 0.1 (2)
Series E preferred stock04/2022219,0350.7 0.7 (2)
Warrant to purchase shares of common stock01/202101/20273,223,1221.7 1.5 (2)
Warrant to purchase shares of common stock11/202211/202957,3220.2 0.2 (2)
19.3 20.2 
Storm Investment S.a.r.l.Spanish futbol clubFirst lien senior secured loan3.75%06/202106/202967.0 73.6 67.0 (2)(6)
41

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
Class A redeemable shares06/20213,297,7911.6 2.4 (2)(6)
Class B redeemable shares06/20213,297,7911.6 2.4 (2)(6)
Class C redeemable shares06/20213,297,7911.6 2.4 (2)(6)
Class D redeemable shares06/20213,297,7911.6 2.4 (2)(6)
Class E redeemable shares06/20213,297,7911.6 2.4 (2)(6)
Class F redeemable shares06/20213,297,7911.6 2.4 (2)(6)
Class G redeemable shares06/20213,297,7911.6 2.4 (2)(6)
Class H redeemable shares06/20213,297,7911.6 2.4 (2)(6)
Class I redeemable shares06/20213,297,7911.6 2.4 (2)(6)
Ordinary shares06/20213,958— 0.2 (2)(6)
88.0 88.8 
The Teaching Company Holdings, Inc.Education publications providerPreferred stock09/200610,6631.1 0.4 (2)
Common stock09/200615,393— — (2)
1.1 0.4 
428.1 472.1 4.70%
Retailing and Distribution
Atlas Intermediate III, L.L.C. (15)Specialty chemicals distributorFirst lien senior secured revolving loan10.53%LIBOR (M)5.75%04/201904/20250.2 0.2 0.2 (2)(11)
First lien senior secured loan10.74%LIBOR (Q)5.75%10/202204/20250.1 0.1 0.1 (2)(11)
First lien senior secured loan10.74%LIBOR (Q)5.75%03/202204/20250.1 0.1 0.1 (2)(11)
First lien senior secured loan10.74%LIBOR (Q)5.75%11/202104/20250.1 0.1 0.1 (2)(11)
First lien senior secured loan10.74%LIBOR (Q)5.75%03/202104/20250.2 0.2 0.2 (2)(11)
0.7 0.7 
Bamboo Purchaser, Inc.Provider of nursery, garden, and greenhouse productsFirst lien senior secured loan12.05%LIBOR (Q)7.00%11/202111/202717.9 17.9 17.0 (2)(11)
Display Holding Company, Inc., Saldon Holdings, Inc. and Fastsigns Holdings Inc. (15)Provider of visual communications solutionsFirst lien senior secured loan10.56%LIBOR (M)5.65%03/201903/202515.8 15.8 15.8 (2)(11)
First lien senior secured loan10.56%LIBOR (M)5.65%06/202103/20250.1 0.1 0.1 (2)(11)
First lien senior secured loan10.56%LIBOR (M)5.65%08/201903/20250.1 0.1 0.1 (2)(11)
Common units03/20196000.6 1.3 (2)
16.6 17.3 
GPM Investments, LLC and ARKO Corp.Convenience store operatorCommon stock12/20202,088,47819.8 27.0 
Warrant to purchase common stock12/202012/20251,088,7801.6 1.7 (2)
21.4 28.7 
42

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
Marcone Yellowstone Buyer Inc. and Marcone Yellowstone Holdings, LLCDistributor of OEM appliance aftermarket partsFirst lien senior secured loan11.29%LIBOR (Q)6.25%06/202106/20280.3 0.3 0.3 (2)(11)
First lien senior secured loan11.29%LIBOR (Q)6.25%12/202106/20280.1 0.1 0.1 (2)(11)
First lien senior secured loan11.16%SOFR (Q)6.25%06/202106/20280.1 0.1 0.1 (2)(11)
First lien senior secured loan11.28%SOFR (Q)6.25%12/202106/20280.1 0.1 0.1 (2)(11)
Class A common units06/20215,7966.1 10.1 (2)
6.7 10.7 
Mavis Tire Express Services Topco Corp., Metis Holdco, Inc. and Metis Topco, LP (15)Auto parts retailerFirst lien senior secured revolving loan8.65%LIBOR (M)3.75%05/202105/20269.0 9.0 9.0 (2)(14)
First lien senior secured revolving loan7.65%LIBOR (M)2.75%05/202105/20262.6 2.6 2.6 (2)(14)
Series A preferred stock
7.00% PIK
05/202168,60178.3 78.3 (2)
Class A-1 units05/202124,58624.6 33.9 (2)
114.5 123.8 
McKenzie Creative Brands, LLC (15)Designer, manufacturer and distributor of hunting-related suppliesFirst lien senior secured loan10.60%LIBOR (M)5.75%09/201409/202384.5 84.5 84.5 (2)(8)(11)
First lien senior secured loan10.60%LIBOR (M)5.75%09/201409/20235.5 5.5 5.5 (2)(11)
90.0 90.0 
Monolith Brands Group, Inc.E-commerce platform focused on consolidating DTC branded businessesSeries A-1 preferred stock04/2022701,25515.5 15.5 (2)
Moon Valley Nursery of Arizona Retail, LLC, Moon Valley Nursery Farm Holdings, LLC, Moon Valley Nursery RE Holdings LLC, and Stonecourt IV Partners, LPOperator of retail and wholesale tree and plant nurseriesLimited partnership interests10/202121,939,15220.8 34.9 
North Haven Falcon Buyer, LLC and North Haven Falcon Holding Company, LLCManufacturer of aftermarket golf cart parts and accessoriesFirst lien senior secured loan
12.18% (3.75% PIK)
SOFR (Q)8.00%05/202105/202725.6 25.6 24.3 (2)(11)
Class A units05/202150,0005.0 1.1 
30.6 25.4 
Reddy Ice LLC (15)Packaged ice manufacturer and distributorFirst lien senior secured revolving loan11.16%LIBOR (Q)6.00%07/201907/20240.1 0.1 0.1 (2)(11)
First lien senior secured loan10.79%LIBOR (Q)6.00%07/201907/202561.1 61.1 59.9 (2)(11)
First lien senior secured loan10.79%LIBOR (Q)6.00%11/202007/20254.2 4.2 4.1 (2)(11)
First lien senior secured loan10.79%LIBOR (Q)6.00%10/202107/20250.9 0.9 0.9 (2)(11)
66.3 65.0 
Trader Corporation and Project Auto Finco Corp. (15)Digital Automotive marketplace and software solution provider to automotive industryFirst lien senior secured loan11.68%CDOR (M)6.75%12/202212/202912.2 12.2 11.9 (2)(6)(11)
US Salt Investors, LLC and Emerald Lake Pearl Acquisition-A, L.P. (15)Producer and packager of compressed, household, and packaged saltFirst lien senior secured loan10.34%LIBOR (M)5.50%07/202107/202826.3 26.3 25.0 (2)(11)
43

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
Limited partner interests07/20210.40 %0.8 0.5 (2)
27.1 25.5 
440.3 466.4 4.64%
Automobiles and Components
Automotive Keys Group, LLC and Automotive Keys Investor, LLCProvider of replacement wireless keys for automotive marketFirst lien senior secured loan11.43%SOFR (Q)6.25%12/202211/20255.3 5.3 5.3 (2)(11)
First lien senior secured loan11.30%LIBOR (Q)6.25%12/202111/20250.1 0.1 0.1 (2)(11)
Preferred units
9.00% PIK
11/20204,113,1135.1 3.9 (2)
Preferred units
15.00% PIK
11/20201,095,0461.1 1.0 (2)
Class A common units11/20205,208,159— — (2)
11.6 10.3 
Continental Acquisition Holdings, Inc.Distributor of aftermarket batteries to the electric utility vehicle, automotive, commercial, marine and industrial marketsFirst lien senior secured loan11.51%LIBOR (Q)6.50%01/202101/202736.1 36.1 33.2 (2)(11)
First lien senior secured loan11.55%LIBOR (Q)6.50%12/202101/20275.4 5.4 4.9 (2)(11)
41.5 38.1 
Eckler Purchaser LLC (5)Restoration parts and accessories provider for classic automobilesClass A common units07/201267,972— — (2)
Faraday Buyer, LLC (15)Manufacturer and supplier for the power utility and automotive markets worldwideFirst lien senior secured loan11.86%SOFR (M)7.00%10/202210/202852.2 52.2 52.2 (2)(11)
Faraday&Future Inc., FF Inc., Faraday SPE, LLC and Faraday Future Intelligent Electric Inc.Electric vehicle manufacturerWarrant to purchase shares of Class A common stock08/202108/2027633,0082.3 — (2)
Highline Aftermarket Acquisition, LLC, Highline Aftermarket SC Acquisition, Inc. and Highline PPC Blocker LLC (15)Manufacturer and distributor of automotive fluidsFirst lien senior secured revolving loan11/202011/2025— — — (13)
First lien senior secured loan9.34%LIBOR (M)4.50%03/202211/20279.8 9.3 9.4 (2)(11)(18)
Second lien senior secured loan13.03%LIBOR (Q)8.00%11/202011/202870.4 70.4 65.4 (2)(11)
Co-invest units11/202059,2305.9 3.8 (2)
85.6 78.6 
McLaren Group LimitedAutomobile manufacturer and retailerSenior preference shares
12.50% PIK
08/202108/2028200,00025.4 28.5 (2)(6)
Warrant to purchase units of ordinary shares08/202108/202849,1815.5 2.6 (2)(6)
Warrant to purchase units of ordinary shares08/202108/202813,7761.6 0.7 (2)(6)
32.5 31.8 
Sun Acquirer Corp. and Sun TopCo, LP (15)Automotive parts and repair services retailerFirst lien senior secured revolving loan12.75%Base Rate (Q)4.75%09/202109/20271.2 1.2 1.2 (2)(11)(14)
44

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
First lien senior secured loan10.59%LIBOR (M)5.75%09/202109/202852.2 52.2 50.6 (2)(11)
First lien senior secured loan10.59%LIBOR (M)5.75%11/202109/20285.3 5.3 5.2 (2)(11)
Class A units09/202179,6888.0 8.9 (2)
66.7 65.9 
Wand Newco 3, Inc.Collision repair companySecond lien senior secured loan12.09%LIBOR (M)7.25%02/201902/2027182.6 181.0 182.6 (2)
473.4 459.5 4.57%
Food and Beverage
American Seafoods Group LLC and American Seafoods Partners LLCHarvester and processor of seafoodClass A units08/201577,9220.1 0.3 (2)
Warrant to purchase units of Class A units08/201508/20357,422,0787.4 25.3 (2)
7.5 25.6 
Berner Food & Beverage, LLC (15)Supplier of dairy-based food and beverage productsFirst lien senior secured revolving loan10.33%LIBOR (Q)5.50%07/202107/20260.5 0.5 0.5 (2)(11)
First lien senior secured revolving loan12.50%Base Rate (Q)4.50%07/202107/20260.4 0.4 0.4 (2)(11)
0.9 0.9 
Bragg Live Food Products, LLC and SPC Investment Co., L.P. (4)(15)Health food companyFirst lien senior secured revolving loan12.00%LIBOR (Q)7.00%03/201912/20250.7 0.7 0.7 (2)(11)
First lien senior secured loan12.00%SOFR (Q)7.00%12/202012/202528.8 28.8 28.2 (2)(11)
Common units03/201914,85011.6 10.5 (2)
41.1 39.4 
CHG PPC Parent LLC & PPC CHG Blocker LLCDiversified food products manufacturerSecond lien senior secured loan11.59%LIBOR (M)6.75%12/202112/202994.6 94.6 91.8 (2)(11)
Common units12/2021593.0 2.9 (2)
97.6 94.7 
Florida Food Products, LLCProvider of plant extracts and juicesFirst lien senior secured loan9.84%LIBOR (M)5.00%10/202110/20280.5 0.4 0.4 (2)(11)
First lien senior secured loan9.81%SOFR (M)5.00%06/202210/20280.4 0.4 0.4 (2)(11)
Second lien senior secured loan12.84%LIBOR (M)8.00%10/202110/202971.8 71.8 67.5 (2)(11)
72.6 68.3 
GF Parent LLCProducer of low-acid, aseptic food and beverage productsClass A preferred units05/20152,9402.9 — (2)
Class A common units05/201560,0000.1 — (2)
3.0 — 
Gotham Greens Holdings, PBC (15)Producer of vegetables and culinary herbs for restaurants and retailersFirst lien senior secured loan12.22%SOFR (M)7.38%06/202212/202627.6 27.6 26.2 (2)(11)
Series E-1 preferred stock
6.00% PIK
06/2022166,05914.2 14.2 (2)
Warrant to purchase shares of Series E-1 preferred stock06/202206/203262,034— — (2)
41.8 40.4 
KNPC HoldCo, LLCProducer of trail mix and mixed nut snack productsFirst lien senior secured loan9.92%SOFR (M)5.50%04/202210/20285.6 5.6 5.5 (2)(11)
45

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
First lien senior secured loan11.42%SOFR (M)7.00%12/202210/20281.3 1.3 1.3 (2)(11)
6.9 6.8 
Manna Pro Products, LLC (15)Manufacturer and supplier of specialty nutrition and care products for animalsFirst lien senior secured revolving loan10.81%LIBOR (M)6.00%12/202012/20265.1 5.1 4.6 (2)(11)
RB Holdings InterCo, LLC (15)Manufacturer of pet food and treatsFirst lien senior secured revolving loan9.92%SOFR (Q)5.00%05/202205/20281.8 1.8 1.8 (2)(11)
First lien senior secured loan9.85%SOFR (Q)5.00%05/202205/202811.5 11.5 11.3 (2)(11)
13.3 13.1 
RF HP SCF Investor, LLCBranded specialty food companyMembership interest12/201610.08 %12.5 26.9 (2)(6)
Teasdale Foods, Inc. and Familia Group Holdings Inc.Provider of beans, sauces and hominy to the retail, foodservice and wholesale channelsFirst lien senior secured loan
12.29% (0.40% PIK)
SOFR (S)7.25%12/202012/202576.1 76.1 68.5 (2)(11)
Warrant to purchase shares of common stock02/201902/203457,827— 1.5 (2)
76.1 70.0 
Triton Water Holdings, Inc.Producer and provider of bottled water brandsFirst lien senior secured loan8.66%LIBOR (Q)3.50%03/202103/20281.0 1.0 0.9 (2)(11)(18)
Senior subordinated loan6.25%03/202104/20290.1 0.1 0.1 (2)(18)
1.1 1.0 
Watermill Express, LLC and Watermill Express Holdings, LLCOwner and operator of self-service water and ice stationsFirst lien senior secured loan10.41%LIBOR (Q)5.25%04/202104/202721.1 21.1 21.1 (2)(11)
Class A units
8.00% PIK
04/2021282,2003.3 3.6 
24.4 24.7 
Winebow Holdings, Inc. and The Vintner Group, Inc.Importer and distributor of wineFirst lien senior secured loan11.09%LIBOR (M)6.25%04/202107/202527.9 27.9 27.4 (2)(11)
431.8 443.8 4.42%
Energy
Calyx Energy III, LLCOil and gas exploration companyFirst lien senior secured loan12.92%SOFR (M)8.00%08/202201/202753.4 53.4 53.4 (2)(11)
Cheyenne Petroleum Company Limited Partnership, CPC 2001 LLC and Mill Shoals LLC (15)Private oil exploration and production companyFirst lien senior secured loan14.00%SOFR (Q)9.00%11/202211/202649.3 49.3 49.3 (2)(11)
GNZ Energy Bidco Limited and Galileo Co-investment Trust I (15)Independent fuel provider in New ZealandFirst lien senior secured loan11.69%BBSY (M)6.75%05/202207/202730.4 30.5 30.4 (2)(6)(11)
Common units07/202213,736,3658.3 11.0 (2)(6)
38.8 41.4 
Halcon Holdings, LLCOperator of development, exploration, and production oil companyFirst lien senior secured loan12.55%SOFR (Q)7.50%11/202111/202513.1 12.9 13.1 (2)
Murchison Oil and Gas, LLC and Murchison Holdings, LLC (15)Exploration and production companyFirst lien senior secured loan13.55%SOFR (Q)8.50%06/202206/202693.8 93.8 93.8 (2)(11)
Preferred units8.00%06/202241,00041.0 45.7 
134.8 139.5 
Offen, Inc.Distributor of fuel, lubricants, diesel exhaust fluid, and premium additivesFirst lien senior secured loan9.92%LIBOR (M)5.00%05/202206/20260.1 0.1 0.1 (2)
46

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
SilverBow Resources, Inc.Oil and gas producerCommon stock06/20221,015,21528.8 23.2 (2)(6)(18)
VPROP Operating, LLC and V SandCo, LLC (5)Sand-based proppant producer and distributor to the oil and natural gas industryFirst lien senior secured loan14.16%LIBOR (M)9.50%03/201711/202427.3 27.3 27.3 (2)(11)
First lien senior secured loan14.16%LIBOR (M)9.50%11/202011/20249.4 9.4 9.4 (2)(11)
First lien senior secured loan14.16%LIBOR (M)9.50%06/202011/20246.0 6.0 6.0 (2)(11)
Class A units11/2020347,90032.9 68.0 (2)
75.6 110.7 
393.7 430.7 4.29%
Consumer Staples Distribution and Retail
Balrog Acquisition, Inc., Balrog Topco, Inc. and Balrog Parent, L.P.Manufacturer and distributor of specialty bakery ingredientsSecond lien senior secured loan11.95%LIBOR (Q)7.00%09/202109/202929.5 29.5 29.5 (2)(11)
Class A preferred units
8.00% PIK
09/202108/20515,4846.2 12.1 (2)
Series A preferred shares
11.00% PIK
09/202108/205121,92126.1 26.1 (2)
61.8 67.7 
Continental Café, LLC and Infinity Ovation Yacht Charters, LLC (15)Diversified contract food service providerFirst lien senior secured revolving loan14.00%Base Rate (Q)6.00%11/202111/20270.9 0.9 0.9 (2)(11)
First lien senior secured loan11.90%LIBOR (Q)7.00%11/202111/20270.1 0.1 0.1 (2)(11)
1.0 1.0 
DecoPac, Inc. and KCAKE Holdings Inc. (15)Supplier of cake decorating solutions and products to in-store bakeriesFirst lien senior secured revolving loan10.79%LIBOR (Q)6.00%05/202105/20264.7 4.7 4.6 (2)(11)
First lien senior secured loan11.05%LIBOR (Q)6.00%05/202105/2028148.2 148.2 145.3 (2)(11)
Common stock05/20219,5999.6 9.3 (2)
162.5 159.2 
FS Squared Holding Corp. and FS Squared, LLC (15)Provider of on-site vending and micro market solutionsFirst lien senior secured revolving loan03/201903/2024— — — (13)
First lien senior secured loan10.30%SOFR (Q)5.25%03/201903/20250.1 0.1 0.1 (2)(11)
Class A units03/2019113,21911.1 33.8 (2)
11.2 33.9 
JWC/KI Holdings, LLCFoodservice sales and marketing agencyMembership units11/20155,0005.0 10.1 (2)
LJ Perimeter Buyer, Inc. and LJ Perimeter Co-Invest, L.P. (15)(16)Distributor of specialty foodsFirst lien senior secured loan11.33%SOFR (Q)6.50%10/202210/202836.2 36.2 35.8 (2)(11)
Limited partnership interests10/20229,682,0479.7 10.4 (2)
45.9 46.2 
SFE Intermediate Holdco LLC (15)Provider of outsourced foodservice to K-12 school districtsFirst lien senior secured revolving loan10.30%SOFR (Q)5.25%07/201707/20258.3 8.3 8.0 (2)(11)
First lien senior secured loan10.30%SOFR (Q)5.25%09/201807/202610.0 10.0 9.7 (2)(11)
First lien senior secured loan10.30%SOFR (Q)5.25%07/201707/20266.2 6.2 6.0 (2)(11)
First lien senior secured loan10.30%SOFR (Q)5.25%03/202207/20260.4 0.4 0.4 (2)(11)
47

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
24.924.1
VCP-EDC Co-Invest, LLCDistributor of foodservice equipment and suppliesMembership units06/20172,970,0002.84.2
Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P. (15)(16)Fresh and specialty food distributorFirst lien senior secured revolving loan10.94%SOFR (Q)6.25%02/202301/20290.70.70.6(2)(11)(14)
First lien senior secured loan10.93%SOFR (Q)6.25%02/202301/20297.57.57.3(2)(11)
Common units01/20231,673,0001.71.7
9.99.6
ZB Holdco LLC & ZB Parent LLC (15)Distributor of Mediterranean food and beveragesFirst lien senior secured revolving loan02/202202/2028— — — (13)
First lien senior secured loan9.85%LIBOR (Q)4.75%02/202202/202813.313.313.3(2)(11)
Series A units02/20224,6994.76.7
18.020.0
343.0376.03.74%
Pharmaceuticals, Biotechnology and Life Sciences
Abzena Holdings, Inc. and Astro Group Holdings Ltd.Organization providing discovery, development and manufacturing services to the pharmaceutical and biotechnology industriesOrdinary A shares05/20212,476,7445.75.7(2)(6)
Alcami Corporation and ACM Note Holdings, LLC (15)Outsourced drug development services providerFirst lien senior secured loan11.91%SOFR (M)7.00%12/202212/20289.59.59.1(2)(11)
Senior subordinated loan
8.00% PIK
12/202206/202919.919.919.9(2)
29.429.0
Amryt Pharmaceuticals, Inc.Biopharmaceutical company dedicated to acquiring, developing and commercializing novel therapeuticsFirst lien senior secured loan11.49%SOFR (Q)6.75%02/202202/202712.712.713.4(2)(6)(11)
Athyrium Buffalo LP (16)Biotechnology company engaging in the development, manufacture, and commercialization of novel neuromodulatorsLimited partnership interests06/20227,628,9667.67.5(2)(6)
Caerus Midco 3 S.à r.l.Provider of market intelligence and analysis for the pharmaceutical industryFirst lien senior secured loan10.65%SOFR (Q)5.75%10/202205/20295.45.35.4(2)(6)(11)
Cobalt Buyer Sub, Inc., Cobalt Holdings I, LP, and Cobalt Intermediate I, Inc. (15)Provider of biological products to life science and pharmaceutical companiesFirst lien senior secured revolving loan10.17%LIBOR (M)5.25%10/202110/20272.52.52.4(2)(11)
First lien senior secured loan10.17%LIBOR (M)5.25%10/202110/202830.130.128.6(2)(11)
Preferred units
8.00% PIK
10/202110/20513,0203.44.2(2)
Series A preferred shares
15.19% PIK
LIBOR (Q)10.00%10/202160,23672.372.3(2)
Class A common units10/202130,500— — (2)
108.3107.5
48

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
Covaris Intermediate 3, LLC & Covaris Parent, LLC (15)Provider of advanced pre-analytical sample preparation technologies for life and analytical scienceFirst lien senior secured revolving loan9.91%LIBOR (Q)4.75%01/202201/20281.5 1.5 1.5 (2)(11)
First lien senior secured loan9.91%LIBOR (Q)4.75%01/202201/20280.1 0.1 0.1 (2)(11)
Class A-2 units01/20224,7724.8 5.1 
6.4 6.7 
NMC Skincare Intermediate Holdings II, LLC (15)Developer, manufacturer and marketer of skincare productsFirst lien senior secured loan9.66%LIBOR (M)5.00%10/201810/202431.9 31.9 30.0 (2)(11)
First lien senior secured loan9.66%LIBOR (M)5.00%05/202210/20244.7 4.7 4.4 (2)(11)
36.6 34.4 
North American Science Associates, LLC, Cardinal Purchaser LLC and Cardinal Topco Holdings, L.P.Contract research organization providing research and development and testing of medical devicesFirst lien senior secured loan10.68%SOFR (Q)5.50%09/202009/202747.4 47.4 47.4 (2)(11)
First lien senior secured loan10.68%SOFR (Q)5.50%02/202109/20272.5 2.5 2.5 (2)(11)
First lien senior secured loan10.68%SOFR (Q)5.50%12/202009/20270.1 0.1 0.1 (2)(11)
First lien senior secured loan10.68%SOFR (Q)5.50%09/202109/20270.1 0.1 0.1 (2)(11)
Senior subordinated loan11.25%03/202303/20251.4 1.3 1.3 (2)
Class A preferred units
8.00% PIK
09/202013,52816.5 38.9 (2)
67.9 90.3 
TerSera Therapeutics LLC (15)Acquirer and developer of specialty therapeutic pharmaceutical productsFirst lien senior secured loan10.44%LIBOR (M)5.60%05/201703/20255.0 5.0 5.0 (2)(11)
First lien senior secured loan10.44%LIBOR (M)5.60%09/201803/20252.0 2.0 2.0 (2)(11)
First lien senior secured loan10.44%LIBOR (Q)5.60%04/201903/20251.8 1.8 1.8 (2)(11)
8.8 8.8 
Verista, Inc. (15)Provides systems consulting for compliance, automation, validation, and packaging solutions to the healthcare sectorFirst lien senior secured revolving loan10.75%LIBOR (M)6.00%05/202202/20272.4 2.1 2.4 (2)(11)
First lien senior secured loan10.89%LIBOR (Q)6.00%05/202202/20270.8 0.8 0.8 (2)(11)
2.9 3.2 
Vertice Pharma UK Parent LimitedManufacturer and distributor of generic pharmaceutical productsPreferred shares12/201540,662— — (6)
291.6 311.9 3.10%
Materials
ASP-r-pac Acquisition CO LLC and ASP-r-pac Holdings LP (15)Manufacturer and supplier of printed packaging and trimmingsFirst lien senior secured loan10.83%LIBOR (Q)6.00%12/202112/20270.1 0.1 0.1 (2)(11)
Class A units12/2021195,99019.6 16.5 (2)
19.7 16.6 
Halex Holdings, Inc. (5)Manufacturer of flooring installation productsCommon stock01/201751,853— — 
49

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
H-Food Holdings, LLC and Matterhorn Parent, LLCFood contract manufacturerFirst lien senior secured loan8.53%LIBOR (M)3.69%06/202205/202526.3 24.0 22.4 (2)(18)
First lien senior secured loan8.84%LIBOR (M)4.00%07/202205/20253.3 3.1 2.9 (2)(18)
First lien senior secured loan9.84%LIBOR (M)5.00%12/202105/20250.1 0.1 0.1 (2)(11)(18)
Second lien senior secured loan11.84%LIBOR (M)7.00%11/201803/202673.0 73.0 62.1 (2)
Common units11/20185,8275.8 3.1 
106.0 90.6 
Nelipak Holding Company, Nelipak European Holdings Cooperatief U.A., KNPAK Holdings, LP and PAKNK Netherlands Treasury B.V. (15)Manufacturer of thermoformed packaging for medical devicesFirst lien senior secured revolving loan9.09%LIBOR (M)4.25%07/201907/20240.2 0.2 0.2 (2)(6)(11)
First lien senior secured loan6.99%Euribor (Q)4.50%07/201907/20264.9 5.1 4.7 (2)(6)
First lien senior secured loan9.08%LIBOR (Q)4.25%07/201907/202614.8 14.8 14.5 (2)(6)(11)
First lien senior secured loan6.99%Euribor (Q)4.50%08/201907/20261.5 1.6 1.5 (2)(6)
Class A units07/20196,762,6686.8 8.4 (2)(6)
28.5 29.3 
Novipax Buyer, L.L.C. and Novipax Parent Holding Company, L.L.C.Developer and manufacturer of absorbent pads for food productsFirst lien senior secured loan11.66%SOFR (M)6.75%12/202012/202622.8 22.8 22.8 (2)(11)
First lien senior secured loan11.66%SOFR (M)6.75%12/202212/20260.3 0.3 0.3 (2)(11)
Class A preferred units
10.00% PIK
12/20204,7724.2 8.9 (2)
Class C units12/20204,772— — (2)
27.3 32.0 
Plaskolite PPC Intermediate II LLC and Plaskolite PPC Blocker LLCManufacturer of specialized acrylic and polycarbonate sheetsFirst lien senior secured loan8.83%LIBOR (Q)4.00%12/201812/202522.5 21.5 19.9 (2)(11)(18)
Second lien senior secured loan12.11%LIBOR (Q)7.25%12/201812/202655.0 55.0 48.9 (2)(11)
Co-Invest units12/20185,9690.6 0.4 (2)
77.1 69.2 
Precision Concepts International LLC and Precision Concepts Canada Corporation (15)Manufacturer of diversified packaging solutions and plastic injection molded productsFirst lien senior secured revolving loan10.48%SOFR (Q)5.50%01/201906/20238.2 8.2 8.2 (2)(6)(11)
First lien senior secured loan10.50%SOFR (Q)5.50%01/201901/202614.6 14.6 14.6 (2)(6)(11)
First lien senior secured loan10.75%SOFR (Q)5.75%05/202201/20260.1 0.1 0.1 (2)(6)(11)
First lien senior secured loan10.50%SOFR (Q)5.50%06/202101/20260.1 0.1 0.1 (2)(6)(11)
23.0 23.0 
SCI PH Parent, Inc.Industrial container manufacturer, reconditioner and servicerSeries B shares08/2018111.1 1.8 (2)
282.7 262.5 2.61%
Technology Hardware and Equipment
50

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
Chariot Buyer LLC (15)Provider of smart access solutions across residential and commercial propertiesFirst lien senior secured revolving loan7.84%LIBOR (M)3.00%11/202111/20263.2 3.2 3.0 (2)
Second lien senior secured loan11.91%LIBOR (Q)6.75%11/202111/2029134.4 134.4 127.7 (2)(11)
137.6 130.7 
Everspin Technologies, Inc.Designer and manufacturer of computer memory solutionsWarrant to purchase shares of common stock10/201610/202618,4610.4 — 
ITI Holdings, Inc. (15)Provider of innovative software and equipment for motor vehicle agenciesFirst lien senior secured revolving loan12.50%Base Rate (Q)4.50%03/202203/20284.0 4.0 3.9 (11)
First lien senior secured revolving loan12.50%Base Rate (M)4.50%03/202203/20283.0 3.0 2.9 (2)(11)
First lien senior secured revolving loan10.45%SOFR (M)5.50%03/202203/20280.6 0.6 0.6 (2)(11)
First lien senior secured loan10.58%SOFR (Q)5.50%03/202203/202834.9 34.9 33.9 (2)(11)
42.5 41.3 
Micromeritics Instrument Corp. (15)Scientific instrument manufacturerFirst lien senior secured loan9.65%LIBOR (Q)4.50%12/201912/202519.7 19.7 19.7 (2)(11)
PerkinElmer U.S. LLC and NM Polaris Co-Invest, L.P.Provider of analytical instrumentation and testing equipment and servicesFirst lien senior secured loan11.86%SOFR (Q)6.75%03/202303/202917.5 17.5 17.0 (2)(11)
Limited partnership interests03/20230.62 %9.9 9.8 (2)
27.4 26.8 
Repairify, Inc. and Repairify Holdings, LLC (15)Provider of automotive diagnostics scans and solutionsFirst lien senior secured revolving loan10.03%SOFR (S)5.00%06/202106/20271.2 1.2 1.2 (2)(11)
Class A common units06/2021163,8204.9 4.4 (2)
6.1 5.6 
Wildcat BuyerCo, Inc. and Wildcat Parent, LP (15)Provider and supplier of electrical components for commercial and industrial applicationsFirst lien senior secured revolving loan12.75%Base Rate (Q)4.75%02/202002/20260.7 0.7 0.7 (2)(11)(14)
First lien senior secured loan10.80%SOFR (Q)5.75%02/202002/202617.9 17.9 17.8 (2)(11)
First lien senior secured loan10.80%SOFR (Q)5.75%05/202202/20260.2 0.2 0.2 (2)(11)
First lien senior secured loan10.80%SOFR (Q)5.75%11/202102/20260.2 0.2 0.2 (2)(11)
Limited partnership interests02/202017,6551.8 5.3 (2)
20.8 24.2 
254.5 248.3 2.47%
Household and Personal Products
CDI Holdings III Corp. and CDI Holdings I Corp. (15)Provider of personal care appliancesFirst lien senior secured loan10.59%LIBOR (M)5.75%12/202112/20273.8 3.8 3.7 (2)(11)
Common stock12/20216,1496.1 5.2 (2)
9.9 8.9 
51

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
Foundation Consumer Brands, LLCPharmaceutical holding company of over the counter brandsFirst lien senior secured loan10.38%LIBOR (Q)5.50%02/202102/202713.6 13.3 13.6 (2)(11)
LifeStyles Bidco Ltd., Lifestyles Intermediate Holdco Ltd. and LifeStyles Parent, L.P.Provider of intimate wellness productsFirst lien senior secured loan11.65%SOFR (Q)6.75%11/202211/202818.6 18.6 18.2 (2)(6)(11)
Preferred units
8.00% PIK
11/20223,1783.3 3.3 (2)(6)
Class B common units11/202232,105— — (2)(6)
21.9 21.5 
Premier Specialties, Inc. and RMCF V CIV XLIV, L.P. (15)Manufacturer and supplier of natural fragrance materials and cosmeceuticalsFirst lien senior secured revolving loan10.84%LIBOR (M)6.00%08/202108/20272.3 2.3 2.1 (2)(11)
First lien senior secured loan10.84%LIBOR (M)6.00%08/202108/202727.2 27.2 25.3 (2)(11)
Limited partner interests08/20214.58 %5.0 3.0 (2)
34.5 30.4 
RD Holdco Inc. (5)Manufacturer and marketer of carpet cleaning machinesSecond lien senior secured loan01/201710/202625.1 22.4 11.6 (2)(10)
Common stock01/2017458,59614.0 — 
Warrant to purchase shares of common stock01/201712/202356,372— — 
36.4 11.6 
Walnut Parent, Inc.Manufacturer of natural solution pest and animal control productsFirst lien senior secured loan10.46%LIBOR (Q)5.50%11/202011/202714.6 14.6 14.2 (2)(11)
First lien senior secured loan10.46%LIBOR (Q)5.50%04/202211/20270.1 0.1 0.1 (2)(11)
14.7 14.3 
130.7 100.3 1.00%
Transportation
Commercial Trailer Leasing, Inc. (15)Trailer leasing companyFirst lien senior secured loan11.04%SOFR (Q)6.25%01/202101/202624.9 24.9 24.9 (2)(11)
Second lien senior secured loan13.00%01/202101/202719.9 19.9 19.5 (2)
44.8 44.4 
Shur-Co Acquisition, Inc. and Shur-Co Holdco, Inc. (15)Provider of tarp systems and accessories for trucks, trailers, carts, and specialty equipment used in the agriculture, construction and flatbed marketsFirst lien senior secured loan10.90%SOFR (A)6.00%06/202106/202726.7 26.7 26.7 (2)(11)
First lien senior secured loan11.45%SOFR (Q)6.55%03/202306/20276.2 6.2 6.2 (2)(11)
First lien senior secured loan10.90%SOFR (A)6.00%06/202206/20270.1 0.1 0.1 (2)(11)
Common stock06/202175,9907.6 14.8 (2)
40.6 47.8 
85.4 92.2 0.92%
Telecommunication Services
Aventiv Technologies, LLC and Securus Technologies Holdings, Inc.Provider of inmate telecom solutions to corrections and law enforcement agenciesFirst lien senior secured loan9.66%LIBOR (Q)4.50%05/202211/20249.1 8.8 6.5 (2)(11)(18)
52

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2023
(dollar amounts in millions)
(unaudited)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
Second lien senior secured loan13.08%LIBOR (Q)8.25%05/202211/20250.2 0.2 0.2 (2)(11)
9.0 6.7 
Emergency Communications Network, LLC (15)Provider of mission critical emergency mass notification solutionsFirst lien senior secured revolving loan
12.66% (5.25% PIK)
SOFR (Q)7.75%06/201706/20246.9 6.9 6.2 (2)(11)
First lien senior secured loan
12.43% (5.25% PIK)
SOFR (Q)7.75%06/201706/202449.1 49.0 44.2 (2)(11)
55.9 50.4 
64.9 57.1 0.57%
Education
Excelligence Holdings Corp.Developer, manufacturer and retailer of educational productsFirst lien senior secured loan11.09%SOFR (Q)6.00%04/201701/20249.2 9.2 9.2 (2)(11)
Flinn Scientific, Inc. and WCI-Quantum Holdings, Inc. (15)Distributor of instructional products, services and resourcesFirst lien senior secured revolving loan10.34%LIBOR (M)5.50%08/201808/20246.5 6.5 6.5 (2)(11)
First lien senior secured revolving loan12.50%Base Rate (M)4.50%08/201808/20240.8 0.8 0.8 (2)(11)
First lien senior secured loan10.34%LIBOR (M)5.50%07/201708/202429.6 29.6 29.6 (2)(11)
First lien senior secured loan10.34%LIBOR (M)5.50%08/201808/20241.1 1.1 1.1 (2)(11)
Series A preferred stock10/20141,2720.7 1.6 (2)
38.7 39.6 
47.9 48.8 0.49%
Total Investments21,429.6 21,148.0 210.44%
53


Derivative Instruments

Forward currency contracts
DescriptionNotional Amount to be PurchasedNotional Amount to be SoldCounterpartySettlement DateUnrealized Appreciation / (Depreciation)
Forward currency contract$240 219 Royal Bank of CanadaApril 28, 2023$
Forward currency contract$218  CAD 292 Royal Bank of CanadaApril 28, 2023
Forward currency contract$181 CAD247 Royal Bank of CanadaApril 19, 2023(2)
Forward currency contract$159 £128 Royal Bank of CanadaApril 28, 2023
Forward currency contract$156 $114 Royal Bank of CanadaApril 28, 2023
Forward currency contract$37 NZD58 Royal Bank of CanadaApril 28, 2023
Forward currency contract$CADCanadian Imperial Bank of CommerceApril 28, 2023— 
Forward currency contract$CADRoyal Bank of CanadaApril 28, 2023— 
Forward currency contract$— CADRoyal Bank of CanadaApril 28, 2023— 
Total$
______________________________________________

(1)Other than the Company’s investments listed in footnote 5 below (subject to the limitations set forth therein), the Company does not “Control” any of its portfolio companies, for the purposes of the Investment Company Act of 1940, as amended (together with the rules and regulations promulgated thereunder, the “Investment Company Act”). In general, under the Investment Company Act, the Company would “Control” a portfolio company if the Company owned more than 25% of its outstanding voting securities (i.e., securities with the right to elect directors) and/or had the power to exercise control over the management or policies of such portfolio company. All of the Company’s portfolio company investments, which as of March 31, 2023 represented 210% of the Company’s net assets or 97% of the Company’s total assets, are subject to legal restrictions on sales.

(2)These assets are pledged as collateral under the Company’s or the Company’s consolidated subsidiaries’ various revolving credit facilities and, as a result, are not directly available to the creditors of the Company to satisfy any obligations of the Company other than the obligations under each of the respective facilities (see Note 5).

(3)Investments without an interest rate are non-income producing.
54




(4)As defined in the Investment Company Act, the Company is deemed to be an “Affiliated Person” because it owns 5% or more of the portfolio company’s outstanding voting securities or it has the power to exercise control over the management or policies of such portfolio company (including through a management agreement). Transactions as of and during the three months ended March 31, 2023 in which the issuer was an Affiliated Person of the Company (but not a portfolio company that the Company is deemed to Control) are as follows:
For the Three Months Ended March 31, 2023
As of March 31, 2023
(in millions)
Company
Purchases (cost)Redemptions (cost)Sales (cost)Interest incomeCapital
structuring service fees
Dividend incomeOther incomeNet realized gains (losses)Net 
unrealized gains (losses)
Fair Value
Apex Clean Energy TopCo, LLC$— $— $— $— $— $— $— $— $— $150.6 
APG Intermediate Holdings Corporation and APG Holdings, LLC— — — 0.4 — — — — 2.1 23.9 
Blue Wolf Capital Fund II, L.P.— — — — — — — — — 0.1 
Bragg Live Food Products, LLC and SPC Investment Co., L.P.1.6 0.9 — 0.9 — — — — (0.3)39.4 
ESCP PPG Holdings, LLC— — — — — — — — 1.3 4.4 
European Capital UK SME Debt LP— — — — — 0.4 — — 0.6 27.1 
PCG-Ares Sidecar Investment, L.P.— — — — — — — — — 0.7 
PCG-Ares Sidecar Investment II, L.P.— — — — — — — — 1.1 16.6 
Production Resource Group, L.L.C. and PRG III, LLC— 0.4 — 2.4 — — — — 10.9 109.1 
Shock Doctor, Inc. and Shock Doctor Holdings, LLC1.6 — — — — — — — (1.9)5.7 
Totes Isotoner Corporation and Totes Ultimate Holdco, Inc.— — — 0.1 — — — — 0.1 3.8 
$3.2 $1.3 $— $3.8 $— $0.4 $— $— $13.9 $381.4 

55



(5)As defined in the Investment Company Act, the Company is deemed to be both an “Affiliated Person” and “Control” this portfolio company because it owns more than 25% of the portfolio company’s outstanding voting securities or it has the power to exercise control over the management or policies of such portfolio company (including through a management agreement). Transactions as of and during the three months ended March 31, 2023 in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to Control are as follows:
For the Three Months Ended March 31, 2023
As of March 31, 2023
(in millions)
Company
Purchases (cost)Redemptions (cost)Sales (cost)Interest incomeCapital
structuring service fees
Dividend incomeOther incomeNet realized gains (losses)Net 
unrealized gains (losses)
Fair Value
Absolute Dental Group LLC and Absolute Dental Equity, LLC$3.7 $— $— $2.0 $— $— $— $— $(0.7)$73.9 
ACAS Equity Holdings Corporation— — — — — — — — — 0.4 
ADF Capital, Inc., ADF Restaurant Group, LLC, and ARG Restaurant Holdings, Inc.— — — — — — — — — — 
CoLTs 2005-1 Ltd.— — — — — — — — — — 
Eckler Industries, Inc. and Eckler Purchaser LLC— — — — — — — — — — 
Halex Holdings, Inc.— — — — — — — — — — 
HCI Equity, LLC— — — — — — — — — — 
Heelstone Renewable Energy, LLC and Heelstone Renewable Energy Investors, LLC— — — 2.2 — — — — 11.3 223.1 
Imaging Business Machines, L.L.C. and Scanner Holdings Corporation— — — 0.6 — 0.1 0.2 — 3.5 51.5 
Ivy Hill Asset Management, L.P.283.1 192.0 — 12.7 — 57.0 — — 3.3 2,295.4 
Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC1.3 0.1 — — — — — — (8.5)37.5 
Potomac Intermediate Holdings II LLC— — — — — — — — (9.3)134.0 
PS Operating Company LLC and PS Op Holdings LLC— — — 0.5 — — — — (0.9)26.9 
Rug Doctor, LLC and RD Holdco Inc.— — — — — — — — 0.9 11.6 
S Toys Holdings LLC (fka The Step2 Company, LLC)— — — — — — — — — — 
Senior Direct Lending Program, LLC49.0 41.4 — 42.4 0.2 — 1.1 — (25.8)1,230.4 
Startec Equity, LLC— — — — — — — — — — 
VPROP Operating, LLC and V SandCo, LLC— — — 1.5 — 6.7 — — (5.4)110.7 
$337.1 $233.5 $— $61.9 $0.2 $63.8 $1.3 $— $(31.6)$4,195.4 
______________________________________________________________________

*    Together with Varagon Capital Partners (“Varagon”) and its clients, the Company has co-invested through the Senior Direct Lending Program LLC (d/b/a the “Senior Direct Lending Program” or the “SDLP”). The SDLP has been capitalized as transactions are completed and all portfolio decisions and generally all other decisions in respect of the SDLP must be approved by an investment committee of the SDLP consisting of representatives of the Company and Varagon (with approval from a representative of each required); therefore, although the Company owns more than 25% of the voting securities of the SDLP, the Company does not believe that it has control over the SDLP (for purposes of the Investment Company Act or otherwise) because, among other things, these “voting securities” do not afford the Company the right to elect directors of the SDLP or any other special rights (see Note 4 to the consolidated financial statements).

(6)    This portfolio company is not a qualifying asset under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Company's total assets. Pursuant to Section 55(a) of the Investment Company Act, 25% of the Company's total assets are represented by investments at fair value and other assets that are considered "non-qualifying assets" as of March 31, 2023.
56



(7)Variable rate loans to the Company’s portfolio companies bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR”), the Secured Overnight Financing Rate (“SOFR”), or an alternate base rate (commonly based on the Federal Funds Rate or the Prime Rate), at the borrower’s option, which reset annually (A), semi-annually (S), quarterly (Q), bi-monthly (B), monthly (M) or daily (D). For each such loan, the Company has provided the interest rate in effect on the date presented. SOFR based contracts may include a credit spread adjustment that is charged in addition to the base rate and the stated spread.

(8)In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 2.00% on $40.9 in aggregate principal amount of a “first out” tranche of the portfolio company’s senior term debt previously syndicated by the Company into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(9)The Company sold a participating interest of approximately $80.4 in aggregate principal amount outstanding of the portfolio company’s first lien senior secured revolving loan. As the transaction did not qualify as a “true sale” in accordance with GAAP, the Company recorded a corresponding $80.4 secured borrowing, at fair value, included in “secured borrowings” in the accompanying consolidated balance sheet. As of March 31, 2023, the interest rate in effect for the secured borrowing was 12.16%.

(10)Loan was on non-accrual status as of March 31, 2023.

(11)Loan includes interest rate floor feature.

(12)In addition to the interest earned based on the stated contractual interest rate of this security, the certificates entitle the holders thereof to receive a portion of the excess cash flow from the SDLP’s loan portfolio, after expenses, which may result in a return to the Company greater than the contractual stated interest rate.

(13)As of March 31, 2023, no amounts were funded by the Company under this first lien senior secured revolving loan; however, there were letters of credit issued and outstanding through a financial intermediary under the loan. See Note 7 for further information on letters of credit commitments related to certain portfolio companies.

(14)As of March 31, 2023, in addition to the amounts funded by the Company under this first lien senior secured revolving loan, there were also letters of credit issued and outstanding through a financial intermediary under the loan. See Note 7 for further information on letters of credit commitments related to certain portfolio companies.

(15)As of March 31, 2023, the Company had the following commitments to fund various revolving and delayed draw senior secured and subordinated loans, including commitments to issue letters of credit through a financial intermediary on behalf of certain portfolio companies. Such commitments are subject to the satisfaction of certain conditions set forth in the documents governing these loans and letters of credit and there can be no assurance that such conditions will be satisfied. See Note 7 for further information on revolving and delayed draw loan commitments, including commitments to issue letters of credit, related to certain portfolio companies.

57



(in millions)
Portfolio Company
Total revolving and delayed draw loan commitmentsLess: funded commitmentsTotal unfunded commitmentsLess: commitments substantially at discretion of the CompanyLess: unavailable commitments due to borrowing base or other covenant restrictionsTotal net adjusted unfunded revolving and delayed draw commitments
Absolute Dental Group LLC and Absolute Dental Equity, LLC$7.1 $(6.9)$0.2 $— $— $0.2 
Accommodations Plus Technologies LLC and Accommodations Plus Technologies Holdings LLC4.1 (4.1)— — — — 
ADG, LLC and RC IV GEDC Investor LLC20.5 (12.6)7.9 — — 7.9 
Advarra Holdings, Inc.0.4 — 0.4 — — 0.4 
AffiniPay Midco, LLC and AffiniPay Intermediate Holdings, LLC45.6 — 45.6 — — 45.6 
AI Fire Buyer, Inc. and AI Fire Parent LLC21.7 (1.9)19.8 — — 19.8 
AIM Acquisition, LLC1.8 — 1.8 — — 1.8 
Alcami Corporation and ACM Note Holdings, LLC2.6 — 2.6 — — 2.6 
American Residential Services L.L.C. and Aragorn Parent Holdings LP4.5 (2.1)2.4 — — 2.4 
Anaplan, Inc.1.4 — 1.4 — — 1.4 
Anaqua Parent Holdings, Inc. & Astorg VII Co-Invest Anaqua3.4 (0.1)3.3 — — 3.3 
Apex Service Partners, LLC8.5 — 8.5 — — 8.5 
APG Intermediate Holdings Corporation and APG Holdings, LLC0.1 — 0.1 — — 0.1 
Applied Technical Services, LLC3.7 (2.6)1.1 — — 1.1 
Appriss Health, LLC and Appriss Health Intermediate Holdings, Inc.0.1 — 0.1 — — 0.1 
Apptio, Inc.4.2 (3.8)0.4 — — 0.4 
AQ Sage Buyer, LLC6.4 — 6.4 — — 6.4 
AQ Sunshine, Inc.12.4 (3.0)9.4 — — 9.4 
Ardonagh Midco 2 plc and Ardonagh Midco 3 plc15.6 — 15.6 — — 15.6 
Argenbright Holdings V, LLC and Amberstone Security Group Limited2.5 — 2.5 — — 2.5 
ASP-r-pac Acquisition CO LLC and ASP-r-pac Holdings LP6.2 — 6.2 — — 6.2 
AthenaHealth Group Inc., Minerva Holdco, Inc. and BCPE Co-Invest (A), LP9.0 — 9.0 — — 9.0 
ATI Restoration, LLC46.6 (5.8)40.8 — — 40.8 
Atlas Intermediate III, L.L.C.0.8 (0.2)0.6 — — 0.6 
Avalara, Inc.2.7 — 2.7 — — 2.7 
Aventine Intermediate LLC & Aventine Holdings II LLC0.2 — 0.2 — — 0.2 
Avetta, LLC4.2 — 4.2 — — 4.2 
AxiomSL Group, Inc. and Calypso Group, Inc.3.9 — 3.9 — — 3.9 
Banyan Software Holdings, LLC and Banyan Software, LP12.6 (1.0)11.6 — — 11.6 
Beacon Pointe Harmony, LLC4.5 — 4.5 — — 4.5 
Belfor Holdings, Inc.25.0 (21.4)3.6 — — 3.6 
Benecon Midco II LLC and Locutus Holdco LLC4.5 — 4.5 — — 4.5 
Benefytt Technologies, Inc.0.9 — 0.9 — (0.9)— 
Berner Food & Beverage, LLC1.7 (0.9)0.8 — — 0.8 
BlueHalo Financing Holdings, LLC, BlueHalo Global Holdings, LLC, and BlueHalo, LLC3.0 (0.4)2.6 — — 2.6 
Borrower R365 Holdings LLC2.3 — 2.3 — — 2.3 
Bottomline Technologies, Inc. and Legal Spend Holdings, LLC2.3 — 2.3 — — 2.3 
Bragg Live Food Products, LLC and SPC Investment Co., L.P.4.4 (0.7)3.7 — — 3.7 
Businessolver.com, Inc.3.6 — 3.6 — — 3.6 
Cadence Aerospace, LLC15.4 (15.4)— — — — 
Caerus Midco 3 S.à r.l.4.1 — 4.1 — — 4.1 
Capstone Acquisition Holdings, Inc. and Capstone Parent Holdings, LP15.3 (8.8)6.5 — — 6.5 
Captive Resources Midco, LLC1.2 — 1.2 — — 1.2 
Cardinal Parent, Inc. and Packers Software Intermediate Holdings, Inc.5.0 (5.0)— — — — 
CCS-CMGC Holdings, Inc.12.0 (5.5)6.5 — — 6.5 
CDI Holdings III Corp. and CDI Holdings I Corp.0.9 — 0.9 — — 0.9 
Center for Autism and Related Disorders, LLC10.5 (9.2)1.3 — (1.3)— 
Centric Brands LLC and Centric Brands GP LLC8.6 (5.4)3.2 — — 3.2 
Chariot Buyer LLC12.3 (3.2)9.1 — — 9.1 
Cheyenne Petroleum Company Limited Partnership, CPC 2001 LLC and Mill Shoals LLC9.5 — 9.5 — — 9.5 
CMG HoldCo, LLC and CMG Buyer Holdings, Inc.10.2 (0.8)9.4 — — 9.4 
Cobalt Buyer Sub, Inc., Cobalt Holdings I, LP, and Cobalt Intermediate I, Inc.7.8 (2.5)5.3 — — 5.3 
Commercial Trailer Leasing, Inc.0.6 — 0.6 — — 0.6 
58


(in millions)
Portfolio Company
Total revolving and delayed draw loan commitmentsLess: funded commitmentsTotal unfunded commitmentsLess: commitments substantially at discretion of the CompanyLess: unavailable commitments due to borrowing base or other covenant restrictionsTotal net adjusted unfunded revolving and delayed draw commitments
Community Brands ParentCo, LLC7.2 — 7.2 — — 7.2 
Compex Legal Services, Inc.3.6 (2.2)1.4 — — 1.4 
Comprehensive EyeCare Partners, LLC1.9 (1.9)— — — — 
Concert Golf Partners Holdco LLC3.1 — 3.1 — — 3.1 
Consilio Midco Limited, Compusoft US LLC, and Consilio Investment Holdings, L.P.13.5 (0.9)12.6 — — 12.6 
Continental Café, LLC and Infinity Ovation Yacht Charters, LLC8.0 (0.9)7.1 — — 7.1 
Convera International Holdings Limited and Convera International Financial S.A R.L.2.3 — 2.3 — — 2.3 
CoreLogic, Inc. and T-VIII Celestial Co-Invest LP38.9 — 38.9 — — 38.9 
Cority Software Inc., Cority Software (USA) Inc., and Cority Parent, Inc.0.1 — 0.1 — — 0.1 
Cornerstone OnDemand, Inc. and Sunshine Software Holdings, Inc.38.7 (24.5)14.2 — — 14.2 
Coupa Holdings, LLC and Coupa Software Incorporated0.9 — 0.9 — — 0.9 
Covaris Intermediate 3, LLC & Covaris Parent, LLC22.2 (1.5)20.7 — — 20.7 
Coyote Buyer, LLC5.8 — 5.8 — — 5.8 
Crown CT Parent Inc., Crown CT HoldCo Inc. and Crown CT Management LLC3.2 — 3.2 — — 3.2 
CST Holding Company1.9 (0.2)1.7 — — 1.7 
CVP Holdco, Inc. and OMERS Wildcats Investment Holdings LLC22.6 — 22.6 — — 22.6 
DecoPac, Inc. and KCAKE Holdings Inc.16.5 (4.7)11.8 — — 11.8 
Denali Holdco LLC and Denali Apexco LP11.4 (3.9)7.5 — — 7.5 
DFC Global Facility Borrower III LLC96.7 (81.0)15.7 — — 15.7 
DFS Holding Company, Inc.0.4 — 0.4 — — 0.4 
Diligent Corporation and Diligent Preferred Issuer, Inc.2.2 (0.7)1.5 — — 1.5 
Display Holding Company, Inc., Saldon Holdings, Inc. and Fastsigns Holdings Inc.2.3 — 2.3 — — 2.3 
DRS Holdings III, Inc. and DRS Holdings I, Inc.10.8 — 10.8 — — 10.8 
DS Admiral Bidco, LLC0.1 — 0.1 — — 0.1 
Dye & Durham Corporation15.1 (5.0)10.1 — — 10.1 
Dynamic NC Aerospace Holdings, LLC and Dynamic NC Investment Holdings, LP7.1 (0.9)6.2 — — 6.2 
Elemica Parent, Inc. & EZ Elemica Holdings, Inc.4.1 (3.4)0.7 — — 0.7 
Elevation Services Parent Holdings, LLC17.1 (1.5)15.6 — — 15.6 
Emergency Communications Network, LLC6.9 (6.9)— — — — 
EP Wealth Advisors, LLC10.0 — 10.0 — — 10.0 
EpiServer Inc. and Episerver Sweden Holdings AB14.5 — 14.5 — — 14.5 
EPS NASS Parent, Inc.1.5 (1.0)0.5 — — 0.5 
eResearch Technology, Inc. and Astorg VII Co-Invest ERT2.5 — 2.5 — — 2.5 
ESHA Research, LLC and RMCF VI CIV XLVIII, L.P.1.1 — 1.1 — — 1.1 
Essential Services Holding Corporation and OMERS Mahomes Investment Holdings LLC28.0 (11.6)16.4 — — 16.4 
Extrahop Networks, Inc.13.0 — 13.0 — — 13.0 
Faraday Buyer, LLC4.7 — 4.7 — — 4.7 
FL Hawk Intermediate Holdings, Inc.0.5 — 0.5 — — 0.5 
Flinn Scientific, Inc. and WCI-Quantum Holdings, Inc.14.5 (7.4)7.1 — — 7.1 
FM:Systems Group, LLC1.5 — 1.5 — — 1.5 
Forescout Technologies, Inc.14.2 (0.1)14.1 — — 14.1 
Foundation Risk Partners, Corp.40.5 — 40.5 — — 40.5 
FS Squared Holding Corp. and FS Squared, LLC9.6 (0.5)9.1 — — 9.1 
Galway Borrower LLC9.8 (2.3)7.5 — — 7.5 
Genesis Acquisition Co. and Genesis Ultimate Holding Co.1.5 (1.5)— — — — 
GHX Ultimate Parent Corporation, Commerce Parent, Inc. and Commerce Topco, LLC47.5 — 47.5 — — 47.5 
GI Ranger Intermediate LLC9.2 (0.4)8.8 — — 8.8 
Global Music Rights, LLC4.3 — 4.3 — — 4.3 
GNZ Energy Bidco Limited and Galileo Co-investment Trust I3.1 — 3.1 — — 3.1 
Gotham Greens Holdings, PBC22.5 — 22.5 — (12.9)9.6 
GraphPAD Software, LLC, Insightful Science Intermediate I, LLC and Insightful Science Holdings, LLC5.0 — 5.0 — — 5.0 
GroundWorks, LLC1.9 — 1.9 — — 1.9 
59


(in millions)
Portfolio Company
Total revolving and delayed draw loan commitmentsLess: funded commitmentsTotal unfunded commitmentsLess: commitments substantially at discretion of the CompanyLess: unavailable commitments due to borrowing base or other covenant restrictionsTotal net adjusted unfunded revolving and delayed draw commitments
HAI Acquisition Corporation and Aloha Topco, LLC19.0 — 19.0 — — 19.0 
Harvey Tool Company, LLC28.5 (5.2)23.3 — — 23.3 
HealthEdge Software, Inc.33.5 (2.7)30.8 — — 30.8 
Heavy Construction Systems Specialists, LLC4.0 — 4.0 — — 4.0 
Help/Systems Holdings, Inc.7.5 — 7.5 — — 7.5 
HGC Holdings, LLC7.5 — 7.5 — — 7.5 
HH-Stella, Inc. and Bedrock Parent Holdings, LP11.7 (2.8)8.9 — — 8.9 
High Street Buyer, Inc. and High Street Holdco LLC25.5 — 25.5 — — 25.5 
Highline Aftermarket Acquisition, LLC, Highline Aftermarket SC Acquisition, Inc. and Highline PPC Blocker LLC9.5 (0.3)9.2 — — 9.2 
Hometown Food Company3.9 — 3.9 — — 3.9 
Huskies Parent, Inc., GI Insurity Parent LLC and GI Insurity TopCo LP22.6 (9.4)13.2 — — 13.2 
Infinity Home Services HoldCo, Inc. and IHS Parent Holdings, L.P.8.4 (0.4)8.0 — — 8.0 
Inszone Mid, LLC and INSZ Holdings, LLC15.8 — 15.8 — — 15.8 
IQN Holding Corp.6.8 — 6.8 — — 6.8 
ISQ Hawkeye Holdco, Inc. and ISQ Hawkeye Holdings, L.P.9.8 (3.7)6.1 — — 6.1 
ITI Holdings, Inc.7.6 (7.6)— — — — 
JDC Healthcare Management, LLC4.9 (4.9)— — — — 
K2 Insurance Services, LLC and K2 Holdco LP8.2 — 8.2 — — 8.2 
Kaseya Inc. and Knockout Intermediate Holdings I Inc.31.2 (1.3)29.9 — — 29.9 
KBHS Acquisition, LLC (d/b/a Alita Care, LLC)5.0 (4.3)0.7 — — 0.7 
Kene Acquisition, Inc. and Kene Holdings, L.P.8.9 (0.2)8.7 — — 8.7 
Laboratories Bidco LLC and Laboratories Topco LLC41.3 (13.4)27.9 — — 27.9 
LeanTaaS Holdings, Inc.48.6 — 48.6 — — 48.6 
Leviathan Intermediate Holdco, LLC and Leviathan Holdings, L.P.1.5 (0.2)1.3 — — 1.3 
Lew's Intermediate Holdings, LLC2.3 — 2.3 — — 2.3 
Lido Advisors, LLC0.8 (0.6)0.2 — — 0.2 
LJ Perimeter Buyer, Inc. and LJ Perimeter Co-Invest, L.P.9.6 — 9.6 — — 9.6 
LJP Purchaser, Inc. and LJP Topco, LP4.4 — 4.4 — — 4.4 
Lower ACS, Inc.25.9 — 25.9 — — 25.9 
Majesco and Magic Topco, L.P.2.0 — 2.0 — — 2.0 
Manna Pro Products, LLC7.0 (5.1)1.9 — — 1.9 
Marmic Purchaser, LLC and Marmic Topco, L.P.6.4 — 6.4 — — 6.4 
Mavis Tire Express Services Topco Corp., Metis Holdco, Inc. and Metis Topco, LP32.9 (19.0)13.9 — — 13.9 
McKenzie Creative Brands, LLC4.5 — 4.5 — — 4.5 
Medline Borrower, LP6.9 (0.1)6.8 — — 6.8 
Micromeritics Instrument Corp.4.1 — 4.1 — — 4.1 
Mimecast Borrowerco, Inc. and Magnesium Co- Invest SCSp15.1 — 15.1 — — 15.1 
Ministry Brands Holdings, LLC and RCP MB Investments B, L.P.28.4 (2.0)26.4 — — 26.4 
Monica Holdco (US) Inc.3.6 (3.6)— — — — 
Moonraker AcquisitionCo LLC and Moonraker HoldCo LLC19.0 — 19.0 — — 19.0 
MRI Software LLC7.9 — 7.9 — — 7.9 
Murchison Oil and Gas, LLC and Murchison Holdings, LLC9.2 — 9.2 — — 9.2 
n2y Holding, LLC0.1 (0.1)— — — — 
NAS, LLC and Nationwide Marketing Group, LLC3.0 (0.6)2.4 — — 2.4 
National Intergovernmental Purchasing Alliance Company9.0 — 9.0 — — 9.0 
NCWS Intermediate, Inc. and NCWS Holdings LP28.1 — 28.1 — — 28.1 
Nelipak Holding Company, Nelipak European Holdings Cooperatief U.A., KNPAK Holdings, LP and PAKNK Netherlands Treasury B.V.0.6 (0.2)0.4 — — 0.4 
Neptune Bidco US Inc. and Elliott Metron Co-Investor Aggregator L.P.12.6 — 12.6 — — 12.6 
NMC Skincare Intermediate Holdings II, LLC12.7 — 12.7 — — 12.7 
NMN Holdings III Corp. and NMN Holdings LP12.5 (6.1)6.4 — — 6.4 
Noble Aerospace, LLC5.6 (2.2)3.4 — — 3.4 
North American Fire Holdings, LLC and North American Fire Ultimate Holdings, LLC8.1 — 8.1 — — 8.1 
North Haven Fairway Buyer, LLC, Fairway Lawns, LLC and Command Pest Control, LLC13.8 — 13.8 — — 13.8 
North Haven Stack Buyer, LLC4.3 (1.0)3.3 — — 3.3 
60


(in millions)
Portfolio Company
Total revolving and delayed draw loan commitmentsLess: funded commitmentsTotal unfunded commitmentsLess: commitments substantially at discretion of the CompanyLess: unavailable commitments due to borrowing base or other covenant restrictionsTotal net adjusted unfunded revolving and delayed draw commitments
Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC5.2 — 5.2 — (0.5)4.7 
OneDigital Borrower LLC7.5 (0.4)7.1 — — 7.1 
Pathway Vet Alliance LLC and Jedi Group Holdings LLC1.9 — 1.9 — — 1.9 
Patriot Growth Insurance Services, LLC2.2 — 2.2 — — 2.2 
PDDS HoldCo, Inc.2.1 — 2.1 — — 2.1 
PDI TA Holdings, Inc., Peachtree Parent, Inc. and Insight PDI Holdings, LLC7.6 (3.8)3.8 — — 3.8 
Pegasus Global Enterprise Holdings, LLC, Mekone Blocker Acquisition, Inc. and Mekone Parent, LLC11.6 (3.9)7.7 — — 7.7 
Pelican Products, Inc.2.3 — 2.3 — — 2.3 
People Corporation20.2 (1.3)18.9 — — 18.9 
Perforce Software, Inc.0.5 — 0.5 — — 0.5 
PestCo Holdings, LLC and PestCo, LLC0.9 — 0.9 — — 0.9 
Petroleum Service Group LLC17.5 (3.5)14.0 — — 14.0 
Petrus Buyer, Inc.2.7 — 2.7 — — 2.7 
Petvisor Holdings, LLC31.8 — 31.8 — — 31.8 
Ping Identity Holding Corp.0.2 — 0.2 — — 0.2 
Pluralsight, Inc.0.3 (0.2)0.1 — — 0.1 
Precision Concepts International LLC and Precision Concepts Canada Corporation19.2 (8.2)11.0 — — 11.0 
Premier Specialties, Inc. and RMCF V CIV XLIV, L.P.11.0 (2.3)8.7 — — 8.7 
Premise Health Holding Corp. and OMERS Bluejay Investment Holdings LP36.0 (0.6)35.4 — — 35.4 
Prime Buyer, L.L.C.15.9 (0.7)15.2 — — 15.2 
ProfitSolv Purchaser, Inc. and PS Co-Invest, L.P.0.1 — 0.1 — — 0.1 
Project Essential Bidco, Inc. and Project Essential Super Parent, Inc.1.1 — 1.1 — — 1.1 
Project Potter Buyer, LLC and Project Potter Parent, L.P.5.5 (2.1)3.4 — — 3.4 
Proofpoint, Inc.3.1 — 3.1 — — 3.1 
PS Operating Company LLC and PS Op Holdings LLC5.9 (4.5)1.4 — — 1.4 
Pueblo Mechanical and Controls, LLC and OMERS PMC Investment Holdings LLC2.2 (0.4)1.8 — — 1.8 
Pyramid-BMC IntermediateCo I, LLC and Pyramid Investors, LLC1.6 — 1.6 — — 1.6 
QF Holdings, Inc.1.1 (0.2)0.9 — — 0.9 
Qnnect, LLC and Connector TopCo, LP2.7 — 2.7 — — 2.7 
Radius Aerospace, Inc. and Radius Aerospace Europe Limited2.8 (0.6)2.2 — — 2.2 
Radwell Parent, LLC4.4 (0.6)3.8 — — 3.8 
Raptor Technologies, LLC, Sycamore Bidco LTD and Rocket Parent, LLC4.4 — 4.4 — — 4.4 
RB Holdings InterCo, LLC5.6 (1.8)3.8 — — 3.8 
Reddy Ice LLC0.2 (0.1)0.1 — — 0.1 
Redwood Services, LLC and Redwood Services Holdco, LLC3.8 — 3.8 — — 3.8 
Reef Lifestyle, LLC53.0 (53.0)— — — — 
Registrar Intermediate, LLC and PSP Registrar Co-Investment Fund, L.P.28.0 — 28.0 — — 28.0 
Relativity ODA LLC3.8 — 3.8 — — 3.8 
Repairify, Inc. and Repairify Holdings, LLC7.3 (1.2)6.1 — — 6.1 
Revalize, Inc.0.9 — 0.9 — — 0.9 
Rialto Management Group, LLC1.3 (0.3)1.0 — — 1.0 
Riser Merger Sub, Inc.1.4 (0.4)1.0 — — 1.0 
RMS HoldCo II, LLC & RMS Group Holdings, Inc.2.9 — 2.9 — — 2.9 
Rodeo AcquisitionCo LLC6.2 (1.7)4.5 — — 4.5 
RSC Acquisition, Inc. and RSC Insurance Brokerage, Inc.0.6 (0.3)0.3 — — 0.3 
RTI Surgical, Inc. and Pioneer Surgical Technology, Inc.15.9 (6.1)9.8 — — 9.8 
SageSure Holdings, LLC & Insight Catastrophe Group, LLC3.1 — 3.1 — — 3.1 
Schill Landscaping and Lawn Care Services LLC, Tender Lawn Care ULC and Landscape Parallel Partners, L.P.3.3 (0.5)2.8 — — 2.8 
SCIH Salt Holdings Inc.7.5 — 7.5 — — 7.5 
SCM Insurance Services Inc.4.0 — 4.0 — — 4.0 
SFE Intermediate Holdco LLC15.2 (8.3)6.9 — — 6.9 
Shermco Intermediate Holdings, Inc.4.0 (1.6)2.4 — — 2.4 
61


(in millions)
Portfolio Company
Total revolving and delayed draw loan commitmentsLess: funded commitmentsTotal unfunded commitmentsLess: commitments substantially at discretion of the CompanyLess: unavailable commitments due to borrowing base or other covenant restrictionsTotal net adjusted unfunded revolving and delayed draw commitments
Shock Doctor, Inc. and Shock Doctor Holdings, LLC2.5 (1.7)0.8 — — 0.8 
Shur-Co Acquisition, Inc. and Shur-Co Holdco, Inc.5.0 — 5.0 — — 5.0 
SiroMed Physician Services, Inc. and SiroMed Equity Holdings, LLC7.1 — 7.1 — — 7.1 
SM Wellness Holdings, Inc. and SM Holdco, LLC3.8 — 3.8 — — 3.8 
Smarsh Inc. and Skywalker TopCo, LLC2.0 (0.1)1.9 — — 1.9 
Spirit RR Holdings, Inc. and Winterfell Co-Invest SCSp1.7 — 1.7 — — 1.7 
Star US Bidco LLC8.5 — 8.5 — — 8.5 
Sun Acquirer Corp. and Sun TopCo, LP21.3 (1.6)19.7 — — 19.7 
Sundance Group Holdings, Inc.3.0 (0.3)2.7 — — 2.7 
Sunk Rock Foundry Partners LP, Hatteras Electrical Manufacturing Holding Company and Sigma Electric Manufacturing Corporation, Diecast Beacon6.0 (0.3)5.7 — — 5.7 
Sunrun Luna Holdco 2021, LLC75.0 (65.3)9.7 — — 9.7 
SV-Burton Holdings, LLC and LBC Breeze Holdings LLC12.5 (0.4)12.1 — — 12.1 
Symplr Software Inc. and Symplr Software Intermediate Holdings, Inc.7.0 — 7.0 — — 7.0 
Synergy HomeCare Franchising, LLC and NP/Synergy Holdings, LLC4.2 — 4.2 — — 4.2 
Systems Planning and Analysis, Inc.4.0 (1.1)2.9 — — 2.9 
TA/WEG Holdings, LLC2.0 — 2.0 — — 2.0 
Tamarack Intermediate, L.L.C. and Tamarack Parent, L.L.C.7.5 (1.2)6.3 — — 6.3 
Taymax Group, L.P., Taymax Group G.P., LLC, PF Salem Canada ULC and TCP Fit Parent, L.P.1.7 (1.1)0.6 — — 0.6 
TCP Hawker Intermediate LLC0.2 — 0.2 — — 0.2 
TerSera Therapeutics LLC0.1 — 0.1 — — 0.1 
The Alaska Club Partners, LLC, Athletic Club Partners LLC and The Alaska Club, Inc.1.1 — 1.1 — — 1.1 
The Arcticom Group, LLC and AMCP Mechanical Holdings, LP12.6 (7.5)5.1 — — 5.1 
The Mather Group, LLC, TVG-TMG Topco, Inc., and TVG-TMG Holdings, LLC1.5 — 1.5 — — 1.5 
The NPD Group, L.P., IRI Group Holdings, Inc., Information Resources, Inc. and IRI-NPD Co-Invest Aggregator, L.P.14.4 (2.1)12.3 — — 12.3 
The Ultimus Group Midco, LLC, The Ultimus Group, LLC, and The Ultimus Group Aggregator, LP6.9 — 6.9 — — 6.9 
Thermostat Purchaser III, Inc.11.7 (0.2)11.5 — — 11.5 
THG Acquisition, LLC14.9 (1.0)13.9 — — 13.9 
TibCo Software Inc., Picard Parent, Inc., Picard MidCo, Inc., Picard HoldCo, LLC and Elliott Alto Co-Investor Aggregator L.P.19.0 — 19.0 — — 19.0 
Trader Corporation and Project Auto Finco Corp.0.6 — 0.6 — — 0.6 
Two Six Labs, LLC10.3 — 10.3 — — 10.3 
UKG Inc. and H&F Unite Partners, L.P.25.0 (11.0)14.0 — — 14.0 
United Digestive MSO Parent, LLC and Koln Co-Invest Unblocked, LP8.6 — 8.6 — — 8.6 
US Salt Investors, LLC and Emerald Lake Pearl Acquisition-A, L.P.9.9 — 9.9 — — 9.9 
Verista, Inc.8.2 (2.4)5.8 — — 5.8 
Verscend Holding Corp.22.5 — 22.5 — — 22.5 
VPP Intermediate Holdings, LLC and VPP Group Holdings, L.P.7.6 (0.2)7.4 — — 7.4 
VRC Companies, LLC5.4 — 5.4 — — 5.4 
VS Buyer, LLC8.1 — 8.1 — — 8.1 
Waverly Advisors, LLC0.2 — 0.2 — — 0.2 
WebPT, Inc.0.9 (0.6)0.3 — — 0.3 
Wellness AcquisitionCo, Inc.3.9 — 3.9 — — 3.9 
Wildcat BuyerCo, Inc. and Wildcat Parent, LP4.1 (0.8)3.3 — — 3.3 
WorkWave Intermediate II, LLC5.2 — 5.2 — — 5.2 
Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P.4.0 (0.7)3.3 — — 3.3 
WSHP FC Acquisition LLC and WSHP FC Holdings LLC33.8 (13.7)20.1 — — 20.1 
XIFIN, Inc. and ACP Charger Co-Invest LLC5.6 (2.2)3.4 — — 3.4 
YE Brands Holdings, LLC2.2 — 2.2 — — 2.2 
ZB Holdco LLC & ZB Parent LLC8.3 (0.1)8.2 — — 8.2 
ZenDesk, Inc., Zoro TopCo, Inc. and Zoro TopCo, LP12.8 — 12.8 — — 12.8 
$2,559.4 $(609.4)$1,950.0 $— $(15.6)$1,934.4 

(16)As of March 31, 2023, the Company was party to agreements to fund equity investment commitments as follows:
62


(in millions)
Company
Total equity commitmentsLess: funded equity commitmentsTotal unfunded equity commitmentsLess: equity commitments substantially at the discretion of the CompanyTotal net adjusted unfunded equity commitments
Apex Clean Energy TopCo, LLC$36.2 $— $36.2 $— $36.2 
AthenaHealth Group Inc., Minerva Holdco, Inc. and BCPE Co-Invest (A), LP1.2 — 1.2 — 1.2 
Athyrium Buffalo LP7.9 — 7.9 (7.9)— 
European Capital UK SME Debt LP55.6 (50.3)5.3 (5.3)— 
High Street Buyer, Inc. and High Street Holdco LLC13.5 — 13.5 — 13.5 
LJ Perimeter Buyer, Inc. and LJ Perimeter Co-Invest, L.P.1.9 — 1.9 — 1.9 
Mimecast Borrowerco, Inc. and Magnesium Co- Invest SCSp1.0 — 1.0 — 1.0 
PCG-Ares Sidecar Investment, L.P. and PCG-Ares Sidecar Investment II, L.P.50.0 (12.4)37.6 (37.6)— 
Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P.0.2 — 0.2 — 0.2 
$167.5 $(62.7)$104.8 $(50.8)$54.0 

(17)As of March 31, 2023, the Company had commitments to co-invest in the SDLP for its portion of the SDLP’s commitment to fund delayed draw loans of up to $50. See Note 4 to the consolidated financial statements for more information on the SDLP.

(18)Other than the investments noted by this footnote, the fair value of the Company’s investments is determined using unobservable inputs that are significant to the overall fair value measurement. See Note 8 to the consolidated financial statements for more information regarding the fair value of the Company’s investments.

(19)As of March 31, 2023, the estimated net unrealized loss for federal tax purposes was $0.3 billion based on a tax cost basis of $21.5 billion. As of March 31, 2023, the estimated aggregate gross unrealized loss for federal income tax purposes was $1.4 billion and the estimated aggregate gross unrealized gain for federal income tax purposes was $1.1 billion.     
63

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

Company (1)Business DescriptionInvestmentCoupon (3)Reference (7)Spread (3)Acquisition DateMaturity DateShares/UnitsPrincipalAmortized CostFair Value% of Net Assets
Software and Services
2U, Inc.Provider of course design and learning management system to educational institutionsFirst lien senior secured loan10.16%LIBOR (Q)5.75%6/202112/2024$14.6 $14.4 $14.3 (2)(6)(11)
AffiniPay Midco, LLC and AffiniPay Intermediate Holdings, LLC (15)Payment processing solution providerFirst lien senior secured loan10.64%SOFR (A)5.75%6/20226/2028120.6 118.4 115.7 (2)(11)
First lien senior secured loan10.45%SOFR (A)5.75%2/20206/202863.3 63.3 60.8 (2)(11)
Senior subordinated loan
14.70% PIK
SOFR (Q)10.00%2/20206/203056.8 56.8 54.4 (2)(11)
238.5 230.9 
Anaplan, Inc. (15)Provider of cloud-based connected planning platforms for business analyticsFirst lien senior secured loan10.82%SOFR (M)6.50%6/20226/20291.8 1.8 1.7 (2)(11)
Anaqua Parent Holdings, Inc. & Astorg VII Co-Invest Anaqua (15)Provider of intellectual property management lifecycle softwareFirst lien senior secured loan7.52%Euribor (S)5.50%4/20194/20264.4 4.6 4.4 (2)
First lien senior secured loan9.11%LIBOR (S)5.25%6/20214/20261.0 1.0 1.0 (2)(11)
Limited partnership units6/20194,400,0004.2 8.3 (2)(6)
9.8 13.7 
APG Intermediate Holdings Corporation and APG Holdings, LLC (4)(15)Aircraft performance software providerFirst lien senior secured loan10.36%LIBOR (S)5.25%1/20201/202513.3 13.3 13.2 (2)(11)
Class A membership Units1/20209,750,0009.8 8.6 (2)
23.1 21.8 
Appriss Health, LLC and Appriss Health Intermediate Holdings, Inc. (15)Software platform for identification, prevention and management of substance use disorderFirst lien senior secured loan11.54%LIBOR (M)7.25%5/20215/20275.7 5.7 5.7 (2)(11)
Series A preferred shares
11.00% PIK
5/202132,23638.7 35.6 (2)
44.4 41.3 
Apptio, Inc. (15)Provider of cloud-based technology business management solutionsFirst lien senior secured revolving loan9.93%LIBOR (Q)6.00%1/20191/20252.5 2.5 2.5 (2)(11)
First lien senior secured loan9.94%LIBOR (Q)6.00%1/20191/202515.1 15.1 15.1 (2)(11)
17.6 17.6 
Avalara, Inc. (15)Provider of cloud-based solutions for transaction tax compliance worldwideFirst lien senior secured loan11.83%SOFR (Q)7.25%10/202210/202872.2 72.2 70.4 (2)(11)
Avetta, LLC (15)Supply chain risk management SaaS platform for global enterprise clientsFirst lien senior secured loan10.16%LIBOR (Q)5.75%7/20214/20240.2 0.2 0.1 (2)(11)
AxiomSL Group, Inc. and Calypso Group, Inc. (15)Provider of risk data management and regulatory reporting softwareFirst lien senior secured loan10.13%LIBOR (M)5.75%7/202112/202721.2 20.8 21.2 (2)(11)
Banyan Software Holdings, LLC and Banyan Software, LP (15)Vertical software businesses holding companyFirst lien senior secured revolving loan10.88%LIBOR (Q)6.50%10/202010/20250.9 0.9 0.9 (2)(11)
First lien senior secured loan11.23%LIBOR (Q)6.50%12/202110/202620.3 20.3 20.3 (2)(11)
First lien senior secured loan11.23%LIBOR (Q)6.50%10/202010/20261.0 1.0 1.0 (2)(11)
64

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

Preferred units1/2022120,9994.1 5.4 (2)
26.3 27.6 
Borrower R365 Holdings LLC (15)Provider of restaurant enterprise resource planning systemsFirst lien senior secured loan
8.23% (3.00% PIK)
LIBOR (Q)3.50%6/20216/202715.9 15.7 15.9 (2)(11)
First lien senior secured loan
8.23% (3.00% PIK)
LIBOR (Q)3.50%1/20226/20271.4 1.4 1.4 (2)(11)
17.1 17.3 
Bottomline Technologies, Inc. (15)Provider of payment automation solutionsFirst lien senior secured loan9.82%SOFR (M)5.50%5/20225/202918.0 18.0 17.6 (2)(11)
Businessolver.com, Inc. (15)Provider of SaaS-based benefits solutions for employers and employeesFirst lien senior secured loan9.67%LIBOR (S)5.50%12/202112/202714.7 14.7 14.5 (2)(11)
CallMiner, Inc.Provider of cloud-based conversational analytics solutionsWarrant to purchase shares of Series 1 preferred stock7/20147/20242,350,636— — 
Cardinal Parent, Inc. and Packers Software Intermediate Holdings, Inc. (15)Provider of software and technology-enabled content and analytical solutions to insurance brokersFirst lien senior secured revolving loan11.00%Base Rate (Q)3.50%11/202011/20253.4 3.4 3.0 (2)(11)
Second lien senior secured loan12.46%LIBOR (Q)7.75%11/202011/202864.3 64.3 57.8 (2)(11)
Series A preferred shares
15.73% PIK
LIBOR (Q)11.00%11/202024,89832.1 26.3 (2)
Series A-2 preferred shares
15.73% PIK
LIBOR (Q)11.00%12/20208,96311.4 9.4 (2)
Series A-3 preferred shares
11.00% PIK
11/202111,95213.5 11.1 (2)
124.7 107.6 
Community Brands ParentCo, LLC (15)Software and payment services provider to non-profit institutionsFirst lien senior secured loan10.17%SOFR (M)5.75%2/20222/202810.6 10.6 10.4 (2)(11)
Class A units12/2016500,0005.0 6.4 (2)
15.6 16.8 
Computer Services, Inc.Infrastructure software provider to community banksFirst lien senior secured loan11.15%SOFR (Q)6.75%11/202211/202934.1 34.1 33.0 (2)(11)
Consilio Midco Limited, Compusoft US LLC, and Consilio Investment Holdings, L.P. (15)Provider of sales software for the interior design industryFirst lien senior secured revolving loan8.32%EURIBOR (Q)6.25%11/20215/20280.8 0.8 0.8 (2)(6)(11)
First lien senior secured loan10.48%SOFR (Q)5.75%6/20225/202811.7 11.7 11.4 (2)(6)(11)
First lien senior secured loan10.48%SOFR (Q)5.75%5/20215/202874.8 74.8 72.6 (2)(6)(11)
First lien senior secured loan8.39%Euribor (Q)6.25%11/20215/202826.9 28.3 26.1 (2)(6)
Common units5/20214,799,0004.8 6.5 (2)(6)
Series A common units9/202223,3400.2 — (2)(6)
120.6 117.4 
CoreLogic, Inc. and T-VIII Celestial Co-Invest LP (15)Provider of information, insight, analytics, software and other outsourced services primarily to the mortgage, real estate and insurance sectorsSecond lien senior secured loan10.94%LIBOR (M)6.50%6/20216/2029155.7 155.7 129.2 (2)(11)
Limited partnership units4/202159,665,98959.7 48.8 (2)
215.4 178.0 
Cority Software Inc., Cority Software (USA) Inc., and Cority Parent, Inc. (15)Provider of environmental, health and safety software to track compliance dataFirst lien senior secured loan10.31%SOFR (Q)6.00%9/20227/20266.2 6.2 6.2 (2)(6)(11)
First lien senior secured loan9.06%SOFR (Q)5.50%10/20197/20264.4 4.4 4.3 (2)(6)(11)
65

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

First lien senior secured loan11.06%SOFR (Q)7.50%9/20207/20260.1 0.1 0.1 (2)(6)(11)
First lien senior secured loan9.06%SOFR (Q)5.50%7/20197/20266.3 6.3 6.2 (2)(6)(11)
Preferred equity
9.00% PIK
7/20191980.3 0.7 (2)(6)
Common equity7/2019190,143— — (2)(6)
17.3 17.5 
Cornerstone OnDemand, Inc. and Sunshine Software Holdings, Inc. (15)Provider of a cloud-based, SaaS platform for talent managementFirst lien senior secured revolving loan7.51%LIBOR (M)3.25%10/202110/202621.9 21.9 19.7 (2)(14)
Second lien senior secured loan10.88%LIBOR (M)6.50%10/202110/2029137.5 137.5 123.7 (2)(11)
Series A preferred shares
10.50% PIK
10/2021116,413131.8 109.4 (2)
Class A-1 common stock10/20211,360,10013.6 15.2 (2)
304.8 268.0 
Datix Bidco LimitedGlobal healthcare software company that provides software solutions for patient safety and risk managementFirst lien senior secured loan8.95%SOFR (S)4.50%11/20224/20254.3 4.2 4.2 (2)(6)
Second lien senior secured loan12.20%SOFR (S)7.75%11/20224/20260.7 0.7 0.7 (2)(6)
4.9 4.9 
Dcert Buyer, Inc., DCert Preferred Holdings, Inc. and Destiny Digital Holdings, L.P.Provider of internet security tools and solutionsFirst lien senior secured loan8.70%SOFR (S)4.00%5/202210/20261.0 1.0 0.9 (2)
Second lien senior secured loan11.70%SOFR (S)7.00%5/20222/202911.0 10.3 10.7 (2)
Series A preferred shares
10.50% PIK
5/2021129,822153.0 134.6 (2)
Series A units5/2021817,19413.3 12.5 (2)
177.6 158.7 
Denali Holdco LLC and Denali Apexco LP (15)Provider of cybersecurity audit and assessment servicesFirst lien senior secured loan10.52%LIBOR (Q)5.75%7/20229/20270.1 0.1 0.1 (2)(11)
First lien senior secured loan10.52%LIBOR (Q)5.75%9/20219/20270.1 0.1 0.1 (2)(11)
Class A units2/20222,549,0002.5 2.4 (2)
2.7 2.6 
Diligent Corporation and Diligent Preferred Issuer, Inc. (15)Provider of secure SaaS solutions for board and leadership team documentsFirst lien senior secured revolving loan10.63%LIBOR (M)6.25%8/20208/20250.7 0.6 0.7 (2)(11)(14)
First lien senior secured loan10.63%LIBOR (M)6.25%8/20208/202535.9 35.4 35.2 (2)(11)
First lien senior secured loan10.63%LIBOR (M)6.25%7/20218/20252.0 2.0 2.0 (2)(11)
First lien senior secured loan10.13%LIBOR (M)5.75%3/20218/20250.1 0.1 0.1 (2)(11)
First lien senior secured loan10.13%LIBOR (M)5.75%4/20218/20250.1 0.1 0.1 (2)(11)
Preferred stock
10.50% PIK
4/202113,14015.0 13.8 (2)
53.2 51.9 
Drilling Info Holdings, Inc. and Titan DI Preferred Holdings, Inc.SaaS based business analytics company focused on oil and gas industrySecond lien senior secured loan12.63%LIBOR (M)8.25%2/20207/202625.0 25.0 24.8 (2)
Preferred stock
13.50% PIK
2/202029.5342.4 41.6 (2)
67.4 66.4 
DS Admiral Bidco, LLC (15)Tax return software provider for government institutionsFirst lien senior secured loan10.16%LIBOR (Q)5.75%3/20213/20280.1 0.1 0.1 (2)(11)
66

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

Dye & Durham Corporation (15)Provider of cloud-based software and technology solutions for the legal industryFirst lien senior secured revolving loan11.20%CDOR (M)4.75%12/202112/20265.0 5.0 5.0 (2)(6)(11)
First lien senior secured loan10.69%CDOR (Q)5.75%12/202112/202740.0 42.2 40.0 (2)(6)(11)
47.2 45.0 
Elemica Parent, Inc. & EZ Elemica Holdings, Inc. (15)SaaS based supply chain management software provider focused on chemical marketsFirst lien senior secured revolving loan10.51%SOFR (Q)6.00%9/20199/20254.1 4.1 4.0 (2)(11)
First lien senior secured loan10.74%LIBOR (Q)6.00%9/20199/202550.0 50.0 48.5 (2)(11)
First lien senior secured loan10.68%SOFR (Q)6.00%9/20199/202511.3 11.3 11.0 (2)(11)
First lien senior secured loan10.68%SOFR (Q)6.00%12/20209/20255.7 5.7 5.6 (2)(11)
Preferred equity9/20194,5994.6 5.3 (2)
75.7 74.4 
EP Purchaser, LLC and TPG VIII EP Co-Invest II, L.P.Provider of entertainment workforce and production management solutionsSecond lien senior secured loan11.23%LIBOR (Q)6.50%11/202111/2029177.9 177.9 176.1 (2)(11)
Partnership units5/20195,034,4833.2 11.7 (2)(6)
181.1 187.8 
EpiServer Inc. and Episerver Sweden Holdings AB (15)Provider of web content management and digital commerce solutionsFirst lien senior secured loan6.69%Euribor (Q)5.50%3/20194/20265.6 5.9 5.5 (2)(6)
First lien senior secured loan9.98%LIBOR (Q)5.25%12/20214/20260.1 0.1 0.1 (2)(6)(11)
First lien senior secured loan9.98%LIBOR (Q)5.25%10/20184/20260.1 0.1 0.1 (2)(6)(11)
6.1 5.7 
eResearch Technology, Inc. and Astorg VII Co-Invest ERT (15)Provider of mission-critical, software-enabled clinical research solutionsSecond lien senior secured loan12.07%LIBOR (M)8.00%4/20212/202830.6 29.8 27.2 (2)(11)
Second lien senior secured loan12.38%LIBOR (M)8.00%2/20202/202817.2 16.9 15.3 (2)(11)
Limited partnership interest1/20203,988,0004.5 3.7 (2)(6)
51.246.2
ESHA Research, LLC and RMCF VI CIV XLVIII, L.P. (15)Provider of nutritional information and software as a services (SaaS) compliance solutionsFirst lien senior secured loan10.07%SOFR (Q)6.25%6/20226/20286.86.86.7(2)(11)
Limited partner interests6/20226,046,6286.06.0
12.812.7
Extrahop Networks, Inc. (15)Provider of real-time wire data analytics solutions for application and infrastructure monitoringFirst lien senior secured loan12.23%LIBOR (Q)7.50%7/20217/202720.220.220.2(2)(11)
First Insight, Inc.Software company providing merchandising and pricing solutions to companies worldwideWarrant to purchase units of Series C preferred stock3/20143/2024122,827— — 
FM:Systems Group, LLC (15)Provider of facilities and space management software solutionsFirst lien senior secured loan9.13%LIBOR (S)5.75%12/201912/20240.10.10.1(2)(11)
First lien senior secured loan10.96%LIBOR (S)5.75%6/202112/20240.10.10.1(2)(11)
0.20.2
Forescout Technologies, Inc. (15)Network access control solutions providerFirst lien senior secured loan
14.23% (9.50% PIK)
LIBOR (Q)9.50%8/20208/202623.823.523.8(2)(11)
67

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

First lien senior secured loan
13.73% PIK
LIBOR (Q)9.00%7/20228/202612.612.612.6(2)(11)
36.136.4
Genesis Acquisition Co. and Genesis Ultimate Holding Co. (15)Child care management software and services providerFirst lien senior secured revolving loan7.92%LIBOR (S)3.75%7/20187/20241.51.51.5(2)
First lien senior secured loan7.92%LIBOR (S)3.75%7/20187/20240.20.20.2(2)
First lien senior secured loan8.42%LIBOR (Q)4.25%11/20217/20240.1 0.1 0.1 (2)(11)
Second lien senior secured loan11.24%LIBOR (Q)7.50%7/20187/202532.4 32.4 31.7 (2)
Second lien senior secured loan11.24%LIBOR (Q)7.50%11/20217/202521.1 21.1 20.7 (2)(11)
Second lien senior secured loan11.24%LIBOR (Q)7.50%6/20217/20257.5 7.5 7.4 (2)
Class A common stock7/20188.390.8 1.4 (2)
63.6 63.0 
GI Ranger Intermediate LLC (15)Provider of payment processing services and software to healthcare providersFirst lien senior secured revolving loan10.73%SOFR (Q)6.00%10/202110/20270.4 0.4 0.4 (2)(11)
First lien senior secured loan10.73%SOFR (Q)6.00%10/202110/202810.2 10.2 10.0 (2)(11)
First lien senior secured loan10.73%SOFR (Q)6.00%3/202210/20281.8 1.8 1.7 (2)(11)
12.4 12.1 
GraphPAD Software, LLC, Insightful Science Intermediate I, LLC and Insightful Science Holdings, LLC (15)Provider of data analysis, statistics, and visualization software solutions for scientific research applicationsFirst lien senior secured loan10.73%LIBOR (Q)6.00%12/20174/20270.2 0.2 0.2 (2)(11)
First lien senior secured loan10.23%LIBOR (Q)5.50%11/20214/20270.1 0.1 0.1 (2)(11)
First lien senior secured loan10.23%LIBOR (Q)5.50%10/20214/20270.1 0.1 0.1 (2)(11)
First lien senior secured loan10.43%LIBOR (Q)5.50%4/20214/20270.1 0.1 0.1 (2)(11)
Senior subordinated loan
10.50% PIK
4/20214/203243.5 43.5 40.0 (2)
Preferred units
14.00% PIK
4/20211,828,64457.5 57.5 
101.5 98.0 
GSV PracticeTek Holdings, LLCSoftware provider for medical practitionersClass A units
8.00% PIK
3/202112,827,4821.1 14.0 (2)
Heavy Construction Systems Specialists, LLC (15)Provider of construction softwareFirst lien senior secured loan9.88%LIBOR (M)5.50%11/202111/20280.1 0.1 0.1 (2)(11)
Huskies Parent, Inc., GI Insurity Parent LLC and GI Insurity TopCo LP (15)Insurance software providerFirst lien senior secured revolving loan10.23%LIBOR (Q)5.50%11/202111/20279.4 9.4 8.7 (2)(11)
First lien senior secured loan10.23%LIBOR (Q)5.50%11/202111/202860.4 60.4 56.1 (2)(11)
Senior subordinated loan
10.00% PIK
11/202111/203199.5 99.5 82.6 (2)
Common units11/20214,243,6578.8 5.5 (2)
178.1 152.9 
Imprivata, Inc.Provider of identity and access management solutions to the healthcare industrySecond lien senior secured loan10.57%SOFR (M)6.25%4/202212/202816.1 15.9 15.1 (2)(11)
Inmar, Inc.Technology-driven solutions provider for retailers, wholesalers and manufacturersSecond lien senior secured loan12.38%LIBOR (M)8.00%4/20175/202528.3 28.2 26.6 (2)(11)
68

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

IQN Holding Corp. (15)Provider of extended workforce management softwareFirst lien senior secured loan9.65%SOFR (Q)5.25%5/20225/202923.5 23.5 23.3 (2)(11)
First lien senior secured loan9.71%SOFR (Q)5.50%5/20225/20290.4 0.4 0.4 (2)(11)
23.9 23.7 
IV Rollover Holdings, LLCProvider of cloud based IT solutions, infrastructure and servicesClass B units5/2017170,490— — 
Class X units5/20175,000,0002.0 2.1 (2)
2.0 2.1 
Kaseya Inc. and Knockout Intermediate Holdings I Inc. (15)Provider of cloud-based software and technology solutions for small and medium sized businessesFirst lien senior secured loan10.33%SOFR (Q)5.75%6/20226/2029167.0 167.0 162.0 (2)(11)
Preferred stock
11.75% PIK
6/202238,79741.2 40.0 (2)
208.2 202.0 
LeanTaaS Holdings, Inc. (15)Provider of SaaS tools to optimize healthcare asset utilizationFirst lien senior secured loan12.08%SOFR (Q)7.50%7/20227/202831.8 31.8 31.2 (2)(11)
Majesco and Magic Topco, L.P. (15)Insurance software providerFirst lien senior secured loan11.98%LIBOR (Q)7.25%9/20209/202730.3 30.3 30.3 (2)(11)
Class A units
9.00% PIK
9/20202,5393.1 3.6 (2)
Class B units9/2020570,625— — 
33.4 33.9 
Mimecast Borrowerco, Inc. and Magnesium Co- Invest SCSp (15)Cybersecurity solutions providerFirst lien senior secured loan10.17%SOFR (M)5.75%5/20225/2029102.1 102.1 99.1 (2)(6)(11)
First lien senior secured loan9.18%SONIA (Q)5.75%5/20225/202934.8 35.6 33.7 (2)(6)(11)
Limited partnership interest5/20223,97438.8 39.4 (2)(6)
176.5 172.2 
Ministry Brands Holdings, LLC and RCP MB Investments B, L.P. (15)Software and payment services provider to faith-based institutionsFirst lien senior secured revolving loan9.88%LIBOR (M)5.50%12/202112/20274.0 4.0 3.8 (2)(11)(14)
First lien senior secured loan9.88%LIBOR (M)5.50%12/202112/202832.5 32.5 30.9 (2)(11)
Limited partner interests12/20219,574,0009.6 8.8 (2)
46.1 43.5 
Mitchell International, Inc.Provider of technology, connectivity, and information solutions to the property and casualty insurance industrySecond lien senior secured loan11.23%LIBOR (Q)6.50%10/202110/202998.1 96.1 81.0 (2)(11)(18)
Moonraker AcquisitionCo LLC and Moonraker HoldCo LLC (15)Leading technology solution provider for casing and auditioning to the entertainment industryFirst lien senior secured loan10.32%SOFR (M)6.00%8/20228/202825.1 25.1 24.6 (2)(11)
Class A units
8.00% PIK
8/202245,3204.5 4.5 
29.6 29.1 
MRI Software LLC (15)Provider of real estate and investment management softwareFirst lien senior secured loan10.23%LIBOR (Q)5.50%2/20202/202647.1 47.1 45.6 (11)
First lien senior secured loan10.23%LIBOR (Q)5.50%8/20202/202617.4 17.4 16.8 (2)(11)
64.5 62.4 
69

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

OpenMarket Inc.Provider of cloud-based mobile engagement platformFirst lien senior secured loan10.98%LIBOR (Q)6.25%9/20219/202651.6 51.6 51.1 (2)(6)(11)
Paya, Inc and GTCR-Ultra Holdings LLC (15)Provider of payment processing and merchant acquiring solutionsClass B units8/20172,878,372— 2.6 (2)
PayNearMe, Inc.Electronic cash payment system providerWarrant to purchase shares of Series E preferred stock3/20163/2023195,7260.2 — 
PDDS HoldCo, Inc. (15)Provider of cloud-based dental practice management softwareFirst lien senior secured loan12.30%SOFR (Q)7.50%7/20227/20289.4 9.4 9.2 (2)(11)
PDI TA Holdings, Inc., Peachtree Parent, Inc. and Insight PDI Holdings, LLC (15)Provider of enterprise management software for the convenience retail and petroleum wholesale marketFirst lien senior secured revolving loan8.82%LIBOR (Q)4.50%3/201910/20246.1 6.1 6.0 (2)(11)
First lien senior secured loan8.73%LIBOR (Q)4.50%3/201910/202452.9 52.9 51.9 (2)(11)
Second lien senior secured loan13.18%LIBOR (Q)8.50%3/201910/202570.1 70.1 68.7 (2)(11)
Second lien senior secured loan13.18%LIBOR (Q)8.50%4/202110/20258.7 8.7 8.6 (2)(11)
Second lien senior secured loan13.18%LIBOR (Q)8.50%12/202010/20258.3 8.3 8.1 (2)(11)
Second lien senior secured loan13.18%LIBOR (Q)8.50%12/202110/20257.2 7.2 7.1 (2)(11)
Series A preferred stock
13.25% PIK
3/201913,65622.3 21.2 (2)
Class A units3/20192,062,4932.1 2.7 (2)
177.7 174.3 
Pegasus Global Enterprise Holdings, LLC, Mekone Blocker Acquisition, Inc. and Mekone Parent, LLC (15)Provider of plant maintenance and scheduling softwareFirst lien senior secured loan10.48%LIBOR (Q)5.75%10/20205/202513.7 13.7 13.7 (2)(11)
First lien senior secured loan10.48%LIBOR (Q)5.75%6/20205/20250.1 0.1 0.1 (2)(11)
First lien senior secured loan9.98%LIBOR (Q)5.25%5/20195/20250.2 0.2 0.2 (2)(11)
Class A units5/20195,0005.0 14.3 
19.0 28.3 
Petvisor Holdings, LLC (15)Provider of veterinarian-focused SaaS solutionsFirst lien senior secured loan10.21%SOFR (S)5.50%6/20226/202821.5 21.5 21.5 (2)(11)
Ping Identity Holding Corp. (15)Provider of identity and access management solutionsFirst lien senior secured loan11.32%SOFR (M)7.00%10/202210/202911.3 11.3 11.0 (2)(11)
Pluralsight, Inc. (15)Online education learning platformFirst lien senior secured revolving loan12.36%LIBOR (M)8.00%4/20214/20270.2 0.2 0.1 (2)(11)
First lien senior secured loan11.83%LIBOR (Q)8.00%4/20214/2027106.2 106.2 104.0 (2)(11)
106.4 104.1 
Poplicus IncorporatedBusiness intelligence and market analytics platform for companies that sell to the public sectorWarrant to purchase shares of Series C preferred stock6/20156/20252,402,9910.1 — 
ProfitSolv Purchaser, Inc. and PS Co-Invest, L.P. (15)Provider of practice management software to law firmsFirst lien senior secured loan10.23%LIBOR (Q)5.50%3/20213/20275.5 5.5 5.4 (2)(11)
Limited partnership units3/20211,624,0001.6 1.5 (2)
7.1 6.9 
Project Alpha Intermediate Holding, Inc. and Qlik Parent, Inc.Provider of data visualization software for data analyticsFirst lien senior secured loan8.39%LIBOR (M)4.00%6/20224/20242.8 2.8 2.8 (2)(18)
70

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

Class A common stock8/20167,4457.4 14.4 (2)
Class B common stock8/20161,841,6090.1 0.1 (2)
10.3 17.3 
Project Essential Bidco, Inc. and Project Essential Super Parent, Inc. (15)Saas provider of automated crew callout and scheduling software for the utility industryFirst lien senior secured loan9.99%LIBOR (Q)5.75%4/20214/202836.2 36.2 34.7 (2)(11)
Preferred shares
14.23% PIK
LIBOR (Q)9.50%4/202126,43631.9 30.2 (2)
68.1 64.9 
Project Potter Buyer, LLC and Project Potter Parent, L.P. (15)Software solutions provider to the ready-mix concrete industryFirst lien senior secured revolving loan12.07%SOFR (M)7.75%4/20204/20262.1 2.0 2.1 (2)(11)(14)
First lien senior secured loan12.07%SOFR (M)7.75%4/20204/202743.6 43.6 43.6 (2)(11)
First lien senior secured loan12.07%SOFR (M)7.75%11/20204/202714.3 14.3 14.3 (2)(11)
First lien senior secured loan12.07%SOFR (M)7.75%10/20204/202712.8 12.8 12.8 (2)(11)
First lien senior secured loan12.07%SOFR (M)7.75%11/20204/20274.9 4.9 4.9 (2)(11)
Class B units4/2020588,636— 9.3 (2)
77.6 87.0 
Proofpoint, Inc. (15)Cybersecurity solutions providerFirst lien senior secured loan7.98%LIBOR (Q)3.25%6/20218/20281.0 0.9 0.9 (2)(11)(18)
Second lien senior secured loan10.98%LIBOR (Q)6.25%6/20218/202934.6 34.4 34.6 (2)(11)
35.3 35.5 
QF Holdings, Inc. (15)SaaS based electronic health record software providerFirst lien senior secured loan11.02%LIBOR (Q)6.25%12/202112/20278.1 8.1 8.1 (2)(11)
First lien senior secured loan10.43%LIBOR (S)6.25%9/201912/20276.8 6.8 6.8 (2)(11)
First lien senior secured loan10.64%LIBOR (M)6.25%8/202012/20273.7 3.7 3.7 (2)(11)
18.6 18.6 
Raptor Technologies, LLC, Sycamore Bidco LTD and Rocket Parent, LLC (15)Provider of SaaS-based safety and security software to the K-12 school marketFirst lien senior secured loan10.23%LIBOR (Q)5.50%10/202110/20288.5 8.5 8.2 (2)(6)(11)
Class A common units12/20182,880,5823.5 5.9 
12.0 14.1 
RealPage, Inc.Provider of enterprise software solutions to the residential real estate industrySecond lien senior secured loan10.88%LIBOR (M)6.50%4/20214/202984.1 83.1 82.4 (2)(11)
Regent Education, Inc.Provider of software solutions designed to optimize the financial aid and enrollment processesWarrant to purchase shares of common stock12/201612/20265,393,194— — 
Warrant to purchase shares of common stock12/201612/2026987— — 
— — 
Relativity ODA LLC (15)Electronic discovery document review software platform for use in litigations and investigationsFirst lien senior secured loan
11.89% PIK
LIBOR (M)7.50%5/20215/202722.5 22.5 22.5 (2)(11)
Revalize, Inc. (15)Develops and operates software providing configuration, price and quote capabilities for sales teamsFirst lien senior secured loan10.48%SOFR (Q)5.75%5/20224/20270.7 0.7 0.6 (2)(11)
First lien senior secured loan10.46%SOFR (Q)5.75%5/20224/20270.1 0.1 — (2)
71

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

0.8 0.6 
RMS HoldCo II, LLC & RMS Group Holdings, Inc. (15)Developer of revenue cycle management solutions, process automation, analytics and integration for the healthcare industryFirst lien senior secured loan10.98%SOFR (Q)6.25%8/202212/20270.2 0.2 0.2 (2)(11)
First lien senior secured loan10.48%LIBOR (Q)5.75%12/202112/20270.1 0.1 0.1 (2)(11)
Class A common stock12/2021464.904.6 5.5 (2)
4.9 5.8 
Smarsh Inc. and Skywalker TopCo, LLC (15)SaaS based communication archival service providerFirst lien senior secured loan11.29%SOFR (S)6.50%2/20222/202911.9 11.9 11.9 (2)(11)
Common units11/20201,742,6236.3 8.6 (2)
18.2 20.5 
SocialFlow, Inc.Social media optimization platform providerWarrant to purchase shares of Series C preferred stock1/20161/2026215,331— — 
Sophia, L.P.Provider of ERP software and services for higher education institutionsSecond lien senior secured loan12.73%LIBOR (Q)8.00%10/202010/2028105.9 105.9 103.8 (2)(11)
SoundCloud LimitedPlatform for receiving, sending, and distributing musicCommon stock8/201773,4220.4 0.7 (2)(6)
Spirit RR Holdings, Inc. and Winterfell Co-Invest SCSp (15)Provider of data, analytics, news, and workflow tools to customers in the counter-cyclical distressed debt spaceFirst lien senior secured loan11.18%SOFR (Q)6.50%9/20229/20282.6 2.6 2.5 (2)(11)
Limited partner interests9/20221,01010.2 10.5 (2)
12.813.0
Stamps.com Inc.Provider of mailing and shipping solutionsFirst lien senior secured loan10.13%LIBOR (M)5.75%10/202110/2028146.8146.8140.9(2)(11)
Storable, Inc. and EQT IX Co-Investment (E) SCSPPMS solutions and web services for the self-storage industrySecond lien senior secured loan11.54%SOFR (S)6.75%4/20214/202942.842.841.1(2)(11)
Second lien senior secured loan11.54%SOFR (S)6.75%3/20224/202910.310.39.9(2)(11)
Limited partnership interests4/2021614,9506.27.0(2)(6)
59.358.0
Sundance Group Holdings, Inc. (15)Provider of cloud-based document management and collaboration solutionsFirst lien senior secured loan10.75%SOFR (Q)6.25%7/20217/202720.119.819.9(2)(11)
First lien senior secured loan10.93%SOFR (Q)6.25%11/20227/20270.80.80.8(2)(11)
20.620.7
Tamarack Intermediate, L.L.C. and Tamarack Parent, L.L.C. (15)Provider of environment, health, safety, and sustainability softwareFirst lien senior secured revolving loan10.17%SOFR (M)5.75%3/20223/20281.31.31.3(2)(11)
First lien senior secured loan9.48%SOFR (S)5.75%3/20223/202835.135.135.1(11)
Class A-2 units3/20224,8494.85.9
41.242.3
TCP Hawker Intermediate LLC (15)Workforce management solutions providerFirst lien senior secured revolving loan9.57%LIBOR (M)5.25%8/20198/20250.10.10.1(2)(11)
First lien senior secured loan9.98%LIBOR (Q)5.25%8/20198/202634.434.434.4(2)(11)
First lien senior secured loan9.98%LIBOR (Q)5.25%12/20208/20266.56.56.5(2)(11)
72

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

41.041.0
TibCo Software Inc., Picard Parent, Inc., Picard MidCo, Inc., Picard HoldCo, LLC and Elliott Alto Co-Investor Aggregator L.P. (15)Provider of server, application and desktop virtualization, networking, software as a service, and cloud computing technologiesFirst lien senior secured notes6.50%9/20223/202988.986.574.9(2)(18)
First lien senior secured loan9.18%SOFR (Q)4.50%9/20223/202910.910.49.7(2)(11)(18)
Second lien senior secured loan9.00%SOFR (Q)7.00%9/20229/202985.383.969.9(2)(11)
Series A preferred stock
16.59% PIK
SOFR (Q)12.00%9/2022141,928143.4143.1(2)
Limited partnership interests9/202212,250,00012.310.7(2)
336.5308.3
UKG Inc. and H&F Unite Partners, L.P. (15)Provider of cloud based HCM solutions for businessesFirst lien senior secured revolving loan8.06%LIBOR (M)3.75%5/20192/202610.610.610.6(2)(6)(14)
Limited partnership interests5/201912,583,55612.614.4(2)(6)
23.225.0
WebPT, Inc. (15)Electronic medical record software providerFirst lien senior secured revolving loan11.26%LIBOR (Q)6.75%8/20191/20280.30.30.3(2)(11)
First lien senior secured loan11.48%LIBOR (Q)6.75%8/20191/202848.148.148.1(2)(11)
48.448.4
Wellness AcquisitionCo, Inc. (15)Provider of retail consumer insights and analytics for manufacturers and retailers in the natural, organic and specialty products industryFirst lien senior secured loan9.91%LIBOR (Q)5.50%1/20211/20270.1 0.1 0.1 (2)(11)
WorkWave Intermediate II, LLC (15)Provider of cloud-based field services and fleet management solutionsFirst lien senior secured loan
11.93% PIK
SOFR (Q)7.25%6/20216/202767.4 67.4 67.4 (2)(11)
First lien senior secured loan11.44%SOFR (Q)7.25%2/20226/202717.3 17.3 17.3 (2)(11)
84.7 84.7 
ZenDesk, Inc., Zoro TopCo, Inc. and Zoro TopCo, LP (15)Provider of cloud-based customer support solutionsFirst lien senior secured loan11.04%SOFR (Q)6.50%12/202211/202842.4 42.4 41.6 (2)(11)
Series A preferred stock
12.50% PIK
11/202227,22627.6 26.8 (2)
Class A common units11/2022269,1002.7 2.7 (2)
72.7 71.1 
4,950.2 4,760.6 49.83%
Financial Services
AQ Sage Buyer, LLC (15)Provider of actuarial consulting and comprehensive wealth management servicesFirst lien senior secured loan10.70%SOFR (S)5.75%5/20221/20271.9 1.9 1.8 (2)(6)(11)
BCC Blueprint Holdings I, LLC and BCC Blueprint Investments, LLCProvider of comprehensive suite of investment management and wealth planning solutionsFirst lien senior secured loan11.02%LIBOR (Q)6.25%9/20219/20270.2 0.2 0.2 (2)(11)
Senior subordinated loan
9.30% PIK
9/20219/20265.0 5.0 4.9 (2)
Common units9/20214,666,3014.7 3.9 (2)
9.9 9.0 
73

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

Beacon Pointe Harmony, LLC (15)Provider of comprehensive wealth management servicesFirst lien senior secured loan9.39%SOFR (Q)5.25%12/202112/202817.9 17.9 17.7 (2)(6)(11)
Convera International Holdings Limited and Convera International Financial S.A R.L. (15)Provider of B2B international payment and FX risk management solutionsFirst lien senior secured loan10.33%SOFR (Q)5.75%3/20223/202862.8 62.8 62.8 (2)(6)(11)
CrossCountry Mortgage, LLC (15)Mortgage company originating loans in the retail and consumer direct channelsFirst lien senior secured loan11.73%LIBOR (Q)7.00%11/202111/202793.8 93.8 92.8 (2)(11)
DFC Global Facility Borrower III LLC (15)Non-bank provider of alternative financial servicesFirst lien senior secured revolving loan11.62%LIBOR (M)7.50%6/20216/2026158.6 172.8 158.6 (2)(6)(9)(11)
eCapital Finance Corp.Consolidator of commercial finance businessesSenior subordinated loan11.97%SOFR (M)7.75%4/202212/202555.8 55.8 55.2 (2)(11)
Senior subordinated loan11.97%SOFR (M)7.75%1/202012/202556.0 56.0 55.4 (2)(11)
Senior subordinated loan11.97%SOFR (M)7.75%1/202212/202524.3 24.3 24.1 (2)(11)
Senior subordinated loan11.97%SOFR (M)7.75%11/202012/20255.4 5.4 5.3 (2)(11)
141.5 140.0 
EP Wealth Advisors, LLC (15)Wealth management and financial planning firmFirst lien senior secured loan10.01%SOFR (Q)5.75%11/20229/20265.6 5.6 5.6 (2)(11)
First lien senior secured loan10.23%SOFR (Q)5.50%11/20219/20260.4 0.4 0.4 (2)(11)
First lien senior secured loan10.23%SOFR (Q)5.50%9/20209/20260.1 0.1 0.1 (2)(11)
First lien senior secured loan10.11%SOFR (Q)5.38%9/20209/20260.1 0.1 0.1 (2)(11)
6.2 6.2 
HighTower Holding, LLCProvider of investment, financial and retirement planning servicesSenior subordinated loan6.75%6/20224/20298.1 6.7 6.7 (2)(6)(18)
Ivy Hill Asset Management, L.P. (5)Asset management servicesSubordinated revolving loan11.01%SOFR (Q)6.50%2/20181/2030500.0 500.0 500.0 (6)(11)
Member interest6/2009100.00%1,547.5 1,701.1 (6)
2,047.5 2,201.1 
Lido Advisors, LLC (15)Wealth management and financial planning firmFirst lien senior secured revolving loan9.05%LIBOR (Q)4.50%6/20216/20270.4 0.4 0.4 (2)(11)
LS DE LLC and LM LSQ Investors LLCAsset based lenderSenior subordinated loan10.50%6/20176/20213.0 3.0 3.0 (2)(6)
Senior subordinated loan10.50%6/20153/202437.0 37.0 36.6 (2)(6)
Membership units6/20153,275,0003.3 3.0 (6)
43.3 42.6 
Monica Holdco (US) Inc. (15)Investment technology and advisory firmFirst lien senior secured revolving loan10.99%LIBOR (Q)6.25%1/20211/20262.4 2.4 2.3 (2)(11)(14)
First lien senior secured loan11.48%LIBOR (Q)6.75%1/20211/20282.6 2.6 2.5 (2)(11)
5.0 4.8 
Petrus Buyer, Inc. (15)Provider of REIT research data and analyticsFirst lien senior secured loan10.70%SOFR (Q)6.50%11/202210/20295.1 5.1 4.9 (2)(11)
Priority Holdings, LLC and Priority Technology Holdings, Inc.Provider of merchant acquiring and payment processing solutionsFirst lien senior secured loan10.48%LIBOR (Q)5.75%4/20214/20270.7 0.7 0.7 (2)(6)(11)
Senior preferred stock
16.73% (7.00% PIK)
LIBOR (Q)12.00 %4/202165,76169.2 73.2 (2)(6)
Warrant to purchase shares of common stock4/20214/2031527,2264.0 2.8 (2)(6)(18)
73.9 76.7 
74

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

Rialto Management Group, LLC (15)Investment and asset management platform focused on real estateFirst lien senior secured revolving loan11/201812/2025— — — (6)(13)
First lien senior secured loan9.88%LIBOR (M)5.50%11/201812/20250.3 0.3 0.3 (2)(6)(11)
First lien senior secured loan9.88%LIBOR (M)5.50%12/202112/20250.1 0.1 0.1 (2)(6)(11)
First lien senior secured loan9.88%LIBOR (M)5.50%4/202112/20250.1 0.1 0.1 (2)(6)(11)
0.5 0.5 
TA/WEG Holdings, LLC (15)Wealth management and financial planning firmFirst lien senior secured loan9.98%SOFR (A)6.00%8/202110/20270.1 0.1 0.1 (2)(11)
First lien senior secured loan9.41%SOFR (S)6.00%11/202010/20270.1 0.1 0.1 (2)(11)
First lien senior secured loan10.75%SOFR (A)6.00%10/201910/20270.1 0.1 0.1 (2)(11)
First lien senior secured loan10.46%SOFR (A)6.00%6/202110/20270.1 0.1 0.1 (2)(11)
0.4 0.4 
The Edelman Financial Center, LLCProvider of investment, financial and retirement planning servicesSecond lien senior secured loan11.13%LIBOR (M)6.75%9/20227/202613.4 11.8 12.0 (2)(6)(18)
The Mather Group, LLC, TVG-TMG Topco, Inc., and TVG-TMG Holdings, LLC (15)Provider of comprehensive wealth management servicesFirst lien senior secured revolving loan12.00%Base Rate (M)4.50%3/20223/20280.1 0.1 0.1 (2)(6)(11)
First lien senior secured loan10.51%SOFR (S)5.50%3/20223/20283.5 3.5 3.4 (2)(6)(11)
Senior subordinated loan
12.00% PIK
3/20223/20293.0 3.0 2.9 (2)(6)
Series A preferred units3/20227,1997.2 4.8 (2)(6)
Common units3/20227,199— — (6)
13.8 11.2 
The Ultimus Group Midco, LLC, The Ultimus Group, LLC, and The Ultimus Group Aggregator, LP (15)Provider of asset-servicing capabilities for fund managersFirst lien senior secured loan9.23%LIBOR (Q)4.50%2/20192/202637.4 37.4 36.7 (2)(11)
Class A units
8.00% PIK
9/20191,4431.9 3.1 
Class A units2/20192450.2 — 
Class B units2/2019245,194— — 
Class B units2/20192,167,424— — 
39.5 39.8 
Waverly Advisors, LLC (15)Wealth management and financial planning firmFirst lien senior secured loan10.23%SOFR (Q)5.50%3/20223/20280.6 0.6 0.6 (2)(6)(11)
2,755.3 2,890.6 30.26%
Health Care Services
Absolute Dental Group LLC and Absolute Dental Equity, LLC (5)(15)Dental services providerFirst lien senior secured revolving loan
15.50% (5.00% PIK)
Base Rate (Q)8.00%6/20216/20242.2 2.2 2.2 (2)(11)
First lien senior secured revolving loan
13.77% (5.00% PIK)
LIBOR (Q)9.00%6/20216/20241.0 1.0 1.0 (2)(11)
First lien senior secured loan
13.73% (5.41% PIK)
LIBOR (Q)9.00%6/20216/202452.1 52.1 52.1 (2)(11)
Class A common units6/20217,617,2804.7 14.9 (2)
60.0 70.2 
ADG, LLC and RC IV GEDC Investor LLC (15)Dental services providerFirst lien senior secured revolving loan
9.19% (0.52% PIK)
LIBOR (M)4.75%9/20169/20239.8 9.8 9.3 (2)(11)
First lien senior secured revolving loan
11.25% (0.52% PIK)
Base Rate (M)3.75%9/20169/20234.3 4.3 4.1 (2)(11)
75

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

Second lien senior secured loan
7.19% PIK
LIBOR (M)2.80%9/20163/2024130.0 105.8 104.0 (2)(11)
Membership units9/20163,000,0003.0 — 
122.9 117.4 
Advarra Holdings, Inc. (15)Provider of central institutional review boards over clinical trialsFirst lien senior secured loan10.15%SOFR (Q)5.75%8/20228/20294.1 4.1 3.9 (2)(11)
AHR Funding Holdings, Inc. and AHR Parent Holdings, LPProvider of revenue cycle management solutions to hospitalsSeries A preferred shares
12.75% PIK
7/20227/202835,00036.9 35.8 (2)
Preferred units
8.00% PIK
7/20229,90010.2 10.2 (2)
Class B common units7/2022100,0000.1 0.1 (2)
47.2 46.1 
AthenaHealth Group Inc., Minerva Holdco, Inc. and BCPE Co-Invest (A), LP (15)Revenue cycle management provider to the physician practices and acute care hospitalsSeries A preferred stock
10.75% PIK
2/2022198,504218.1 198.5 (2)
Class A units2/202210,487,95010.5 9.5 (2)
228.6 208.0 
BAART Programs, Inc., MedMark Services, Inc., and Canadian Addiction Treatment Centres LP (15)Opiod treatment providerFirst lien senior secured loan9.73%LIBOR (Q)5.00%5/20226/20276.0 6.1 5.9 (2)(11)
Bambino Group Holdings, LLCDental services providerClass A preferred units12/20161,000,0001.0 0.9 (2)
CCS-CMGC Holdings, Inc. (15)Correctional facility healthcare operatorFirst lien senior secured revolving loan10/201810/2023— — — (13)
First lien senior secured loan9.91%LIBOR (Q)5.50%9/201810/202533.6 33.5 26.2 (2)(18)
33.5 26.2 
Center for Autism and Related Disorders, LLC (15)Autism treatment and services provider specializing in applied behavior analysis therapyFirst lien senior secured revolving loan11/201811/20236.8 6.8 2.9 (2)(10)(14)
First lien senior secured revolving loan1/202211/20230.6 0.2 0.2 (2)(10)(14)
First lien senior secured loan10/202210/20239.5 9.3 4.0 (2)(10)
First lien senior secured loan12/202210/20232.1 2.7 0.9 (2)(10)
19.0 8.0 
Color Intermediate, LLCProvider of pre-payment integrity software solutionFirst lien senior secured loan10.08%SOFR (Q)5.50%10/202210/202920.3 20.3 19.5 (2)(11)
Comprehensive EyeCare Partners, LLC (15)Vision care practice management companyFirst lien senior secured revolving loan10.58%SOFR (Q)5.75%2/20182/20240.8 0.8 0.7 (2)(11)
First lien senior secured loan10.59%SOFR (Q)5.75%2/20182/20240.3 0.3 0.3 (2)(11)
1.1 1.0 
Convey Health Solutions, Inc.Healthcare workforce management software providerFirst lien senior secured loan9.48%LIBOR (Q)4.75%9/20199/20262.7 2.7 2.6 (2)(6)(11)
First lien senior secured loan9.83%SOFR (Q)5.25%10/20229/20260.1 0.1 0.1 (2)(6)(11)
First lien senior secured loan9.93%SOFR (Q)5.25%2/20229/20260.1 0.1 0.1 (2)(6)(11)
2.9 2.8 
Crown CT Parent Inc., Crown CT HoldCo Inc. and Crown CT Management LLC (15)Provider of medical devices and services for the treatment of positional plagiocephalyFirst lien senior secured loan10.11%SOFR (Q)5.50%3/20223/202924.5 24.5 24.5 (2)(11)
Class A shares3/20221761.8 1.9 (2)
76

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

Common units3/2022280.3 0.3 (2)
26.6 26.7 
CVP Holdco, Inc. and OMERS Wildcats Investment Holdings LLC (15)Veterinary hospital operatorFirst lien senior secured loan11.13%LIBOR (Q)6.40%1/202210/202549.5 49.5 49.0 (2)(11)
First lien senior secured loan11.13%LIBOR (Q)6.40%10/201910/202538.9 38.9 38.5 (2)(11)
First lien senior secured loan10.98%LIBOR (Q)6.25%10/202210/20251.7 1.7 1.6 (2)(11)
First lien senior secured loan11.13%LIBOR (Q)6.40%4/202110/20250.1 0.1 0.1 (2)(11)
Common stock10/201941,44314.5 22.7 (2)
104.7 111.9 
Ensemble RCM, LLCProvider of technology-enabled revenue cycle management services to the health care industryFirst lien senior secured loan9.19%SOFR (Q)5.00%4/20228/20262.5 2.5 2.5 (2)(11)
Evolent Health LLCMedical technology company focused on value based care services and payment solutionsFirst lien senior secured loan10.23%SOFR (Q)5.50%8/20228/20277.8 7.8 7.7 (2)(6)(11)
Explorer Investor, Inc (15)Provider of outsourced employee staffing services to the life sciences and healthcare industriesFirst lien senior secured loan10.15%SOFR (Q)5.75%6/20226/20291.0 1.0 0.9 (2)(11)
GHX Ultimate Parent Corporation, Commerce Parent, Inc. and Commerce Topco, LLC (15)On-demand supply chain automation solutions provider to the healthcare industrySecond lien senior secured loan11.48%LIBOR (Q)6.75%5/20215/2029114.0 114.0 111.8 (2)(11)
Class A units6/201714,853,56915.7 27.8 (2)
129.7 139.6 
Global Medical Response, Inc. and GMR Buyer Corp.Emergency air medical services providerFirst lien senior secured loan8.63%LIBOR (M)4.25%6/20223/202512.1 11.3 8.5 (2)(11)(18)
First lien senior secured loan8.42%LIBOR (M)4.25%6/202210/202525.7 23.8 17.9 (2)(11)(18)
Second lien senior secured loan11.10%LIBOR (M)6.75%12/202112/202995.4 95.4 71.6 (2)(11)
Warrant to purchase units of common stock3/20183/2028115,7330.9 1.8 (2)
Warrant to purchase units of common stock12/202112/20311,9270.1 — (2)
131.5 99.8 
Hanger, Inc.Provider of orthotic and prosthetic equipment and servicesFirst lien senior secured loan10.43%SOFR (M)6.25%10/202210/202854.2 54.2 53.2 (2)(11)
Second lien senior secured loan13.93%SOFR (M)9.75%10/202210/2029110.6 110.6 106.8 (2)(11)
164.8 160.0 
HealthEdge Software, Inc. (15)Provider of financial, administrative and clinical software platforms to the healthcare industryFirst lien senior secured revolving loan12/20214/2026— — — (13)
First lien senior secured loan11.74%LIBOR (Q)7.00%12/20214/202687.2 87.2 87.2 (2)(11)
87.2 87.2 
Honor Technology, Inc.Nursing and home care providerFirst lien senior secured loan14.38%LIBOR (M)10.00%8/20218/20262.5 2.4 2.3 (2)(11)
Warrant to purchase shares of series D-2 preferred stock8/20218/2031133,3330.1 — (2)
2.5 2.3 
JDC Healthcare Management, LLC (15)Dental services providerFirst lien senior secured revolving loan4/20174/20244.8 3.7 2.6 (2)(10)
77

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

First lien senior secured loan4/20174/202440.9 31.4 22.1 (2)(10)
35.1 24.7 
KBHS Acquisition, LLC (d/b/a Alita Care, LLC) (15)Provider of behavioral health servicesFirst lien senior secured revolving loan
9.72% (1.00% PIK)
LIBOR (Q)5.00%3/20173/20243.2 3.2 3.1 (2)(11)
Lifescan Global CorporationProvider of blood glucose monitoring systems for home and hospital useFirst lien senior secured loan9.74%LIBOR (Q)6.00%5/202210/202414.3 13.7 10.3 (2)
Second lien senior secured loan13.24%LIBOR (Q)9.50%5/202210/20250.2 0.2 0.2 (2)
13.9 10.5 
Medline Borrower, LP (15)Manufacturer and distributor of medical suppliesFirst lien senior secured revolving loan10/202110/2026— — — (13)
Napa Management Services Corporation and ASP NAPA Holdings, LLCAnesthesia management services providerSenior preferred units
8.00% PIK
6/20205,3200.30.3(2)
Preferred units
15.00% PIK
6/20201,8420.20.2(2)
Class A units4/201625,2772.53.6(2)
3.04.1
NMN Holdings III Corp. and NMN Holdings LP (15)Provider of complex rehabilitation technology solutions for patients with mobility lossFirst lien senior secured revolving loan8.13%LIBOR (M)3.75%11/201811/20232.32.32.1(2)(14)
Partnership units11/201830,0003.02.0(2)
5.34.1
Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC (5)(15)Behavioral health and special education platform providerFirst lien senior secured loan9/20192/202750.949.338.1(10)
First lien senior secured loan2/20222/20278.78.56.6(2)(10)
Preferred stock2/20227,9833.1 — 
Preferred units7/20214/2024417,1890.3 — 
Common units2/20227,584— — 
Class A common units9/20199,549,0009.5 — 
70.744.7
OMH-HealthEdge Holdings, LLCRevenue cycle management provider to the healthcare industryFirst lien senior secured loan10.02%LIBOR (Q)5.25%10/201910/202525.925.925.9(2)(11)
First lien senior secured loan10.02%LIBOR (Q)5.25%3/202110/202515.215.215.2(2)(11)
First lien senior secured loan10.02%LIBOR (Q)5.25%3/202210/20250.10.10.1(2)(11)
41.241.2
Pathway Vet Alliance LLC and Jedi Group Holdings LLC (15)Veterinary hospital operatorSecond lien senior secured loan12.13%LIBOR (M)7.75%3/20203/202876.376.365.6(2)(11)
Class R common units3/20206,004,7686.05.5(2)
82.371.1
PetVet Care Centers, LLCVeterinary hospital operatorFirst lien senior secured loan9.38%SOFR (M)5.00%6/20222/20255.35.15.0(2)(11)
Premise Health Holding Corp. and OMERS Bluejay Investment Holdings LP (15)Provider of employer-sponsored onsite health and wellness clinics and pharmaciesFirst lien senior secured revolving loan7/20184/2025— — — (13)
First lien senior secured loan7.92%LIBOR (Q)3.75%7/20187/20258.68.58.1(2)(11)
Second lien senior secured loan11.67%LIBOR (S)7.50%7/20187/202667.166.864.4(2)
Class A units7/20189,7759.812.8(2)
85.185.3
78

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

Project Ruby Ultimate Parent Corp.Provider of care coordination and transition management software solutionsSecond lien senior secured loan10.88%LIBOR (M)6.50%3/20213/2029193.1193.1181.5(2)(11)
RTI Surgical, Inc. and Pioneer Surgical Technology, Inc. (15)Manufacturer of biologic, metal and synthetic implants/devicesFirst lien senior secured revolving loan11.09%LIBOR (M)6.75%7/20207/20269.89.89.7(2)(11)
First lien senior secured loan10.02%LIBOR (S)6.75%7/20207/202622.522.522.3(2)(11)
32.332.0
SiroMed Physician Services, Inc. and SiroMed Equity Holdings, LLC (15)Outsourced anesthesia providerFirst lien senior secured loan9.48%LIBOR (Q)4.75%3/20183/202410.3 10.3 10.3 (2)(11)
Common units3/2018684,8544.8 1.2 (2)
15.1 11.5 
SM Wellness Holdings, Inc. and SM Holdco, Inc. (15)Breast cancer screening providerSeries A units8/20188,0418.0 0.1 (2)
Series B units8/2018804,142— 9.3 (2)
8.0 9.4 
SOC Telemed, Inc. and PSC Spark Holdings, LPProvider of acute care telemedicineFirst lien senior secured loan
12.34% PIK
SOFR (Q)7.50%8/20228/202761.1 56.7 56.2 (2)(11)
First lien senior secured loan12.19%SOFR (Q)7.50%8/20228/202722.7 22.7 20.9 (2)(11)
Class A-2 units8/20224,8124.9 4.8 (2)
Warrant to purchase Class A-2 units8/20228/20296,1184.7 4.7 (2)
89.0 86.6 
Symplr Software Inc. and Symplr Software Intermediate Holdings, Inc. (15)SaaS based healthcare compliance platform providerFirst lien senior secured revolving loan10.25%Base Rate (Q)2.75%12/202012/20253.1 3.1 2.6 (2)
First lien senior secured loan8.69%SOFR (Q)4.50%2/202212/202712.4 12.4 10.5 (2)(11)
Second lien senior secured loan12.07%SOFR (Q)7.88%12/202012/202876.2 76.2 64.8 (2)(11)
Series C-1 preferred shares
11.00% PIK
6/202175,93994.9 73.1 (2)
Series C-2 preferred shares
11.00% PIK
6/202140,11547.5 36.6 (2)
Series C-3 preferred shares
11.00% PIK
10/202116,20118.5 14.3 (2)
252.6 201.9 
Synergy HomeCare Franchising, LLC and NP/Synergy Holdings, LLC (15)Franchisor of private-pay home care for the elderlyFirst lien senior secured loan10.48%SOFR (Q)5.75%4/20184/202613.1 13.1 13.1 (2)(11)
Common units4/20185500.5 1.0 
13.6 14.1 
Tempus Labs, Inc.Provider of technology enabled precision medicine solutionsFirst lien senior secured loan10.49%SOFR (Q)7.00%9/20229/202771.4 71.4 69.6 (2)(11)
Therapy Brands Holdings LLCProvider of software solutions for the mental and behavioral health market segmentsSecond lien senior secured loan11.10%LIBOR (M)6.75%6/20215/202929.1 28.9 27.9 (2)(11)
Touchstone Acquisition, Inc. and Touchstone Holding, L.P.Manufacturer of consumable products in the dental, medical, cosmetic and consumer/industrial end-marketsClass A preferred units
8.00% PIK
11/20182,1493.0 2.1 (2)
U.S. Anesthesia Partners, Inc. & U.S. Anesthesia Partners Holdings, Inc.Anesthesiology service providerSecond lien senior secured loan11.62%LIBOR (M)7.50%10/202110/2029147.8 147.8 143.3 (2)(11)
Common stock12/20213,671,42912.9 12.7 (2)
79

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

160.7 156.0 
United Digestive MSO Parent, LLC (15)Gastroenterology physician groupFirst lien senior secured loan9.38%LIBOR (M)5.00%2/202212/20241.0 1.0 1.0 (2)(11)
Viant Medical Holdings, Inc.Manufacturer of plastic and rubber components for health care equipmentFirst lien senior secured loan8.13%LIBOR (M)3.75%5/20227/20253.2 2.9 2.8 (2)(18)
VPP Intermediate Holdings, LLC and VPP Group Holdings, L.P. (15)Veterinary hospital operatorFirst lien senior secured loan10.60%LIBOR (M)6.25%12/202112/20276.2 6.2 6.0 (2)(11)
First lien senior secured loan10.52%LIBOR (M)6.50%8/202212/20273.1 3.1 3.1 (2)(11)
Class A-2 units12/20217,5247.5 8.6 (2)
16.8 17.7 
WSHP FC Acquisition LLC and WSHP FC Holdings LLC (15)Provider of biospecimen products for pharma researchFirst lien senior secured revolving loan10.32%SOFR (Q)6.25%3/20183/20288.6 8.6 8.4 (2)(11)(14)
First lien senior secured loan10.98%SOFR (Q)6.25%3/20183/202833.1 33.1 32.4 (2)(11)
First lien senior secured loan10.98%SOFR (Q)6.25%7/20223/202814.5 14.5 14.2 (2)(11)
First lien senior secured loan10.98%SOFR (Q)6.25%8/20193/202811.3 11.3 11.0 (2)(11)
First lien senior secured loan10.98%SOFR (Q)6.25%10/20193/202810.7 10.7 10.5 (2)(11)
First lien senior secured loan10.98%SOFR (Q)6.25%2/20193/20284.5 4.5 4.4 (2)(11)
First lien senior secured loan10.98%SOFR (Q)6.25%10/20213/20280.1 0.1 0.1 (2)(11)
First lien senior secured loan10.98%SOFR (Q)6.25%11/20213/20280.1 0.1 0.1 (2)(11)
Common units7/202233,2934.7 4.4 
87.6 85.5 
2,525.9 2,341.9 24.51%
Commercial and Professional Services
Accommodations Plus Technologies LLC and Accommodations Plus Technologies Holdings LLC (15)Provider of outsourced crew accommodations and logistics management solutions to the airline industryFirst lien senior secured revolving loan
12.48% (0.60% PIK)
SOFR (Q)7.75%5/20185/20244.1 4.1 4.1 (2)(11)
Class A common units5/2018236,3584.3 6.6 
8.4 10.7 
Aero Operating LLCProvider of snow removal and melting service for airports and marine terminalsFirst lien senior secured loan13.24%SOFR (Q)9.00%2/20202/202636.2 36.2 35.1 (2)(11)
First lien senior secured loan13.24%SOFR (Q)9.00%12/20212/20261.1 1.1 1.1 (2)(11)
37.3 36.2 
AI Fire Buyer, Inc. and AI Fire Parent LLC (15)Provider of fire safety and life safety servicesFirst lien senior secured revolving loan10.61%SOFR (Q)6.00%3/20213/20270.4 0.4 0.4 (2)(11)
First lien senior secured loan10.22%SOFR (Q)6.00%3/20213/202726.8 26.8 26.8 (2)(11)
Second lien senior secured loan
15.73% PIK
SOFR (Q)11.00%3/20219/202745.6 45.6 45.6 (2)(11)
Second lien senior secured loan
15.73% PIK
SOFR (Q)11.00%5/20229/202710.3 10.3 10.3 (2)(11)
Second lien senior secured loan
15.73% PIK
SOFR (Q)11.00%6/20229/202710.0 10.0 10.0 (2)(11)
Common units3/202146,9904.7 5.7 (2)
97.8 98.8 
80

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

Applied Technical Services, LLC (15)Provider engineering, testing, and inspection services to various industrial, commercial and consumer customersFirst lien senior secured revolving loan12.25%Base Rate (Q)4.75%5/202212/20261.1 0.9 1.1 (2)(11)
First lien senior secured loan10.48%LIBOR (Q)5.75%5/202212/20260.8 0.8 0.8 (2)(11)
1.7 1.9 
Argenbright Holdings V, LLC and Amberstone Security Group Limited (15)Provider of outsourced security guard services, outsourced facilities management and outsourced aviation servicesFirst lien senior secured loan11.49%SOFR (Q)7.25%11/202111/202620.9 20.9 20.7 (2)(6)(11)
First lien senior secured loan11.53%SOFR (Q)7.25%8/202211/20265.9 5.9 5.8 (2)(6)(11)
26.8 26.5 
BH-Sharp Holdings LPProvider of commercial knife sharpening and cutlery services in the restaurant industryCommon units3/20172,950,0003.0 2.3 (2)
Capstone Acquisition Holdings, Inc. and Capstone Parent Holdings, LP (15)Outsourced supply chain solutions provider to operators of distribution centersFirst lien senior secured revolving loan11/202011/2025— — — (13)
First lien senior secured loan9.13%LIBOR (M)4.75%11/202011/20270.2 0.2 0.2 (2)(11)
Second lien senior secured loan13.13%LIBOR (M)8.75%11/202011/202868.3 68.3 68.3 (2)(11)
Class A units11/202010,58110.6 20.1 (2)
79.1 88.6 
Compex Legal Services, Inc. (15)Provider of outsourced litigated and non-litigated medical records retrieval servicesFirst lien senior secured revolving loan9.51%LIBOR (Q)5.25%5/20222/20251.8 1.7 1.8 (2)(11)
DTI Holdco, Inc. and OPE DTI Holdings, Inc.Provider of legal process outsourcing and managed servicesClass A common stock8/20147,5007.5 6.3 (2)
Class B common stock8/20147,500— — (2)
7.5 6.3 
Elevation Services Parent Holdings, LLC (15)Elevator service platformFirst lien senior secured revolving loan10.36%LIBOR (S)6.00%12/202012/20261.4 1.4 1.4 (2)(11)(14)
First lien senior secured loan10.86%LIBOR (S)6.00%12/202012/202610.2 10.2 10.0 (2)(11)
First lien senior secured loan9.47%LIBOR (S)6.00%5/202212/20269.1 9.1 9.0 (2)(11)
20.7 20.4 
HAI Acquisition Corporation and Aloha Topco, LLC (15)Professional employer organization offering human resources, compliance and risk management servicesFirst lien senior secured loan10.42%SOFR (M)6.00%11/201711/202560.5 60.5 60.5 (2)(11)
First lien senior secured loan11.41%SOFR (Q)6.75%12/202211/20257.8 7.8 7.8 (2)(11)
First lien senior secured loan10.42%SOFR (M)6.00%9/202111/20250.1 0.1 0.1 (2)(11)
Class A units11/201716,9801.7 3.1 (2)
70.1 71.5 
HH-Stella, Inc. and Bedrock Parent Holdings, LP (15)Provider of municipal solid waste transfer management servicesFirst lien senior secured revolving loan9.94%LIBOR (M)5.50%4/20214/20272.8 2.8 2.7 (2)(11)
First lien senior secured loan10.19%LIBOR (Q)5.50%4/20214/20285.8 5.8 5.7 (2)(11)
Class A units4/202125,4902.5 2.2 (2)
11.1 10.6 
81

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

ISQ Hawkeye Holdco, Inc. and ISQ Hawkeye Holdings, L.P. (15)Provider of commercial and industrial waste processing and disposal servicesFirst lien senior secured revolving loan8/20228/2028— — — (13)
First lien senior secured loan10.63%SOFR (M)6.25%8/20228/20293.5 3.5 3.5 (2)(11)
Class A units9/202210,00010.0 12.5 (2)
13.5 16.0 
Kellermeyer Bergensons Services, LLCProvider of janitorial and facilities management servicesFirst lien senior secured loan10.41%LIBOR (Q)6.00%11/201911/202656.8 56.6 51.1 (2)(11)
First lien senior secured loan10.41%LIBOR (Q)6.00%7/202111/20260.1 0.1 0.1 (2)(11)
56.7 51.2 
KPS Global LLC and Cool Group LLCManufacturer of walk-in cooler and freezer systemsFirst lien senior secured loan9.92%SOFR (M)5.50%4/20174/202412.6 12.6 12.6 (2)(11)
First lien senior secured loan9.92%SOFR (M)5.50%11/20184/20243.3 3.3 3.3 (2)(11)
Class A units9/201813,2921.1 5.2 
17.0 21.1 
Laboratories Bidco LLC and Laboratories Topco LLC (15)Lab testing services for nicotine containing productsFirst lien senior secured revolving loan12.25%Base Rate (Q)4.75%7/20217/20278.8 8.8 8.4 (2)(11)
First lien senior secured loan9.98%LIBOR (Q)5.75%10/20197/202723.6 24.1 22.7 (2)(11)
First lien senior secured loan8.73%LIBOR (Q)5.75%10/20197/202716.7 16.7 16.0 (11)
First lien senior secured loan9.55%LIBOR (S)5.75%7/20217/20274.4 4.4 4.2 (2)(11)
First lien senior secured loan8.73%LIBOR (S)5.75%10/20207/20270.1 0.1 0.1 (2)(11)
Class A units7/20213,099,3354.6 4.5 (2)
58.7 55.9 
LJP Purchaser, Inc. and LJP Topco, LP (15)Provider of non-hazardous solid waste and recycling servicesFirst lien senior secured loan10.44%SOFR (Q)6.25%9/20229/20288.5 8.5 8.3 (2)(11)
Class A units
8.00% PIK
9/20225,098,0005.2 5.4 (2)
13.7 13.7 
Management Consulting & Research LLC (15)Provider of systems engineering and technical assistance to the US DoDFirst lien senior secured loan10.94%SOFR (S)6.00%5/20228/20271.0 1.0 1.0 (2)(11)
Marmic Purchaser, LLC and Marmic Topco, L.P. (15)Provider of recurring fire protection servicesFirst lien senior secured loan10.80%SOFR (S)6.00%2/20223/20270.7 0.7 0.7 (2)(11)
First lien senior secured loan11.04%SOFR (S)6.00%3/20213/20270.2 0.2 0.2 (2)(11)
Limited partnership units
8.00% PIK
3/20211,929,2372.3 2.6 (2)
3.2 3.5 
Microstar Logistics LLC, Microstar Global Asset Management LLC, MStar Holding Corporation and Kegstar USA Inc.Keg management solutions providerSecond lien senior secured loan
15.58% (11.00% PIK)
SOFR (Q)11.00%8/20207/2025159.3 159.3 159.3 (11)
Series A preferred stock8/20201,5071.5 2.6 (2)
Common stock12/201254,7104.9 6.6 (2)
165.7168.5
NAS, LLC and Nationwide Marketing Group, LLC (15)Buying and marketing services organization for appliance, furniture and consumer electronics dealersFirst lien senior secured revolving loan11.23%SOFR (Q)6.50%11/20206/20240.60.60.6(2)(11)
First lien senior secured loan11.23%SOFR (Q)6.50%11/20206/20246.36.36.3(2)(11)
First lien senior secured loan11.23%SOFR (Q)6.50%12/20216/20242.32.32.3(2)(11)
82

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

First lien senior secured loan11.23%SOFR (Q)6.50%5/20226/20241.31.31.3(2)(11)
10.510.5
National Intergovernmental Purchasing Alliance Company (15)Leading group purchasing organization (“GPO”) for public agencies and educational institutions in the U.SFirst lien senior secured revolving loan7.12%SOFR (M)3.00%5/20185/20261.21.21.2(2)
Neptune Bidco US Inc. and Elliott Metron Co-Investor Aggregator L.P. (15)Provider of audience insights, data and analytics to entertainment industryFirst lien senior secured loan8.82%SOFR (Q)5.00%10/20224/202999.390.488.4(2)(11)
First lien senior secured loan8.57%SOFR (Q)4.75%10/202210/202874.068.565.9(2)(11)
First lien senior secured notes9.29%11/202252.851.449.8(2)(18)
First lien senior secured loan6.25%Euribor (Q)5.00%10/20224/202916.213.514.4(2)
Second lien senior secured loan13.57%SOFR (Q)9.75%10/202210/2029221.3221.3214.7(2)(11)
Limited partnership interests10/20224,040,0004.04.0(2)
449.1437.2
Nest Topco Borrower Inc., KKR Nest Co-Invest L.P., and NBLY 2021-1 (15)Operator of multiple franchise concepts primarily related to home maintenance or repairsSenior subordinated loan13.26%LIBOR (Q)8.50%9/20218/2029119.1119.1117.9(2)(11)
Limited partner interest9/20219,725,0009.710.2(2)
128.8128.1
North American Fire Holdings, LLC and North American Fire Ultimate Holdings, LLC (15)Provider of fire safety and life safety servicesFirst lien senior secured loan10.23%SOFR (Q)5.50%5/20215/202720.020.020.0(2)(11)
First lien senior secured loan10.08%SOFR (Q)5.50%3/20225/20272.92.92.9(2)(11)
Common units5/2021884,9160.92.9(2)
23.825.8
North Haven Fairway Buyer, LLC, Fairway Lawns, LLC and Command Pest Control, LLC (15)Provider of lawncare servicesFirst lien senior secured loan11.05%SOFR (Q)6.50%12/20225/20286.46.36.2(2)(11)
North Haven Stack Buyer, LLC (15)Provider of environmental testing servicesFirst lien senior secured revolving loan9.92%SOFR (M)5.50%7/20217/20270.80.80.8(2)(11)
First lien senior secured loan9.90%SOFR (M)5.50%7/20217/20276.96.86.7(2)(11)
7.67.5
Petroleum Service Group LLC (15)Provider of operational services for US petrochemical and refining companiesFirst lien senior secured revolving loan9.71%LIBOR (Q)6.00%7/20197/20252.52.52.5(2)(11)(14)
First lien senior secured loan10.42%LIBOR (Q)6.00%7/20197/202534.534.534.5(2)(11)
First lien senior secured loan10.72%LIBOR (Q)6.00%12/20217/202511.6 11.6 11.6 (2)(11)
48.6 48.6 
Pritchard Industries, LLC and LJ Pritchard TopCo Holdings, LLC (15)Provider of janitorial and facilities management servicesFirst lien senior secured loan10.47%SOFR (S)5.50%10/202110/202765.0 65.0 63.1 (2)(11)
Class A units10/20217,900,0007.9 8.4 (2)
72.9 71.5 
PS Operating Company LLC and PS Op Holdings LLC (5)(15)Specialty distributor and solutions provider to the swine and poultry marketsFirst lien senior secured revolving loan10.73%LIBOR (Q)6.00%12/202112/20244.5 4.5 4.5 (2)(11)
83

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

First lien senior secured loan10.73%LIBOR (Q)6.00%12/202112/202414.9 14.9 14.9 (2)(11)
Common unit12/2021279,1997.4 8.3 (2)
26.8 27.7 
R2 Acquisition Corp.Marketing servicesCommon stock5/2007250,0000.2 0.1 (2)
RC V Tecmo Investor LLCTechnology based aggregator for facility maintenance servicesCommon member units8/20209,624,0008.3 22.9 (2)
RE Community Holdings GP, LLC and RE Community Holdings, LPOperator of municipal recycling facilitiesLimited partnership interest3/20112.86%— — 
Limited partnership interest3/20112.49%— — 
— — 
Registrar Intermediate, LLC and PSP Registrar Co-Investment Fund, L.P. (15)Provider of FDA registration and consulting servicesFirst lien senior secured loan9.38%LIBOR (M)5.00%8/20218/20272.7 2.7 2.7 (2)(11)
Limited partner interests8/20211.13%2.7 2.6 (2)
5.4 5.3 
Rodeo AcquisitionCo LLC (15)Provider of food inspection and recovery servicesFirst lien senior secured revolving loan10.38%LIBOR (M)6.00%7/20217/20271.3 1.3 1.2 (2)(11)
First lien senior secured loan10.38%LIBOR (M)6.00%7/20217/202716.9 16.9 16.1 (2)(11)
18.2 17.3 
Schill Landscaping and Lawn Care Services LLC, Tender Lawn Care ULC and Landscape Parallel Partners, L.P. (15)Provider of landscape design and planning, and snow removal servicesFirst lien senior secured revolving loan10.14%LIBOR (M)5.75%12/202112/20270.2 0.2 0.2 (2)(11)
First lien senior secured loan10.14%LIBOR (M)5.75%12/202112/20270.6 0.6 0.6 (2)(11)
Class A units12/20214,50211.1 14.7 (2)
11.9 15.5 
Shermco Intermediate Holdings, Inc. (15)Provider of electrician servicesFirst lien senior secured revolving loan10.82%SOFR (M)6.50%5/20226/20242.7 2.6 2.7 (2)
SSE Buyer, Inc., Supply Source Enterprises, Inc., Impact Products LLC, The Safety Zone, LLC and SSE Parent, LPManufacturer and distributor of personal protection equipment, commercial cleaning, maintenance and safety productsSecond lien senior secured loan6/20206/203021.0 21.0 14.3 (2)(10)
Limited partnership class A-1 units6/20202,1731.1 — (2)
Limited partnership class A-2 units6/20202,1731.1— (2)
23.214.3
Startec Equity, LLC (5)Communication servicesMember interest4/2010— — 
Stealth Holding LLC and UCIT Online Security Inc.Live video monitoring solutions providerFirst lien senior secured loan10.54%SOFR (Q)6.75%3/20213/202651.351.350.3(2)(6)(11)
First lien senior secured loan11.08%SOFR (Q)6.75%3/20223/20265.25.25.1(2)(6)(11)
First lien senior secured loan13.75%Base Rate (Q)6.25%3/20213/20262.52.52.4(2)(6)(11)
59.057.8
The NPD Group, L.P., IRI Group Holdings, Inc., Information Resources, Inc. and IRI-NPD Co-Invest Aggregator, L.P. (15)Market research company focused on the consumer packaged goods industryFirst lien senior secured revolving loan10.07%SOFR (M)5.75%8/202212/20271.71.71.7(2)(11)(14)
84

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

First lien senior secured loan
10.43% (2.75% PIK)
SOFR (M)6.25%8/202212/2028213.5213.5209.3(2)(11)
Class A units8/202210,74411.315.7(2)
226.5226.7
Thermostat Purchaser III, Inc. (15)Provider of commercial HVAC equipment maintenance and repair servicesSecond lien senior secured loan11.98%LIBOR (Q)7.25%8/20218/202923.023.022.1(2)(11)
Visual Edge Technology, Inc.Provider of outsourced office solutions with a focus on printer and copier equipment and other parts and suppliesFirst lien senior secured loan
11.74% (1.25% PIK)
LIBOR (Q)7.00%8/20178/202232.632.629.3(2)(11)
Senior subordinated loan8/20179/2024103.887.548.8(2)(10)
Warrant to purchase shares of common stock8/20178/202710,358,5723.9 — 
124.078.1
VRC Companies, LLC (15)Provider of records and information management servicesFirst lien senior secured loan10.97%SOFR (S)5.75%5/20226/2027— 0.1— (2)(11)
Senior subordinated loan
12.00% (2.00% PIK)
5/20226/20285.05.14.7(2)
5.24.7
Wash Encore Holdings, LLCProvider of outsourced healthcare linen management solutionsFirst lien senior secured loan9.12%LIBOR (S)5.75%7/20217/202798.598.596.5(2)(11)
XIFIN, Inc. and ACP Charger Co-Invest LLC (15)Revenue cycle management provider to labsFirst lien senior secured revolving loan12.25%Base Rate (M)4.75%2/20202/20260.20.20.2(2)(11)
First lien senior secured loan10.13%LIBOR (M)5.75%12/20212/202637.037.036.6(11)
First lien senior secured loan10.13%LIBOR (M)5.75%7/20212/20260.10.10.1(2)(11)
Class A units2/2020180,0001.84.2(2)
Class B units12/202146,3630.91.1(2)
40.042.2
2116.32077.021.74%
Investment Funds and Vehicles
ACAS Equity Holdings Corporation (5)Investment companyCommon stock1/20175890.40.4(6)
ARES 2007-3RInvestment vehicleSubordinated notes1/20174/202120.0— 0.1(6)
Blue Wolf Capital Fund II, L.P. (4)Investment partnershipLimited partnership interest1/20178.50%— 0.1(6)(18)
CoLTs 2005-1 Ltd. (5)Investment vehiclePreferred shares1/2017360— — (6)
CREST Exeter Street Solar 2004-1Investment vehiclePreferred shares1/20173,500,000— — (6)
European Capital UK SME Debt LP (4)(16)Investment partnershipLimited partnership interest1/201745.00%18.026.5(6)
HCI Equity, LLC (5)Investment companyMember interest4/2010100.00%— — (6)(18)
Partnership Capital Growth Investors III, L.P.Investment partnershipLimited partnership interest10/20112.50%1.83.9(2)(6)(18)
PCG-Ares Sidecar Investment II, L.P. (4)(16)Investment partnershipLimited partnership interest10/2014100.00%7.115.5(2)(6)
PCG-Ares Sidecar Investment, L.P. (4)Investment partnershipLimited partnership interest5/2014100.00%4.30.7(6)
Piper Jaffray Merchant Banking Fund I, L.P.Investment partnershipLimited partnership interest8/20122.00%0.10.5(6)(18)
85

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

Senior Direct Lending Program, LLC (5)(17)Co-investment vehicleSubordinated certificates12.77%LIBOR (Q)8.00%7/201612/20361,274.1 1,274.1 1,248.6 (6)(12)
Membership interest87.50%— — (6)
1,274.1 1,248.6 
VSC Investors LLCInvestment companyMembership interest1/20081.95%— 0.5(2)(6)(18)
1,305.8 1,296.8 13.57%
Insurance Services
Acrisure, LLC and Acrisure Finance, Inc.Independent property and casualty insurance brokerageSenior subordinated loan7.00%7/202211/20250.50.50.5(2)(18)
Alera Group, Inc.Insurance service providerFirst lien senior secured loan10.42%SOFR (M)6.00%9/202110/202860.660.658.8(2)(11)
Amynta Agency Borrower Inc. and Amynta Warranty Borrower Inc.Insurance service providerFirst lien senior secured loan9.58%SOFR (Q)5.00%11/20222/202514.613.914.0(2)
First lien senior secured loan8.88%LIBOR (M)4.50%12/20182/20252.32.32.2(2)
16.216.2
AQ Sunshine, Inc. (15)Specialized insurance brokerFirst lien senior secured revolving loan10.42%LIBOR (S)6.25%4/20194/20241.41.41.4(2)(11)(14)
First lien senior secured loan10.42%LIBOR (S)6.25%1/20224/20258.98.98.8(2)(11)
First lien senior secured loan10.42%LIBOR (S)6.25%4/20194/20258.58.58.3(2)(11)
First lien senior secured loan10.42%LIBOR (S)6.25%10/20204/20255.65.65.5(2)(11)
First lien senior secured loan10.98%LIBOR (Q)6.25%5/20224/20251.01.01.0(2)(11)
First lien senior secured loan10.42%LIBOR (S)6.25%6/20214/20250.10.10.1(2)(11)
25.525.1
Ardonagh Midco 2 plc and Ardonagh Midco 3 plcInsurance broker and underwriting servicerFirst lien senior secured loan8.81%LIBOR (S)5.75%8/20217/202690.090.089.1(2)(6)(11)
First lien senior secured loan8.19%Euribor (Q)6.50%8/20227/202666.864.566.8(2)(6)(11)
First lien senior secured loan8.19%SONIA (S)7.00%6/20207/202675.079.475.0(2)(6)(11)
First lien senior secured loan8.00%Euribor (S)7.00%6/20207/20267.07.57.0(2)(6)(11)
Senior subordinated loan
11.50% PIK
6/20201/20271.41.41.4(2)(6)(18)
242.8239.3
Benecon Midco II LLC and Locutus Holdco LLC (15)Employee benefits provider for small and mid-size employersCommon units12/20209,803,68210.022.1
Benefytt Technologies, Inc. (15)Health insurance sales platform providerFirst lien senior secured loan
13.16% (9.18% PIK)
SOFR (S)8.75%8/20218/202729.129.123.9(2)(11)
Captive Resources Midco, LLC (15)Provider of independent consulting services to member-owned group captivesFirst lien senior secured loan7.20%SOFR (M)2.88%7/20227/20290.10.10.1(2)(11)
Foundation Risk Partners, Corp. (15)Full service independent insurance agencyFirst lien senior secured revolving loan10.32%SOFR (M)6.00%10/202110/20278.68.68.5(2)(11)
First lien senior secured loan10.68%SOFR (Q)6.00%10/202110/2028112.6112.6111.5(2)(11)
First lien senior secured loan10.68%SOFR (Q)6.00%4/202210/202830.330.330.0(2)(11)
First lien senior secured loan10.68%SOFR (Q)6.00%10/202110/20281.11.11.1(2)(11)
152.6151.1
Galway Borrower LLC (15)Insurance service providerFirst lien senior secured revolving loan9/20219/2027— — — (13)
86

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

First lien senior secured loan9.98%LIBOR (Q)5.25%9/20219/202834.234.232.8(2)(11)
34.232.8
High Street Buyer, Inc. and High Street Holdco LLC (15)Insurance brokerage platformFirst lien senior secured loan10.73%LIBOR (Q)6.00%4/20214/202822.822.822.6(2)(11)
First lien senior secured loan9.99%LIBOR (Q)5.75%2/20224/202814.714.714.4(2)(11)
First lien senior secured loan10.73%LIBOR (Q)6.00%8/20214/202812.312.312.1(2)(11)
Series A preferred units
10.00% PIK
4/2021110,561,971125.5112.9(2)
Series A common units
10.00% PIK
4/20214,649,0005.57.1(2)
Series C common units
10.00% PIK
4/20215,666,0500.78.6(2)
181.5177.7
Inszone Mid, LLC and INSZ Holdings, LLC (15)Insurance brokerage firmFirst lien senior secured loan11.33%SOFR (M)7.00%11/202211/202817.617.617.1(2)(11)
Limited partnership interests11/2022246,1431.71.7
19.318.8
K2 Insurance Services, LLC and K2 Holdco LP (15)Specialty insurance and managing general agencyFirst lien senior secured loan9.73%LIBOR (Q)5.00%7/20197/202650.450.450.4(2)(11)
First lien senior secured loan9.73%LIBOR (Q)5.00%12/20217/20262.32.32.3(2)(11)
First lien senior secured loan9.54%LIBOR (Q)5.00%8/20217/20260.20.20.2(2)(11)
Common units7/2019799,0000.82.3(2)
53.755.2
OneDigital Borrower LLC (15)Benefits broker and outsourced workflow automation platform provider for brokersFirst lien senior secured revolving loan11/202011/2025— — — (13)
Patriot Growth Insurance Services, LLC (15)National retail insurance agencyFirst lien senior secured loan8.87%LIBOR (Q)5.50%10/202110/202816.015.815.5(2)(11)
People Corporation (15)Provider of group benefits, group retirement and human resources servicesFirst lien senior secured revolving loan10.99%CDOR (Q)6.25%2/20212/20271.3 1.3 1.3 (2)(6)(11)
First lien senior secured loan10.91%LIBOR (Q)6.25%2/20212/202840.9 43.7 40.5 (2)(6)(11)
First lien senior secured loan10.91%CDOR (Q)6.25%2/20212/202812.8 14.0 12.6 (2)(6)(11)
First lien senior secured loan10.17%CDOR (Q)5.50%9/20212/20288.1 8.4 7.8 (2)(6)(11)
67.4 62.2 
Riser Merger Sub, Inc. (15)Insurance program administratorFirst lien senior secured loan9.33%SOFR (Q)5.75%8/20228/20280.7 0.8 0.7 (2)(11)
RSC Acquisition, Inc. and RSC Insurance Brokerage, Inc. (15)Insurance brokerFirst lien senior secured loan9.79%SOFR (Q)5.50%11/201910/202632.8 32.8 31.8 (2)(11)
SageSure Holdings, LLC & Insight Catastrophe Group, LLC (15)Insurance service providerFirst lien senior secured revolving loan10.14%LIBOR (M)5.75%1/20221/20285.9 5.9 5.9 (2)(11)
First lien senior secured loan
10.13% (1.63% PIK)
LIBOR (M)5.75%1/20221/202814.0 14.0 13.9 (2)(11)
Series A units2/202273215.6 16.0 
35.5 35.8 
SCM Insurance Services Inc. (15)Provider of claims management, claims investigation & support and risk management solutions for the Canadian property and casualty insurance industryFirst lien senior secured loan11.16%CDOR (Q)6.25%6/20228/202461.1 64.2 61.1 (2)(6)(11)
87

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

SelectQuote, Inc.Direct to consumer insurance distribution platformFirst lien senior secured loan
12.42% (2.00% PIK)
SOFR (M)8.00%11/201911/202422.2 22.2 19.5 (2)(11)
SG Acquisition, Inc.Provider of insurance solutions for car salesFirst lien senior secured loan9.17%LIBOR (Q)5.00%1/20201/202733.8 33.8 33.5 (2)(11)
Spring Insurance Solutions, LLCTechnology-based direct to consumer sales and marketing platform for insurance productsFirst lien senior secured loan11.23%LIBOR (Q)6.50%11/202011/202522.0 22.0 19.6 (2)(11)
THG Acquisition, LLC (15)Multi-line insurance brokerFirst lien senior secured loan9.88%LIBOR (M)5.50%12/202112/202617.0 17.0 16.7 (2)(11)
First lien senior secured loan10.13%LIBOR (M)5.75%12/202012/202614.9 14.9 14.7 (2)(11)
First lien senior secured loan10.13%LIBOR (M)5.75%12/201912/20260.1 0.1 0.1 (2)(11)
32.0 31.5 
1,152.6 1,132.8 11.86%
Power Generation
Apex Clean Energy TopCo, LLC (4)Developer, builder and owner of utility-scale wind and solar power facilitiesClass A common units11/20211,335,61098.7 150.6 
Ferrellgas, L.P. and Ferrellgas Partners, L.P.Distributor of propane and related accessoriesSenior preferred units8.96%3/202159,42259.5 60.0 
Class B units9/202259,42814.9 14.9 
74.4 74.9 
Heelstone Renewable Energy, LLC and Heelstone Renewable Energy Investors, LLC (5)Developer of utility scale solar systemsFirst lien senior secured loan
11.00% (8.54% PIK)
4/20214/202479.3 79.3 79.3 (2)
Class A1 units4/202176,446,35277.1 124.0 
Class A2 units3/20224,072,2783.8 6.3 
160.2209.6
Opal Fuels LLC and Opal Fuels Inc.Owner of natural gas facilitiesSenior subordinated loan
8.00% PIK
7/202212/202628.524.828.5(6)
Class A common stock7/20223,059,53323.322.3(6)(18)
48.150.8
PosiGen, Inc.Seller and leaser of solar power systems for residential and commercial customersWarrant to purchase shares of series D-1 preferred stock6/20216/2028101,555— — 
Warrant to purchase shares of common stock1/20201/20271,112,022— — 
— — 
Potomac Intermediate Holdings II LLC (5)Gas turbine power generation facilities operatorSeries A units11/2021226,884,442185.7143.2
Riverview Power LLC (15)Operator of natural gas and oil fired power generation facilitiesFirst lien senior secured loan13.73%LIBOR (Q)9.00%8/20216/202457.656.757.6(2)(11)
SE1 Generation, LLCSolar power developerSenior subordinated loan
12.25% (5.50% PIK)
12/20195/202357.557.557.5(2)
Sunrun Atlas Depositor 2019-2, LLC and Sunrun Atlas Holdings 2019-2, LLCResidential solar energy providerFirst lien senior secured loan3.61%10/20192/20550.10.10.1(2)
Senior subordinated loan
11.16% (5.01% PIK)
LIBOR (Q)6.75%11/201911/2025147.9147.9136.1(2)(11)
148.0136.2
Sunrun Luna Holdco 2021, LLC (15)Residential solar energy providerSenior subordinated revolving loan7.86%SOFR (Q)3.50%3/20224/202424.424.424.2(2)(6)
Senior subordinated revolving loan8.95%SOFR (Q)7.88%3/20224/202416.316.316.1(2)(6)
88

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

40.740.3
Sunrun Xanadu Issuer 2019-1, LLC and Sunrun Xanadu Holdings 2019-1, LLCResidential solar energy providerFirst lien senior secured loan3.98%6/20196/20540.30.30.3(2)
Senior subordinated loan
10.00% (6.00% PIK)
LIBOR (Q)6.75%6/20197/203072.572.567.3(2)(11)
72.867.6
942.8988.310.34%
Consumer Services
ADF Capital, Inc., ADF Restaurant Group, LLC, and ARG Restaurant Holdings, Inc. (5)Restaurant owner and operatorFirst lien senior secured loan12/20168/20228.3— — (2)(10)
Aimbridge Acquisition Co., Inc.Hotel operatorSecond lien senior secured loan11.62%LIBOR (M)7.50%2/20192/202722.522.321.8(2)
American Residential Services L.L.C. and Aragorn Parent Holdings LP (15)Heating, ventilation and air conditioning services providerFirst lien senior secured revolving loan7.14%LIBOR (M)2.75%10/202010/20250.60.60.6(2)
First lien senior secured revolving loan9.25%Base Rate (M)1.75%10/202010/20250.30.30.3(2)
Second lien senior secured loan13.23%LIBOR (Q)8.50%10/202010/202856.456.456.4(2)(11)
Series A preferred units
10.00% PIK
10/20202,531,5003.26.5(2)
60.563.8
ATI Restoration, LLC (15)Provider of disaster recovery servicesFirst lien senior secured revolving loan11.50%Base Rate (Q)4.00%7/20207/20264.74.74.7(2)(11)(14)
First lien senior secured loan9.36%SOFR (Q)5.00%7/20207/202633.033.033.0(2)(11)
First lien senior secured loan9.65%SOFR (Q)5.00%5/20227/20268.28.28.2(2)(11)
45.945.9
Belfor Holdings, Inc. (15)Disaster recovery services providerFirst lien senior secured revolving loan7.25%LIBOR (M)3.75%4/20194/202411.612.112.1(2)(14)
First lien senior secured revolving loan10.25%Base Rate (M)2.75%4/20194/20241.41.51.4(2)(14)
13.613.5
Cipriani USA, Inc. and Cipriani Group Holding S.A.R.L.Manager and operator of banquet facilities, restaurants, hotels and other leisure propertiesFirst lien senior secured loan15.48%LIBOR (Q)10.75%5/20185/202368.268.066.9(2)(11)
First lien senior secured loan15.48%LIBOR (Q)10.75%12/20205/202330.029.729.4(2)(11)
First lien senior secured loan15.48%LIBOR (Q)10.75%12/20195/202320.019.719.6(2)(11)
First lien senior secured loan15.48%LIBOR (Q)10.75%7/20195/202315.515.415.2(2)(11)
First lien senior secured loan15.23%LIBOR (Q)10.50%11/20185/202312.212.211.9(2)(11)
First lien senior secured loan15.48%LIBOR (Q)10.75%6/20205/20234.94.94.8(2)(11)
First lien senior secured loan15.48%LIBOR (Q)10.75%8/20185/20233.03.03.0(2)(11)
First lien senior secured loan15.48%LIBOR (Q)10.75%11/20185/20233.03.03.0(2)(11)
Warrant to purchase units of shares3/20213/2041718.662.18.8(2)(6)
158.0162.6
CMG HoldCo, LLC and CMG Buyer Holdings, Inc. (15)Provider of commercial HVAC equipment maintenance and repair servicesFirst lien senior secured revolving loan9.47%SOFR (Q)5.00%5/20225/20280.40.40.4(2)(11)
89

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

First lien senior secured loan9.52%SOFR (Q)5.25%5/20225/202821.821.821.4(2)(11)
First lien senior secured loan9.40%SOFR (Q)5.00%5/20225/20283.83.83.7(2)(11)
Common stock5/20222892.94.6(2)
28.930.1
CST Holding Company (15)Provider of ignition interlock devicesFirst lien senior secured revolving loan10.97%SOFR (M)6.75%11/202211/20280.20.20.2(2)(11)
First lien senior secured loan10.97%SOFR (M)6.75%11/202211/202811.811.811.4(2)(11)
12.011.6
Essential Services Holding Corporation and OMERS Mahomes Investment Holdings LLC (15)Provider of plumbing and HVAC servicesFirst lien senior secured revolving loan11/202011/2025— — — (13)
First lien senior secured loan9.49%LIBOR (Q)5.75%4/202111/202678.178.176.5(2)(11)
First lien senior secured loan9.49%LIBOR (Q)5.75%11/202011/202648.248.247.2(2)(11)
First lien senior secured loan9.71%LIBOR (Q)5.75%11/202111/202619.619.619.2(2)(11)
First lien senior secured loan14.94%LIBOR (Q)10.19%11/202111/20265.65.65.5(2)(11)
Class A units11/20206,44722.942.0(2)
174.4190.4
Infinity Home Services HoldCo, Inc. and IHS Parent Holdings, L.P. (15)Provider of residential roofing and exterior repair and replacement servicesFirst lien senior secured loan11.40%SOFR (Q)6.75%12/202212/202811.4 11.4 11.1 (2)(11)
Class A units12/20229,524,0009.5 9.5 (2)
20.9 20.6 
Jenny C Acquisition, Inc.Health club franchisorSenior subordinated loan
8.00% PIK
4/20194/20251.6 1.6 1.6 (2)
KeyStone Sub-debt HoldCo, LLCPlanet Fitness franchiseeSenior subordinated loan
10.00% PIK
1/20211/202760.0 57.6 58.8 (2)
Senior subordinated loan
10.00% PIK
9/20211/20278.0 8.0 7.8 (2)
Warrant to purchase Class C interests1/20211/202724.75813.6 8.3 (2)
69.2 74.9 
Leviathan Intermediate Holdco, LLC and Leviathan Holdings, L.P. (15)Franchising platform offering adolescent development programsFirst lien senior secured revolving loan12.54%SOFR (S)7.50%12/202212/20270.7 0.7 0.7 (2)(11)
First lien senior secured loan12.54%SOFR (S)7.50%12/202212/202716.2 16.2 15.8 (2)(11)
Limited partnership interests12/20221,972,7322.0 2.0 
18.9 18.5 
LSP Holdco, LLC and ZBS Mechanical Group Co-Invest Fund 2, LLC (15)Provider of residential HVAC and plumbing servicesFirst lien senior secured loan10.59%SOFR (Q)6.38%10/202110/202621.2 21.2 21.6 (2)(11)
First lien senior secured loan10.89%SOFR (Q)6.38%4/202210/20266.7 6.7 6.8 (2)(11)
First lien senior secured loan10.42%SOFR (Q)6.38%9/202210/20266.1 6.1 6.2 (2)(11)
Membership interest10/20212,771,0002.8 15.5 
36.8 50.1 
ME Equity LLCFranchisor in the massage industryCommon stock9/20123,000,0003.0 4.5 (2)
Movati Athletic (Group) Inc.Premier health club operatorFirst lien senior secured loan
10.18% (0.50% PIK)
CDOR (Q)6.00%10/201710/20244.7 4.9 4.6 (2)(6)(11)
OTG Management, LLCAirport restaurant operatorClass A preferred units8/20163,000,00025.3 13.1 (2)
Common units1/20113,000,0003.0 — 
90

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

Warrant to purchase of common units6/20086/20287.73%0.1 — 
28.4 13.1 
Pueblo Mechanical and Controls, LLC and OMERS PMC Investment Holdings LLC (15)Provider of commercial HVAC servicesFirst lien senior secured loan10.47%SOFR (Q)6.00%8/20228/20281.4 1.4 1.4 (2)(11)
Class A units8/20221,0019.7 11.0 (2)
11.1 12.4 
Pyramid Management Advisors, LLC and Pyramid Investors, LLC (15)Hotel operatorFirst lien senior secured revolving loan
11.60% (1.25% PIK)
LIBOR (M)7.25%4/20187/20239.7 9.7 9.7 (2)(11)(14)
First lien senior secured loan
11.63% (1.25% PIK)
LIBOR (M)7.25%4/20187/202316.9 16.9 16.9 (2)(11)
First lien senior secured loan
11.63% (1.25% PIK)
LIBOR (M)7.25%12/20197/20230.1 0.1 0.1 (2)(11)
Preferred membership units7/2016996,8331.0 0.9 
27.7 27.6 
Redwood Services, LLC and Redwood Services Holdco, LLC (15)Provider of residential HVAC and plumbing servicesFirst lien senior secured loan11.17%SOFR (M)6.75%9/202212/20250.8 0.8 0.8 (2)(11)
First lien senior secured loan11.17%SOFR (M)6.75%12/202112/20250.1 0.1 0.1 (2)(11)
First lien senior secured loan11.17%SOFR (M)6.75%12/202012/20250.2 0.2 0.2 (2)(11)
Series D units
8.00% PIK
12/202019,592,99920.5 33.9 
21.6 35.0 
Safe Home Security, Inc., Security Systems Inc., Safe Home Monitoring, Inc., National Protective Services, Inc., Bright Integrations LLC and Medguard Alert, Inc.Provider of safety systems for business and residential customersFirst lien senior secured loan11.63%LIBOR (M)7.25%8/20208/202447.9 47.9 47.9 (2)(11)
Service Logic Acquisition, Inc. and MSHC, Inc.Heating, ventilation and air conditioning services providerFirst lien senior secured loan9.59%SOFR (Q)5.50%10/202210/20270.1 0.1 0.1 (2)(11)
SV-Burton Holdings, LLC and LBC Breeze Holdings LLC (15)Provider of HVAC and plumbing services to residential and commercial customersFirst lien senior secured loan9.93%LIBOR (Q)5.50%12/202112/20271.3 1.3 1.3 (2)(11)
Class A units12/20214,2964.3 4.8 
5.6 6.1 
Taymax Group, L.P., Taymax Group G.P., LLC, PF Salem Canada ULC and TCP Fit Parent, L.P. (15)Planet Fitness franchiseeFirst lien senior secured revolving loan
9.51% (0.50% PIK)
LIBOR (S)4.75%7/20187/20250.4 0.4 0.4 (2)(11)
First lien senior secured revolving loan
10.05% (0.50% PIK)
SOFR (M)5.63%7/20187/20250.4 0.4 0.4 (2)(11)
First lien senior secured loan
8.92% (0.50% PIK)
LIBOR (S)4.75%3/20207/20251.4 1.4 1.4 (2)(11)
Class A units7/201837,0203.8 4.6 
6.0 6.8 
The Alaska Club Partners, LLC, Athletic Club Partners LLC and The Alaska Club, Inc. (15)Premier health club operatorFirst lien senior secured loan
14.00% (2.00% PIK)
Base Rate (Q)6.50%12/201912/202412.5 12.5 12.5 (2)(11)
The Arcticom Group, LLC and AMCP Mechanical Holdings, LP (15)Refrigeration, heating, ventilation and air conditioning services providerFirst lien senior secured revolving loan10.10%LIBOR (M)6.00%12/202112/20278.9 8.9 8.8 (2)(11)
91

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

First lien senior secured revolving loan12.50%Base Rate (M)5.00%12/202112/20272.5 2.5 2.5 (2)(11)
First lien senior secured loan9.57%LIBOR (S)6.00%8/202212/20270.2 0.2 0.2 (2)(11)
First lien senior secured loan11.08%LIBOR (Q)6.00%12/202112/20270.2 0.2 0.2 (2)(11)
Class A units12/20215,667,1605.7 8.5 
17.5 20.2 
YE Brands Holdings, LLC (15)Sports camp operatorFirst lien senior secured revolving loan9.47%SOFR (Q)5.00%10/202110/20271.5 1.5 1.5 (2)(11)
First lien senior secured loan9.93%SOFR (Q)5.25%6/202210/20278.2 8.2 8.2 (2)(11)
First lien senior secured loan9.68%SOFR (Q)5.00%10/202110/20270.1 0.1 0.1 (2)(11)
9.8 9.8 
859.1 906.0 9.48%
Consumer Durables and Apparel
Badger Sportswear Acquisition, Inc.Provider of team uniforms and athletic wearSecond lien senior secured loan13.57%LIBOR (Q)9.00%9/20166/202456.8 56.8 56.8 (2)(11)
Bowhunter Holdings, LLCProvider of branded archery and bowhunting accessoriesCommon units4/20144214.2 — 
Centric Brands LLC and Centric Brands GP LLC (15)Designer, marketer and distributor of licensed and owned apparelFirst lien senior secured revolving loan9.70%SOFR (Q)5.75%5/202010/20245.0 5.0 4.7 (2)(11)
First lien senior secured loan
13.30% (7.33% PIK)
SOFR (Q)9.00%10/201810/202575.4 75.3 70.9 (2)(11)
Membership interests10/2018279,3922.9 2.9 (2)
83.2 78.5 
DRS Holdings III, Inc. and DRS Holdings I, Inc. (15)Footwear and orthopedic foot-care brandFirst lien senior secured loan10.47%LIBOR (Q)5.75%11/201911/202528.0 28.0 26.8 (2)(11)
First lien senior secured loan10.47%LIBOR (Q)5.75%6/202111/202525.8 25.8 24.8 (11)
Common stock11/20198,5498.5 7.2 (2)
62.3 58.8 
Implus Footcare, LLCProvider of footwear and other accessoriesFirst lien senior secured loan
13.98% (1.50% PIK)
SOFR (Q)9.25%6/20174/2024102.7 102.7 92.4 (2)(11)
First lien senior secured loan
12.48% (0.27% PIK)
SOFR (Q)7.75%6/20174/202414.1 14.1 12.6 (2)(11)
First lien senior secured loan
12.48% (0.27% PIK)
SOFR (Q)7.75%7/20184/20245.0 5.0 4.5 (2)(11)
First lien senior secured loan
13.98% (0.30% PIK)
SOFR (Q)9.25%6/20164/20241.3 1.3 1.1 (2)(11)
123.1 110.6 
Johnnie-O Inc. and Johnnie-O Holdings Inc.Apparel retailerFirst lien senior secured loan
10.65% (4.50% PIK)
SOFR (Q)6.00%3/20223/202719.2 18.3 18.8 (2)(11)
Series A convertible preferred stock3/2022144,2114.3 5.5 (2)
Warrant to purchase shares of common stock3/20223/203276,4911.0 1.3 (2)
23.6 25.6 
Lew's Intermediate Holdings, LLC (15)Outdoor brand holding companyFirst lien senior secured loan9.40%SOFR (Q)5.00%2/20212/20281.0 1.0 0.9 (2)(11)
New Era Cap, LLCSports apparel manufacturing companyFirst lien senior secured loan9.94%LIBOR (Q)6.00%1/20227/202727.8 27.8 27.8 (2)(11)
Pelican Products, Inc. (15)Flashlights manufacturerSecond lien senior secured loan12.20%LIBOR (Q)7.75%12/202112/202960.0 60.0 55.8 (2)(11)
92

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

Rawlings Sporting Goods Company, Inc. and Easton Diamond Sports, LLCSports equipment manufacturing companyFirst lien senior secured loan11.48%LIBOR (Q)6.75%12/202012/202649.7 49.7 49.7 (2)(11)
First lien senior secured loan11.48%LIBOR (Q)6.75%11/202112/20260.1 0.1 0.1 (2)(11)
49.8 49.8 
Reef Lifestyle, LLC (15)Apparel retailerFirst lien senior secured revolving loan
14.50% (2.00% PIK)
SOFR (Q)10.00%10/201810/202435.5 35.5 34.4 (2)(11)(14)
First lien senior secured revolving loan
14.32% (4.96% PIK)
SOFR (M)10.00%7/202010/20241.0 0.9 1.0 (2)(11)(14)
First lien senior secured loan
12.74% (2.00% PIK)
LIBOR (Q)8.00%10/201810/202423.7 23.7 22.9 (2)(11)
First lien senior secured loan
10.15% (2.00% PIK)
LIBOR (Q)5.75%7/202010/20241.3 1.3 1.3 (2)(11)
61.4 59.6 
S Toys Holdings LLC (fka The Step2 Company, LLC) (5)Toy manufacturerClass B common units10/2014126,278,000— — 
Common units4/20111,116,879— — 
Warrant to purchase units4/20103,157,895— — 
— — 
SHO Holding I CorporationManufacturer and distributor of slip resistant footwearSecond lien senior secured loan10/201510/2024124.9 120.4 82.4 (2)(10)
Shock Doctor, Inc. and Shock Doctor Holdings, LLC (4)(15)Developer, marketer and distributor of sports protection equipment and accessoriesFirst lien senior secured loan9.84%SOFR (Q)5.00%5/20195/20240.1 0.1 0.1 (2)(11)
Class A preferred units3/201450,0005.0 1.8 (2)
Class C preferred units4/201550,0005.0 1.8 (2)
Preferred units5/201914,5911.6 2.3 (2)
11.7 6.0 
SVP-Singer Holdings Inc. and SVP-Singer Holdings LPManufacturer of consumer sewing machinesFirst lien senior secured loan11.48%LIBOR (Q)6.75%7/20217/202844.4 43.5 36.4 (2)(11)
Class A common units7/20216,264,70626.1 4.0 (2)
69.6 40.4 
Totes Isotoner Corporation and Totes Ultimate Holdco, Inc. (4)Designer, marketer, and distributor of rain and cold weather productsFirst lien senior secured loan10.38%LIBOR (M)6.00%12/201912/20242.2 2.2 1.9 (2)(11)
First lien senior secured loan8.38%LIBOR (M)4.00%12/20196/20241.6 1.6 1.6 (2)(11)
Common stock12/2019861,0006.0 0.2 (2)
9.8 3.7 
Varsity Brands Holding Co., Inc. and BCPE Hercules Holdings, LPLeading manufacturer and distributor of textiles, apparel & luxury goodsFirst lien senior secured loan7.88%LIBOR (M)3.50%4/202012/202414.8 14.0 14.2 (2)(11)(18)
Second lien senior secured loan12.63%LIBOR (M)8.25%12/201712/2025122.7 122.7 121.5 (2)(11)
Second lien senior secured loan12.63%LIBOR (M)8.25%7/201812/202521.1 21.1 20.9 (2)(11)
Class A Units7/20181,4001.4 1.0 (2)
159.2 157.6 
923.9 814.3 8.52%
Capital Goods
93

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

AI Aqua Merger Sub, Inc.End to end provider of water solutions to a wide range of customer basesFirst lien senior secured loan7.97%SOFR (M)3.75%6/20217/20281.0 1.0 0.9 (2)(11)(18)
API Commercial Inc., API Military Inc., and API Space Intermediate, Inc.Provider of military aircraft aftermarket parts and distribution, repair and logistics servicesFirst lien senior secured loan5/20228/20257.3 3.6 3.6 (2)(10)
Arrowhead Holdco Company and Arrowhead GS Holdings, Inc.Distributor of non-discretionary, mission-critical aftermarket replacement partsFirst lien senior secured loan8.68%SOFR (Q)4.50%8/20218/20280.1 0.1 0.1 (2)(11)
Common stock8/20215,0545.1 6.4 (2)
5.26.5
BlueHalo Financing Holdings, LLC, BlueHalo Global Holdings, LLC, and BlueHalo, LLC (15)Provides products and services to the Department of Defense and Intelligence CommunityFirst lien senior secured revolving loan10.72%LIBOR (Q)6.00%5/202210/20252.8 2.7 2.7 (2)(11)
First lien senior secured loan10.70%LIBOR (Q)6.00%5/202210/20251.0 1.0 1.0 (2)(11)
3.7 3.7 
Burgess Point Purchaser CorporationRemanufacturer of mission-critical and non-discretionary aftermarket vehicle, industrial, energy storage, and solar replacement partsFirst lien senior secured loan9.67%SOFR (M)5.25%7/20227/20294.8 4.4 4.3 (2)(11)(18)
Cadence Aerospace, LLC (15)Aerospace precision components manufacturerFirst lien senior secured revolving loan
12.92% (2.00% PIK)
LIBOR (Q)8.50%11/20178/202313.7 13.7 13.4 (2)(11)(14)
First lien senior secured revolving loan
12.92% (2.00% PIK)
LIBOR (Q)8.50%7/202011/20231.0 1.0 1.0 (2)(11)(14)
First lien senior secured loan
12.92% (2.00% PIK)
LIBOR (Q)8.50%11/201711/202331.1 31.1 30.5 (2)(11)
First lien senior secured loan
12.92% (2.00% PIK)
LIBOR (Q)8.50%10/201911/202311.9 11.9 11.6 (2)(11)
First lien senior secured loan
12.92% (2.00% PIK)
LIBOR (Q)8.50%7/201811/20239.7 9.7 9.5 (2)(11)
First lien senior secured loan
13.23% (2.00% PIK)
LIBOR (Q)8.50%2/202011/20237.8 7.8 7.6 (2)(11)
First lien senior secured loan
12.92% (2.00% PIK)
LIBOR (Q)8.50%7/202011/20235.3 5.2 5.2 (2)(11)
80.4 78.8 
DFS Holding Company, Inc.Distributor of maintenance, repair, and operations parts, supplies, and equipment to the foodservice industryFirst lien senior secured loan9.44%LIBOR (M)6.00%7/20178/2023164.9 164.9 164.9 (2)(11)
First lien senior secured loan10.38%LIBOR (M)6.00%5/20208/20236.5 6.5 6.5 (2)(11)
First lien senior secured loan10.38%LIBOR (M)6.00%3/20178/20234.3 4.3 4.3 (2)(11)
175.7 175.7 
Dynamic NC Aerospace Holdings, LLC and Dynamic NC Investment Holdings, LP (15)Provider of aerospace technology and equipmentFirst lien senior secured loan11.65%SOFR (Q)7.00%12/202012/202623.2 23.2 23.2 (2)(11)
Common units12/20209,773,0009.8 9.0 
33.0 32.2 
EPS NASS Parent, Inc. (15)Provider of maintenance and engineering services for electrical infrastructureFirst lien senior secured revolving loan10.48%LIBOR (Q)5.75%4/20214/20260.8 0.8 0.8 (2)(11)(14)
First lien senior secured loan10.48%LIBOR (Q)5.75%4/20214/20280.2 0.2 0.2 (2)(11)
1.0 1.0 
94

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

ESCP PPG Holdings, LLC (4)Distributor of new equipment and aftermarket parts to the heavy-duty truck industryClass A-1 units8/202296,8972.3 3.0 (2)
Class A-2 units12/20163,5003.5 0.1 (2)
5.8 3.1 
Harvey Tool Company, LLC (15)Manufacturer of cutting tools used in the metalworking industryFirst lien senior secured loan10.64%LIBOR (S)5.50%10/202110/20271.1 1.1 1.1 (2)(11)
Imaging Business Machines, L.L.C. and Scanner Holdings Corporation (5)Provider of high-speed intelligent document scanning hardware and softwareSenior subordinated loan14.00%1/201712/202316.6 16.5 16.6 (2)
Series A preferred stock
8.00% PIK
1/201773,804,1351.5 29.8 
Class A common stock1/201748,082— 0.1 
Class B common stock1/2017431,0550.1 1.3 
18.1 47.8 
Kene Acquisition, Inc. and Kene Holdings, L.P. (15)National utility services firm providing engineering and consulting services to natural gas, electric power and other energy and industrial end marketsFirst lien senior secured revolving loan8/20198/2024— — — (13)
First lien senior secured loan8.98%LIBOR (Q)4.25%8/20198/202640.6 40.6 39.8 (2)(11)
Class A units8/20194,549,0004.5 7.0 (2)
45.1 46.8 
Lower ACS, Inc. (15)Provider of commercial HVAC equipment and servicesFirst lien senior secured loan10.13%LIBOR (M)5.75%1/20221/20285.4 5.4 5.4 (2)(11)
LTG Acquisition, Inc.Designer and manufacturer of display, lighting and passenger communication systems for mass transportation marketsClass A membership units1/20175,0005.1 — 
Maverick Acquisition, Inc.Manufacturer of precision machined components for defense and high-tech industrial platformsFirst lien senior secured loan10.98%LIBOR (Q)6.25%6/20216/202727.6 27.6 25.4 (2)(11)
MB Aerospace Holdings II Corp.Aerospace engine components manufacturerFirst lien senior secured loan8.23%LIBOR (Q)3.50%6/20211/202514.3 13.4 12.5 (2)(11)
Second lien senior secured loan13.73%LIBOR (Q)9.00%1/20181/202668.4 68.4 63.6 (2)(11)
Second lien senior secured loan13.73%LIBOR (Q)9.00%5/20191/202623.6 23.6 22.0 (2)(11)
105.4 98.1 
NCWS Intermediate, Inc. and NCWS Holdings LP (15)Manufacturer and supplier of car wash equipment, parts and supplies to the conveyorized car wash marketFirst lien senior secured loan10.38%LIBOR (M)6.00%11/202112/202697.0 97.0 95.1 (2)(11)
First lien senior secured loan10.38%LIBOR (M)6.00%12/202012/20260.2 0.2 0.2 (2)(11)
Class A-2 common units12/202012,296,00012.9 18.5 (2)
110.1 113.8 
Noble Aerospace, LLC (15)Provider of metal finishing services to the aerospace, military and defense sectorsFirst lien senior secured revolving loan5/20229/2023— — — (13)
95

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

Osmose Utilities Services, Inc. and Pine Intermediate Holding LLCProvider of structural integrity management services to transmission and distribution infrastructureSecond lien senior secured loan11.13%LIBOR (M)6.75%6/20216/202955.3 55.3 51.4 (2)(11)
Precinmac (US) Holdings Inc., Trimaster Manufacturing Inc. and Blade Group Holdings, LP.Manufacturer of high-tolerance precision machined components and assemblies for the aerospace and defense industryFirst lien senior secured loan10.42%SOFR (M)6.00%8/20218/202711.7 11.7 11.4 (2)(6)(11)
First lien senior secured loan10.42%SOFR (M)6.00%4/20228/20274.0 4.0 3.9 (2)(6)(11)
Class A units8/202188,42013.4 26.5 (2)
29.1 41.8 
Prime Buyer, L.L.C. (15)Provider of track systems, cabs, hulls, doors, and various armored components for defense/military vehicle applicationsFirst lien senior secured revolving loan9.88%SOFR (Q)5.25%5/202212/20262.7 2.0 2.6 (2)(11)
Qnnect, LLC and Connector TopCo, LP (15)Manufacturer of highly engineered hermetic packaging productsFirst lien senior secured loan11.11%SOFR (Q)7.00%11/202211/202910.6 10.6 10.3 (2)(11)
Limited partnership interests11/2022992,5009.9 9.9 (2)
20.5 20.2 
Radius Aerospace, Inc. and Radius Aerospace Europe Limited (15)Metal fabricator in the aerospace industryFirst lien senior secured revolving loan8.68%SONIA (M)5.75%11/20193/20250.4 0.4 0.4 (2)(6)(11)
First lien senior secured revolving loan10.08%SOFR (M)5.75%3/20193/20250.4 0.4 0.4 (2)(6)(11)
0.8 0.8 
Radwell Parent, LLC (15)Distributor of maintenance, repair, and operations partsFirst lien senior secured loan11.33%SOFR (Q)6.75%12/20224/202919.5 18.9 18.9 (2)(11)
Sunk Rock Foundry Partners LP, Hatteras Electrical Manufacturing Holding Company and Sigma Electric Manufacturing Corporation, Diecast Beacon (15)Manufacturer of metal castings, precision machined components and sub-assemblies in the electrical products, power transmission and distribution and general industrial marketsFirst lien senior secured revolving loan10/201710/2024— — — (13)
758.3 783.9 8.21%
Automobiles and Components
Automotive Keys Group, LLC and Automotive Keys Investor, LLCProvider of replacement wireless keys for automotive marketFirst lien senior secured loan10.93%SOFR (Q)6.25%12/202211/20255.3 5.3 5.3 (2)(11)
First lien senior secured loan9.73%LIBOR (Q)5.00%12/202111/20250.1 0.1 0.1 (2)(11)
Preferred units
9.00% PIK
11/20205,208,1596.1 5.2 (2)
Class A common units11/20205,208,159— — 
11.5 10.6 
Continental Acquisition Holdings, Inc.Distributor of aftermarket batteries to the electric utility vehicle, automotive, commercial, marine and industrial marketsFirst lien senior secured loan11.48%LIBOR (Q)6.75%1/20211/202736.2 36.2 33.3 (2)(11)
First lien senior secured loan11.48%LIBOR (Q)6.75%12/20211/20275.4 5.4 4.9 (2)(11)
41.6 38.2 
Eckler Purchaser LLC (5)Restoration parts and accessories provider for classic automobilesClass A common units7/201267,972— — 
96

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

Faraday Buyer, LLC (15)Manufacturer and supplier for the power utility and automotive markets worldwideFirst lien senior secured loan11.32%SOFR (M)7.00%10/202210/202852.2 52.2 50.6 (2)(11)
Faraday&Future Inc., FF Inc., Faraday SPE, LLC and Faraday Future Intelligent Electric Inc.Electric vehicle manufacturerWarrant to purchase shares of Class A common stock8/20218/2027633,0082.3 — (2)
Highline Aftermarket Acquisition, LLC, Highline Aftermarket SC Acquisition, Inc. and Highline PPC Blocker LLC (15)Manufacturer and distributor of automotive fluidsFirst lien senior secured revolving loan8.13%LIBOR (M)3.75%11/202011/20251.0 1.0 0.9 (2)(14)
First lien senior secured loan8.88%LIBOR (M)4.50%3/202211/202711.9 11.3 10.9 (2)(11)(18)
Second lien senior secured loan12.72%LIBOR (Q)8.00%11/202011/202870.4 70.4 64.0 (2)(11)
Co-invest units11/202059,2305.9 3.8 (2)
88.6 79.6 
McLaren Group LimitedAutomobile manufacturer and retailerSenior preference shares
12.50% PIK
8/20218/2028200,00023.7 26.2 (2)(6)
Warrant to purchase units of ordinary shares8/20218/210049,1815.5 2.8 (2)(6)
Warrant to purchase units of ordinary shares8/20218/210013,7761.6 0.8 (2)(6)
30.8 29.8 
Sun Acquirer Corp. and Sun TopCo, LP (15)Automotive parts and repair services retailerFirst lien senior secured revolving loan9/20219/2027— — — (13)
First lien senior secured loan10.13%LIBOR (M)5.75%9/20219/202852.0 52.0 50.4 (2)(11)
First lien senior secured loan10.13%LIBOR (M)5.75%11/20219/20285.3 5.3 5.2 (2)(11)
Class A units9/202179,6878.0 9.3 (2)
65.3 64.9 
Wand Newco 3, Inc.Collision repair companySecond lien senior secured loan11.63%LIBOR (M)7.25%2/20192/2027182.6 180.9 178.9 (2)
473.2 452.6 4.74%
Media and Entertainment
Aventine Intermediate LLC & Aventine Holdings II LLC (15)Media and production companyFirst lien senior secured loan
10.38% (4.12% PIK)
LIBOR (M)6.00%12/20216/20279.4 9.4 9.3 (2)(11)
Senior subordinated loan
10.25% PIK
12/202112/203039.4 39.4 36.2 (2)
48.8 45.5 
Axiomatic, LLCPremiere e-sports and video game investment platformClass A-1 units5/2022500,0005.0 5.3 
CMW Parent LLC (fka Black Arrow, Inc.)Multiplatform media firmSeries A units9/201532— — 
Eagle Football Holdings BidCo LimitedMulti-club sports platformSenior subordinated loan
15.00% PIK
12/202212/202825.5 25.5 23.9 (2)(6)
Senior subordinated loan12.30%12/202212/202841.7 41.7 40.5 (2)(6)
67.2 64.4 
Global Music Rights, LLC (15)Music right management companyFirst lien senior secured loan10.23%LIBOR (Q)5.50%8/20218/20280.1 0.1 0.1 (2)(11)
MailSouth, Inc.Provider of shared mail marketing servicesFirst lien senior secured loan5/20224/20248.7 5.8 3.9 (2)(10)
97

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

Miami Beckham United LLCAmerican professional soccer clubClass A preferred units
8.50% PIK
9/202185,00094.7 94.7 
OUTFRONT Media Inc.Provider of out-of-home advertisingSeries A convertible perpetual preferred stock7.00%4/202025,00025.0 33.6 (2)(6)
Production Resource Group, L.L.C. and PRG III, LLC (4)Provider of rental equipment, labor, production management, scenery, and other products to various entertainment end-marketsFirst lien senior secured loan
12.85% (9.85% PIK)
LIBOR (M)8.50%8/20188/202439.1 39.1 39.1 (2)(11)
First lien senior secured loan
11.85% (2.59% PIK)
LIBOR (M)7.50%7/20208/202415.4 15.4 15.4 (2)(11)
First lien senior secured loan
11.88% (2.57% PIK)
LIBOR (M)7.50%8/20218/20247.6 7.6 7.6 (2)(11)
First lien senior secured loan
11.88% (2.57% PIK)
LIBOR (M)7.50%6/20218/20240.9 0.9 0.9 (2)(11)
Class A units10/2020113,6174.9 34.3 (2)
67.9 97.3 
Professional Fighters League, LLC and PFL MMA, Inc. (15)Mixed martial arts leagueFirst lien senior secured loan
12.00% PIK
1/20211/202617.1 16.1 17.1 (2)
Second lien senior secured loan14.00%11/20221/20260.1 — 0.1 (2)
Series E preferred stock4/2022219,0350.7 0.6 (2)
Warrant to purchase shares of common stock1/20211/20273,223,1221.7 0.8 (2)
Warrant to purchase shares of common stock11/202211/202957,3220.2 0.2 (2)
18.7 18.8 
Storm Investment S.a.r.l.Spanish futbol clubFirst lien senior secured loan3.75%6/20216/202966.0 73.6 66.0 (2)(6)
Class A redeemable shares6/20213,297,7911.6 2.2 (2)(6)
Class B redeemable shares6/20213,297,7911.6 2.2 (2)(6)
Class C redeemable shares6/20213,297,7911.6 2.2 (2)(6)
Class D redeemable shares6/20213,297,7911.6 2.2 (2)(6)
Class E redeemable shares6/20213,297,7911.6 2.2 (2)(6)
Class F redeemable shares6/20213,297,7911.6 2.2 (2)(6)
Class G redeemable shares6/20213,297,7911.6 2.2 (2)(6)
Class H redeemable shares6/20213,297,7911.62.2(2)(6)
Class I redeemable shares6/20213,297,7911.62.2(2)(6)
Ordinary shares6/20213,958— 0.2(2)(6)
88.086.0
The Teaching Company Holdings, Inc.Education publications providerPreferred stock9/200610,6631.12.5(2)
Common stock9/200615,393— — 
1.12.5
422.3452.14.73%
98

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

Food and Beverage
American Seafoods Group LLC and American Seafoods Partners LLCHarvester and processor of seafoodClass A units8/201577,9220.10.3(2)
Warrant to purchase Class A units8/20158/20357,422,0787.428.0(2)
7.528.3
Berner Food & Beverage, LLC (15)Supplier of dairy-based food and beverage productsFirst lien senior secured revolving loan12.00%Base Rate (Q)4.50%7/20217/20260.40.40.4(2)(11)
First lien senior secured revolving loan9.91%LIBOR (Q)5.50%7/20217/20260.10.10.1(2)(11)
0.50.5
Bragg Live Food Products, LLC and SPC Investment Co., L.P. (4)(15)Health food companyFirst lien senior secured loan11.58%SOFR (Q)7.00%12/202012/202528.928.928.3(2)(11)
Common units3/201914,85011.510.8(2)
40.439.1
CHG PPC Parent LLC & PPC CHG Blocker LLCDiversified food products manufacturerSecond lien senior secured loan11.13%LIBOR (M)6.75%12/202112/202994.694.689.9(2)(11)
Common units12/2021593.02.9(2)
97.692.8
Florida Food Products, LLCProvider of plant extracts and juicesFirst lien senior secured loan9.32%SOFR (M)5.00%6/202210/20280.40.40.4(2)(11)
First lien senior secured loan9.38%LIBOR (M)5.00%10/202110/20280.10.10.1(2)(11)
Second lien senior secured loan12.38%LIBOR (M)8.00%10/202110/202971.871.870.4(2)(11)
72.370.9
GF Parent LLCProducer of low-acid, aseptic food and beverage productsClass A preferred units5/20152,9402.9— 
Class A common units5/201560,0000.1— 
Class B common units5/20150.26— — 
3.0— 
Gotham Greens Holdings, PBC (15)Producer of vegetables and culinary herbs for restaurants and retailersFirst lien senior secured loan11.80%SOFR (Q)7.38%6/202212/202617.717.717.4(2)(11)
Series E-1 preferred stock
6.00% PIK
6/2022166,05914.214.2(2)
Warrant to purchase shares of Series E-1 preferred stock6/20226/203243,154— — 
31.931.6
Hometown Food Company (15)Food distributorFirst lien senior secured revolving loan9.39%LIBOR (M)5.00%8/20188/20230.8 0.8 0.8 (2)(11)(14)
KNPC HoldCo, LLCProducer of trail mix and mixed nut snack productsFirst lien senior secured loan9.92%SOFR (M)5.50%4/202210/20285.6 5.6 5.5 (11)
First lien senior secured loan11.42%SOFR (M)7.00%12/202210/20281.3 1.3 1.3 (2)(11)
6.9 6.8 
Manna Pro Products, LLC (15)Manufacturer and supplier of specialty nutrition and care products for animalsFirst lien senior secured revolving loan10.14%LIBOR (M)6.00%12/202012/20265.1 5.1 4.7 (2)(11)
RB Holdings InterCo, LLC (15)Manufacturer of pet food and treatsFirst lien senior secured revolving loan9.28%SOFR (Q)5.00%5/20225/20281.8 1.8 1.7 (2)(11)
First lien senior secured loan9.32%SOFR (Q)5.00%5/20225/202811.5 11.5 11.2 (2)(11)
13.3 12.9 
RF HP SCF Investor, LLCBranded specialty food companyMembership interest12/201610.08%12.5 25.9 (2)(6)
99

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

Teasdale Foods, Inc. and Familia Group Holdings Inc.Provider of beans, sauces and hominy to the retail, foodservice and wholesale channelsFirst lien senior secured loan
12.29% (1.00% PIK)
SOFR (S)7.25%12/202012/202575.9 75.9 65.3 (2)(11)
Warrant to purchase shares of common stock2/20192/203457,827— — 
75.9 65.3 
Triton Water Holdings, Inc.Producer and provider of bottled water brandsFirst lien senior secured loan8.23%LIBOR (Q)3.50%3/20213/20281.0 1.0 0.9 (2)(11)(18)
Senior subordinated loan6.25%3/20214/20290.1 0.1 0.1 (2)(18)
1.1 1.0 
Watermill Express, LLC and Watermill Express Holdings, LLC (15)Owner and operator of self-service water and ice stationsFirst lien senior secured loan10.23%LIBOR (Q)5.50%4/20214/202720.4 20.4 20.4 (2)(11)
Class A units
8.00% PIK
4/2021282,2003.2 3.2 
23.6 23.6 
Winebow Holdings, Inc. and The Vintner Group, Inc.Importer and distributor of wineFirst lien senior secured loan10.63%LIBOR (M)6.25%4/20217/202528.0 28.0 27.5 (2)(11)
420.4 431.7 4.52%
Energy
Calyx Energy III, LLCOil and gas exploration companyFirst lien senior secured loan12.37%SOFR (M)8.00%8/20221/202757.0 57.0 57.0 (2)(11)
Cheyenne Petroleum Company Limited Partnership, CPC 2001 LLC and Mill Shoals LLC (15)Private oil exploration and production companyFirst lien senior secured loan13.69%SOFR (Q)9.00%11/202211/202649.3 49.3 47.8 (2)(11)
GNZ Energy Bidco Limited and Galileo Co-investment Trust I (15)Independent fuel provider in New ZealandFirst lien senior secured loan10.65%BBSY (M)6.75%5/20227/202730.8 30.5 30.8 (2)(6)(11)
Common units7/202213,736,3658.3 8.7 (2)(6)
38.8 39.5 
Halcon Holdings, LLCOperator of development, exploration, and production oil companyFirst lien senior secured loan12.20%SOFR (Q)7.50%11/202111/202513.4 13.2 13.4 (2)
Murchison Oil and Gas, LLC and Murchison Holdings, LLC (15)Exploration and production companyFirst lien senior secured loan13.08%SOFR (Q)8.50%6/20226/202675.5 75.5 75.5 (2)(11)
Preferred units
8.00% PIK
6/202241,00041.0 45.9 
116.5121.4
Offen, Inc. (15)Distributor of fuel, lubricants, diesel exhaust fluid, and premium additivesFirst lien senior secured loan8.51%LIBOR (S)5.00%5/20226/20261.41.51.4(2)
SilverBow Resources, Inc.Oil and gas producerCommon stock6/20221,015,21528.828.7(2)(6)(18)
VPROP Operating, LLC and V SandCo, LLC (5)Sand-based proppant producer and distributor to the oil and natural gas industryFirst lien senior secured loan13.62%LIBOR (M)9.50%3/201711/202427.327.327.3(2)(11)
First lien senior secured loan13.62%LIBOR (M)9.50%11/202011/20249.49.49.4(2)(11)
First lien senior secured loan13.62%LIBOR (M)9.50%6/202011/20246.06.06.0(2)(11)
Class A units11/2020347,90032.873.4(2)
75.5116.1
380.6425.34.45%
Pharmaceuticals, Biotechnology and Life Sciences
100

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

Abzena Holdings, Inc. and Astro Group Holdings Ltd. (15)Organization providing discovery, development and manufacturing services to the pharmaceutical and biotechnology industriesFirst lien senior secured loan
14.54% (6.97% PIK)
LIBOR (Q)10.50%5/20215/202661.061.059.8(2)(6)(11)
A ordinary shares5/20212,476,7445.76.5(2)(6)
66.766.3
Alcami Corporation and ACM Note Holdings, LLC (15)Outsourced drug development services providerFirst lien senior secured loan11.42%SOFR (M)7.00%12/202212/20289.59.59.0(2)(11)
Senior subordinated loan
8.00% PIK
12/20226/202919.519.519.5(2)
29.028.5
Amryt Pharmaceuticals, Inc.Biopharmaceutical company dedicated to acquiring, developing and commercializing novel therapeuticsFirst lien senior secured loan10.46%SOFR (Q)6.75%2/20222/202712.712.712.7(2)(6)(11)
Athyrium Buffalo LP (16)Biotechnology company engaging in the development, manufacture, and commercialization of novel neuromodulatorsLimited partnership interests6/20227,628,9667.67.5(2)(6)
Caerus Midco 3 S.à r.l.Provider of market intelligence and analysis for the pharmaceutical industryFirst lien senior secured loan9.83%SOFR (Q)5.75%10/20225/20295.45.35.3(2)(6)(11)
Cobalt Buyer Sub, Inc., Cobalt Holdings I, LP, and Cobalt Intermediate I, Inc. (15)Provider of biological products to life science and pharmaceutical companiesFirst lien senior secured revolving loan9.63%LIBOR (M)5.25%10/202110/20272.52.52.4(2)(11)
First lien senior secured loan9.63%LIBOR (M)5.25%10/202110/202830.230.229.0(2)(11)
Preferred units
8.00% PIK
10/202110/20513,0203.34.0(2)
Series A preferred shares
14.73% PIK
LIBOR (Q)10.00%10/202160,23669.769.7(2)
Class A common units10/202130,500— — (2)
105.7105.1
Covaris Intermediate 3, LLC & Covaris Parent, LLC (15)Provider of advanced pre-analytical sample preparation technologies for life and analytical scienceFirst lien senior secured revolving loan9.66%LIBOR (Q)5.25%1/20221/20281.5 1.5 1.5 (2)(11)
First lien senior secured loan9.16%LIBOR (Q)4.75%1/20221/20280.1 0.1 0.1 (2)(11)
Class A-2 units1/20224,7724.8 5.5 
6.4 7.1 
NMC Skincare Intermediate Holdings II, LLC (15)Developer, manufacturer and marketer of skincare productsFirst lien senior secured loan9.38%LIBOR (M)5.00%10/201810/202432.0 32.0 30.7 (2)(11)
First lien senior secured loan9.38%LIBOR (M)5.00%5/202210/20244.7 4.7 4.5 (2)(11)
36.7 35.2 
North American Science Associates, LLC, Cardinal Purchaser LLC and Cardinal Topco Holdings, L.P.Contract research organization providing research and development and testing of medical devicesFirst lien senior secured loan10.18%SOFR (Q)5.50%9/20209/202747.5 47.5 47.5 (2)(11)
First lien senior secured loan10.18%SOFR (Q)5.50%2/20219/20272.6 2.6 2.6 (2)(11)
First lien senior secured loan10.18%SOFR (Q)5.50%12/20209/20270.1 0.1 0.1 (2)(11)
First lien senior secured loan10.18%SOFR (Q)5.50%9/20219/20270.1 0.1 0.1 (2)(11)
Class A preferred units
8.00% PIK
9/202013,52816.2 38.8 (2)
66.5 89.1 
101

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

TerSera Therapeutics LLC (15)Acquirer and developer of specialty therapeutic pharmaceutical productsFirst lien senior secured loan9.98%LIBOR (M)5.60%5/20173/20255.0 5.0 5.0 (2)(11)
First lien senior secured loan9.98%LIBOR (M)5.60%9/20183/20252.0 2.0 2.0 (2)(11)
First lien senior secured loan9.98%LIBOR (M)5.60%4/20193/20251.8 1.8 1.8 (2)(11)
8.8 8.8 
Verista, Inc. (15)Provides systems consulting for compliance, automation, validation, and packaging solutions to the healthcare sectorFirst lien senior secured revolving loan10.27%LIBOR (M)6.00%5/20222/20271.1 0.7 1.1 (2)(11)
First lien senior secured loan10.19%LIBOR (Q)6.00%5/20222/20270.8 0.8 0.8 (2)(11)
1.5 1.9 
Vertice Pharma UK Parent LimitedManufacturer and distributor of generic pharmaceutical productsPreferred shares12/201540,662— — (6)
346.9 367.5 3.85%
Retailing and Distribution
Atlas Intermediate III, L.L.C. (15)Specialty chemicals distributorFirst lien senior secured revolving loan10.10%LIBOR (M)5.75%4/20194/20250.2 0.2 0.2 (2)(11)
First lien senior secured loan10.48%LIBOR (Q)5.75%10/20224/20250.1 0.1 0.1 (2)(11)
First lien senior secured loan10.48%LIBOR (Q)5.75%3/20224/20250.1 0.1 0.1 (2)(11)
First lien senior secured loan10.48%LIBOR (Q)5.75%11/20214/20250.1 0.1 0.1 (2)(11)
First lien senior secured loan10.48%LIBOR (Q)5.75%3/20214/20250.2 0.2 0.2 (2)(11)
0.7 0.7 
Bamboo Purchaser, Inc.Provider of nursery, garden, and greenhouse productsFirst lien senior secured loan10.73%LIBOR (Q)6.00%11/202111/202717.9 17.9 17.4 (2)(11)
Display Holding Company, Inc., Saldon Holdings, Inc. and Fastsigns Holdings Inc. (15)Provider of visual communications solutionsFirst lien senior secured loan10.03%LIBOR (M)5.65%3/20193/202515.8 15.8 15.8 (2)(11)
First lien senior secured loan10.03%LIBOR (M)5.65%6/20213/20250.1 0.1 0.1 (2)(11)
First lien senior secured loan10.03%LIBOR (M)5.65%8/20193/20250.1 0.1 0.1 (2)(11)
Common units3/20196000.6 1.2 (2)
16.6 17.2 
GPM Investments, LLC and ARKO Corp.Convenience store operatorCommon stock12/20202,088,47819.8 26.1 
Warrant to purchase units of common stock12/202012/20251,088,7801.6 1.9 (2)
21.4 28.0 
Marcone Yellowstone Buyer Inc. and Marcone Yellowstone Holdings, LLCDistributor of OEM appliance aftermarket partsFirst lien senior secured loan10.98%LIBOR (Q)6.25%12/20216/20286.5 6.5 6.5 (2)(11)
First lien senior secured loan10.91%SOFR (Q)6.25%6/20216/20282.6 2.6 2.5 (2)(11)
First lien senior secured loan10.94%SOFR (Q)6.25%12/20216/20282.1 2.1 2.1 (2)(11)
First lien senior secured loan10.98%LIBOR (Q)6.25%6/20216/20280.3 0.3 0.3 (2)(11)
Class A common units6/20215,5786.1 10.2 (2)
17.6 21.6 
102

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

Mavis Tire Express Services Topco Corp., Metis Holdco, Inc. and Metis Topco, LP (15)Auto parts retailerFirst lien senior secured revolving loan5/20215/2026— — — (13)
Series A preferred stock
7.00% PIK
5/202168,60177.0 76.6 (2)
Class A-1 units5/202124,58624.6 33.1 (2)
101.6 109.7 
McKenzie Creative Brands, LLC (15)Designer, manufacturer and distributor of hunting-related suppliesFirst lien senior secured revolving loan10.12%LIBOR (M)5.75%9/20149/20231.9 1.9 1.9 (2)(11)
First lien senior secured loan9.43%LIBOR (Q)5.75%9/20149/202384.5 84.5 84.5 (2)(8)(11)
First lien senior secured loan10.14%LIBOR (M)5.75%9/20149/20235.5 5.5 5.5 (2)(11)
91.9 91.9 
Monolith Brands Group, Inc.E-commerce platform focused on consolidating DTC branded businessesSeries A-1 preferred stock4/2022701,25515.5 15.5 (2)
Moon Valley Nursery of Arizona Retail, LLC, Moon Valley Nursery Farm Holdings, LLC, Moon Valley Nursery RE Holdings LLC, and Stonecourt IV Partners, LPOperator of retail and wholesale tree and plant nurseriesLimited partnership interests10/202121,939,15120.8 42.9 
North Haven Falcon Buyer, LLC and North Haven Falcon Holding Company, LLC (15)Manufacturer of aftermarket golf cart parts and accessoriesFirst lien senior secured loan11.19%LIBOR (Q)6.50%5/20215/202725.3 25.3 23.5 (2)(11)
Class A units5/202150,0005.0 1.8 
30.3 25.3 
Reddy Ice LLC (15)Packaged ice manufacturer and distributorFirst lien senior secured loan10.24%LIBOR (Q)6.50%7/20197/202561.3 61.3 60.0 (2)(11)
First lien senior secured loan10.24%LIBOR (Q)6.50%11/20207/20254.2 4.2 4.2 (2)(11)
First lien senior secured loan10.24%LIBOR (Q)6.50%10/20217/20250.9 0.9 0.9 (2)(11)
66.4 65.1 
SCIH Salt Holdings Inc. (15)Salt and packaged ice melt manufacturer and distributorFirst lien senior secured revolving loan8.15%LIBOR (Q)4.00%3/20203/20252.3 2.2 2.2 (2)(11)(14)
Trader Corporation and Project Auto Finco Corp. (15)Digital Automotive marketplace and software solution provider to automotive industryFirst lien senior secured loan11.40%CDOR (M)6.75%12/202212/202912.2 12.2 11.9 (2)(6)(11)
US Salt Investors, LLC and Emerald Lake Pearl Acquisition-A, L.P. (15)Producer and packager of compressed, household, and packaged saltFirst lien senior secured loan10.23%LIBOR (Q)5.50%7/20217/202826.4 26.4 25.3 (2)(11)
Limited partner interests7/20210.40%0.8 0.5 (2)
27.2 25.8 
442.3 475.2 4.98%
Consumer Staples Distribution and Retail
Balrog Acquisition, Inc., Balrog Topco, Inc. and Balrog Parent, L.P.Manufacturer and distributor of specialty bakery ingredientsSecond lien senior secured loan11.73%LIBOR (Q)7.00%9/20219/202929.5 29.5 29.5 (2)(11)
Class A preferred units
8.00% PIK
9/20215,4846.1 10.5 (2)
Series A preferred shares
11.00% PIK
9/202121,92125.4 25.4 (2)
61.0 65.4 
103

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

Continental Café, LLC and Infinity Ovation Yacht Charters, LLC (15)Diversified contract food service providerFirst lien senior secured revolving loan13.50%Base Rate (Q)6.00%11/202111/20270.7 0.7 0.7 (2)(11)
First lien senior secured loan11.38%LIBOR (M)7.00%11/202111/20270.1 0.1 0.1 (2)(11)
0.8 0.8 
DecoPac, Inc. and KCAKE Holdings Inc. (15)Supplier of cake decorating solutions and products to in-store bakeriesFirst lien senior secured revolving loan10.73%LIBOR (Q)6.00%5/20215/20266.6 6.6 6.5 (2)(11)
First lien senior secured loan
10.73% (0.27% PIK)
LIBOR (Q)6.00%5/20215/2028148.6 148.6 145.6 (2)(11)
Common stock5/20219,5999.6 9.4 (2)
164.8 161.5 
FS Squared Holding Corp. and FS Squared, LLC (15)Provider of on-site vending and micro market solutionsFirst lien senior secured revolving loan3/20193/2024— — — (13)
First lien senior secured loan9.49%SOFR (Q)5.25%3/20193/20250.1 0.1 0.1 (2)(11)
Class A units3/2019113,21911.1 31.2 (2)
11.2 31.3 
JWC/KI Holdings, LLCFoodservice sales and marketing agencyMembership units11/20155,0005.0 9.0 (2)
LJ Perimeter Buyer, Inc. and LJ Perimeter Co-Invest, L.P. (15)Distributor of specialty foodsFirst lien senior secured loan10.73%SOFR (Q)6.50%10/202210/202835.7 35.7 34.6 (2)(11)
Limited partnership interests10/20229,674,0009.7 9.7 (2)
45.4 44.3 
SFE Intermediate Holdco LLC (15)Provider of outsourced foodservice to K-12 school districtsFirst lien senior secured revolving loan9.48%SOFR (Q)4.75%7/20177/20258.3 8.3 8.1 (2)(11)
First lien senior secured loan9.48%SOFR (Q)4.75%9/20187/202610.0 10.0 9.8 (2)(11)
First lien senior secured loan9.48%SOFR (Q)4.75%7/20177/20266.2 6.2 6.1 (2)(11)
First lien senior secured loan9.48%SOFR (Q)4.75%3/20227/20260.4 0.4 0.4 (2)(11)
24.9 24.4 
VCP-EDC Co-Invest, LLCDistributor of foodservice equipment and suppliesMembership units6/20172,970,0002.8 4.2 
ZB Holdco LLC & ZB Parent LLC (15)Distributor of Mediterranean food and beveragesFirst lien senior secured revolving loan2/20222/2028— — — (13)
First lien senior secured loan9.48%LIBOR (Q)4.75%2/20222/20280.1 0.1 0.1 (2)(11)
Series A units2/20224,6994.7 5.5 
4.8 5.6 
320.7 346.5 3.63%
Materials
ASP-r-pac Acquisition CO LLC and ASP-r-pac Holdings LP (15)Manufacturer and supplier of printed packaging and trimmingsFirst lien senior secured loan10.38%LIBOR (M)6.00%12/202112/20270.1 0.1 0.1 (2)(11)
Class A units12/2021195,99019.6 19.2 (2)
19.7 19.3 
Genomatica, Inc.Developer of a biotechnology platform for the production of chemical productsWarrant to purchase shares of Series D preferred stock3/20133/2023322,422— — 
Halex Holdings, Inc. (5)Manufacturer of flooring installation productsCommon stock1/201751,853— — 
H-Food Holdings, LLC and Matterhorn Parent, LLCFood contract manufacturerFirst lien senior secured loan8.07%LIBOR (M)3.69%6/20225/202526.4 23.8 23.3 (2)(18)
104

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

First lien senior secured loan8.38%LIBOR (M)4.00%7/20225/20253.3 3.1 3.0 (2)(18)
First lien senior secured loan9.38%LIBOR (M)5.00%12/20215/20250.1 0.1 0.1 (2)(11)(18)
Second lien senior secured loan11.38%LIBOR (M)7.00%11/20183/202673.0 73.0 62.8 (2)
Common units11/20185,8275.8 3.5 
105.8 92.7 
Nelipak Holding Company, Nelipak European Holdings Cooperatief U.A., KNPAK Holdings, LP and PAKNK Netherlands Treasury B.V. (15)Manufacturer of thermoformed packaging for medical devicesFirst lien senior secured revolving loan8.66%LIBOR (Q)4.25%7/20197/20240.1 0.1 0.1 (2)(6)(11)
First lien senior secured loan8.66%LIBOR (Q)4.25%7/20197/202614.9 14.9 14.6 (2)(6)(11)
First lien senior secured loan6.11%Euribor (Q)4.50%7/20197/20264.8 5.1 4.7 (2)(6)
First lien senior secured loan6.11%Euribor (Q)4.50%8/20197/20261.5 1.6 1.5 (2)(6)
Class A units7/20196,762,6686.8 7.5 (2)(6)
28.5 28.4 
Novipax Buyer, L.L.C. and Novipax Parent Holding Company, L.L.C.Developer and manufacturer of absorbent pads for food productsFirst lien senior secured loan11.17%SOFR (Q)6.75%12/202012/202623.5 23.5 23.5 (2)(11)
First lien senior secured loan11.17%SOFR (M)6.75%12/202212/20266.3 6.3 6.3 (2)(11)
Class A preferred units
10.00% PIK
12/20204,7724.2 9.2 (2)
Class C units12/20204,772— — 
34.039.0
Plaskolite PPC Intermediate II LLC and Plaskolite PPC Blocker LLCManufacturer of specialized acrylic and polycarbonate sheetsFirst lien senior secured loan8.41%LIBOR (Q)4.00%12/201812/202522.6 21.5 20.1 (2)(11)
Second lien senior secured loan11.98%LIBOR (Q)7.25%12/201812/202655.0 55.0 48.9 (2)(11)
Co-Invest units12/20185,9690.6 0.5 (2)
77.1 69.5 
Polymer Solutions Group, LLCManufacturer of chemical formulations that improve the processing and efficacy of rubber, resin, and engineered wood based end-productsFirst lien senior secured loan8.92%LIBOR (Q)4.75%5/202211/2026— — — (2)(11)
Precision Concepts International LLC and Precision Concepts Canada Corporation (15)Manufacturer of diversified packaging solutions and plastic injection molded productsFirst lien senior secured revolving loan10.18%SOFR (Q)5.50%1/20191/20256.2 6.2 6.2 (2)(6)(11)
First lien senior secured loan10.18%SOFR (Q)5.50%1/20191/202614.7 14.7 14.7 (2)(6)(11)
First lien senior secured loan10.43%SOFR (Q)5.75%5/20221/20260.1 0.1 0.1 (2)(6)(11)
First lien senior secured loan10.18%SOFR (Q)5.50%6/20211/20260.1 0.1 0.1 (2)(6)(11)
21.1 21.1 
SCI PH Parent, Inc.Industrial container manufacturer, reconditioner and servicerSeries B shares8/201811.47641.1 4.2 (2)
287.3 274.2 2.87%
Technology Hardware and Equipment
105

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

Chariot Buyer LLC (15)Provider of smart access solutions across residential and commercial propertiesFirst lien senior secured revolving loan7.38%LIBOR (M)3.00%11/202111/20263.5 3.5 3.2 (2)
Second lien senior secured loan11.13%LIBOR (M)6.75%11/202111/2029134.4 134.4 126.3 (2)(11)
137.9 129.5 
Everspin Technologies, Inc.Designer and manufacturer of computer memory solutionsWarrant to purchase shares of common stock10/201610/202618,4610.4 — 
ITI Holdings, Inc. (15)Provider of innovative software and equipment for motor vehicle agenciesFirst lien senior secured revolving loan12.00%Base Rate (Q)4.50%3/20223/20283.0 3.0 2.9 (2)(11)
First lien senior secured revolving loan9.88%SOFR (M)5.50%3/20223/20281.1 1.1 1.1 (2)(11)
First lien senior secured revolving loan12.00%Base Rate (M)4.50%3/20223/20280.8 0.8 0.8 (2)(11)
First lien senior secured loan10.08%SOFR (Q)5.50%3/20223/202835.0 35.0 34.7 (2)(11)
39.9 39.5 
Micromeritics Instrument Corp. (15)Scientific instrument manufacturerFirst lien senior secured loan9.65%LIBOR (S)4.50%12/201912/202520.7 20.7 20.7 (2)(11)
Repairify, Inc. and Repairify Holdings, LLC (15)Provider of automotive diagnostics scans and solutionsClass A common units6/2021163,8204.9 4.4 (2)
Wildcat BuyerCo, Inc. and Wildcat Parent, LP (15)Provider and supplier of electrical components for commercial and industrial applicationsFirst lien senior secured revolving loan10.09%SOFR (M)5.75%2/20202/20260.8 0.8 0.8 (2)(11)(14)
First lien senior secured loan10.48%SOFR (Q)5.75%2/20202/202618.0 18.0 17.8 (2)(11)
First lien senior secured loan10.48%SOFR (Q)5.75%5/20222/20260.2 0.2 0.2 (2)(11)
First lien senior secured loan10.48%SOFR (Q)5.75%11/20212/20260.2 0.2 0.2 (2)(11)
Limited partnership interests2/202017,6551.8 5.1 (2)
21.0 24.1 
224.8 218.2 2.28%
Household and Personal Products
CDI Holdings III Corp. and CDI Holdings I Corp. (15)Provider of personal care appliancesFirst lien senior secured loan10.13%LIBOR (M)5.75%12/202112/20273.8 3.8 3.6 (2)(11)
Common stock12/20216,1496.1 4.4 (2)
9.9 8.0 
Foundation Consumer Brands, LLCPharmaceutical holding company of over the counter brandsFirst lien senior secured loan10.15%LIBOR (Q)5.50%2/202110/202612.8 12.6 12.8 (2)(11)
LifeStyles Bidco Ltd., Lifestyles Intermediate Holdco Ltd. and LifeStyles Parent, L.P.Provider of intimate wellness productsFirst lien senior secured loan11.15%SOFR (Q)6.75%11/202211/202818.6 18.6 18.2 (2)(6)(11)
Preferred units
8.00% PIK
11/20223,1783.2 3.2 (2)(6)
Class B common units11/202232,105— — (2)(6)
21.8 21.4 
Premier Specialties, Inc. and RMCF V CIV XLIV, L.P. (15)Manufacturer and supplier of natural fragrance materials and cosmeceuticalsFirst lien senior secured revolving loan10.38%LIBOR (M)6.00%8/20218/20272.3 2.3 2.2 (2)(11)
106

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

First lien senior secured loan10.38%LIBOR (M)6.00%8/20218/202727.3 27.3 25.6 (2)(11)
Limited partner interests8/20214.58%4.7 2.8 (2)
34.3 30.6 
RD Holdco Inc. (5)Manufacturer and marketer of carpet cleaning machinesSecond lien senior secured loan1/201710/202624.2 22.0 10.2 (2)(10)
Common stock1/2017458,59614.0 — 
Warrant to purchase shares of common stock1/201712/202356,372— — 
36.0 10.2 
Walnut Parent, Inc.Manufacturer of natural solution pest and animal control productsFirst lien senior secured loan10.24%LIBOR (Q)5.50%11/202011/202714.7 14.7 14.2 (2)(11)
First lien senior secured loan10.24%LIBOR (Q)5.50%4/202211/20270.1 0.1 0.1 (2)(11)
14.8 14.3 
129.4 97.3 1.02%
Transportation
Commercial Trailer Leasing, Inc. (15)Trailer leasing companyFirst lien senior secured loan10.33%SOFR (Q)6.25%1/20211/202633.3 33.3 33.3 (2)(11)
Second lien senior secured loan13.00%1/20211/202719.9 19.9 19.5 (2)
53.2 52.8 
Shur-Co Acquisition, Inc. and Shur-Co Holdco, Inc. (15)Provider of tarp systems and accessories for trucks, trailers, carts, and specialty equipment used in the agriculture, construction and flatbed marketsFirst lien senior secured revolving loan10.59%SOFR (Q)6.00%6/20216/20271.8 1.8 1.8 (2)(11)
First lien senior secured loan10.90%SOFR (A)6.00%6/20216/202726.8 26.8 26.8 (2)(11)
First lien senior secured loan10.90%SOFR (A)6.00%6/20226/20270.1 0.1 0.1 (2)(11)
Common stock6/20217,599,0007.6 13.9 (2)
36.3 42.6 
89.5 95.4 1.00%
Education
Excelligence Holdings Corp.Developer, manufacturer and retailer of educational productsFirst lien senior secured loan10.73%SOFR (Q)6.00%4/20171/20249.2 9.2 9.2 (2)(11)
Flinn Scientific, Inc. and WCI-Quantum Holdings, Inc. (15)Distributor of instructional products, services and resourcesFirst lien senior secured revolving loan9.88%LIBOR (M)5.50%8/20188/20246.5 6.5 6.5 (2)(11)(14)
First lien senior secured revolving loan11.50%Base Rate (M)4.50%8/20188/20240.5 0.5 0.5 (2)(11)(14)
First lien senior secured loan9.88%LIBOR (M)5.50%7/20178/202429.6 29.6 29.6 (2)(11)
First lien senior secured loan9.88%LIBOR (M)5.50%8/20188/20241.1 1.1 1.1 (2)(11)
Series A preferred stock10/20141,2720.7 1.5 (2)
38.4 39.2 
National College of Business and Technology Inc. & Leeds IV Advisors, Inc.Private school operatorSenior preferred series A-1 shares10/2015151,05698.1 46.5 (2)
Series B preferred stock8/2010348,6151.0 — 
Series B preferred stock8/2010757,5054.0 — 
107

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2022
(dollar amounts in millions)

Series C preferred stock6/2010517,9420.1 — 
Series C preferred stock6/20101,994,6440.5 — 
Common stock6/20104— — 
Common stock6/201016— — 
103.7 46.5 
151.3 94.9 0.99%
Telecommunication Services
Aventiv Technologies, LLC and Securus Technologies Holdings, Inc.Provider of inmate telecom solutions to corrections and law enforcement agenciesFirst lien senior secured loan9.23%LIBOR (Q)4.50%5/202211/20249.1 8.8 6.8 (2)(11)(18)
Second lien senior secured loan12.66%LIBOR (Q)8.25%5/202211/20250.2 0.2 0.2 (2)(11)
9.0 7.0 
Emergency Communications Network, LLC (15)Provider of mission critical emergency mass notification solutionsFirst lien senior secured revolving loan
12.15% (5.97% PIK)
SOFR (Q)7.75%6/20176/20246.8 6.8 6.1 (2)(11)
First lien senior secured loan
11.84% (6.02% PIK)
SOFR (Q)7.75%6/20176/202448.4 48.3 43.6 (2)(11)
55.1 49.7 
64.1 56.7 0.59%
Total Investments$22,043.0 $21,779.8 227.97%
108


Derivative Instruments

Forward currency contracts
DescriptionNotional Amount to be PurchasedNotional Amount to be soldCounterpartySettlement DateUnrealized Appreciation / (Depreciation)
Forward currency contract$195 CAD264 Royal Bank of CanadaJanuary 27, 2023$(1)
Forward currency contract$178 CAD242 Royal Bank of CanadaJanuary 18, 2023(1)
Forward currency contract$159 158 Royal Bank of CanadaJanuary 27, 2023(10)
Forward currency contract$145 £125 Royal Bank of CanadaJanuary 27, 2023(6)
Forward currency contract$34 NZD59 Royal Bank of CanadaJanuary 27, 2023(3)
Forward currency contract$12 CAD17 Royal Bank of CanadaJanuary 27, 2023— 
Total$(21)
______________________________________________

(1)Other than the Company’s investments listed in footnote 5 below (subject to the limitations set forth therein), the Company does not “Control” any of its portfolio companies, for the purposes of the Investment Company Act of 1940, as amended (together with the rules and regulations promulgated thereunder, the “Investment Company Act”). In general, under the Investment Company Act, the Company would “Control” a portfolio company if the Company owned more than 25% of its outstanding voting securities (i.e., securities with the right to elect directors) and/or had the power to exercise control over the management or policies of such portfolio company. All of the Company’s portfolio company investments, which as of December 31, 2022 represented 228% of the Company’s net assets or 97% of the Company’s total assets, are subject to legal restrictions on sales.

(2)These assets are pledged as collateral under the Company’s or the Company’s consolidated subsidiaries’ various revolving credit facilities and, as a result, are not directly available to the creditors of the Company to satisfy any obligations of the Company other than the obligations under each of the respective facilities (see Note 5).

(3)Investments without an interest rate are non-income producing.

109




(4)As defined in the Investment Company Act, the Company is deemed to be an “Affiliated Person” because it owns 5% or more of the portfolio company’s outstanding voting securities or it has the power to exercise control over the management or policies of such portfolio company (including through a management agreement). Transactions as of and during the year ended December 31, 2022 in which the issuer was an Affiliated Person of the Company (but not a portfolio company that the Company is deemed to Control) are as follows:
For the Year Ended December 31, 2022As of December 31, 2022
(in millions)
Company
Purchases (cost)Redemptions (cost)Sales (cost)Interest incomeCapital
structuring service fees
Dividend incomeOther incomeNet realized gains (losses)Net 
unrealized gains (losses)
Fair Value
Apex Clean Energy TopCo, LLC$18.1 $— $— $— $— $— $— $— $53.4 $150.6 
APG Intermediate Holdings Corporation and APG Holdings, LLC— 0.1 — 1.0 — — — — (3.0)21.8 
Blue Wolf Capital Fund II, L.P.— — — — — — — — (0.2)0.1 
Bragg Live Food Products, LLC and SPC Investment Co., L.P.3.3 5.7 9.8 3.4 — — 0.2 (0.2)3.5 39.1 
ESCP PPG Holdings, LLC2.3 — — — — — — — (1.9)3.1 
European Capital UK SME Debt LP— 0.8 — — — 2.0 — — 0.4 26.5 
PCG-Ares Sidecar Investment, L.P.— — — — — — — — (0.6)0.7 
PCG-Ares Sidecar Investment II, L.P.0.1 — — — — — — — 4.2 15.5 
Primrose Holding Corporation— — 4.6 — — — — 28.9 (22.4)— 
Production Resource Group, L.L.C. and PRG III, LLC2.5 0.3 — 7.0 0.1 — — — 33.6 97.3 
Shock Doctor, Inc. and Shock Doctor Holdings, LLC3.2 4.5 18.9 0.8 — — 0.1 — 3.0 6.0 
Sundance Energy Inc.— 41.0 — — — — — (22.6)1.2 — 
Totes Isotoner Corporation and Totes Ultimate Holdco, Inc.— — — 0.3 — — — — (0.2)3.7 
$29.5 $52.4 $33.3 $12.5 $0.1 $2.0 $0.3 $6.1 $71.0 $364.4 

110



(5)As defined in the Investment Company Act, the Company is deemed to be both an “Affiliated Person” and “Control” this portfolio company because it owns more than 25% of the portfolio company’s outstanding voting securities or it has the power to exercise control over the management or policies of such portfolio company (including through a management agreement). Transactions as of and during the year ended December 31, 2022 in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to Control are as follows:
For the Year Ended December 31, 2022As of December 31, 2022
(in millions)
Company
Purchases (cost)Redemptions (cost)Sales (cost)Interest incomeCapital
structuring service fees
Dividend incomeOther incomeNet realized gains (losses)Net 
unrealized gains (losses)
Fair Value
Absolute Dental Group LLC and Absolute Dental Equity, LLC$2.0 $3.0 $— $6.0 $— $— $— $— $4.6 $70.2 
ACAS Equity Holdings Corporation— — — — — — — — — 0.4 
ADF Capital, Inc., ADF Restaurant Group, LLC, and ARG Restaurant Holdings, Inc.— — — — — — — — — — 
CoLTs 2005-1 Ltd.— — — — — — — — — — 
Eckler Industries, Inc. and Eckler Purchaser LLC8.8 57.0 — — — — — (57.0)25.1 — 
Halex Holdings, Inc.— — — — — — — — — — 
HCI Equity, LLC— — — — — — — — — — 
Heelstone Renewable Energy, LLC and Heelstone Renewable Energy Investors, LLC95.4 — — 7.1 1.9 — — — 42.6 209.6 
Imaging Business Machines, L.L.C. and Scanner Holdings Corporation— 3.9 — 2.4 0.7 23.1 0.5 — (5.4)47.8 
Ivy Hill Asset Management, L.P.1,544.2 277.6 — 22.5 — 205.0 — — (1.0)2,201.1 
Joyce Lane Capital LLC and Joyce Lane Financing SPV LLC (fka Ciena Capital LLC)— 0.3 — 0.1 — — — 0.5 0.1 — 
Navisun LLC and Navisun Holdings LLC— 131.0 — 0.4 — 0.1 — 19.0 (9.4)— 
Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC8.3 — — 3.2 0.3 — — — (11.7)44.7 
Potomac Intermediate Holdings II LLC6.0 — — — — — — — (42.4)143.2 
PS Operating Company LLC and PS Op Holdings LLC6.3 4.6 — 1.5 — — — — 1.0 27.7 
RD Holdco Inc.— 0.1 — — — — — — (10.6)10.3 
S Toys Holdings LLC (fka The Step2 Company, LLC)— — — — — — — — (0.1)— 
Senior Direct Lending Program, LLC317.8 31.1 — 146.3 16.9 — 5.5 — (25.3)1,248.6 
Startec Equity, LLC— — — — — — — — — — 
VPROP Operating, LLC and V SandCo, LLC6.0 4.5 — 5.0 0.2 — — — 33.5 116.1 
$1,994.8 $513.1 $— $194.5 $20.0 $228.2 $6.0 $(37.5)$1.0 $4,119.7 
______________________________________________________________________

*    Together with Varagon Capital Partners (“Varagon”) and its clients, the Company has co-invested through the Senior Direct Lending Program LLC (d/b/a the “Senior Direct Lending Program” or the “SDLP”). The SDLP has been capitalized as transactions are completed and all portfolio decisions and generally all other decisions in respect of the SDLP must be approved by an investment committee of the SDLP consisting of representatives of the Company and Varagon (with approval from a representative of each required); therefore, although the Company owns more than 25% of the voting securities of the SDLP, the Company does not believe that it has control over the SDLP (for purposes of the Investment Company Act or otherwise) because, among other things, these “voting securities” do not afford the Company the right to elect directors of the SDLP or any other special rights (see Note 4 to the consolidated financial statements).

111


(6)This portfolio company is not a qualifying asset under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Company's total assets. Pursuant to Section 55(a) of the Investment Company Act, 25% of the Company's total assets are represented by investments at fair value and other assets that are considered "non-qualifying assets" as of December 31, 2022.

(7)Variable rate loans to the Company’s portfolio companies bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR”), the Secured Overnight Financing Rate (“SOFR”), or an alternate base rate (commonly based on the Federal Funds Rate or the Prime Rate), at the borrower’s option, which reset annually (A), semi-annually (S), quarterly (Q), bi-monthly (B), monthly (M) or daily (D). For each such loan, the Company has provided the interest rate in effect on the date presented. SOFR based contracts may include a credit spread adjustment that is charged in addition to the base rate and the stated spread.

(8)In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 2.00% on $40.9 in aggregate principal amount of a “first out” tranche of the portfolio company’s senior term debt previously syndicated by the Company into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(9)The Company sold a participating interest of approximately $79.0 in aggregate principal amount outstanding of the portfolio company’s first lien senior secured revolving loan. As the transaction did not qualify as a “true sale” in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company recorded a corresponding $79.0 secured borrowing, at fair value, included in “secured borrowings” in the accompanying consolidated balance sheet. As of December 31, 2022, the interest rate in effect for the secured borrowing was 11.62%.

(10)Loan was on non-accrual status as of December 31, 2022.

(11)Loan includes interest rate floor feature.

(12)In addition to the interest earned based on the stated contractual interest rate of this security, the certificates entitle the holders thereof to receive a portion of the excess cash flow from the SDLP’s loan portfolio, after expenses, which may result in a return to the Company greater than the contractual stated interest rate.

(13)As of December 31, 2022, no amounts were funded by the Company under this first lien senior secured revolving loan; however, there were letters of credit issued and outstanding through a financial intermediary under the loan. See Note 7 for further information on letters of credit commitments related to certain portfolio companies.

(14)As of December 31, 2022, in addition to the amounts funded by the Company under this first lien senior secured revolving loan, there were also letters of credit issued and outstanding through a financial intermediary under the loan. See Note 7 for further information on letters of credit commitments related to certain portfolio companies.

(15)As of December 31, 2022, the Company had the following commitments to fund various revolving and delayed draw senior secured and subordinated loans, including commitments to issue letters of credit through a financial intermediary on behalf of certain portfolio companies. Such commitments are subject to the satisfaction of certain conditions set forth in the documents governing these loans and letters of credit and there can be no assurance that such conditions will be satisfied. See Note 7 for further information on revolving and delayed draw loan commitments, including commitments to issue letters of credit, related to certain portfolio companies.
112



(in millions)
Portfolio Company
Total revolving and delayed draw loan commitmentsLess: funded commitmentsTotal unfunded commitmentsLess: commitments substantially at discretion of the CompanyLess: unavailable commitments due to borrowing base or other covenant restrictionsTotal net adjusted unfunded revolving and delayed draw commitments
Absolute Dental Group LLC and Absolute Dental Equity, LLC$7.1 $(3.2)$3.9 $— $— $3.9 
Abzena Holdings, Inc. and Astro Group Holdings Ltd.0.1 — 0.1 — — 0.1 
Accommodations Plus Technologies LLC and Accommodations Plus Technologies Holdings LLC4.1 (4.1)— — — — 
ADG, LLC and RC IV GEDC Investor LLC14.1 (14.1)— — — — 
Advarra Holdings, Inc.0.4 — 0.4 — — 0.4 
AffiniPay Midco, LLC and AffiniPay Intermediate Holdings, LLC45.6 — 45.6 — — 45.6 
AI Fire Buyer, Inc. and AI Fire Parent LLC28.9 (0.4)28.5 — — 28.5 
AIM Acquisition, LLC1.8 — 1.8 — — 1.8 
Alcami Corporation and ACM Note Holdings, LLC6.6 — 6.6 — — 6.6 
American Residential Services L.L.C. and Aragorn Parent Holdings LP4.5 (0.9)3.6 — — 3.6 
Anaplan, Inc.1.4 — 1.4 — — 1.4 
Anaqua Parent Holdings, Inc. & Astorg VII Co-Invest Anaqua3.4 — 3.4 — — 3.4 
APG Intermediate Holdings Corporation and APG Holdings, LLC0.1 — 0.1 — — 0.1 
Applied Technical Services, LLC3.8 (1.1)2.7 — — 2.7 
Appriss Health, LLC and Appriss Health Intermediate Holdings, Inc.0.1 — 0.1 — — 0.1 
Apptio, Inc.4.2 (2.5)1.7 — — 1.7 
AQ Sage Buyer, LLC6.4 — 6.4 — — 6.4 
AQ Sunshine, Inc.12.4 (1.4)11.0 — — 11.0 
Argenbright Holdings V, LLC and Amberstone Security Group Limited2.5 — 2.5 — — 2.5 
ASP-r-pac Acquisition CO LLC and ASP-r-pac Holdings LP6.2 — 6.2 — — 6.2 
AthenaHealth Group Inc., Minerva Holdco, Inc. and BCPE Co-Invest (A), LP9.0 — 9.0 — — 9.0 
ATI Restoration, LLC83.7 (5.8)77.9 — — 77.9 
Atlas Intermediate III, L.L.C.0.8 (0.2)0.6 — — 0.6 
Avalara, Inc.2.7 — 2.7 — — 2.7 
Aventine Intermediate LLC & Aventine Holdings II LLC0.2 — 0.2 — — 0.2 
Avetta, LLC4.2 — 4.2 — — 4.2 
AxiomSL Group, Inc. and Calypso Group, Inc.3.9 — 3.9 — — 3.9 
BAART Programs, Inc., MedMark Services, Inc., and Canadian Addiction Treatment Centres LP2.0 — 2.0 — — 2.0 
Banyan Software Holdings, LLC and Banyan Software, LP8.0 (0.9)7.1 — — 7.1 
Beacon Pointe Harmony, LLC5.5 — 5.5 — — 5.5 
Belfor Holdings, Inc.25.0 (17.0)8.0 — — 8.0 
Benecon Midco II LLC and Locutus Holdco LLC4.5 — 4.5 — — 4.5 
Benefytt Technologies, Inc.0.9 — 0.9 — — 0.9 
Berner Food & Beverage, LLC1.7 (0.5)1.2 — — 1.2 
BlueHalo Financing Holdings, LLC, BlueHalo Global Holdings, LLC, and BlueHalo, LLC3.0 (2.8)0.2 — — 0.2 
Borrower R365 Holdings LLC2.9 — 2.9 — — 2.9 
Bottomline Technologies, Inc.2.3 — 2.3 — — 2.3 
Bragg Live Food Products, LLC and SPC Investment Co., L.P.4.4 — 4.4 — — 4.4 
Businessolver.com, Inc.3.6 — 3.6 — — 3.6 
Cadence Aerospace, LLC15.3 (14.8)0.5 — — 0.5 
Caerus Midco 3 S.à r.l.4.1 — 4.1 — — 4.1 
Capstone Acquisition Holdings, Inc. and Capstone Parent Holdings, LP15.3 (8.8)6.5 — — 6.5 
Captive Resources Midco, LLC1.2 — 1.2 — — 1.2 
Cardinal Parent, Inc. and Packers Software Intermediate Holdings, Inc.5.0 (3.4)1.6 — — 1.6 
CCS-CMGC Holdings, Inc.12.0 (3.7)8.3 — — 8.3 
CDI Holdings III Corp. and CDI Holdings I Corp.0.9 — 0.9 — — 0.9 
Center for Autism and Related Disorders, LLC20.4 (9.0)11.4 — (11.4)— 
Centric Brands LLC and Centric Brands GP LLC8.6 (5.0)3.6 — — 3.6 
Chariot Buyer LLC12.3 (3.5)8.8 — — 8.8 
Cheyenne Petroleum Company Limited Partnership, CPC 2001 LLC and Mill Shoals LLC9.5 — 9.5 — — 9.5 
CMG HoldCo, LLC and CMG Buyer Holdings, Inc.10.2 (0.4)9.8 — — 9.8 
Cobalt Buyer Sub, Inc., Cobalt Holdings I, LP, and Cobalt Intermediate I, Inc.7.8 (2.5)5.3 — — 5.3 
113


(in millions)
Portfolio Company
Total revolving and delayed draw loan commitmentsLess: funded commitmentsTotal unfunded commitmentsLess: commitments substantially at discretion of the CompanyLess: unavailable commitments due to borrowing base or other covenant restrictionsTotal net adjusted unfunded revolving and delayed draw commitments
Commercial Trailer Leasing, Inc.0.6 — 0.6 — — 0.6 
Community Brands ParentCo, LLC7.2 — 7.2 — — 7.2 
Compex Legal Services, Inc.3.6 (1.8)1.8 — — 1.8 
Comprehensive EyeCare Partners, LLC1.9 (0.8)1.1 — — 1.1 
Concert Golf Partners Holdco LLC3.1 — 3.1 — — 3.1 
Consilio Midco Limited, Compusoft US LLC, and Consilio Investment Holdings, L.P.14.2 (0.8)13.4 — — 13.4 
Continental Café, LLC and Infinity Ovation Yacht Charters, LLC8.0 (0.7)7.3 — — 7.3 
Convera International Holdings Limited and Convera International Financial S.A R.L.2.3 — 2.3 — — 2.3 
CoreLogic, Inc. and T-VIII Celestial Co-Invest LP38.9 — 38.9 — — 38.9 
Cority Software Inc., Cority Software (USA) Inc., and Cority Parent, Inc.0.1 — 0.1 — — 0.1 
Cornerstone OnDemand, Inc. and Sunshine Software Holdings, Inc.38.7 (22.7)16.0 — — 16.0 
Covaris Intermediate 3, LLC & Covaris Parent, LLC22.2 (1.5)20.7 — — 20.7 
Coyote Buyer, LLC5.8 — 5.8 — — 5.8 
CrossCountry Mortgage, LLC56.3 — 56.3 — — 56.3 
Crown CT Parent Inc., Crown CT HoldCo Inc. and Crown CT Management LLC3.2 — 3.2 — — 3.2 
CST Holding Company1.9 (0.2)1.7 — — 1.7 
CVP Holdco, Inc. and OMERS Wildcats Investment Holdings LLC25.8 — 25.8 — — 25.8 
DecoPac, Inc. and KCAKE Holdings Inc.16.5 (6.6)9.9 — — 9.9 
Denali Holdco LLC and Denali Apexco LP11.4 — 11.4 — — 11.4 
DFC Global Facility Borrower III LLC96.7 (79.3)17.4 — — 17.4 
Diligent Corporation and Diligent Preferred Issuer, Inc.2.2 (0.7)1.5 — — 1.5 
Display Holding Company, Inc., Saldon Holdings, Inc. and Fastsigns Holdings Inc.2.3 — 2.3 — — 2.3 
DRS Holdings III, Inc. and DRS Holdings I, Inc.10.8 — 10.8 — — 10.8 
DS Admiral Bidco, LLC0.1 — 0.1 — — 0.1 
Dye & Durham Corporation18.2 (5.0)13.2 — — 13.2 
Dynamic NC Aerospace Holdings, LLC and Dynamic NC Investment Holdings, LP7.1 — 7.1 — — 7.1 
Elemica Parent, Inc. & EZ Elemica Holdings, Inc.4.1 (4.1)— — — — 
Elevation Services Parent Holdings, LLC17.1 (1.5)15.6 — — 15.6 
Emergency Communications Network, LLC6.8 (6.8)— — — — 
EP Wealth Advisors, LLC14.1 — 14.1 — — 14.1 
EpiServer Inc. and Episerver Sweden Holdings AB14.5 — 14.5 — — 14.5 
EPS NASS Parent, Inc.1.5 (0.8)0.7 — — 0.7 
eResearch Technology, Inc. and Astorg VII Co-Invest ERT2.5 — 2.5 — — 2.5 
ESHA Research, LLC and RMCF VI CIV XLVIII, L.P.1.1 — 1.1 — — 1.1 
Essential Services Holding Corporation and OMERS Mahomes Investment Holdings LLC28.0 (6.2)21.8 — — 21.8 
Explorer Investor, Inc0.2 — 0.2 — — 0.2 
Extrahop Networks, Inc.5.9 — 5.9 — — 5.9 
Faraday Buyer, LLC4.7 — 4.7 — — 4.7 
FL Hawk Intermediate Holdings, Inc.0.5 — 0.5 — — 0.5 
Flinn Scientific, Inc. and WCI-Quantum Holdings, Inc.14.5 (7.1)7.4 — — 7.4 
FM:Systems Group, LLC1.5 — 1.5 — — 1.5 
Forescout Technologies, Inc.14.2 — 14.2 — — 14.2 
Foundation Risk Partners, Corp.40.5 (8.6)31.9 — — 31.9 
FS Squared Holding Corp. and FS Squared, LLC9.6 (0.5)9.1 — — 9.1 
Galway Borrower LLC9.8 (0.4)9.4 — — 9.4 
Genesis Acquisition Co. and Genesis Ultimate Holding Co.1.5 (1.5)— — — — 
GHX Ultimate Parent Corporation, Commerce Parent, Inc. and Commerce Topco, LLC47.5 — 47.5 — — 47.5 
GI Ranger Intermediate LLC9.2 (0.4)8.8 — — 8.8 
Global Music Rights, LLC4.3 — 4.3 — — 4.3 
GNZ Energy Bidco Limited and Galileo Co-investment Trust I3.1 — 3.1 — — 3.1 
Gotham Greens Holdings, PBC33.8 — 33.8 — — 33.8 
GraphPAD Software, LLC, Insightful Science Intermediate I, LLC and Insightful Science Holdings, LLC5.0 — 5.0 — — 5.0 
114


(in millions)
Portfolio Company
Total revolving and delayed draw loan commitmentsLess: funded commitmentsTotal unfunded commitmentsLess: commitments substantially at discretion of the CompanyLess: unavailable commitments due to borrowing base or other covenant restrictionsTotal net adjusted unfunded revolving and delayed draw commitments
HAI Acquisition Corporation and Aloha Topco, LLC19.0 — 19.0 — — 19.0 
Harvey Tool Company, LLC28.5 — 28.5 — — 28.5 
HealthEdge Software, Inc.36.2 (0.3)35.9 — — 35.9 
Heavy Construction Systems Specialists, LLC4.0 — 4.0 — — 4.0 
Help/Systems Holdings, Inc.7.5 — 7.5 — — 7.5 
HGC Holdings, LLC7.5 — 7.5 — — 7.5 
HH-Stella, Inc. and Bedrock Parent Holdings, LP14.8 (2.8)12.0 — — 12.0 
High Street Buyer, Inc. and High Street Holdco LLC25.5 — 25.5 — — 25.5 
Highline Aftermarket Acquisition, LLC, Highline Aftermarket SC Acquisition, Inc. and Highline PPC Blocker LLC9.5 (1.1)8.4 — — 8.4 
Hometown Food Company3.9 (0.8)3.1 — — 3.1 
Huskies Parent, Inc., GI Insurity Parent LLC and GI Insurity TopCo LP22.6 (9.4)13.2 — — 13.2 
Infinity Home Services HoldCo, Inc. and IHS Parent Holdings, L.P.13.0 — 13.0 — — 13.0 
Inszone Mid, LLC and INSZ Holdings, LLC17.2 — 17.2 — — 17.2 
IQN Holding Corp.6.8 — 6.8 — — 6.8 
ISQ Hawkeye Holdco, Inc. and ISQ Hawkeye Holdings, LLC9.8 (0.2)9.6 — — 9.6 
ITI Holdings, Inc.5.7 (2.0)3.7 — — 3.7 
JDC Healthcare Management, LLC4.8 (4.8)— — — — 
K2 Insurance Services, LLC and K2 Holdco LP9.1 — 9.1 — — 9.1 
Kaseya Inc. and Knockout Intermediate Holdings I Inc.31.2 — 31.2 — — 31.2 
KBHS Acquisition, LLC (d/b/a Alita Care, LLC)5.0 (3.2)1.8 — — 1.8 
Kene Acquisition, Inc. and Kene Holdings, L.P.8.9 (0.2)8.7 — — 8.7 
Laboratories Bidco LLC and Laboratories Topco LLC41.3 (8.8)32.5 — — 32.5 
LeanTaaS Holdings, Inc.54.0 — 54.0 — — 54.0 
Leviathan Intermediate Holdco, LLC and Leviathan Holdings, L.P.5.5 (0.7)4.8 — — 4.8 
Lew's Intermediate Holdings, LLC2.3 — 2.3 — — 2.3 
Lido Advisors, LLC0.8 (0.4)0.4 — — 0.4 
LJ Perimeter Buyer, Inc. and LJ Perimeter Co-Invest, L.P.10.1 — 10.1 — — 10.1 
LJP Purchaser, Inc. and LJP Topco, LP4.4 — 4.4 — — 4.4 
Lower ACS, Inc.25.9 — 25.9 — — 25.9 
LSP Holdco, LLC and ZBS Mechanical Group Co-Invest Fund 2, LLC3.9 — 3.9 — — 3.9 
Majesco and Magic Topco, L.P.2.0 — 2.0 — — 2.0 
Management Consulting & Research LLC4.0 — 4.0 — — 4.0 
Manna Pro Products, LLC7.0 (5.1)1.9 — — 1.9 
Marmic Purchaser, LLC and Marmic Topco, L.P.6.9 — 6.9 — — 6.9 
Mavis Tire Express Services Topco Corp., Metis Holdco, Inc. and Metis Topco, LP32.9 (7.3)25.6 — — 25.6 
McKenzie Creative Brands, LLC4.5 (1.9)2.6 — — 2.6 
Medline Borrower, LP6.9 (0.2)6.7 — — 6.7 
Micromeritics Instrument Corp.4.1 — 4.1 — — 4.1 
Mimecast Borrowerco, Inc. and Magnesium Co- Invest SCSp15.1 — 15.1 — — 15.1 
Ministry Brands Holdings, LLC and RCP MB Investments B, L.P.31.3 (4.0)27.3 — — 27.3 
Monica Holdco (US) Inc.3.6 (2.4)1.2 — — 1.2 
Moonraker AcquisitionCo LLC and Moonraker HoldCo LLC19.0 — 19.0 — — 19.0 
MRI Software LLC10.6 — 10.6 — — 10.6 
Murchison Oil and Gas, LLC and Murchison Holdings, LLC27.5 — 27.5 — — 27.5 
n2y Holding, LLC0.1 — 0.1 — — 0.1 
NAS, LLC and Nationwide Marketing Group, LLC3.0 (0.6)2.4 — — 2.4 
National Intergovernmental Purchasing Alliance Company9.0 (1.2)7.8 — — 7.8 
NCWS Intermediate, Inc. and NCWS Holdings LP28.1 — 28.1 — — 28.1 
Nelipak Holding Company, Nelipak European Holdings Cooperatief U.A., KNPAK Holdings, LP and PAKNK Netherlands Treasury B.V.0.6 (0.1)0.5 — — 0.5 
Neptune Bidco US Inc. and Elliott Metron Co-Investor Aggregator L.P.12.6 — 12.6 — — 12.6 
Nest Topco Borrower Inc., KKR Nest Co-Invest L.P., and NBLY 2021-1119.1 — 119.1 — — 119.1 
NMC Skincare Intermediate Holdings II, LLC12.7 — 12.7 — — 12.7 
NMN Holdings III Corp. and NMN Holdings LP12.5 (3.1)9.4 — — 9.4 
Noble Aerospace, LLC5.6 (2.2)3.4 — — 3.4 
North American Fire Holdings, LLC and North American Fire Ultimate Holdings, LLC8.1 — 8.1 — — 8.1 
115


(in millions)
Portfolio Company
Total revolving and delayed draw loan commitmentsLess: funded commitmentsTotal unfunded commitmentsLess: commitments substantially at discretion of the CompanyLess: unavailable commitments due to borrowing base or other covenant restrictionsTotal net adjusted unfunded revolving and delayed draw commitments
North Haven Fairway Buyer, LLC, Fairway Lawns, LLC and Command Pest Control, LLC22.5 — 22.5 — — 22.5 
North Haven Falcon Buyer, LLC and North Haven Falcon Holding Company, LLC3.5 — 3.5 — — 3.5 
North Haven Stack Buyer, LLC5.1 (0.8)4.3 — — 4.3 
Offen, Inc.5.6 — 5.6 — — 5.6 
Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC1.6 — 1.6 — (1.6)— 
OneDigital Borrower LLC7.5 (0.4)7.1 — — 7.1 
Pathway Vet Alliance LLC and Jedi Group Holdings LLC1.9 — 1.9 — — 1.9 
Patriot Growth Insurance Services, LLC2.2 — 2.2 — — 2.2 
Paya, Inc and GTCR-Ultra Holdings LLC4.5 — 4.5 — — 4.5 
PDDS HoldCo, Inc.2.1 — 2.1 — — 2.1 
PDI TA Holdings, Inc., Peachtree Parent, Inc. and Insight PDI Holdings, LLC7.6 (6.1)1.5 — — 1.5 
Pegasus Global Enterprise Holdings, LLC, Mekone Blocker Acquisition, Inc. and Mekone Parent, LLC20.6 — 20.6 — — 20.6 
Pelican Products, Inc.2.3 — 2.3 — — 2.3 
People Corporation20.6 (1.3)19.3 — — 19.3 
Perforce Software, Inc.0.5 — 0.5 — — 0.5 
Petroleum Service Group LLC17.5 (4.4)13.1 — — 13.1 
Petrus Buyer, Inc.2.7 — 2.7 — — 2.7 
Petvisor Holdings, LLC37.6 — 37.6 — — 37.6 
Ping Identity Holding Corp.0.2 — 0.2 — — 0.2 
Pluralsight, Inc.0.3 (0.2)0.1 — — 0.1 
Precision Concepts International LLC and Precision Concepts Canada Corporation19.2 (6.2)13.0 — — 13.0 
Premier Specialties, Inc. and RMCF V CIV XLIV, L.P.11.0 (2.3)8.7 — — 8.7 
Premise Health Holding Corp. and OMERS Bluejay Investment Holdings LP36.0 (0.6)35.4 — — 35.4 
Prime Buyer, L.L.C.15.9 (2.7)13.2 — — 13.2 
Pritchard Industries, LLC and LJ Pritchard TopCo Holdings, LLC3.3 — 3.3 — — 3.3 
Professional Fighters League, LLC and PFL MMA, Inc.0.1 — 0.1 — — 0.1 
ProfitSolv Purchaser, Inc. and PS Co-Invest, L.P.13.3 — 13.3 — — 13.3 
Project Essential Bidco, Inc. and Project Essential Super Parent, Inc.1.1 — 1.1 — — 1.1 
Project Potter Buyer, LLC and Project Potter Parent, L.P.5.5 (2.1)3.4 — — 3.4 
Proofpoint, Inc.3.1 — 3.1 — — 3.1 
PS Operating Company LLC and PS Op Holdings LLC5.9 (4.5)1.4 — — 1.4 
Pueblo Mechanical and Controls, LLC and OMERS PMC Investment Holdings LLC3.6 — 3.6 — — 3.6 
Pyramid Management Advisors, LLC and Pyramid Investors, LLC9.8 (9.8)— — — — 
QF Holdings, Inc.2.3 — 2.3 — — 2.3 
Qnnect, LLC and Connector TopCo, LP2.8 — 2.8 — — 2.8 
Radius Aerospace, Inc. and Radius Aerospace Europe Limited2.8 (0.7)2.1 — — 2.1 
Radwell Parent, LLC4.4 — 4.4 — — 4.4 
Raptor Technologies, LLC, Sycamore Bidco LTD and Rocket Parent, LLC4.4 — 4.4 — — 4.4 
RB Holdings InterCo, LLC5.6 (1.8)3.8 — — 3.8 
Reddy Ice LLC0.2 — 0.2 — — 0.2 
Redwood Services, LLC and Redwood Services Holdco, LLC4.5 — 4.5 — — 4.5 
Reef Lifestyle, LLC37.7 (37.7)— — — — 
Registrar Intermediate, LLC and PSP Registrar Co-Investment Fund, L.P.28.0 — 28.0 — — 28.0 
Relativity ODA LLC3.8 — 3.8 — — 3.8 
Repairify, Inc. and Repairify Holdings, LLC7.3 — 7.3 — — 7.3 
Revalize, Inc.0.9 — 0.9 — — 0.9 
Rialto Management Group, LLC1.3 (0.2)1.1 — — 1.1 
Riser Merger Sub, Inc.2.8 — 2.8 — — 2.8 
Riverview Power LLC8.9 — 8.9 — — 8.9 
RMS HoldCo II, LLC & RMS Group Holdings, Inc.2.9 — 2.9 — — 2.9 
Rodeo AcquisitionCo LLC6.2 (1.3)4.9 — — 4.9 
116


(in millions)
Portfolio Company
Total revolving and delayed draw loan commitmentsLess: funded commitmentsTotal unfunded commitmentsLess: commitments substantially at discretion of the CompanyLess: unavailable commitments due to borrowing base or other covenant restrictionsTotal net adjusted unfunded revolving and delayed draw commitments
RSC Acquisition, Inc. and RSC Insurance Brokerage, Inc.0.6 — 0.6 — — 0.6 
RTI Surgical, Inc. and Pioneer Surgical Technology, Inc.15.9 (9.8)6.1 — — 6.1 
SageSure Holdings, LLC & Insight Catastrophe Group, LLC10.5 (5.9)4.6 — — 4.6 
Schill Landscaping and Lawn Care Services LLC, Tender Lawn Care ULC and Landscape Parallel Partners, L.P.4.6 (0.2)4.4 — — 4.4 
SCIH Salt Holdings Inc.7.5 (2.6)4.9 — — 4.9 
SCM Insurance Services Inc.4.0 — 4.0 — — 4.0 
SFE Intermediate Holdco LLC15.2 (8.3)6.9 — — 6.9 
Shermco Intermediate Holdings, Inc.4.0 (2.7)1.3 — — 1.3 
Shock Doctor, Inc. and Shock Doctor Holdings, LLC2.5 — 2.5 — — 2.5 
Shur-Co Acquisition, Inc. and Shur-Co Holdco, Inc.5.0 (1.8)3.2 — — 3.2 
SiroMed Physician Services, Inc. and SiroMed Equity Holdings, LLC7.1 — 7.1 — — 7.1 
SM Wellness Holdings, Inc. and SM Holdco, Inc.3.8 — 3.8 — — 3.8 
Smarsh Inc. and Skywalker TopCo, LLC2.0 — 2.0 — — 2.0 
Spirit RR Holdings, Inc. and Winterfell Co-Invest SCSp1.7 — 1.7 — — 1.7 
Star US Bidco LLC8.5 — 8.5 — — 8.5 
Sun Acquirer Corp. and Sun TopCo, LP21.6 (0.4)21.2 — — 21.2 
Sundance Group Holdings, Inc.3.0 — 3.0 — — 3.0 
Sunk Rock Foundry Partners LP, Hatteras Electrical Manufacturing Holding Company and Sigma Electric Manufacturing Corporation, Diecast Beacon6.0 (0.6)5.4 — — 5.4 
Sunrun Luna Holdco 2021, LLC75.0 (40.7)34.3 — — 34.3 
SV-Burton Holdings, LLC and LBC Breeze Holdings LLC3.3 — 3.3 — — 3.3 
Symplr Software Inc. and Symplr Software Intermediate Holdings, Inc.7.0 (3.1)3.9 — — 3.9 
Synergy HomeCare Franchising, LLC and NP/Synergy Holdings, LLC4.2 — 4.2 — — 4.2 
TA/WEG Holdings, LLC2.0 — 2.0 — — 2.0 
Tamarack Intermediate, L.L.C. and Tamarack Parent, L.L.C.7.5 (1.3)6.2 — — 6.2 
Taymax Group, L.P., Taymax Group G.P., LLC, PF Salem Canada ULC and TCP Fit Parent, L.P.1.7 (0.8)0.9 — — 0.9 
TCP Hawker Intermediate LLC0.3 (0.1)0.2 — — 0.2 
TerSera Therapeutics LLC0.1 — 0.1 — — 0.1 
The Alaska Club Partners, LLC, Athletic Club Partners LLC and The Alaska Club, Inc.1.1 — 1.1 — — 1.1 
The Arcticom Group, LLC and AMCP Mechanical Holdings, LP12.6 (11.5)1.1 — — 1.1 
The Mather Group, LLC, TVG-TMG Topco, Inc., and TVG-TMG Holdings, LLC1.7 (0.1)1.6 — — 1.6 
The NPD Group, L.P., IRI Group Holdings, Inc., Information Resources, Inc. and IRI-NPD Co-Invest Aggregator, L.P.14.4 (1.8)12.6 — — 12.6 
The Ultimus Group Midco, LLC, The Ultimus Group, LLC, and The Ultimus Group Aggregator, LP6.9 — 6.9 — — 6.9 
Thermostat Purchaser III, Inc.11.7 — 11.7 — — 11.7 
THG Acquisition, LLC18.2 — 18.2 — — 18.2 
TibCo Software Inc., Picard Parent, Inc., Picard MidCo, Inc., Picard HoldCo, LLC and Elliott Alto Co-Investor Aggregator L.P.19.0 — 19.0 — — 19.0 
Trader Corporation and Project Auto Finco Corp.3.6 — 3.6 — — 3.6 
Two Six Labs, LLC10.3 — 10.3 — — 10.3 
UKG Inc. and H&F Unite Partners, L.P.25.0 (10.8)14.2 — — 14.2 
United Digestive MSO Parent, LLC18.4 — 18.4 — — 18.4 
US Salt Investors, LLC and Emerald Lake Pearl Acquisition-A, L.P.9.9 — 9.9 — — 9.9 
Verista, Inc.8.2 (1.1)7.1 — — 7.1 
Verscend Holding Corp.22.5 — 22.5 — — 22.5 
VPP Intermediate Holdings, LLC and VPP Group Holdings, L.P.8.7 — 8.7 — — 8.7 
VRC Companies, LLC5.4 — 5.4 — — 5.4 
VS Buyer, LLC8.1 — 8.1 — — 8.1 
Watermill Express, LLC and Watermill Express Holdings, LLC0.7 — 0.7 — — 0.7 
Waverly Advisors, LLC0.2 — 0.2 — — 0.2 
WebPT, Inc.0.9 (0.3)0.6 — — 0.6 
Wellness AcquisitionCo, Inc.3.9 — 3.9 — — 3.9 
Wildcat BuyerCo, Inc. and Wildcat Parent, LP4.1 (1.0)3.1 — — 3.1 
WorkWave Intermediate II, LLC5.2 — 5.2 — — 5.2 
WSHP FC Acquisition LLC and WSHP FC Holdings LLC35.4 (9.6)25.8 — — 25.8 
117


(in millions)
Portfolio Company
Total revolving and delayed draw loan commitmentsLess: funded commitmentsTotal unfunded commitmentsLess: commitments substantially at discretion of the CompanyLess: unavailable commitments due to borrowing base or other covenant restrictionsTotal net adjusted unfunded revolving and delayed draw commitments
XIFIN, Inc. and ACP Charger Co-Invest LLC8.9 (0.2)8.7 — — 8.7 
YE Brands Holdings, LLC2.2 (1.5)0.7 — — 0.7 
ZB Holdco LLC & ZB Parent LLC21.5 (0.1)21.4 — — 21.4 
ZenDesk, Inc., Zoro TopCo, Inc. and Zoro TopCo, LP16.8 — 16.8 — — 16.8 
$2,915.8 $(526.2)$2,389.6 $— $(13.0)$2,376.6 
(16)As of December 31, 2022, the Company was party to agreements to fund equity investments as follows:
(in millions)
Company
Total equity commitmentsLess: funded equity commitmentsTotal unfunded equity commitmentsLess: equity commitments substantially at the discretion of the CompanyTotal net adjusted unfunded equity commitments
PCG-Ares Sidecar Investment, L.P. and PCG-Ares Sidecar Investment II, L.P.$50.0 $(12.5)$37.5 $(37.5)$— 
Athyrium Buffalo LP15.5 (7.6)7.9 (7.9)— 
European Capital UK SME Debt LP54.3 (49.1)5.2 (5.2)— 
$119.8 $(69.2)$50.6 $(50.6)$— 

(17)As of December 31, 2022, the Company had commitments to co-invest in the SDLP for its portion of the SDLP’s commitment to fund delayed draw loans of up to $68. See Note 4 to the consolidated financial statements for more information on the SDLP.

(18)Other than the investments noted by this footnote, the fair value of the Company’s investments is determined using unobservable inputs that are significant to the overall fair value measurement. See Note 8 to the consolidated financial statements for more information regarding the fair value of the Company’s investments.

(19)As of December 31, 2022, the estimated net unrealized gain for federal tax purposes was $0.2 billion based on a tax cost basis of $22.0 billion. As of December 31, 2022, the estimated aggregate gross unrealized loss for federal income tax purposes was $1.2 billion and the estimated aggregate gross unrealized gain for federal income tax purposes was $1.0 billion.


















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ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
(in millions, except per share data)
(unaudited)
 Common StockCapital in
Excess of
Par Value
Accumulated Undistributed (Overdistributed) EarningsTotal
Stockholders’
Equity
 SharesAmount
Balance at December 31, 2021468 $— $8,553 $315 $8,868 
Issuances of common stock (net of offering and underwriting costs)25 — 510 — 510 
Shares issued in connection with dividend reinvestment plan— — 12 — 12 
Net investment income— — — 198 198 
Net realized gains on investments, foreign currency, extinguishment of debt and other transactions— — — 10 10 
Net unrealized gains on investments, foreign currency and other transactions— — — 
Dividends declared and payable ($0.45 per share)
— — — (220)(220)
Cumulative effect of adjustment for the adoption of ASU 2020-06 (Note 2)— — (4)(2)
Balance at March 31, 2022493 $— $9,071 $308 $9,379 
Issuances of common stock (net of offering and underwriting costs)— 68 — 68 
Net investment income— — — 257 257 
Net realized losses on investments, foreign currency, extinguishment of debt and other transactions— — — (3)(3)
Net unrealized losses on investments, foreign currency and other transactions— — — (143)(143)
Dividends declared and payable ($0.45 per share)
— — — (223)(223)
Balance at June 30, 2022496 $— $9,139 $196 $9,335 
Issuances of common stock (net of offering and underwriting costs)12 — 231 — 231 
Net investment income— — — 288 288 
Net unrealized losses on investments, foreign currency and other transactions— — — (184)(184)
Dividends declared and payable ($0.46 per share)
— — — (234)(234)
Balance at September 30, 2022508 $— $9,370 $66 $9,436 
Issuances of common stock (net of offering and underwriting costs)10 191 — 192 
Shares issued in connection with dividend reinvestment plan— 17 — 17 
Net investment income— — — 349 349 
Net realized gains on investments, foreign currency, extinguishment of debt and other transactions— — — 26 26 
Net unrealized losses on investments, foreign currency and other transactions— — — (201)(201)
Dividends declared and payable ($0.51 per share)
— — — (264)(264)
Tax reclassification of stockholders’ equity in accordance with GAAP— — (22)22 — 
Balance at December 31, 2022519 $$9,556 $(2)$9,555 
Issuances of common stock (net of offering and underwriting costs)26 — 477 — 477 
Net investment income— — — 318 318 
Net realized losses on investments, foreign currency, extinguishment of debt and other transactions— — — (50)(50)
Net unrealized gains on investments, foreign currency and other transactions— — — 10 10 
Dividends declared and payable ($0.48 per share)
— — — (261)(261)
Balance at March 31, 2023
545 $$10,033 $15 $10,049 

See accompanying notes to consolidated financial statements.
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ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
(unaudited)
 For the Three Months Ended March 31,
 20232022
OPERATING ACTIVITIES: 
Net increase in stockholders’ equity resulting from operations$278 $211 
Adjustments to reconcile net increase in stockholders’ equity resulting from operations:
Net realized losses (gains) on investments, foreign currency and other transactions50 (58)
Net unrealized gains on investments, foreign currency and other transactions(10)(3)
Realized loss on extinguishment of debt— 48 
Net accretion of discount on investments(5)(3)
PIK interest(41)(30)
Collections of PIK interest26 27 
PIK dividends(51)(41)
Collections of PIK dividends— 
Amortization of debt issuance costs
Net amortization of premium on notes payable(1)(1)
Proceeds from sales and repayments of investments and other transactions1,759 2,579 
Purchases of investments(1,121)(2,077)
Changes in operating assets and liabilities:
Interest receivable(1)18 
Other assets(4)
Operating lease right-of-use asset
Base management fees payable— 
Income based fees payable76 (16)
Capital gains incentive fees payable(6)(23)
Interest and facility fees payable(21)(32)
Payable to participants(16)(95)
Accounts payable and other liabilities(46)(41)
Operating lease liabilities(3)(4)
Net cash generated by operating activities872 481 
FINANCING ACTIVITIES: 
Borrowings on debt1,014 1,752 
Repayments and repurchases of debt(2,063)(2,293)
Debt issuance costs— (14)
Net proceeds from issuance of common stock477 510 
Dividends paid(261)(208)
Secured borrowings, net— 
Net cash used in financing activities(832)(253)
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH40 228 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD337 486 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD$377 $714 
Supplemental Information: 
Interest paid during the period$145 $110 
Taxes, including excise tax, paid during the period$28 $25 
Dividends declared and payable during the period$261 $220 

See accompanying notes to consolidated financial statements.
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ARES CAPITAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
As of March 31, 2023
(in millions, except per share data, percentages and as otherwise indicated;
for example, with the word “billion” or otherwise)
(unaudited)

1. ORGANIZATION

Ares Capital Corporation (the “Company”) is a specialty finance company that is a closed-end, non-diversified management investment company incorporated in Maryland. The Company has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (together with the rules and regulations promulgated thereunder, the “Investment Company Act”). The Company has elected to be treated as a regulated investment company (“RIC”) under the Internal Revenue Code of 1986, as amended (the “Code”), and operates in a manner so as to qualify for the tax treatment applicable to RICs.
 
The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. The Company invests primarily in first lien senior secured loans (including “unitranche” loans, which are loans that combine both senior and subordinated debt, generally in a first lien position) and second lien senior secured loans. In addition to senior secured loans, the Company also invests in subordinated loans (sometimes referred to as mezzanine debt), which in some cases includes an equity component, and preferred equity. To a lesser extent, the Company also makes common equity investments.
 
The Company is externally managed by Ares Capital Management LLC (“Ares Capital Management” or the Company’s “investment adviser”), a subsidiary of Ares Management Corporation (“Ares Management”), a publicly traded, leading global alternative investment manager, pursuant to an investment advisory and management agreement. Ares Operations LLC (“Ares Operations” or the Company’s “administrator”), a subsidiary of Ares Management, provides certain administrative and other services necessary for the Company to operate.
 
2. SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation
 
The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“GAAP”), and include the accounts of the Company and its consolidated subsidiaries. The Company is an investment company following accounting and reporting guidance in Accounting Standards Codification (“ASC”) 946, Financial Services-Investment Companies. The consolidated financial statements reflect all adjustments and reclassifications that, in the opinion of management, are necessary for the fair presentation of the results of operations and financial condition as of and for the periods presented. All significant intercompany balances and transactions have been eliminated.

Interim financial statements are prepared in accordance with GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Articles 6 or 10 of Regulation S-X. In the opinion of management, all adjustments, consisting solely of normal recurring accruals considered necessary for the fair presentation of financial statements for the interim period presented, have been included. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending December 31, 2023.

The Company reclassified certain industry groupings of its portfolio companies presented in the accompanying consolidated financial statements as of December 31, 2022 to align with the recently updated Global Industry Classification Standards (“GICS”), where applicable. These reclassifications had no impact on the prior period’s consolidated balance sheet.
 
Cash, Cash Equivalents and Restricted Cash
 
Cash and cash equivalents include funds from time to time deposited with financial institutions and short-term, liquid investments in a money market account. Cash and cash equivalents are carried at cost which approximates fair value. As of March 31, 2023 and December 31, 2022, there was $23 and $12, respectively, of cash denominated in foreign currencies included within “cash and cash equivalents” or “restricted cash” in the accompanying consolidated balance sheet.

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Restricted cash primarily relates to cash received by the Company on behalf of participating lenders as a result of the Company’s role as administrative agent for certain loans. The cash received is generally distributed to participating lenders shortly after the receipt of such cash.

The following table provides a reconciliation of cash, cash equivalents and restricted cash in the consolidated balance sheet to the total amount shown at the end of the applicable period in the consolidated statement of cash flows:

 As of
 March 31, 2023December 31, 2022
Cash and cash equivalents$359 $303 
Restricted cash18 34 
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows$377 $337 
 
Concentration of Credit Risk
 
The Company places its cash and cash equivalents with financial institutions and, at times, cash held in depository or money market accounts may exceed the Federal Deposit Insurance Corporation insured limits.
 
Investments
 
Investment transactions are recorded on the trade date. Realized gains or losses are measured by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment using the specific identification method without regard to unrealized gains or losses previously recognized, and include investments charged off during the period, net of recoveries. Unrealized gains or losses primarily reflect the change in investment values, including the reversal of previously recorded unrealized gains or losses when gains or losses are realized.

Effective October 1, 2022, pursuant to Rule 2a-5 under the 1940 Act, the Company’s board of directors selected the Company’s investment adviser as the Company’s valuation designee to perform the fair value determinations for investments held by the Company without readily available market quotations.
 
Investments for which market quotations are readily available are typically valued at such market quotations. In order to validate market quotations, the Company’s investment adviser, as the valuation designee, looks at a number of factors to determine if the quotations are representative of fair value, including the source and nature of the quotations. Debt and equity securities that are not publicly traded or whose market prices are not readily available (i.e., substantially all of the Company’s investments) are valued at fair value as determined in good faith by the Company’s investment adviser, as the valuation designee, subject to the oversight of the Company’s board of directors, based on, among other things, the input of the Company’s independent third-party valuation firms that have been engaged to support the valuation of such portfolio investments at least once during a trailing 12-month period (with certain de minimis exceptions) and under a valuation policy and a consistently applied valuation process. The valuation process is conducted at the end of each fiscal quarter by the Company’s investment adviser, and a portion of the Company’s investment portfolio at fair value is subject to review by an independent third-party valuation firm each quarter. In addition, the Company’s independent registered public accounting firm obtains an understanding of, and performs select procedures relating to, the Company’s valuation process within the context of performing the Company’s integrated audit.
 
As part of the valuation process, the Company’s investment adviser may take into account the following types of factors, if relevant, in determining the fair value of the Company’s investments: the enterprise value of a portfolio company (the entire value of the portfolio company to a market participant, including the sum of the values of debt and equity securities used to capitalize the enterprise at a point in time), the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flow, the markets in which the portfolio company does business, a comparison of the portfolio company’s securities to any similar publicly traded securities, changes in the interest rate environment and the credit markets, which may affect the price at which similar investments would trade in their principal markets and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent sale occurs, the Company’s investment adviser considers the pricing indicated by the external event to corroborate the valuation.
 
Because there is not a readily available market value for most of the investments in the Company’s portfolio, substantially all of the Company’s portfolio investments are valued at fair value as determined in good faith by its investment
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adviser, as the valuation designee, as described herein. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may fluctuate from period to period. Additionally, the fair value of the Company’s investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that the Company may ultimately realize. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If the Company was required to liquidate a portfolio investment in a forced or liquidation sale, the Company could realize significantly less than the value at which the Company has recorded it.
 
In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the valuations currently assigned.

The Company’s investment adviser, as the valuation designee, subject to the oversight of the Company’s board of directors undertakes a multi-step valuation process each quarter, as described below:

The Company’s quarterly valuation process begins with a preliminary valuation being prepared by the investment professionals responsible for the portfolio investment in conjunction with the Company’s portfolio management and valuation team.

Preliminary valuations are reviewed and discussed by the valuation committee of the Company’s investment adviser.

The valuation committee of the Company’s investment adviser determines the fair value of each investment in the Company’s portfolio without a readily available market quotation in good faith based on, among other things, the input of the independent third-party valuation firms, where applicable.
 
See Note 8 for more information on the Company’s valuation process.

Interest Income Recognition
 
Interest income is recorded on an accrual basis and includes the accretion of discounts, amortization of premiums and payment-in-kind (“PIK”) interest. Discounts from and premiums to par value on investments purchased are accreted/amortized into interest income over the life of the respective security using the effective yield method. To the extent loans contain PIK provisions, PIK interest, computed at the contractual rate specified in each applicable agreement, is accrued and recorded as interest income and added to the principal balance of the loan. PIK interest income added to the principal balance is generally collected upon repayment of the outstanding principal. To maintain the Company’s tax status as a RIC, this non-cash source of income must be paid out to stockholders in the form of dividends for the year the income was earned, even though the Company has not yet collected the cash. The amortized cost of investments represents the original cost adjusted for any accretion of discounts, amortization of premiums and PIK interest.

Loans are generally placed on non-accrual status when principal or interest payments are past due 30 days or more or when there is reasonable doubt that principal or interest will be collected in full. Accrued and unpaid interest is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon the Company’s judgment regarding collectability. Non-accrual loans are restored to accrual status when past due principal and interest are paid or there is no longer any reasonable doubt that such principal or interest will be collected in full and, in the Company’s judgment, are likely to remain current. The Company may make exceptions to this policy if the loan has sufficient collateral value (i.e., typically measured as enterprise value of the portfolio company) or is in the process of collection.

Dividend Income Recognition 

Dividend income on preferred equity is recorded on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies. To the extent a preferred equity contains PIK provisions, PIK dividends, computed at the contractual rate specified in each applicable agreement, are accrued and recorded as dividend income and added to the principal balance of the preferred equity. PIK dividends added to the principal balance are generally collected upon redemption of the equity.
 
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Capital Structuring Service Fees and Other Income
 
In pursuit of the Company’s investment objective, the Company’s investment adviser seeks to provide assistance to its portfolio companies and in return the Company may receive fees for capital structuring services. These fees are fixed based on contractual terms, are generally only available to the Company as a result of the Company’s underlying investments, are normally paid at the closing of the investments, are generally non-recurring and non-refundable and are recognized as revenue when earned upon closing of the investment. The services that the Company’s investment adviser provides vary by investment, but generally include reviewing existing credit facilities, arranging bank financing, arranging equity financing, structuring financing from multiple lenders, structuring financing from multiple equity investors, restructuring existing loans, raising equity and debt capital, and providing general financial advice, which concludes upon closing of the investment. Any services of the above nature subsequent to the closing would generally generate a separate fee payable to the Company. In certain instances where the Company is invited to participate as a co-lender in a transaction and does not provide significant services in connection with the investment, a portion of loan fees paid to the Company in such situations will be deferred and amortized over the contractual life of the loan.

Other income includes amendment fees that are fixed based on contractual terms and are generally non-recurring and
non-refundable and are recognized as revenue when earned upon closing of the related transaction. Other income also includes fees for management and consulting services, agency services, loan guarantees, commitments, and other services rendered by the Company to portfolio companies. Such fees are fixed based on contractual terms and are recognized as income as services are rendered.
 
Foreign Currency Translation
 
The Company’s books and records are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis:
 
(1)Fair value of investment securities, other assets and liabilities—at the exchange rates prevailing at the end of the period.

(2)Purchases and sales of investment securities, income and expenses—at the exchange rates prevailing on the respective dates of such transactions, income or expenses.
 
Results of operations based on changes in foreign exchange rates are separately disclosed in the statement of operations, if any. Foreign security and currency translations may involve certain considerations and risks not typically associated with investing in U.S. companies and U.S. government securities. These risks include, but are not limited to, currency fluctuations and revaluations and future adverse political, social and economic developments, which could cause investments in foreign markets to be less liquid and prices more volatile than those of comparable U.S. companies or U.S. government securities. 

Derivative Instruments
 
The Company does not utilize hedge accounting and as such values its derivatives at fair value with the unrealized gains or losses recorded in “net unrealized gains (losses) from foreign currency and other transactions” in the Company’s consolidated statement of operations.
 
Equity Offering Expenses
 
The Company’s offering costs are charged against the proceeds from equity offerings when proceeds are received.
 
Debt Issuance Costs
 
Debt issuance costs are amortized over the life of the related debt instrument using the straight line method or the effective yield method, depending on the type of debt instrument.

Secured Borrowings

The Company follows the guidance in ASC Topic 860, Transfers and Servicing (“ASC Topic 860”), when accounting for participations and other partial loan sales. Certain loan sales do not qualify for sale accounting under ASC Topic 860 because these sales do not meet the definition of a “participating interest,” as defined in the guidance, in order for sale treatment
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to be allowed. Participations or other partial loan sales which do not meet the definition of a participating interest or which are not eligible for sale accounting remain as an investment on the consolidated balance sheet as required under GAAP and the proceeds are recorded as a secured borrowing. Secured borrowings are carried at fair value.
 
 Leases

The Company is obligated under a number of operating leases pursuant to which it is leasing office facilities from third parties with remaining terms ranging from approximately one to four years. Such operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in the accompanying consolidated balance sheets. The Company does not have any finance leases.

The ROU asset represents the Company’s right to use an underlying asset for the lease term and the operating lease liability represents the Company’s obligation to make lease payments arising from such lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the remaining lease term. The Company’s leases do not provide an implicit discount rate, and as such the Company uses its weighted average borrowing rate based on the information available at the commencement date in determining the present value of the remaining lease payments. Lease expense is recognized on a straight-line basis over the remaining lease term. The Company has elected as a practical expedient to treat non-lease components as part of the lease as these components are not significant when compared to the lease component.

Income Taxes
 
The Company has elected to be treated as a RIC under the Code and operates in a manner so as to qualify for the tax treatment applicable to RICs. To qualify as a RIC, the Company must, among other requirements, meet certain source-of- income and asset diversification requirements and timely distribute to its stockholders at least 90% of its investment company taxable income, as defined by the Code, for each year. The Company has made and intends to continue to make the requisite distributions to its stockholders, which will generally relieve the Company from U.S. federal corporate-level income taxes.
 
Depending on the level of taxable income earned in a tax year, the Company may choose to carry forward taxable income in excess of current year dividend distributions from such current year taxable income into the next tax year and pay a 4% excise tax on such income, as required. To the extent that the Company determines that its estimated current year taxable income will be in excess of estimated dividend distributions for the current year from such income, the Company accrues excise tax, if any, on estimated excess taxable income as such taxable income is earned.
 
The Company may hold certain portfolio company investments through consolidated taxable subsidiaries. Such subsidiaries may be subject to U.S. federal and state corporate-level income taxes. These consolidated subsidiaries recognize deferred tax assets and liabilities for the estimated future tax effects attributable to temporary differences between the tax basis of certain assets and liabilities and the reported amounts included in the accompanying consolidated balance sheet using the applicable statutory tax rates in effect for the year in which any such temporary differences are expected to reverse.    
 
Dividends to Common Stockholders
 
Dividends and distributions to common stockholders are recorded on the ex-dividend date. The amount to be paid out as a dividend is determined by the Company’s board of directors each quarter and is generally based upon the earnings estimated by management and considers the level of undistributed taxable income carried forward from the prior year for distribution in the current year. Net realized capital gains, if any, are generally distributed, although the Company may decide to retain such capital gains for investment.
 
The Company has adopted a dividend reinvestment plan that provides for reinvestment of any distributions the Company declares in cash on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, if the Company’s board of directors authorizes, and the Company declares, a cash dividend, then the Company’s stockholders who have not “opted out” of the Company’s dividend reinvestment plan will have their cash dividends automatically reinvested in additional shares of the Company’s common stock, rather than receiving the cash dividend. The Company may use newly issued shares to implement the dividend reinvestment plan or, if the Company is otherwise permitted under applicable law to purchase such shares, the Company may purchase shares in the open market in connection with the Company’s obligations under the dividend reinvestment plan.
 
Use of Estimates in the Preparation of Financial Statements
 
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The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of actual and contingent assets and liabilities at the date of the financial statements and the reported amounts of income or loss and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include the valuation of investments.

Recent Accounting Pronouncements

The Company considers the applicability and impact of all accounting standard updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not listed below were assessed and either determined to be not applicable or expected to have minimal impact on its consolidated financial statements.

In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848) (“ASU 2020-04”),” which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848) (“ASU 2020-01”), which expanded the scope of ASU 2020-04 to include derivative instruments impacted by discounting transition. ASU 2020-04 and ASU 2021-01 are effective for all entities through December 31, 2022. The expedients and exceptions provided by the amendments do not apply to contract modifications and hedging relationships entered into or evaluated after December 31, 2022, except for hedging transactions as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which deferred the sunset of this guidance to December 31, 2024. The Company has concluded that this guidance will not have a material impact on its consolidated financial statements.

3. AGREEMENTS

Investment Advisory and Management Agreement
 
The Company is party to an investment advisory and management agreement (the “investment advisory and management agreement”), with its investment adviser, Ares Capital Management. Subject to the overall supervision of the Company’s board of directors and in accordance with the Investment Company Act, Ares Capital Management provides investment advisory and management services to the Company. For providing these services, Ares Capital Management receives fees from the Company consisting of a base management fee, a fee based on the Company’s net investment income (“income based fee”) and a fee based on the Company’s net capital gains (“capital gains incentive fee”). The investment advisory and management agreement may be terminated by either party without penalty upon 60 days’ written notice to the other party.
 
Effective June 21, 2019, in connection with the Company’s board of directors’ approval of the modification of the asset coverage requirement applicable to senior securities from 200% to 150%, the investment advisory and management agreement was amended to reduce the Company’s annual base management fee rate from 1.5% to 1.0% on all assets financed using leverage over 1.0x debt to equity. For all assets financed using leverage up to 1.0x debt to equity, the annual base management fee rate remains at 1.5%. The base management fee is based on the average value of the Company’s total assets (other than cash or cash equivalents but including assets purchased with borrowed funds) at the end of the two most recently completed calendar quarters and is calculated by applying the applicable fee rate. The base management fee is payable quarterly in arrears. See Note 5 for additional information.
 
The income based fee is calculated and payable quarterly in arrears based on the Company’s pre-incentive fee net investment income, as defined in the investment advisory and management agreement, for the quarter. Pre-incentive fee net investment income means interest income, dividend income and any other income (including any other fees such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies but excluding fees for providing managerial assistance) accrued during the calendar quarter, minus operating expenses for the quarter (including the base management fee, any expenses payable under the administration agreement, and any interest expense and dividends paid on any outstanding preferred stock, but excluding the income based fee and capital gains incentive fee accrued under GAAP). Pre-incentive fee net investment income includes, in the case of investments with a deferred income feature (such as market discount, debt instruments with PIK interest, preferred stock with PIK dividends and zero coupon securities), accrued income that the Company has not yet received in cash. The Company’s investment adviser is not under any obligation to reimburse the Company for any part of the income based fees it received that was based on accrued income that the Company never actually received.
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Pre-incentive fee net investment income does not include any realized capital gains, realized capital losses, unrealized capital appreciation, unrealized capital depreciation or income tax expense related to realized gains and losses. Because of the structure of the income based fee, it is possible that the Company may pay such fees in a quarter where the Company incurs a loss. For example, if the Company earns pre-incentive fee net investment income in excess of the hurdle rate (as defined below) for a quarter, the Company will pay the applicable income based fee even if the Company has incurred a loss in that quarter due to realized and/or unrealized capital losses.
 
Pre-incentive fee net investment income, expressed as a rate of return on the value of the Company’s net assets (defined as total assets less indebtedness and before taking into account any income based fees and capital gains incentive fees payable during the period) at the end of the immediately preceding calendar quarter, is compared to a fixed “hurdle rate” of 1.75% per quarter. If market credit spreads rise, the Company may be able to invest its funds in debt instruments that provide for a higher return, which may increase the Company’s pre-incentive fee net investment income and make it easier for the Company’s investment adviser to surpass the fixed hurdle rate and receive an income based fee based on such net investment income. To the extent the Company has retained pre-incentive fee net investment income that has been used to calculate the income based fee, it is also included in the amount of the Company’s total assets (other than cash and cash equivalents but including assets purchased with borrowed funds) used to calculate the base management fee.

The Company pays its investment adviser an income based fee with respect to the Company’s pre-incentive fee net investment income in each calendar quarter as follows:
 
No income based fee in any calendar quarter in which the Company’s pre-incentive fee net investment income does not exceed the hurdle rate;

100% of the Company’s pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the hurdle rate but is less than 2.1875% in any calendar quarter. The Company refers to this portion of its pre-incentive fee net investment income (which exceeds the hurdle rate but is less than 2.1875%) as the “catch-up” provision. The “catch-up” is meant to provide the Company’s investment adviser with 20% of the pre-incentive fee net investment income as if a hurdle rate did not apply if this net investment income exceeded 2.1875% in any calendar quarter; and

20% of the amount of the Company’s pre-incentive fee net investment income, if any, that exceeds 2.1875% in any calendar quarter.
 
These calculations are adjusted for any share issuances or repurchases during the quarter.

The capital gains incentive fee is determined and payable in arrears as of the end of each calendar year (or, upon termination of the investment advisory and management agreement, as of the termination date) and is calculated at the end of each applicable year by subtracting (a) the sum of the Company’s cumulative aggregate realized capital losses and aggregate unrealized capital depreciation from (b) the Company’s cumulative aggregate realized capital gains, in each case calculated from October 8, 2004 (the date the Company completed its initial public offering). Realized capital gains and losses include gains and losses on investments and foreign currencies, gains and losses on extinguishment of debt and from other assets, as well as any income tax and other expenses related to cumulative aggregate realized gains and losses. If such amount is positive at the end of such year, then the capital gains incentive fee for such year is equal to 20% of such amount, less the aggregate amount of capital gains incentive fees paid in all prior years. If such amount is negative, then there is no capital gains incentive fee for such year.
 
The cumulative aggregate realized capital gains are calculated as the sum of the differences, if positive, between (a) the net sales price of each investment in the Company’s portfolio when sold and (b) the accreted or amortized cost basis of such investment.
 
The cumulative aggregate realized capital losses are calculated as the sum of the amounts by which (a) the net sales price of each investment in the Company’s portfolio when sold is less than (b) the accreted or amortized cost basis of such investment.
 
The aggregate unrealized capital depreciation is calculated as the sum of the differences, if negative, between (a) the valuation of each investment in the Company’s portfolio as of the applicable capital gains incentive fee calculation date and (b) the accreted or amortized cost basis of such investment.
 
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Notwithstanding the foregoing, if the Company is required by GAAP to record an investment at its fair value as of the time of acquisition instead of at the actual amount paid for such investment by the Company (including, for example, as a result of the application of the asset acquisition method of accounting), then solely for the purposes of calculating the capital gains incentive fee, the “accreted or amortized cost basis” of an investment shall be an amount (the “Contractual Cost Basis”) equal to (1) (x) the actual amount paid by the Company for such investment plus (y) any amounts recorded in the Company’s financial statements as required by GAAP that are attributable to the accretion of such investment plus (z) any other adjustments made to the cost basis included in the Company’s financial statements, including PIK interest or additional amounts funded (net of repayments) minus (2) any amounts recorded in the Company’s financial statements as required by GAAP that are attributable to the amortization of such investment, whether such calculated Contractual Cost Basis is higher or lower than the fair value of such investment (as determined in accordance with GAAP) at the time of acquisition.
  
The base management fees, income based fees and capital gains incentive fees for the three months ended March 31, 2023 and 2022 were as follows:

For the Three Months Ended March 31,
20232022
Base management fees$79 $73 
Income based fees$76 $51 
Capital gains incentive fees(1)$(6)$
________________________________________

(1)Calculated in accordance with GAAP as discussed below.

There was no capital gains incentive fee payable to the Company’s investment adviser as calculated under the investment advisory and management agreement for the three months ended March 31, 2023 and 2022. In addition, in accordance with GAAP, the Company had cumulatively accrued a capital gains incentive fee of $29 as of March 31, 2023. GAAP requires that the capital gains incentive fee accrual consider the cumulative aggregate unrealized capital appreciation in the calculation, as a capital gains incentive fee would be payable if such unrealized capital appreciation were realized, even though such unrealized capital appreciation is not permitted to be considered in calculating the fee actually payable under the investment advisory and management agreement. This GAAP accrual is calculated using the aggregate cumulative realized capital gains and losses and aggregate cumulative unrealized capital depreciation included in the calculation of the capital gains incentive fee plus the aggregate cumulative unrealized capital appreciation, net of any expense associated with cumulative unrealized capital depreciation or appreciation. If such amount is positive at the end of a period, then GAAP requires the Company to record a capital gains incentive fee equal to 20% of such cumulative amount, less the aggregate amount of actual capital gains incentive fees paid or capital gains incentive fees accrued under GAAP in all prior periods. As of March 31, 2023, the Company has paid capital gains incentive fees since inception totaling $133. The resulting accrual for any capital gains incentive fee under GAAP in a given period may result in an additional expense if such cumulative amount is greater than in the prior period or a reversal of previously recorded expense if such cumulative amount is less than in the prior period. If such cumulative amount is negative, then there is no accrual. There can be no assurance that such unrealized capital appreciation will be realized in the future.

Cash payment of any income based fees and capital gains incentive fees otherwise earned by the Company’s investment adviser is deferred if during the most recent four full calendar quarter period ending on or prior to the date such payment is to be made the sum of (a) the aggregate distributions to the Company’s stockholders and (b) the change in net assets (defined as total assets less indebtedness and before taking into account any income based fees and capital gains incentive fees payable during the period) is less than 7.0% of the Company’s net assets (defined as total assets less indebtedness) at the beginning of such period. These calculations will be adjusted for any share issuances or repurchases. Any income based fees and capital gains incentive fees deferred for payment are carried over for payment in subsequent calculation periods to the extent such fees are payable under the terms of the investment advisory and management agreement. Pursuant to the terms under the investment advisory and management agreement, as of March 31, 2023, payment of $81 of the income based fees earned by the Company’s investment adviser for the fourth quarter of 2022 had been previously deferred. As of March 31, 2023, such deferred income based fees were payable under the terms of the investment advisory management agreement.
 
The services of all investment professionals and staff of the Company’s investment adviser, when and to the extent engaged in providing investment advisory and management services to the Company, and routine overhead expenses of such personnel allocable to such services, are provided and paid for by the Company’s investment adviser. Under the investment
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advisory and management agreement, the Company bears all other costs and expenses of its operations and transactions, including, but not limited to, those relating to: organization; calculation of the Company’s net asset value (including, but not limited to, the cost and expenses of any independent third-party valuation firm); expenses incurred by the Company’s investment adviser payable to third parties, including agents, consultants or other advisers, in monitoring the Company’s financial and legal affairs and in monitoring the Company’s investments (including the cost of consultants hired to develop information technology systems designed to monitor the Company’s investments) and performing due diligence on the Company’s prospective portfolio companies; interest payable on indebtedness, if any, incurred to finance the Company’s investments (including payments to third party vendors for financial information services); offerings of the Company’s common stock and other securities; investment advisory and management fees; administration fees; fees payable to third parties, including agents, consultants or other advisers, relating to, or associated with, evaluating and making investments in portfolio companies, regardless of whether such transactions are ultimately consummated; transfer agent and custodial fees; registration fees; listing fees; taxes; independent directors’ fees and expenses; costs of preparing and filing reports or other documents with the SEC; the costs of any reports, proxy statements or other notices to stockholders, including printing costs; to the extent the Company is covered by any joint insurance policies, the Company’s allocable portion of the insurance premiums for such policies; direct costs and expenses of administration, including auditor and legal costs; and all other expenses incurred by the Company or its administrator in connection with administering the Company’s business as described in more detail under “Administration Agreement” below.

Administration Agreement
 
The Company is party to an administration agreement (the “administration agreement”) with its administrator, Ares Operations. Pursuant to the administration agreement, Ares Operations furnishes the Company with office equipment and clerical, bookkeeping and record keeping services at the Company’s office facilities. Under the administration agreement, Ares Operations also performs, or oversees the performance of, the Company’s required administrative services, which include, among other things, providing assistance in accounting, legal, compliance, operations, technology and investor relations, being responsible for the financial records that the Company is required to maintain and preparing reports to its stockholders and reports filed with the SEC. In addition, Ares Operations assists the Company in determining and publishing its net asset value, assists the Company in providing managerial assistance to its portfolio companies, oversees the preparation and filing of the Company’s tax returns and the printing and dissemination of reports to its stockholders, and generally oversees the payment of its expenses and the performance of administrative and professional services rendered to the Company by others. Payments under the administration agreement are equal to an amount based upon its allocable portion of Ares Operations’ overhead and other expenses (including travel expenses) incurred by Ares Operations in performing its obligations under the administration agreement, including the Company’s allocable portion of the compensation, rent and other expenses of certain of its officers (including the Company’s chief compliance officer, chief financial officer, chief accounting officer, general counsel, secretary, treasurer and assistant treasurer) and their respective staffs. The administration agreement may be terminated by either party without penalty upon 60 days’ written notice to the other party.
 
For the three months ended March 31, 2023 and 2022, the Company incurred $3 and $4, respectively, in administrative fees. As of March 31, 2023 and December 31, 2022, $3 and $2, respectively, in administrative fees were unpaid and included in “accounts payable and other liabilities” in the accompanying consolidated balance sheet.

4. INVESTMENTS

As of March 31, 2023 and December 31, 2022, investments consisted of the following:

 As of
 March 31, 2023December 31, 2022
Amortized Cost(1)Fair ValueAmortized Cost(1)Fair Value
First lien senior secured loans(2)$9,020 $8,689 $9,684 $9,373 
Second lien senior secured loans4,230 3,887 4,218 3,934 
Subordinated certificates of the SDLP(3)1,282 1,231 1,274 1,249 
Senior subordinated loans1,136 1,048 1,163 1,079 
Preferred equity2,045 2,069 2,095 2,027 
Ivy Hill Asset Management, L.P.(4)2,139 2,295 2,048 2,201 
Other equity1,578 1,929 1,561 1,917 
Total$21,430 $21,148 $22,043 $21,780 
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________________________________________

(1)The amortized cost represents the original cost adjusted for any accretion of discounts, amortization of premiums and PIK interest or dividends.
    
(2)First lien senior secured loans include certain loans that the Company classifies as “unitranche” loans. The total amortized cost and fair value of the loans that the Company classified as “unitranche” loans were $4,721 and $4,575 respectively, as of March 31, 2023, and $4,983 and $4,841, respectively, as of December 31, 2022.

(3)The proceeds from these certificates were applied to co-investments with Varagon and its clients to fund first lien senior secured loans to 22 and 22 different borrowers as of March 31, 2023 and December 31, 2022, respectively.

(4)Includes the Company’s subordinated loan and equity investments in IHAM, as applicable.
  
The Company uses GICS for classifying the industry groupings of its portfolio companies. The industrial and geographic compositions of the Company’s portfolio at fair value as of March 31, 2023 and December 31, 2022 were as follows:
 As of
March 31, 2023December 31, 2022
Industry
Software and Services21.6 %21.9 %
Financial Services(1)13.8 13.3 
Health Care Services11.3 10.8 
Commercial and Professional Services9.8 9.5 
Investment Funds and Vehicles(2)6.1 6.0 
Insurance Services4.9 5.2 
Power Generation4.7 4.5 
Consumer Durables and Apparel3.8 3.7 
Consumer Services3.3 4.2 
Capital Goods2.9 3.6 
Media and Entertainment2.2 2.1 
Retailing and Distribution2.2 2.2 
Automobiles and Components2.2 2.1 
Food and Beverage2.1 2.0 
Energy2.0 2.0 
Other7.1 6.9 
Total100.0 %100.0 %
________________________________________

(1)Includes the Company’s investment in IHAM.

(2)Includes the Company’s investment in the SDLP, which had made first lien senior secured loans to 22 and 22 different borrowers as of March 31, 2023 and December 31, 2022, respectively. The portfolio companies in the SDLP are in industries similar to the companies in the Company’s portfolio.

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 As of
March 31, 2023December 31, 2022
Geographic Region
West(1)25.3 %24.5 %
Midwest23.8 23.9 
Southeast17.3 17.1 
Northeast(2)15.0 14.0 
Mid-Atlantic13.8 14.9 
International4.8 5.6 
Total100.0 %100.0 %
________________________________________

(1)Includes the Company’s investment in the SDLP, which represented 5.8% and 5.7% of the total investment portfolio at fair value as of March 31, 2023 and December 31, 2022, respectively.

(2)Includes the Company’s investment in IHAM, which represented 10.9% and 10.1% of the total investment portfolio at fair value as of March 31, 2023 and December 31, 2022, respectively.

As of March 31, 2023 and December 31, 2022, loans on non-accrual status represented 2.3% of the total investments at amortized cost (or 1.3% at fair value) and 1.7% at amortized cost (or 1.1% at fair value), respectively.

Senior Direct Lending Program

The Company has established a joint venture with Varagon to make certain first lien senior secured loans, including certain stretch senior and unitranche loans, primarily to U.S. middle-market companies. Varagon was formed in 2013 as a lending platform by American International Group, Inc. and other partners. The joint venture is called the SDLP. In July 2016, the Company and Varagon and its clients completed the initial funding of the SDLP. The SDLP may generally commit and hold individual loans of up to $450. The Company and other accounts managed by the Company’s investment adviser and its affiliates may directly co-invest with the SDLP to accommodate larger transactions. The SDLP is capitalized as transactions are completed and all portfolio decisions and generally all other decisions in respect of the SDLP must be approved by an investment committee of the SDLP consisting of representatives of the Company and Varagon (with approval from a representative of each required).

The Company provides capital to the SDLP in the form of subordinated certificates (the “SDLP Certificates”), and Varagon and its clients provide capital to the SDLP in the form of senior notes, intermediate funding notes and SDLP Certificates. As of March 31, 2023 and December 31, 2022, the Company and a client of Varagon owned 87.5% and 12.5%, respectively, of the outstanding SDLP Certificates.

As of March 31, 2023 and December 31, 2022, the Company and Varagon and its clients had agreed to make capital available to the SDLP of $6,150 and $6,150, respectively, in the aggregate, of which $1,444 and $1,444, respectively, is to be made available from the Company. The Company will continue to provide capital to the SDLP in the form of SDLP Certificates, and Varagon and its clients will provide capital to the SDLP in the form of senior notes, intermediate funding notes and SDLP Certificates. This capital will only be committed to the SDLP upon approval of transactions by the investment committee of the SDLP as discussed above. Below is a summary of the funded capital and unfunded capital commitments of the SDLP.

 As of
March 31, 2023December 31, 2022
Total capital funded to the SDLP(1)$5,160 $5,127 
Total capital funded to the SDLP by the Company(1)$1,282 $1,274 
Total unfunded capital commitments to the SDLP(2)$217 $294 
Total unfunded capital commitments to the SDLP by the Company(2)$50 $68 
___________________________________________________________________________
(1)At principal amount.
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(2)These commitments to fund delayed draw loans have been approved by the investment committee of the SDLP and will be funded if and when conditions to funding such delayed draw loans are met.

The SDLP Certificates pay a coupon equal to LIBOR plus 8.0% and also entitle the holders thereof to receive a portion of the excess cash flow from the loan portfolio, after expenses, which may result in a return to the holders of the SDLP Certificates that is greater than the stated coupon. The SDLP Certificates are junior in right of payment to the senior notes and intermediate funding notes.

The amortized cost and fair value of the SDLP Certificates held by the Company as of March 31, 2023 and December 31, 2022 were as follows:
As of
March 31, 2023December 31, 2022
Amortized CostFair ValueAmortized CostFair Value
Subordinated certificates of the SDLP$1,282 $1,231 $1,274 $1,249 

The Company’s yield on its investment in the SDLP Certificates at amortized cost and fair value as of March 31, 2023 and December 31, 2022 were as follows:
 As of
 March 31, 2023December 31, 2022
 Amortized CostFair ValueAmortized CostFair Value
Yield on subordinated certificates of the SDLP13.5 %14.1 %13.5 %13.8 %

The interest income from the Company’s investment in the SDLP Certificates and capital structuring service and other fees earned for the three months ended March 31, 2023 and 2022 were as follows:

For the Three Months Ended March 31,
20232022
Interest income
$43 $33 
Capital structuring service and other fees
$$

As of March 31, 2023 and December 31, 2022, the SDLP’s portfolio was comprised entirely of first lien senior secured loans to U.S. middle-market companies and were in industries similar to the companies in the Company’s portfolio. As of March 31, 2023 and December 31, 2022, one of the loans was on non-accrual status. Below is a summary of the SDLP’s portfolio.
As of
March 31, 2023December 31, 2022
Total first lien senior secured loans(1)(2)$5,222 $5,174 
Largest loan to a single borrower(1)$374 $377 
Total of five largest loans to borrowers(1)$1,644 $1,631 
Number of borrowers in the SDLP22 22 
Commitments to fund delayed draw loans(3)$217 $294 
___________________________________________________________________________

(1)At principal amount.

(2)First lien senior secured loans include certain loans that the SDLP classifies as “unitranche” loans. As of March 31, 2023 and December 31, 2022, the total principal amount of loans in the SDLP portfolio that the SDLP classified as “unitranche” loans was $4,154 and $4,108, respectively.

(3)As discussed above, these commitments have been approved by the investment committee of the SDLP.

Pursuant to Rule 4-08(g) of Regulation S-X, selected financial information of the SDLP, in conformity with GAAP, as of March 31, 2023 and December 31, 2022 and for the three months ended March 31, 2023 and 2022 are presented below:
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As of
March 31, 2023December 31, 2022
Selected Balance Sheet Information:
Investments at fair value (amortized cost of $5,210 and $5,166, respectively)
$4,932 $4,958 
Other assets176 150 
Total assets$5,108 $5,108 
Senior notes$3,562 $3,538 
Intermediate funding notes133 132 
Other liabilities130 110 
Total liabilities3,825 3,780 
Subordinated certificates and members’ capital1,283 1,328 
Total liabilities and members’ capital$5,108 $5,108 

For the Three Months Ended March 31,
20232022
Selected Statement of Operations Information:
Total investment income$136 $72 
Interest expense69 24 
Other expenses
Total expenses75 29 
Net investment income61 43 
Net realized and unrealized losses on investments(68)(3)
Net (decrease) increase in members’ capital resulting from operations$(7)$40 

Ivy Hill Asset Management, L.P.

Ivy Hill Asset Management, L.P. (“IHAM”), a wholly owned portfolio company of the Company, is an asset management services company and an SEC-registered investment adviser. As of March 31, 2023, IHAM had assets under management of approximately $13.5 billion. As of March 31, 2023, IHAM managed 22 vehicles and served as the sub-manager/sub-servicer for one other vehicle (these vehicles managed or sub-managed/sub-serviced by IHAM are referred to as the “IHAM Vehicles”). IHAM earns fee income from managing the IHAM Vehicles and has also invested in certain of these vehicles as part of its business strategy. The amortized cost of IHAM’s total investments as of March 31, 2023 and December 31, 2022 was $2,444 and $2,370, respectively. For the three months ended March 31, 2023 and 2022, IHAM had management and incentive fee income of $14 and $10, respectively. For the three months ended March 31, 2023 and 2022, IHAM also had other investment-related income of $61 and $34, respectively, which included net realized gains or losses on investments and other transactions.

 The amortized cost and fair value of the Company’s investment in IHAM as of March 31, 2023 and December 31, 2022 were as follows:

As of
March 31, 2023December 31, 2022
Amortized CostFair ValueAmortized CostFair Value
Subordinated loan
$438 $438 $500 $500 
Equity
1,701 1,857 1,548 1,701 
Total Company’s investment in IHAM$2,139 $2,295 $2,048 $2,201 

The interest income and dividend income that the Company earned from IHAM for the three months ended March 31, 2023 and 2022 were as follows:

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For the Three Months Ended March 31,
20232022
Interest income
$13 $— 
Dividend income
$57 $43 

From time to time, IHAM or certain IHAM Vehicles may purchase investments from, or sell investments to, the Company. For any such sales or purchases by the IHAM Vehicles to or from the Company, the IHAM Vehicle must obtain approval from third parties unaffiliated with the Company or IHAM, as applicable. During the three months ended March 31, 2023 and 2022, IHAM or certain of the IHAM Vehicles purchased $652 and $1,176, respectively, of loans from the Company. For the three months ended March 31, 2023 and 2022, the Company recognized $10 and $6, respectively, of net realized losses from these sales. During the three months ended March 31, 2023, the Company did not purchase investments from IHAM or the IHAM Vehicles. During the three months ended March 31, 2022, the Company purchased $27 of investments from certain IHAM Vehicles.

The yields at amortized cost and fair value of the Company’s investments in IHAM as of March 31, 2023 and December 31, 2022 were as follows:
 As of
 March 31, 2023December 31, 2022
 Amortized CostFair ValueAmortized CostFair Value
Subordinated loan
11.6 %11.6 %11.0 %11.0 %
Equity(1)
13.4 %12.3 %14.2 %12.9 %
_______________________________________________________________________________

(1)Represents the yield on the Company’s equity investment in IHAM, which is computed as (a) the annualized amount of the dividend received by the Company related to the Company’s equity investment in IHAM during the most recent quarter end, divided by (b) the amortized cost or fair value of the Company’s equity investment in IHAM, as applicable.

IHAM is party to an administration agreement, referred to herein as the “IHAM administration agreement,” with Ares Operations. Pursuant to the IHAM administration agreement, Ares Operations provides IHAM with, among other things, office facilities, equipment, clerical, bookkeeping and record keeping services, services relating to the marketing and sale of interests in vehicles managed by IHAM, services of, and oversight of, custodians, depositories, accountants, attorneys, underwriters and such other persons in any other capacity deemed to be necessary. Under the IHAM administration agreement, IHAM reimburses Ares Operations for all of the actual costs associated with such services, including Ares Operations’ allocable portion of the compensation, rent and other expenses of its officers, employees and respective staff in performing its obligations under the IHAM administration agreement.

Selected Financial Information

Pursuant to Rule 4-08(g) of Regulation S-X, selected financial information of IHAM, in conformity with GAAP, as of March 31, 2023 and December 31, 2022 and for the three months ended March 31, 2023 and 2022 are presented below.

In conformity with GAAP, IHAM is required to consolidate entities in which IHAM has a direct or indirect controlling financial interest based on either a variable interest model or voting interest model, which include certain of the IHAM Vehicles (the “Consolidated IHAM Vehicles”). As such, for GAAP purposes only, IHAM consolidates (a) entities in which it holds a majority voting interest or has majority ownership and control over the operational, financial and investing decisions of that entity and (b) entities that it concludes are variable interest entities in which IHAM has more than insignificant economic interest and power to direct the activities that most significantly impact the entities, and for which IHAM is deemed to be the primary beneficiary.

When IHAM consolidates an IHAM Vehicle for GAAP purposes only, IHAM reflects the assets, liabilities, revenues and expenses of the Consolidated IHAM Vehicles on a gross basis, including the economic interests held by third-party investors in the Consolidated IHAM Vehicles as debt obligations, subordinated notes or non-controlling interests, in the consolidated IHAM financials below. All of the revenues earned by IHAM as the investment manager of the IHAM Consolidated Vehicles are eliminated in GAAP consolidation. However, because the eliminated amounts are earned from and funded by third-party investors, the GAAP consolidation of an IHAM Vehicle does not impact the net income or loss
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attributable to IHAM. As a result, the Company believes an assessment of IHAM's business and the impact to the Company’s investment in IHAM is best viewed on a stand-alone basis as reflected in the first column in the tables below.

As of March 31, 2023
IHAMConsolidated IHAM Vehicles(1)EliminationsConsolidated
Selected Balance Sheet Information:
Assets
Investments at fair value(2)$2,426 $9,524 $(2,401)$9,549 
Cash and cash equivalents579 — 588 
Other assets64 98 (59)103 
Total assets$2,499 $10,201 $(2,460)$10,240 
Liabilities
Debt$313 $7,267 $— $7,580 
Subordinated note from ARCC438 — — 438 
Subordinated notes(3)— 1,296 (1,014)282 
Other liabilities10 347 (14)343 
Total liabilities761 8,910 (1,028)8,643 
Equity
Contributed capital1,701 — — 1,701 
Accumulated earnings56 — — 56 
Net unrealized losses on investments and foreign currency transactions(19)— — (19)
Non-controlling interests in Consolidated IHAM Vehicles(4)
— 1,291 (1,432)(141)
Total equity1,738 1,291 (1,432)1,597 
Total liabilities and equity$2,499 $10,201 $(2,460)$10,240 

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As of December 31, 2022
IHAMConsolidated IHAM Vehicles(1)EliminationsConsolidated
Selected Balance Sheet Information:
Assets
Investments at fair value(2)$2,340 $8,973 $(2,315)$8,998 
Cash and cash equivalents499 — 504 
Other assets56 94 (51)99 
Total assets$2,401 $9,566 $(2,366)$9,601 
Liabilities
Debt$308 $6,968 $— $7,276 
Subordinated note from ARCC500 — — 500 
Subordinated notes(3)— 1,374 (1,093)281 
Other liabilities18 129 (15)132 
Total liabilities826 8,471 (1,108)8,189 
Equity
Contributed capital1,547 — — 1,547 
Accumulated earnings61 — — 61 
Net unrealized losses on investments and foreign currency transactions(33)— — (33)
Non-controlling interests in Consolidated IHAM Vehicles(4)
— 1,095 (1,258)(163)
Total equity1,575 1,095 (1,258)1,412 
Total liabilities and equity$2,401 $9,566 $(2,366)$9,601 
________________________________________

(1)Consolidated for GAAP purposes only.

(2)The determination of such fair value is determined in accordance with IHAM’s valuation procedures (separate and apart from the Company’s valuation process described elsewhere herein). The amortized cost of IHAM’s total investments as of March 31, 2023 and December 31, 2022 was $2,444 and $2,370, respectively. The amortized cost of the total investments of IHAM on a consolidated basis as of March 31, 2023 and December 31, 2022 was $9,839 and $9,306, respectively.

(3)Subordinated notes generally represent the most junior capital in certain of the Consolidated IHAM Vehicles and effectively represent equity in such vehicles.

(4)Non-controlling interests in Consolidated IHAM Vehicles includes net unrealized depreciation in the Consolidated IHAM Vehicles of $290 and $309 as of March 31, 2023 and December 31, 2022, respectively.


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For the Three Months Ended March 31, 2023
IHAMConsolidated IHAM Vehicles(1)EliminationsConsolidated
Selected Statement of Operations Information:
Revenues
Investment income$71 $255 $(70)$256 
Management fees and other income14 (13)
Total revenues85 256 (83)258 
Expenses
Interest expense19 129 — 148 
Distributions to subordinated notes— 32 (24)
Management fees and other expenses18 (13)
Total expenses23 179 (37)165 
Net operating income62 77 (46)93 
Net realized losses on investments and other transactions(10)(17)— (27)
Net unrealized gains on investments and other transactions14 22 (13)23 
Total net realized and unrealized gains (losses) on investments and other transactions(13)(4)
Net income66 82 (59)89 
Less: Net income attributable to non-controlling interests in Consolidated IHAM Vehicles— 82 (59)23 
Net income attributable to Ivy Hill Asset Management, L.P.$66 $— $— $66 

For the Three Months Ended March 31, 2022
IHAMConsolidated IHAM Vehicles(1)EliminationsConsolidated
Selected Statement of Operations Information:
Revenues
Investment income$33 $97 $(33)$97 
Management fees and other income10 (9)
Total revenues43 98 (42)99 
Expenses
Interest expense29 — 30 
Distributions to subordinated notes— 31 (23)
Management fees and other expenses13 (9)
Total expenses73 (32)46 
Net operating income38 25 (10)53 
Net realized gains on investments and other transactions— — 
Net unrealized losses on investments and other transactions(11)(34)10 (35)
Total net realized and unrealized losses on investments and other transactions(10)(34)10 (34)
Net income (loss)28 (9)— 19 
Less: Net loss attributable to non-controlling interests in Consolidated IHAM Vehicles— (9)— (9)
Net income attributable to Ivy Hill Asset Management, L.P. $28 $— $— $28 
________________________________________

(1)Consolidated for GAAP purposes only.

5. DEBT

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In accordance with the Investment Company Act, the Company is allowed to borrow amounts such that its asset coverage, calculated pursuant to the Investment Company Act, is at least 150% after such borrowing. The Company’s asset coverage requirement applicable to senior securities was reduced from 200% to 150% effective June 21, 2019. As of March 31, 2023, the aggregate principal amount outstanding of the senior securities issued by the Company was $11,196 and the Company’s asset coverage was 189%.

The Company’s outstanding debt as of March 31, 2023 and December 31, 2022 was as follows:

 As of 
 March 31, 2023 December 31, 2022 
Total Aggregate Principal Amount Committed/ Outstanding (1)Principal Amount OutstandingCarrying ValueTotal Aggregate Principal Amount Committed/ Outstanding (1)Principal Amount OutstandingCarrying Value
Revolving Credit Facility$4,843 (2)$1,872 $1,872 $4,843 (2)$2,246 $2,246 
Revolving Funding Facility1,775 850 850 1,775 800 800 
SMBC Funding Facility800 (3)401 401 800 (3)451 451 
BNP Funding Facility500 320 320 300 245 245 
2024 Convertible Notes403 403 400 (4)403 403 399 (4)
2023 Notes— — — 750 750 750 (5)
2024 Notes900 900 899 (6)900 900 898 (6)
March 2025 Notes600 600 598 (7)600 600 597 (7)
July 2025 Notes1,250 1,250 1,257 (8)1,250 1,250 1,258 (8)
January 2026 Notes1,150 1,150 1,145 (9)1,150 1,150 1,144 (9)
July 2026 Notes1,000 1,000 991 (10)1,000 1,000 991 (10)
2027 Notes500 500 494 (11)500 500 494 (11)
2028 Notes1,250 1,250 1,247 (12)1,250 1,250 1,247 (12)
2031 Notes700 700 690 (13)700 700 690 (13)
Total$15,671 $11,196 $11,164 $16,221 $12,245 $12,210 

________________________________________

(1)Represents the total aggregate amount committed or outstanding, as applicable, under such instrument. Borrowings under the committed Revolving Credit Facility, Revolving Funding Facility, SMBC Funding Facility and BNP Funding Facility (each as defined below) are subject to borrowing base and other restrictions.

(2)Provides for a feature that allows the Company, under certain circumstances, to increase the size of the Revolving Credit Facility (as defined below) to a maximum of $7,265.

(3)Provides for a feature that allows ACJB (as defined below), under certain circumstances, to increase the size of the SMBC Funding Facility (as defined below) to a maximum of $1,000.

(4)Represents the aggregate principal amount outstanding of the 2024 Convertible Notes (as defined below). As of March 31, 2023 and December 31, 2022, the total unamortized debt issuance costs and the unamortized discount for the 2024 Convertible Notes (as defined below) was $3 and $4, respectively.

(5)Represents the aggregate principal amount outstanding of the 2023 Notes (as defined below), less unamortized debt issuance costs and the unamortized discount recorded upon the issuance of the 2023 Notes. As of December 31, 2022, the total unamortized debt issuance costs and the unamortized discount was $0. In February 2023, the Company repaid in full the 2023 Notes (as defined below) upon their maturity.

(6)Represents the aggregate principal amount outstanding of the 2024 Notes (as defined below), less unamortized debt issuance costs and the net unamortized discount recorded upon the issuance of the 2024 Notes. As of March 31, 2023
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and December 31, 2022, the total unamortized debt issuance costs and the net unamortized discount was $1 and $2, respectively.

(7)Represents the aggregate principal amount outstanding of the March 2025 Notes (as defined below), less unamortized debt issuance costs and the unamortized discount recorded upon the issuance of the March 2025 Notes. As of March 31, 2023 and December 31, 2022, the total unamortized debt issuance costs and the unamortized discount was $2 and $3, respectively.

(8)Represents the aggregate principal amount outstanding of the July 2025 Notes (as defined below), less unamortized debt issuance costs and the net unaccreted premium recorded upon the issuance of the July 2025 Notes. As of March 31, 2023 and December 31, 2022, the total unamortized debt issuance costs and the net unaccreted premium was $7 and $8, respectively.

(9)Represents the aggregate principal amount outstanding of the January 2026 Notes (as defined below), less unamortized debt issuance costs and the unamortized discount recorded upon the issuance of the January 2026 Notes. As of March 31, 2023 and December 31, 2022, the total unamortized debt issuance costs and the unamortized discount was $5 and $6, respectively.

(10)Represents the aggregate principal amount outstanding of the July 2026 Notes (as defined below), less unamortized debt issuance costs and the unamortized discount recorded upon the issuance of the July 2026 Notes. As of March 31, 2023 and December 31, 2022, the total unamortized debt issuance costs and the unamortized discount was $9 and $9, respectively.

(11)Represents the aggregate principal amount outstanding of the 2027 Notes (as defined below), less unamortized debt issuance costs and the net unamortized discount recorded upon the issuance of the 2027 Notes. As of March 31, 2023 and December 31, 2022, the total unamortized debt issuance costs and the net unamortized discount was $6 and $6, respectively.

(12)Represents the aggregate principal amount outstanding of the 2028 Notes (as defined below), less unamortized debt issuance costs and the net unamortized discount recorded upon the issuance of the 2028 Notes. As of March 31, 2023 and December 31, 2022, the total unamortized debt issuance costs and the net unamortized discount was $3 and $3, respectively.

(13)Represents the aggregate principal amount outstanding of the 2031 Notes (as defined below), less unamortized debt issuance costs and the unamortized discount recorded upon the issuance of the 2031 Notes. As of March 31, 2023 and December 31, 2022, the total unamortized debt issuance costs and the unamortized discount was $10 and $10, respectively.

 The weighted average stated interest rate and weighted average maturity, both on aggregate principal amount outstanding, of all the Company’s outstanding debt as of March 31, 2023 were 4.4% and 3.5 years, respectively, and as of December 31, 2022 were 4.2% and 3.6 years, respectively.
 
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Revolving Credit Facility
 
The Company is party to a senior secured revolving credit facility (as amended and restated, the “Revolving Credit Facility”), that allows the Company to borrow up to $4,843 at any one time outstanding. The Revolving Credit Facility consists of a $1,087 term loan tranche and a $3,756 revolving tranche. For $1,009 of the term loan tranche, the stated maturity date is March 31, 2027. For $28 of the term loan tranche, the stated maturity date is March 31, 2026. For the remaining $50 of the term loan tranche, the stated maturity date is March 30, 2025. For $3,499 of the revolving tranche, the end of the revolving period and the stated maturity date are March 31, 2026 and March 31, 2027, respectively. For $107 of the revolving tranche, the end of the revolving period and the stated maturity date are March 31, 2025 and March 31, 2026, respectively. For the remaining $150 of the revolving tranche, the end of the revolving period and the stated maturity date are March 30, 2024 and March 30, 2025, respectively. The Revolving Credit Facility also provides for a feature that allows the Company, under certain circumstances, to increase the overall size of the Revolving Credit Facility to a maximum of $7,265. The Revolving Credit Facility generally requires payments of interest at the end of each Secured Overnight Financing Rate (“SOFR”) interest period, but no less frequently than quarterly, on SOFR based loans, and monthly payments of interest on other loans. Subsequent to the end of the respective revolving periods and prior to the respective stated maturity dates, the Company is required to repay the relevant outstanding principal amounts under both the term loan tranche and revolving tranche on a monthly basis in an amount equal to 1/12th of the outstanding principal amount at the end of the respective revolving periods. See Note 14 for a subsequent event relating to the Revolving Credit Facility.

Under the Revolving Credit Facility, the Company is required to comply with various covenants, reporting requirements and other customary requirements for similar revolving credit facilities, including, without limitation, covenants related to: (a) limitations on the incurrence of additional indebtedness and liens, (b) limitations on certain investments, (c) limitations on certain restricted payments, (d) maintaining a certain minimum stockholders’ equity, (e) maintaining a ratio of total assets (less total liabilities not representing indebtedness) to total indebtedness of the Company and its consolidated subsidiaries (subject to certain exceptions) of not less than 1.5:1.0, (f) limitations on pledging certain unencumbered assets, and (g) limitations on the creation or existence of agreements that prohibit liens on certain properties of the Company and certain of its subsidiaries. These covenants are subject to important limitations and exceptions that are described in the documents governing the Revolving Credit Facility. Amounts available to borrow under the Revolving Credit Facility (and the incurrence of certain other permitted debt) are also subject to compliance with a borrowing base that applies different advance rates to different types of assets (based on their value as determined pursuant to the Revolving Credit Facility) that are pledged as collateral. As of March 31, 2023, the Company was in compliance in all material respects with the terms of the Revolving Credit Facility.
 
As of March 31, 2023 and December 31, 2022, there was $1,872 and $2,246 outstanding, respectively, under the Revolving Credit Facility. The Revolving Credit Facility also provides for a sub-limit for the issuance of letters of credit for up to an aggregate amount of $297.5 with the ability to increase by an incremental $102.5 on an uncommitted basis. As of March 31, 2023 and December 31, 2022, the Company had $93 and $86, respectively, in letters of credit issued through the Revolving Credit Facility. The amount available for borrowing under the Revolving Credit Facility is reduced by any letters of credit issued. As of March 31, 2023, there was $2,878 available for borrowing (net of letters of credit issued) under the Revolving Credit Facility, subject to borrowing base restrictions.
 
Since March 31, 2022, the interest rate charged on the Revolving Credit Facility is based on SOFR plus a credit spread adjustment of 0.10% (or an alternate rate of interest for certain loans, commitments and/or other extensions of credit denominated in Sterling, Canadian Dollars, Euros and certain other foreign currencies plus a spread adjustment, if applicable) and an applicable spread of either 1.75% or 1.875% or an “alternate base rate” (as defined in the agreements governing the Revolving Credit Facility) plus an applicable spread of 0.75% or 0.875%, in each case, determined monthly based on the total amount of the borrowing base relative to the sum of (i) the greater of (a) the aggregate amount of revolving exposure and term loans outstanding under the Revolving Credit Facility and (b) 85% of the total commitments of the Revolving Credit Facility (or, if higher, the total revolving exposure) plus (ii) other debt, if any, secured by the same collateral as the Revolving Credit Facility. The Revolving Credit Facility allows for borrowings to be made using one, three or six month SOFR. Prior to March 31, 2022, the interest rate charged on the Revolving Credit Facility was based on LIBOR (or an alternate rate of interest for certain loans, commitments and/or other extensions of credit denominated in Sterling, Canadian Dollars, Euros and certain other foreign currencies) plus an applicable spread of either 1.75% or 1.875% or an “alternate base rate” (as defined in the agreements governing the Revolving Credit Facility) plus an applicable spread of 0.75% or 0.875%, in each case, determined monthly based on the total amount of the borrowing base relative to the sum of (i) the greater of (a) the aggregate amount of revolving exposure and term loans outstanding under the Revolving Credit Facility and (b) 85% of the total commitments of the Revolving Credit Facility (or, if higher, the total revolving exposure) plus (ii) other debt, if any, secured by the same collateral as the Revolving Credit Facility. As of March 31, 2023, the one, three and six month SOFR was 4.81%, 4.91% and 4.90%, respectively. As of March 31, 2023, the applicable spread in effect was 1.75%. In addition to the stated interest expense on the
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Revolving Credit Facility, the Company is required to pay a commitment fee of 0.375% per annum on any unused portion of the Revolving Credit Facility. The Company is also required to pay a letter of credit fee of either 2.00% or 2.125% per annum on letters of credit issued, determined monthly based on the total amount of the borrowing base relative to the total commitments of the Revolving Credit Facility and other debt, if any, secured by the same collateral as the Revolving Credit Facility.

The Revolving Credit Facility is secured by certain assets in the Company’s portfolio and excludes investments held by Ares Capital CP under the Revolving Funding Facility, those held by ACJB under the SMBC Funding Facility and those held by AFB under the BNP Funding Facility, each as described below, and certain other investments.

For the three months ended March 31, 2023 and 2022, the components of interest and credit facility fees expense, cash paid for interest expense, average stated interest rates (i.e., rate in effect plus the spread) and average outstanding balances for the Revolving Credit Facility were as follows:
 For the Three Months Ended March 31,
 20232022
Stated interest expense$34 $
Credit facility fees
Amortization of debt issuance costs
Total interest and credit facility fees expense$39 $
Cash paid for interest expense$32 $
Average stated interest rate6.35 %2.36 %
Average outstanding balance$2,117 $1,078 
 
Revolving Funding Facility
 
The Company and the Company’s consolidated subsidiary, Ares Capital CP Funding LLC (“Ares Capital CP”), are party to a revolving funding facility (as amended, the “Revolving Funding Facility”), that allows Ares Capital CP to borrow up to $1,775 at any one time outstanding. The Revolving Funding Facility is secured by all of the assets held by, and the membership interest in, Ares Capital CP. The end of the reinvestment period and the stated maturity date for the Revolving Funding Facility are December 29, 2024 and December 29, 2026, respectively.
 
Amounts available to borrow under the Revolving Funding Facility are subject to a borrowing base that applies different advance rates to different types of assets held by Ares Capital CP. Ares Capital CP is also subject to limitations with respect to the loans securing the Revolving Funding Facility, including restrictions on sector concentrations, loan size, payment frequency and status, collateral interests and loans with fixed rates, as well as restrictions on portfolio company leverage, all of which may also affect the borrowing base and therefore amounts available to borrow. The Company and Ares Capital CP are also required to comply with various covenants, reporting requirements and other customary requirements for similar facilities. These covenants are subject to important limitations and exceptions that are described in the agreements governing the Revolving Funding Facility. As of March 31, 2023, the Company and Ares Capital CP were in compliance in all material respects with the terms of the Revolving Funding Facility.
 
As of March 31, 2023 and December 31, 2022, there was $850 and $800 outstanding, respectively, under the Revolving Funding Facility. Since June 30, 2022, the interest rate charged on the Revolving Funding Facility is based on SOFR plus a credit spread adjustment of 0.10% or a “base rate” (as defined in the agreements governing the Revolving Funding Facility) plus an applicable spread of 1.90% per annum. From December 29, 2021 to June 29, 2022, the interest rate charged on the Revolving Funding Facility is based on one month LIBOR plus 1.90% per annum or a “base rate” (as defined in the agreements governing the Revolving Funding Facility) plus 1.00% per annum.
  
For the three months ended March 31, 2023 and 2022, the components of interest and credit facility fees expense, cash paid for interest expense, average stated interest rates (i.e., rate in effect plus the spread) and average outstanding balances for the Revolving Funding Facility were as follows:
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 For the Three Months Ended March 31,
 20232022
Stated interest expense$13 $
Credit facility fees
Amortization of debt issuance costs
Total interest and credit facility fees expense$15 $
Cash paid for interest expense$12 $
Average stated interest rate6.46 %2.01 %
Average outstanding balance$812 $766 

SMBC Funding Facility
 
The Company and the Company’s consolidated subsidiary, Ares Capital JB Funding LLC (“ACJB”), are party to a revolving funding facility (as amended, the “SMBC Funding Facility”), with ACJB, as the borrower, and Sumitomo Mitsui Banking Corporation, as the administrative agent and collateral agent, that allows ACJB to borrow up to $800 at any one time outstanding. The SMBC Funding Facility also provides for a feature that allows ACJB, subject to receiving certain consents, to increase the overall size of the SMBC Funding Facility to $1,000. The SMBC Funding Facility is secured by all of the assets held by ACJB. The end of the reinvestment period and the stated maturity date for the SMBC Funding Facility are May 28, 2024 and May 28, 2026, respectively. The reinvestment period and the stated maturity date are both subject to two one-year extensions by mutual agreement.
 
Amounts available to borrow under the SMBC Funding Facility are subject to a borrowing base that applies an advance rate to assets held by ACJB. ACJB is also subject to limitations with respect to the loans securing the SMBC Funding Facility, including restrictions on sector concentrations, loan size, payment frequency and status, collateral interests and loans with fixed rates, as well as restrictions on portfolio company leverage, all of which may also affect the borrowing base and therefore amounts available to borrow. The Company and ACJB are also required to comply with various covenants, reporting requirements and other customary requirements for similar facilities. These covenants are subject to important limitations and exceptions that are described in the documents governing the SMBC Funding Facility. As of March 31, 2023, the Company and ACJB were in compliance in all material respects with the terms of the SMBC Funding Facility.
 
As of March 31, 2023 and December 31, 2022, there was $401 and $451 outstanding, respectively, under the SMBC Funding Facility. The interest rate charged on the SMBC Funding Facility is based on an applicable spread of either 1.75% or 2.00% over one month LIBOR or 0.75% or 1.00% over a “base rate” (as defined in the agreements governing the SMBC Funding Facility), in each case, determined monthly based on the amount of the average borrowings outstanding under the SMBC Funding Facility. As of March 31, 2023, the applicable spread in effect was 1.75%. ACJB is required to pay a commitment fee of between 0.50% and 1.00% per annum depending on the size of the unused portion of the SMBC Funding Facility.
 
For the three months ended March 31, 2023 and 2022, the components of interest and credit facility fees expense, cash paid for interest expense, average stated interest rates (i.e., rate in effect plus the spread) and average outstanding balances for the SMBC Funding Facility were as follows:
 For the Three Months Ended March 31,
 20232022
Stated interest expense$$
Credit facility fees— 
Amortization of debt issuance costs
Total interest and credit facility fees expense$$
Cash paid for interest expense$$
Average stated interest rate6.27 %2.26 %
Average outstanding balance$427 $405 
    
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BNP Funding Facility
 
The Company and the Company’s consolidated subsidiary, ARCC FB Funding LLC (“AFB”), are party to a revolving funding facility (as amended, the “BNP Funding Facility”) with AFB, as the borrower, and BNP Paribas, as the administrative agent and lender, that allows AFB to borrow up to $500 at any one time outstanding. The BNP Funding Facility is secured by all of the assets held by AFB. The end of the reinvestment period and the stated maturity date for the BNP Funding Facility are June 11, 2023 and June 11, 2025, respectively. The reinvestment period and the stated maturity date are both subject to a one-year extension by mutual agreement. See Note 14 for a subsequent event relating to the BNP Funding Facility.
 
Amounts available to borrow under the BNP Funding Facility are subject to a borrowing base that applies an advance rate to assets held by AFB. AFB is also subject to limitations with respect to the loans securing the BNP Funding Facility, including restrictions on sector concentrations, loan size, payment frequency and status, collateral interests and loans with fixed rates, as well as restrictions on portfolio company leverage, all of which may also affect the borrowing base and therefore amounts available to borrow. The Company and AFB are also required to comply with various covenants, reporting requirements and other customary requirements for similar facilities. These covenants are subject to important limitations and exceptions that are described in the documents governing the BNP Funding Facility. As of March 31, 2023, the Company and AFB were in compliance in all material respects with the terms of the BNP Funding Facility.
 
As of March 31, 2023 and December 31, 2022, there was $320 and $245, respectively, outstanding under the BNP Funding Facility. Since January 9, 2023, the interest rate charged on the BNP Funding Facility was based on an applicable SOFR or a “base rate” plus a margin of (i) 2.30% during the reinvestment period and (ii) 2.80% following the reinvestment period. Prior to January 9, 2023, the interest rate charged on the BNP Funding Facility was based on three month LIBOR, or a “base rate” (as defined in the agreements governing the BNP Funding Facility) plus a margin of (i) 1.80% during the reinvestment period and (ii) 2.30% following the reinvestment period. As of March 31, 2023, the applicable spread in effect was 2.30%. AFB is required to pay a commitment fee of between 0.00% and 1.25% per annum depending on the size of the unused portion of the BNP Funding Facility. See Note 14 for a subsequent event relating to the BNP Funding Facility.

For the three months ended March 31, 2023 and 2022, the components of interest and credit facility fees expense, cash paid for interest expense, average stated interest rates (i.e., rate in effect plus the spread) and average outstanding balances for the BNP Funding Facility were as follows:

For the Three Months Ended March 31,
 20232022
Stated interest expense$$— 
Credit facility fees— — 
Amortization of debt issuance costs— — 
Total interest and credit facility fees expense$$— 
Cash paid for interest expense$$— 
Average stated interest rate6.80 %1.94 %
Average outstanding balance$314 $46 

Convertible Unsecured Notes
 
The Company has issued $403 in aggregate principal amount of unsecured convertible notes that mature on March 1, 2024 (the “2024 Convertible Notes”) unless previously converted or repurchased in accordance with its terms. The Company does not have the right to redeem the 2024 Convertible Notes prior to maturity. The 2024 Convertible Notes bear interest at a rate of 4.625% per annum, payable semi-annually.
 
In certain circumstances, assuming the conversion date below has not already passed, the 2024 Convertible Notes will be convertible into cash, shares of the Company’s common stock or a combination of cash and shares of its common stock, at the Company’s election, at the conversion rate (listed below as of March 31, 2023) subject to customary anti-dilution adjustments and the requirements of the indenture (the “2024 Convertible Notes Indenture”). Prior to the close of business on the business day immediately preceding the conversion date (listed below), holders may convert their 2024 Convertible Notes only under certain circumstances set forth in the 2024 Convertible Notes Indenture. On or after the conversion date until the close of business on the second scheduled trading day immediately preceding the maturity date for the 2024 Convertible Notes, holders may convert their 2024 Convertible Notes at any time. In addition, if the Company engages in certain corporate events
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as described in the 2024 Convertible Notes Indenture, holders of the 2024 Convertible Notes may require the Company to repurchase for cash all or part of the 2024 Convertible Notes at a repurchase price equal to 100% of the principal amount of the 2024 Convertible Notes to be repurchased, plus accrued and unpaid interest through, but excluding, the required repurchase date.
 
Certain key terms related to the convertible features for the 2024 Convertible Notes as of March 31, 2023 are listed below.
2024 Convertible Notes
Conversion premium15.0 %
Closing stock price at issuance$17.29 
Closing stock price dateMarch 5, 2019
Conversion price (1)$19.62 
Conversion rate (shares per one thousand dollar principal amount)(1)50.9784 
Conversion dateDecember 1, 2023
________________________________________

(1)Represents conversion price and conversion rate, as applicable, as of March 31, 2023, taking into account any applicable de minimis adjustments that will be made on the conversion date.
 
As of March 31, 2023, the principal amount of the 2024 Convertible Notes exceeded the value of the underlying shares multiplied by the per share closing price of the Company’s common stock.
 
The 2024 Convertible Notes Indenture contains certain covenants, including covenants requiring the Company to comply with Section 18(a)(1)(A) as modified by Section 61(a) of the Investment Company Act, or any successor provisions, and to provide financial information to the holders of the 2024 Convertible Notes under certain circumstances. These covenants are subject to important limitations and exceptions that are described in the 2024 Convertible Notes Indenture. As of March 31, 2023, the Company was in compliance in all material respects with the terms of the 2024 Convertible Notes Indenture.
 
The 2024 Convertible Notes as well as any other convertible notes outstanding during the periods presented (collectively referred to as the “Convertible Unsecured Notes”) are accounted for in accordance with ASC 470-20, Debt. Upon conversion of the 2024 Convertible Notes, the Company intends to pay the outstanding principal amount in cash and to the extent that the conversion value exceeds the principal amount, the Company has the option to pay in cash or shares of the Company’s common stock (or a combination of cash and shares) in respect of the excess amount, subject to the requirements of the 2024 Convertible Notes Indenture. The Company has determined that the embedded conversion options in the 2024 Convertible Notes are not required to be separately accounted for as a derivative under GAAP.
 
In connection with the issuance of the 2024 Convertible Notes, the Company incurred debt issuance costs of $4. The 2024 Convertible Notes were issued at a discount. The Company records interest expense comprised of both stated interest expense as well as accretion of any original issue discount or debt issuance costs.

As of March 31, 2023, the components of the carrying value of the 2024 Convertible Notes, the stated interest rate and the effective interest rate were as follows:
2024 Convertible Notes
Principal amount of debt$403 
Original issue discount, net of accretion— 
Debt issuance costs, net of amortization(3)
Carrying value of debt$400 
Stated interest rate4.625 %
Effective interest rate(1)5.10 %
________________________________________

(1)The effective interest rate of the 2024 Convertible Notes is equal to the stated interest rate plus the accretion of original issue discount and amortization of debt issuance costs.

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For the three months ended March 31, 2023 and 2022, the components of interest expense and cash paid for interest expense for the 2024 Convertible Notes, as well as any other convertible notes outstanding during the periods presented were as follows.
 For the Three Months Ended March 31,
 20232022
Stated interest expense$$
Accretion of original issue discount
Total interest expense$$
Cash paid for interest expense$$17 

Unsecured Notes
 
The Company has issued certain unsecured notes (each issuance of which is referred to herein using the “defined term” set forth under the “Unsecured Notes” column of the table below and collectively referred to as the “Unsecured Notes”), that pay interest semi-annually and all principal amounts are due upon maturity. Each of the Unsecured Notes may be redeemed in whole or in part at any time at the Company’s option at a redemption price equal to par plus a “make whole” premium, if applicable, as determined pursuant to the indentures governing each of the Unsecured Notes, plus any accrued and unpaid interest. Certain key terms related to the features for the Unsecured Notes as of March 31, 2023 are listed below.


Unsecured Notes
Aggregate Principal Amount IssuedInterest RateOriginal Issuance DateMaturity Date
2024 Notes$900 4.200%June 10, 2019June 10, 2024
March 2025 Notes$600 4.250%January 11, 2018March 1, 2025
July 2025 Notes$1,250 3.250%January 15, 2020July 15, 2025
January 2026 Notes$1,150 3.875%July 15, 2020January 15, 2026
July 2026 Notes$1,000 2.150%January 13, 2021July 15, 2026
2027 Notes $500 2.875%January 13, 2022June 15, 2027
2028 Notes$1,250 2.875%June 10, 2021June 15, 2028
2031 Notes$700 3.200%November 4, 2021November 15, 2031

In February 2023, the Company repaid in full the $750 in aggregate principal amount outstanding of unsecured notes (the “2023 Notes”) upon their maturity. The 2023 Notes bore interest at a rate of 3.500% per annum, payable semi-annually.

For the three months ended March 31, 2023 and 2022, the components of interest expense and cash paid for interest expense for the Unsecured Notes, as well as any other unsecured notes outstanding during the periods presented are listed below.
 For the Three Months Ended March 31,
 20232022
Stated interest expense$64 $67 
Amortization of debt issuance costs
Net amortization of original issue premium/discount(2)(2)
Total interest expense$65 $69 
Cash paid for interest expense$79 $79 
 
The Unsecured Notes contain certain covenants, including covenants requiring the Company to comply with Section 18(a)(1)(A) as modified by Section 61(a) of the Investment Company Act, or any successor provisions, and to provide financial information to the holders of such notes under certain circumstances. These covenants are subject to important limitations and exceptions set forth in the indentures governing such notes. As of March 31, 2023, the Company was in compliance in all material respects with the terms of the respective indentures governing each of the Unsecured Notes.
 
The 2024 Convertible Notes and the Unsecured Notes are the Company’s senior unsecured obligations and rank senior in right of payment to any future indebtedness that is expressly subordinated in right of payment to the 2024 Convertible Notes and the Unsecured Notes; equal in right of payment to the Company’s existing and future unsecured indebtedness that is not expressly subordinated; effectively junior in right of payment to any of its secured indebtedness (including existing unsecured
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indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company’s subsidiaries, financing vehicles or similar facilities.

6. DERIVATIVE INSTRUMENTS

The Company enters into forward currency contracts from time to time to help mitigate the impact that an adverse change in foreign exchange rates would have on the value of the Company’s investments denominated in foreign currencies. As of March 31, 2023, the counterparties to these forward currency contracts were Canadian Imperial Bank of Commerce and Royal Bank of Canada. As of December 31, 2022, the counterparty to these forward currency contracts were Royal Bank of Canada.

Certain information related to the Company’s derivative instruments as of March 31, 2023 and December 31, 2022 is presented below.
    
 As of March 31, 2023
Derivative InstrumentNotional
Amount
Maturity DateGross Amount of Recognized AssetsGross Amount of Recognized LiabilitiesBalance Sheet
Location of Net Amounts
 Foreign currency forward contract CAD292 4/28/2023$218 $(216)Other assets
 Foreign currency forward contract CAD247 4/19/2023181 (183)Accounts payable and other liabilities
 Foreign currency forward contract 219 4/28/2023240 (238)Other assets
 Foreign currency forward contract £128 4/28/2023159 (158)Other assets
 Foreign currency forward contract $114 4/28/2023156 (155)Other assets
 Foreign currency forward contract NZD58 4/28/202337 (36)Other assets
Foreign currency forward contractCAD4/28/2023(3)Accounts payable and other liabilities
Foreign currency forward contractCAD4/28/2023(2)Accounts payable and other liabilities
Foreign currency forward contractCAD4/28/2023— — Accounts payable and other liabilities
Total$996 $(991)

 As of December 31, 2022
Derivative InstrumentNotional
Amount
Maturity DateGross Amount of Recognized AssetsGross Amount of Recognized LiabilitiesBalance Sheet
Location of Net Amounts
Foreign currency forward contractCAD264 1/27/2023$195 $(196)Accounts payable and other liabilities
Foreign currency forward contractCAD242 1/18/2023178 (179)Accounts payable and other liabilities
Foreign currency forward contract158 1/27/2023159 (169)Accounts payable and other liabilities
Foreign currency forward contract£125 1/27/2023145 (151)Accounts payable and other liabilities
Foreign currency forward contractNZD59 1/27/202334 (37)Accounts payable and other liabilities
Foreign currency forward contractCAD17 1/27/202312 (12)Accounts payable and other liabilities
Total$723 $(744)

Net realized gains (losses) on derivative instruments recognized by the Company for the three months ended March 31, 2023 and 2022 is in the following location in the consolidated statements of operations:

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For the Three Months Ended March 31,
Derivative InstrumentStatement Location20232022
Foreign currency forward contractNet realized gains (losses) from foreign currency and other transactions$(29)$(4)
Total$(29)$(4)

Net unrealized gains (losses) on derivative instruments recognized by the Company for the three months ended March 31, 2023 and 2022 is in the following location in the consolidated statements of operations:

For the Three Months Ended March 31,
Derivative InstrumentStatement Location20232022
Foreign currency forward contractNet unrealized gains (losses) from foreign currency and other transactions$26 $14 
Total$26 $14 

7. COMMITMENTS AND CONTINGENCIES

Investment Commitments

The Company has various commitments to fund investments in its portfolio as described below. As of March 31, 2023 and December 31, 2022, the Company had the following commitments to fund various revolving and delayed draw senior secured and subordinated loans, including commitments to fund which are at (or substantially at) the Company’s discretion:
 As of
 March 31, 2023December 31, 2022
Total revolving and delayed draw loan commitments $2,559 $2,916 
Less: funded commitments(609)(526)
Total unfunded commitments1,950 2,390 
Less: commitments substantially at discretion of the Company— — 
Less: unavailable commitments due to borrowing base or other covenant restrictions(16)(13)
Total net adjusted unfunded revolving and delayed draw loan commitments$1,934 $2,377 
    
Included within the total revolving and delayed draw loan commitments as of March 31, 2023 and December 31, 2022 were delayed draw loan commitments totaling $908 and $1,229, respectively. The Company’s commitment to fund delayed draw loans is generally triggered upon the satisfaction of certain pre-negotiated terms and conditions. Generally, the most significant and uncertain term requires the borrower to satisfy a specific use of proceeds covenant. The use of proceeds covenant typically requires the borrower to use the additional loans for the specific purpose of a permitted acquisition or permitted investment, for example. In addition to the use of proceeds covenant, the borrower is generally required to satisfy additional negotiated covenants (including specified leverage levels).

Also included within the total revolving loan commitments as of March 31, 2023 were commitments to issue up to $351 in letters of credit through a financial intermediary on behalf of certain portfolio companies. As of March 31, 2023, the Company had $49 in letters of credit issued and outstanding under these commitments on behalf of the portfolio companies. For all these letters of credit issued and outstanding, the Company would be required to make payments to third parties if the portfolio companies were to default on their related payment obligations. Of these letters of credit, $42 expire in 2023 and $7 expire in 2024.
 
The Company also has commitments to co-invest in the SDLP for the Company’s portion of the SDLP’s commitments to fund delayed draw loans to certain portfolio companies of the SDLP. See Note 4 for more information.
 
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As of March 31, 2023 and December 31, 2022, the Company was party to agreements to fund equity investment commitments as follows:
 As of
 March 31, 2023December 31, 2022
Total equity commitments$168 $120 
Less: funded equity commitments(63)(69)
Total unfunded equity commitments105 51 
Less: equity commitments substantially at discretion of the Company(51)(51)
Total net adjusted unfunded equity commitments$54 $— 
 
In the ordinary course of business, the Company may sell certain of its investments to third party purchasers. In particular, in connection with the sale of certain controlled portfolio company equity investments (as well as certain other sales) the Company has, and may continue to do so in the future, agreed to indemnify such purchasers for future liabilities arising from the investments and the related sale transaction. Such indemnification provisions have given rise to liabilities in the past and may do so in the future.

In addition, in the ordinary course of business, the Company may guarantee certain obligations in connection with its portfolio companies (in particular, certain controlled portfolio companies). Under these guarantee arrangements, payments may be required to be made to third parties if such guarantees are called upon or if the portfolio companies were to default on their related obligations, as applicable.

Lease Commitments

The Company is obligated under a number of operating leases pursuant to which it is leasing office facilities from third parties with remaining terms ranging from approximately one to four years. For certain of its operating leases, the Company had previously entered into subleases. The components of operating lease expense for the three months ended March 31, 2023 and 2022 were as follows:
For the Three Months Ended March 31,
20232022
Operating lease costs$$
Less: sublease income(2)(2)
Total operating lease costs (1)$— $— 

________________________________________

(1)Total operating lease costs are incurred from office leases assumed as part of the Company’s acquisition of American Capital, Ltd.

Supplemental cash flow information related to operating leases for the three months ended March 31, 2023 and 2022 were as follows:
For the Three Months Ended March 31,
20232022
Cash paid for amounts included in the measurement of operating lease liabilities$$
Operating ROU assets obtained in exchange for operating lease liabilities$$

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Supplemental balance sheet information as of March 31, 2023 and December 31, 2022 related to operating leases were as follows:
As of
March 31, 2023December 31, 2022
Operating lease ROU assets$18 $20 
Operating lease liabilities$28 $31 
Weighted average remaining lease term (in years)2.93.1
Weighted average discount rate4.4 %4.2 %
 
The following table shows future minimum lease payments under the Company’s operating leases and a reconciliation to the operating lease liability as of March 31, 2023:

Amount
2023$12 
2024
2025
2026
  Total lease payments30 
Less imputed interest(2)
  Total operating lease liabilities$28 

The following table shows future expected rental payments to be received under the Company’s subleases where the Company is the sublessor as of March 31, 2023:

Amount
2023$
2024
2025
2026
Total$19 

8. FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company follows ASC 825-10, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASC 825-10”), which provides companies the option to report selected financial assets and liabilities at fair value. ASC 825-10 also establishes presentation and disclosure requirements designed to facilitate comparisons between companies that choose different measurement attributes for similar types of assets and liabilities and a better understanding of the effect of the company’s choice to use fair value on its earnings. ASC 825-10 also requires entities to display the fair value of the selected assets and liabilities on the face of the balance sheet. The Company has not elected the ASC 825-10 option to report selected financial assets and liabilities at fair value. With the exception of the line items entitled “other assets” and “debt,” which are reported at amortized cost, the carrying value of all other assets and liabilities approximate fair value.
 
The Company also follows ASC 820-10, Fair Value Measurements and Disclosures (“ASC 820-10”), which expands the application of fair value accounting. ASC 820-10 defines fair value, establishes a framework for measuring fair value in accordance with GAAP and expands disclosure of fair value measurements. ASC 820-10 determines fair value to be the price that would be received for an investment in a current sale, which assumes an orderly transaction between market participants on the measurement date. ASC 820-10 requires the Company to assume that the portfolio investment is sold in its principal market to market participants or, in the absence of a principal market, the most advantageous market, which may be a hypothetical market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact. In accordance with ASC 820-10, the Company has considered its principal market as the market in which the Company exits its portfolio investments with the greatest volume and level of activity. ASC 820-10 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. In accordance with ASC 820-10, these inputs are summarized in the three broad levels listed below:
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Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access.

Level 2—Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement.
 
In addition to using the above inputs in investment valuations, the Company continues to employ the net asset valuation policy approved by the Company’s board of directors that is consistent with ASC 820-10 (see Note 2 for more information). Consistent with the Company’s valuation policy, the Company’s investment adviser evaluates the source of inputs, including any markets in which the Company’s investments are trading (or any markets in which securities with similar attributes are trading), in determining fair value. The Company’s valuation policy considers the fact that because there is not a readily available market value for most of the investments in the Company’s portfolio, the fair value of the investments must typically be determined using unobservable inputs.
 
    The Company’s portfolio investments (other than as described below in the following paragraph) are typically valued using two different valuation techniques. The first valuation technique is an analysis of the enterprise value (“EV”) of the portfolio company. Enterprise value means the entire value of the portfolio company to a market participant, including the sum of the values of debt and equity securities used to capitalize the enterprise at a point in time. The primary method for determining EV uses a multiple analysis whereby appropriate multiples are applied to the portfolio company’s EBITDA (generally defined as net income before net interest expense, income tax expense, depreciation and amortization). EBITDA multiples are typically determined based upon review of market comparable transactions and publicly traded comparable companies, if any. The Company’s investment adviser may also employ other valuation multiples to determine EV, such as revenues or, in the case of certain portfolio companies in the power generation industry, kilowatt capacity. The second method for determining EV uses a discounted cash flow analysis whereby future expected cash flows of the portfolio company are discounted to determine a present value using estimated discount rates (typically a weighted average cost of capital based on costs of debt and equity consistent with current market conditions). The EV analysis is performed to determine the value of equity investments, the value of debt investments in portfolio companies where the Company has control or could gain control through an option or warrant security, and to determine if there is credit impairment for debt investments. If debt investments are credit impaired, an EV analysis may be used to value such debt investments; however, in addition to the methods outlined above, other methods such as a liquidation or wind-down analysis may be utilized to estimate enterprise value. The second valuation technique is a yield analysis, which is typically performed for non-credit impaired debt investments in portfolio companies where the Company does not own a controlling equity position. To determine fair value using a yield analysis, a current price is imputed for the investment based upon an assessment of the expected market yield for a similarly structured investment with a similar level of risk. In the yield analysis, the Company’s investment adviser considers the current contractual interest rate, the maturity and other terms of the investment relative to risk of the company and the specific investment. A key determinant of risk, among other things, is the leverage through the investment relative to the enterprise value of the portfolio company. As debt investments held by the Company are substantially illiquid with no active transaction market, the Company’s investment adviser depends on primary market data, including newly funded transactions, as well as secondary market data with respect to high yield debt instruments and syndicated loans, as inputs in determining the appropriate market yield, as applicable.
 
For other portfolio investments such as investments in the SDLP Certificates and IHAM, discounted cash flow analysis is the primary technique utilized to determine fair value. Expected future cash flows associated with the investment are discounted to determine a present value using a discount rate that reflects estimated market return requirements.

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The following table presents fair value measurements of cash and cash equivalents, restricted cash, investments, derivatives and unfunded revolving and delayed draw loan commitments as of March 31, 2023:

 Fair Value Measurements Using
TotalLevel 1Level 2Level 3
Cash and cash equivalents$359 $359 $— $— 
Restricted cash$18 $18 $— $— 
Investments not measured at net asset value$21,143 $46 $414 $20,683 
Investments measured at net asset value(1)
 Total investments$21,148 
Derivatives$$— $$— 
Unfunded revolving and delayed draw loan commitments(2)$(50)$— $— $(50)
________________________________________

(1)Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.

(2)The fair value of unfunded revolving and delayed draw loan commitments is included in “accounts payable and other liabilities” in the accompanying consolidated balance sheet.

The following table presents fair value measurements of cash and cash equivalents, restricted cash, investments, derivatives and unfunded revolving and delayed draw loan commitments as of December 31, 2022:

 Fair Value Measurements Using
TotalLevel 1Level 2Level 3
Cash and cash equivalents$303 $303 $— $— 
Restricted cash$34 $34 $— $— 
Investments not measured at net asset value$21,775 $54 $360 $21,361 
Investments measured at net asset value (1)
  Total investments$21,780 
Derivatives$(21)$— $(21)$— 
Unfunded revolving and delayed draw loan commitments(2)$(57)$— $— $(57)
________________________________________

(1)Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.

(2)The fair value of unfunded revolving and delayed draw loan commitments is included in “accounts payable and other liabilities” in the accompanying consolidated balance sheet.

 
The following tables summarize the significant unobservable inputs the Company’s investment adviser used to value the majority of the Company’s investments categorized within Level 3 as of March 31, 2023 and December 31, 2022. The tables are not intended to be all-inclusive, but instead capture the significant unobservable inputs relevant to the Company’s determination of fair values.

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 As of March 31, 2023
Unobservable Input
Asset CategoryFair ValuePrimary Valuation TechniquesInputEstimated Range
Weighted Average(1)
First lien senior secured loans$8,368 Yield analysisMarket yield
3.7% - 29.5%
12.6%
Second lien senior secured loans3,802 Yield analysisMarket yield
11.4% - 42.9%
15.2%
Subordinated certificates of the SDLP1,231 Discounted cash flow analysisDiscount rate
12.8% - 15.0%
13.5%
Senior subordinated loans1,040 Yield analysisMarket yield
9.5% - 17.6%
14.1%
Preferred equity2,069 EV market multiple analysisEBITDA multiple
2.5x - 40.0x
16.0x
Ivy Hill Asset Management, L.P.(2)2,295 Discounted cash flow analysisDiscount rate
13.1% - 20.6%
14.8%
Other equity1,878 EV market multiple analysisEBITDA multiple
2.4% - 51.9x
17.4x
Total investments$20,683 
________________________________________

(1)Unobservable inputs were weighted by the relative fair value of the investments.

(2)Includes the Company’s subordinated loan and equity investments in IHAM, as applicable.

 As of December 31, 2022
Unobservable Input
Asset CategoryFair ValuePrimary Valuation TechniquesInputEstimated Range
Weighted Average(1)
First lien senior secured loans$9,165 Yield analysisMarket yield
7.6% - 26.1%
12.3%
Second lien senior secured loans3,841 Yield analysisMarket yield
11.0% - 32.4%
14.9%
Subordinated certificates of the SDLP1,249 Discounted cash flow analysisDiscount rate
12.4% - 14.8%
13.5%
Senior subordinated loans1,021 Yield analysisMarket yield
8.0% - 16.3%
12.9%
Preferred equity2,023 EV market multiple analysisEBITDA multiple
2.6x - 40.6x
15.7x
Ivy Hill Asset Management, L.P.(2)2,201 Discounted cash flow analysisDiscount rate
12.9% - 25.7%
14.2%
Other equity1,861 EV market multiple analysisEBITDA multiple
2.1x - 52.1x
15.6x
Total investments$21,361 
________________________________________

(1)Unobservable inputs were weighted by the relative fair value of the investments.

(2)Includes the Company’s subordinated loan and equity investments in IHAM, as applicable.

Changes in market yields, discount rates or EBITDA multiples, each in isolation, may change the fair value of certain of the Company’s investments. Generally, an increase in market yields or discount rates or a decrease in EBITDA multiples may result in a decrease in the fair value of certain of the Company’s investments.
 
Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may fluctuate from period to period. Additionally, the fair value of the Company’s investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that the Company may ultimately realize. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If the Company was required to liquidate a portfolio investment in a forced or liquidation sale, it could realize significantly less than the value at which the Company has recorded it.

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In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the valuations currently assigned.

The following table presents changes in investments that use Level 3 inputs as of and for the three months ended March 31, 2023:

 As of and For the Three Months Ended March 31, 2023
Balance as of December 31, 2022$21,361 
Net realized losses(20)
Net unrealized losses(11)
Purchases1,072 
Sales(697)
Repayments(1,063)
PIK interest and dividends81 
Net accretion of discount on securities
Net transfers in and/or out of Level 3(44)
Balance as of March 31, 2023$20,683 

Investments were transferred into and out of Level 3 during the three months ended March 31, 2023. Transfers into and out of Level 3 were generally as a result of changes in the observability of significant inputs or available market data for certain portfolio companies.

As of March 31, 2023, the net unrealized depreciation on the investments that use Level 3 inputs was $212.

For the three months ended March 31, 2023, the total amount of gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to the Company’s Level 3 assets still held as of March 31, 2023, and reported within the net unrealized gains (losses) on investments, foreign currency and other transactions in the Company’s consolidated statement of operations was $59.

The following table presents changes in investments that use Level 3 inputs as of and for the three months ended March 31, 2022:
As of and For the Three Months Ended March 31, 2022
Balance as of December 31, 2021$19,908 
Net realized gains69 
Net unrealized losses(7)
Purchases1,854 
Sales(1,547)
Repayments(972)
PIK interest and dividends67 
Net accretion of discount on securities
Net transfers in and/or out of Level 3— 
Balance as of March 31, 2022$19,375 

As of March 31, 2022, the net unrealized appreciation on the investments that use Level 3 inputs was $158.

For the three months ended March 31, 2022, the total amount of gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to the Company’s Level 3 assets still held as of March 31, 2022, and reported within the net unrealized gains (losses) on investments, foreign currency and other transactions in the Company’s consolidated statement of operations was $39.
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The following are the carrying and fair values of the Company’s debt obligations as of March 31, 2023 and December 31, 2022. Fair value is estimated by discounting remaining payments using applicable current market rates, which take into account changes in the Company’s marketplace credit ratings, or market quotes, if available.

 As of
 March 31, 2023December 31, 2022
Carrying value(1)Fair value(4)Carrying value(1)Fair value(4)
Revolving Credit Facility$1,872 $1,872 $2,246 $2,246 
Revolving Funding Facility850 850 800 800 
SMBC Funding Facility401 401 451 451 
BNP Funding Facility320 320 245 245 
2024 Convertible Notes (principal amount outstanding of $403)
400 (2)400 399 (2)428 
2023 Notes (principal amount outstanding of $0 and $750, respectively)
— — 750 (2)749 
2024 Notes (principal amount outstanding of $900)
899 (2)873 898 (2)873 
March 2025 Notes (principal amount outstanding of $600)
598 (2)569 597 (2)570 
July 2025 Notes (principal amount outstanding of $1,250)
1,257 (2)1,150 1,258 (2)1,157 
January 2026 Notes (principal amount outstanding of $1,150)
1,145 (2)1,061 1,144 (2)1,059 
July 2026 Notes (principal amount outstanding of $1,000)
991 (2)866 991 (2)850 
2027 Notes (principal amount outstanding of $500)
494 (2)432 494 (2)427 
2028 Notes (principal amount outstanding of $1,250)
1,247 (2)1,035 1,247 (2)1,007 
2031 Notes (principal amount outstanding of $700)
690 (2)536 690 (2)516 
Total$11,164 (3)$10,365 $12,210 (3)$11,378 
________________________________________

(1)The Revolving Credit Facility, the Revolving Funding Facility, the SMBC Funding Facility and the BNP Funding Facility carrying values are the same as the principal amounts outstanding.

(2)Represents the aggregate principal amount outstanding, less unamortized debt issuance costs and the net unaccreted/amortized discount or premium recorded upon issuance.

(3)Total principal amount of debt outstanding totaled $11,196 and $12,245 as of March 31, 2023 and December 31, 2022, respectively.

(4)The fair value of these debt obligations would be categorized as Level 2 under ASC 820-10.

9. STOCKHOLDERS’ EQUITY

The Company may from time to time issue and sell shares of its common stock through public or “at the market” offerings. In connection with the issuance of its common stock, the Company issued and sold the following shares of common stock during the three months ended March 31, 2023:


Issuances of Common Stock
Number of Shares IssuedGross ProceedsUnderwriting Fees/Offering ExpensesNet ProceedsAverage Offering Price Per Share(1)
Public offerings12.1$236.8 $13.4 $223.4 $19.61 (2)
“At the market” offerings13.2257.3 3.7 253.6 $19.48 
Total25.3$494.1 $17.1 $477.0 

________________________________________

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(1)    Represents the gross offering price per share before deducting underwriting discounts and commissions and offering expenses.

(2)    12.1 of the shares were sold to the underwriters for a price of $18.53 per share which the underwriters were then permitted to sell at variable prices to the public.

“At the Market” Offerings

The Company is party to equity distribution agreements with several banks (the “Equity Distribution Agreements”). The Equity Distribution Agreements provide that the Company may from time to time issue and sell, by means of “at the market” offerings, up to $500 shares of its common stock. Subject to the terms and conditions of the Equity Distribution Agreements, sales of common stock, if any, may be made in transactions that are deemed to be “at the market” offerings as defined in Rule 415(a)(4) under the Securities Act of 1933, as amended. Under the Equity Distribution Agreements, common stock with an aggregate offering amount of $137 remained available for issuance as of March 31, 2023.

See Note 11 for information regarding shares of common stock issued or purchased in accordance with the Company’s dividend reinvestment plan.

Stock Repurchase Program

The Company is authorized under its stock repurchase program to purchase up to $500 in the aggregate of its outstanding common stock in the open market at certain thresholds below its net asset value per share, in accordance with the guidelines specified in Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The timing, manner, price and amount of any share repurchases will be determined by the Company, in its sole discretion, based upon an evaluation of economic and market conditions, stock price, applicable legal and regulatory requirements and other factors. The stock repurchase program does not require the Company to repurchase any specific number of shares of common stock or any shares of common stock at all. Consequently, the Company cannot assure stockholders that any specific number of shares of common stock, if any, will be repurchased under the stock repurchase program. As of March 31, 2023, the expiration date of the stock repurchase program is February 15, 2024. The program may be suspended, extended, modified or discontinued at any time. As of March 31, 2023, there was $500 available for repurchases under the stock repurchase program. See Note 14 for a subsequent event relating to the Company’s stock repurchase program.

During the three months ended March 31, 2023 and 2022, the Company did not repurchase any shares of the Company’s common stock under the stock repurchase program.

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10. EARNINGS PER SHARE

The following information sets forth the computations of basic and diluted net increase in stockholders’ equity resulting from operations per share for the three months ended March 31, 2023 and 2022:

 For the Three Months Ended March 31,
 20232022
Net increase in stockholders’ equity resulting from operations—basic$278 $211 
Adjustment for interest expense on 2024 Convertible Notes(1)
Net increase in stockholders’ equity resulting from operations—diluted$282 $215 
Weighted average shares of common stock outstanding—basic534 479 
Assumed conversion of 2024 Convertible Notes21 21 
Weighted average shares of common stock outstanding—diluted555 500 
Net increase in stockholders’ equity resulting from operations per share—basic$0.52 $0.44 
Net increase in stockholders’ equity resulting from operations per share—diluted$0.51 $0.43 
________________________________________

(1)    Includes the impact of income based fees.

For the purpose of calculating diluted net increase in stockholders’ equity resulting from operations per share for the three months ended March 31, 2023 and 2022, the Company utilized the if-converted method which assumes full share settlement for the aggregate value of the 2024 Convertible Notes.

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11. DIVIDENDS AND DISTRIBUTIONS

The following table summarizes the Company’s dividends declared and payable during the three months ended March 31, 2023 and 2022:

Date declaredRecord datePayment datePer share
amount
Total amount
February 7, 2023March 15, 2023March 31, 2023$0.48 $261 
Total dividends declared and payable for the three months ended March 31, 2023
$0.48 $261 
February 9, 2022March 15, 2022March 31, 20220.42 205 
February 9, 2022March 15, 2022March 31, 20220.03 (1)15 
Total dividends declared and payable for the three months ended March 31, 2022
$0.45 $220 
___________________________________________________________________________
(1)Represents an additional dividend.

The Company has a dividend reinvestment plan, whereby the Company may buy shares of its common stock in the open market or issue new shares in order to satisfy dividend reinvestment requests. When the Company issues new shares in connection with the dividend reinvestment plan, the issue price is equal to the closing price of its common stock on the dividend payment date. Dividend reinvestment plan activity for the three months ended March 31, 2023 and 2022, was as follows:

For the Three Months Ended March 31,
20232022
Shares issued— 0.6 
Average issue price per share$— $20.95 
Shares purchased by plan agent to satisfy dividends declared and payable during the period for stockholders 0.8 — 
Average purchase price per share$18.35 $— 

12. RELATED PARTY TRANSACTIONS

In accordance with the investment advisory and management agreement, the Company bears all costs and expenses of the operation of the Company and reimburses its investment adviser or its affiliates for certain of such costs and expenses paid for by the investment adviser or its affiliates on behalf of the Company. For the three months ended March 31, 2023 and 2022, the Company’s investment adviser or its affiliates incurred and the Company reimbursed such expenses totaling $1, and $1, respectively.

The Company has entered into agreements with Ares Management LLC and IHAM, pursuant to which Ares Management LLC and IHAM are entitled to use the Company’s proprietary portfolio management software. For the three months ended March 31, 2023 and 2022, amounts payable to the Company under these agreements totaled $0, and $0, respectively.

See Notes 3 and 4 for descriptions of other related party transactions.


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13. FINANCIAL HIGHLIGHTS

The following is a schedule of financial highlights as of and for the three months ended March 31, 2023 and 2022:

 As of and For the Three Months Ended March 31,
Per Share Data:20232022
Net asset value, beginning of period(1)$18.40 $18.96 
Issuances of common stock— 0.08 
Net investment income for period(2)0.60 0.41 
Net realized and unrealized gains (losses) for period(2)(0.07)0.03 
Net increase in stockholders’ equity0.53 0.52 
Total distributions to stockholders(3)(0.48)(0.45)
Net asset value at end of period(1)$18.45 $19.03 
Per share market value at end of period$18.27 $20.95 
Total return based on market value(4)1.58 %1.12 %
Total return based on net asset value(5)2.88 %2.74 %
Shares outstanding at end of period545493 
Ratio/Supplemental Data: 
Net assets at end of period$10,049 $9,379 
Ratio of operating expenses to average net assets(6)(7)12.31 %10.17 %
Ratio of net investment income to average net assets(6)(8)12.74 %8.80 %
Portfolio turnover rate(6)21 %39 %
_________________________________________________________________________________

(1)The net assets used equals the total stockholders’ equity on the consolidated balance sheet.

(2)Weighted average basic per share data.

(3)Includes additional dividend of $0.03 per share for the three months ended March 31, 2022.

(4)For the three months ended March 31, 2023, the total return based on market value equaled the decrease of the ending market value at March 31, 2023 of $18.27 per share from the ending market value at December 31, 2022 of $18.47 per share plus the declared and payable dividends of $0.48 per share for the three months ended March 31, 2023, divided by the market value at December 31, 2022. For the three months ended March 31, 2022, the total return based on market value equaled the decrease of the ending market value at March 31, 2022 of $20.95 per share from the ending market value at December 31, 2021 of $21.19 per share plus the declared and payable dividends of $0.45 per share for the three months ended March 31, 2022, divided by the market value at December 31, 2021. The Company’s performance changes over time and currently may be different than that shown. Past performance is no guarantee of future results.

(5)For the three months ended March 31, 2023, the total return based on net asset value equaled the change in net asset value during the period plus the declared and payable dividends of $0.48 per share for the three months ended March 31, 2023, divided by the beginning net asset value for the period. For the three months ended March 31, 2022, the total return based on net asset value equaled the change in net asset value during the period plus the declared and payable dividends of $0.45 per share for the three months ended March 31, 2022, divided by the beginning net asset value for the period. The Company’s performance changes over time and currently may be different than that shown. Past performance is no guarantee of future results.

(6)The ratios reflect an annualized amount.

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(7)For the three months ended March 31, 2023 and 2022, the ratio of operating expenses to average net assets consisted of the following:
 For the Three Months Ended March 31,
20232022
Base management fees3.27 %3.24 %
Income based fees and capital gains incentive fees2.88 %2.35 %
Cost of borrowing5.77 %4.15 %
Other operating expenses0.39 %0.43 %
(8)The ratio of net investment income to average net assets excludes income taxes related to realized gains and losses.

14. SUBSEQUENT EVENTS

The Company’s management has evaluated subsequent events through the date of issuance of the consolidated financial statements included herein. There have been no subsequent events that occurred during such period that would require disclosure in this Form 10-Q or would be required to be recognized in the consolidated financial statements as of and for the three months ended March 31, 2023, except as discussed below.

In April 2023, the Company amended its Revolving Credit Facility. The amendment, among other things, (a) extended the expiration of the revolving period for lenders electing to extend their revolving commitments in an amount equal to approximately $2,905 from March 31, 2026 to April 19, 2027, during which period the Company, subject to certain conditions, may make borrowings under the Revolving Credit Facility, (b) extended the stated maturity date for lenders electing to extend their revolving commitments in an amount equal to approximately $2,905 from March 31, 2027 to April 19, 2028 and (c) extended the stated maturity date for $908 of the lenders electing to extend their term loan commitments from March 31, 2027 to April 19, 2028. Lenders who elected not to extend their revolving commitments in an amount equal to approximately $150, $107 and $494 will remain subject to a revolving period expiration of March 30, 2024, March 31, 2025 and March 31, 2026, respectively, and stated maturity dates of March 30, 2025, March 31, 2026 and March 31, 2027, respectively. Lenders who elected not to extend their term loan commitments in an amount equal to $50, $28 and $116 will remain subject to maturity dates of March 30, 2025, March 31, 2026 and March 31, 2027, respectively.

In April 2023, the Company and AFB entered into an amendment to the BNP Funding Facility. The amendment among other things, (a) increased the commitments under the BNP Funding Facility from $500 to $790, (b) extended the end of the reinvestment period from June 11, 2023 to April 20, 2026, (c) extended the stated maturity date from June 11, 2025 to April 20, 2028 and (d) adjusted the interest rate charged on the BNP Funding Facility from an applicable SOFR or a "base rate" (as defined in the BNP Funding Facility) plus a margin of (i) 2.30% during the reinvestment period and (ii) 2.80% following the reinvestment period to an applicable SOFR or a "base rate" plus a margin of (i) 2.80% during the reinvestment period and (ii) 3.30% following the reinvestment period.

In April 2023, the Company's board of directors authorized an amendment to its stock repurchase program to increase the total authorization from $500 to $1,000. Under the stock repurchase program, the Company may repurchase up to $1,000 in the aggregate of its outstanding common stock in the open market at a price per share that meets certain thresholds below its net asset value per share, in accordance with the guidelines specified in Rule 10b-18 of the Exchange Act. The timing, manner, price and amount of any share repurchases will be determined by the Company, in its discretion, based upon the evaluation of economic and market conditions, stock price, applicable legal and regulatory requirements and other factors.



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Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

The information contained in this section should be read in conjunction with our consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report. In addition, some of the statements in this Quarterly Report (including in the following discussion) constitute forward-looking statements, which relate to future events or the future performance or financial condition of Ares Capital Corporation (the “Company,” “Ares Capital,” “we,” “us,” or “our”). The forward-looking statements contained in this report involve a number of risks and uncertainties, including statements concerning:

our, or our portfolio companies’, future business, operations, operating results or prospects;

the return or impact of current and future investments;

the impact of global health crises on our or our portfolio companies’ business and the U.S. and global economy;

the impact of a protracted decline in the liquidity of credit markets on our business;

the impact of the elimination of the London Interbank Offered Rate (“LIBOR”) and implementation of alternatives to LIBOR on our operating results;

changes in the general economy, slowing economy, rising inflation, risk of recession and risks in respect of a failure to increase the U.S. debt ceiling;

the impact of changes in laws or regulations (including the interpretation thereof), including tax laws, governing our operations or the operations of our portfolio companies or the operations of our competitors;

the valuation of our investments in portfolio companies, particularly those having no liquid trading market;

our ability to recover unrealized losses;

market conditions and our ability to access different debt markets and additional debt and equity capital and our ability to manage our capital resources effectively;

our contractual arrangements and relationships with third parties;

the state of the general economy;

the impact of supply chain constraints on our portfolio companies and the global economy;

uncertainty surrounding global financial stability, including the liquidity of certain banks;

the social, geopolitical, financial, trade and legal implications of Brexit;

the war in Ukraine and Russia and the potential for volatility in energy prices and other commodities and their impact on the industries in which we invest;

the financial condition of our current and prospective portfolio companies and their ability to achieve their objectives;

the impact of information technology system failures, data security breaches, data privacy compliance, network disruptions, and cybersecurity attacks;

our ability to raise capital in the private and public debt and equity markets;

our ability to anticipate and identify evolving market expectations with respect to environmental, social and governance matters, including the environmental impacts of our portfolio companies' supply chain and operations;

our ability to successfully complete and integrate any acquisitions;

the outcome and impact of any litigation or regulatory proceeding;
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the adequacy of our cash resources and working capital;

the timing, form and amount of any dividend distributions;

the timing of cash flows, if any, from the operations of our portfolio companies; and

the ability of our investment adviser to locate suitable investments for us and to monitor and administer our investments.

We use words such as “anticipates,” “believes,” “expects,” “intends,” “project,” “estimates,” “will,” “should,” “could,” “would,” “may” and similar expressions to identify forward-looking statements, although not all forward-looking statements include these words. Our actual results and condition could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth in “Risk Factors” and elsewhere in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and in this Quarterly Report.

We have based the forward-looking statements included in this Quarterly Report on information available to us on the filing date of this Quarterly Report, and we assume no obligation to update any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we have filed or in the future may file with the SEC, including annual reports on Form 10-K, registration statements on Form N-2, quarterly reports on Form 10-Q and current reports on Form 8-K.

OVERVIEW

We are a specialty finance company that is a closed-end, non-diversified management investment company incorporated in Maryland. We have elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (together with the rules and regulations promulgated thereunder, the “Investment Company Act”).
 
We are externally managed by Ares Capital Management LLC (“Ares Capital Management” or our “investment adviser”), a subsidiary of Ares Management Corporation (NYSE: ARES) (“Ares Management”), a publicly traded, leading global alternative investment manager, pursuant to our investment advisory and management agreement. Ares Operations LLC (“Ares Operations” or our “administrator”), a subsidiary of Ares Management, provides certain administrative and other services necessary for us to operate.
 
Our investment objective is to generate both current income and capital appreciation through debt and equity investments. We invest primarily in first lien senior secured loans (including “unitranche” loans, which are loans that combine both senior and subordinated debt, generally in a first lien position) and second lien senior secured loans. In addition to senior secured loans, we also invest in subordinated loans (sometimes referred to as mezzanine debt), which in some cases includes an equity component and preferred equity.
 
To a lesser extent, we also make common equity investments, which have generally been non-control equity investments of less than $20 million (usually in conjunction with a concurrent debt investment). However, we may increase the size or change the nature of these investments.
 
Since our initial public offering (“IPO”) on October 8, 2004 through March 31, 2023, our exited investments resulted in an asset level realized gross internal rate of return to us of approximately 14% (based on original cash invested, net of syndications, of approximately $40.1 billion and total proceeds from such exited investments of approximately $51.6 billion). Internal rate of return is the discount rate that makes the net present value of all cash flows related to a particular investment equal to zero. Internal rate of return is gross of expenses related to investments as these expenses are not allocable to specific investments. Investments are considered to be exited when the original investment objective has been achieved through the receipt of cash and/or non-cash consideration upon the repayment of a debt investment or sale of an investment or through the determination that no further consideration was collectible and, thus, a loss may have been realized. Approximately 58% of these exited investments resulted in an asset level realized gross internal rate of return to us of 10% or greater.

Additionally, since our IPO on October 8, 2004 through March 31, 2023, our realized gains have exceeded our realized losses by approximately $1.1 billion (excluding a one-time gain on the acquisition of Allied Capital Corporation (“Allied Capital”) in April 2010 (the “Allied Acquisition”) and realized gains/losses from the extinguishment of debt and other
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transactions). For this same time period, our average annualized net realized gain rate was approximately 1.0% (excluding a one-time gain on the acquisition of Allied Capital and realized gains/losses from the extinguishment of debt and other transactions). Net realized gain/loss rates for a particular period are the amount of net realized gains/losses during such period divided by the average quarterly investments at amortized cost in such period.
 
Information included herein regarding internal rates of return, realized gains and losses and annualized net realized gain rates are historical results relating to our past performance and are not necessarily indicative of future results, the achievement of which cannot be assured.

As a BDC, we are required to comply with certain regulatory requirements. For instance, we generally have to invest at least 70% of our total assets in “qualifying assets,” including securities and indebtedness of private U.S. companies and certain public U.S. companies, cash, cash equivalents, U.S. government securities and high-quality debt investments that mature in one year or less. We also may invest up to 30% of our portfolio in non-qualifying assets, as permitted by the Investment Company Act. Specifically, as part of this 30% basket, we may invest in entities that are not considered “eligible portfolio companies” (as defined in the Investment Company Act), including companies located outside of the United States, entities that are operating pursuant to certain exceptions under the Investment Company Act, and publicly traded entities whose public equity market capitalization exceeds the levels provided for under the Investment Company Act.
 
We have elected to be treated as a regulated investment company (“RIC”) under the Internal Revenue Code of 1986, as amended (the “Code”), and operate in a manner so as to qualify for the tax treatment applicable to RICs. To qualify as a RIC, we must, among other requirements, meet certain source-of-income and asset diversification requirements and timely distribute to our stockholders generally at least 90% of our investment company taxable income, as defined by the Code, for each year. Pursuant to this election, we generally will not have to pay U.S. federal corporate-level taxes on any income that we distribute to our stockholders provided that we satisfy those requirements.

MACROECONOMIC ENVIRONMENT

Credit markets continued to be under pressure during the first quarter of 2023 amid a risk-off environment and sustained macro-economic uncertainty due to record-high inflation, tighter financial conditions, financial market instability and growing recession risk. Central banks have remained focused on restoring price stability by raising interest rates and have signaled that growth may be hindered until inflation comes under control.




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PORTFOLIO AND INVESTMENT ACTIVITY

Our investment activity for the three months ended March 31, 2023 and 2022 is presented below.
 For the Three Months Ended March 31,
(dollar amounts in millions)20232022
New investment commitments(1):  
New portfolio companies$131 $660 
Existing portfolio companies635 1,341 
Total new investment commitments(2)$766 2,001 
Less: 
Investment commitments exited(3)(1,884)(2,551)
Net investment commitments$(1,118)$(550)
Principal amount of investments funded: 
First lien senior secured loans(4)$697 $1,127 
Second lien senior secured loans27 
Subordinated certificates of the SDLP(5)49 11 
Senior subordinated loans26 103 
Preferred equity13 218 
Ivy Hill Asset Management, L.P.(6)283 349 
Other equity20 59 
Total$1,090 $1,894 
Principal amount of investments sold or repaid: 
First lien senior secured loans(4)$1,373 $1,884 
Second lien senior secured loans— 441 
Subordinated certificates of the SDLP(5)41 25 
Senior subordinated loans72 — 
Preferred equity104 16 
Ivy Hill Asset Management, L.P.(6)192 16 
Other equity84 
Total$1,789 $2,466 
Number of new investment commitments(7)32 49 
Average new investment commitment amount$24 $41 
Weighted average term for new investment commitments (in months)72 61 
Percentage of new investment commitments at floating rates73 %70 %
Percentage of new investment commitments at fixed rates— %10 %
Weighted average yield of debt and other income producing securities(8): 
Funded during the period at amortized cost11.3 %8.6 %
Funded during the period at fair value(9)11.5 %8.7 %
Exited or repaid during the period at amortized cost11.7 %7.6 %
Exited or repaid during the period at fair value(9)12.0 %7.7 %

_______________________________________________________________________________

(1)New investment commitments include new agreements to fund revolving loans or delayed draw loans. See Note 7 to our consolidated financial statements for the three months ended March 31, 2023 for more information on our commitments to fund revolving loans or delayed draw loans.

(2)Includes both funded and unfunded commitments. Of these new investment commitments, we funded $0.6 billion and $1.7 billion for the three months ended March 31, 2023 and 2022, respectively.

(3)Includes both funded and unfunded commitments. For the three months ended March 31, 2023 and 2022, investment commitments exited included exits of unfunded commitments of $316 million and $171 million, respectively.
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(4)For the three months ended March 31, 2023 and 2022, net fundings of first lien secured revolving loans were $80 million and $78 million, respectively.

(5)See “Senior Direct Lending Program” below and Note 4 to our consolidated financial statements for the three months ended March 31, 2023 for more information on the SDLP (as defined below). 

(6)Includes our subordinated loan and equity investments in IHAM (as defined below), as applicable. See “Ivy Hill Asset Management, L.P.” below and Note 4 to our consolidated financial statements for the three months ended March 31, 2023 for more information on IHAM.

(7)Number of new investment commitments represents each commitment to a particular portfolio company or a commitment to multiple companies as part of an individual transaction (e.g., the purchase of a portfolio of investments).

(8)“Weighted average yield of debt and other income producing securities” is computed as (a) the annual stated interest rate or yield earned plus the net annual amortization of original issue discount and market discount or premium earned on accruing debt and other income producing securities (including the annualized amount of the dividend received by us related to our equity investment in IHAM during the most recent quarter end, as applicable), divided by (b) the total accruing debt and other income producing securities at amortized cost or at fair value (including the amortized cost or fair value of our equity investment in IHAM as applicable), as applicable.

(9)Represents fair value for investments in the portfolio as of the most recent prior quarter end, if applicable.

As of March 31, 2023 and December 31, 2022, our investments consisted of the following:
 As of
 March 31, 2023December 31, 2022
(in millions)Amortized CostFair ValueAmortized CostFair Value
First lien senior secured loans(1)$9,020 $8,689 $9,684 $9,373 
Second lien senior secured loans4,230 3,887 4,218 3,934 
Subordinated certificates of the SDLP(2)1,282 1,231 1,274 1,249 
Senior subordinated loans1,136 1,048 1,163 1,079 
Preferred equity2,045 2,069 2,095 2,027 
Ivy Hill Asset Management, L.P.(3)2,139 2,295 2,048 2,201 
Other equity1,578 1,929 1,561 1,917 
Total$21,430 $21,148 $22,043 $21,780 
_______________________________________________________________________________

(1)First lien senior secured loans include certain loans that we classify as “unitranche” loans. The total amortized cost and fair value of the loans that we classified as “unitranche” loans were $4.7 billion and $4.6 billion, respectively, as of March 31, 2023, and $5.0 billion and $4.8 billion, respectively, as of December 31, 2022.

(2)The proceeds from these certificates were applied to co-investments with Varagon Capital Partners (“Varagon”) and its clients to fund first lien senior secured loans to 22 and 22 different borrowers as of March 31, 2023 and December 31, 2022, respectively.

(3)Includes our subordinated loan and equity investments in IHAM, as applicable.

We have commitments to fund various revolving and delayed draw senior secured and subordinated loans, including commitments to fund which are at (or substantially at) our discretion. Our commitment to fund delayed draw loans is triggered upon the satisfaction of certain pre-negotiated terms and conditions. Generally, the most significant and uncertain term requires the borrower to satisfy a specific use of proceeds covenant. The use of proceeds covenant typically requires the borrower to use the additional loans for the specific purpose of a permitted acquisition or permitted investment, for example. In addition to the use of proceeds covenant, the borrower is generally required to satisfy additional negotiated covenants (including specified leverage levels). We are also party to subscription agreements to fund equity investments in private equity investment partnerships. See Note 7 to our consolidated financial statements for the three months ended March 31, 2023 for more
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information on our unfunded commitments, including commitments to issue letters of credit, related to certain of our portfolio companies.

The weighted average yields at amortized cost and fair value of the following portions of our portfolio as of March 31, 2023 and December 31, 2022 were as follows:
 As of
 March 31, 2023December 31, 2022
 Amortized CostFair ValueAmortized CostFair Value
Debt and other income producing securities(1)12.0 %12.2 %11.6 %11.9 %
Total portfolio(2)10.8 %10.9 %10.5 %10.6 %
First lien senior secured loans(3)11.1 %11.5 %10.7 %11.1 %
Second lien senior secured loans(3)11.9 %13.0 %11.6 %12.5 %
Subordinated certificates of the SDLP(3)(6)13.5 %14.1 %13.5 %13.8 %
Senior subordinated loans(3)11.0 %11.7 %10.8 %11.3 %
Ivy Hill Asset Management L.P.(4)13.4 %12.3 %14.2 %12.9 %
Other income producing equity securities(5)11.5 %11.4 %11.4 %11.4 %
_______________________________________________________________________________

(1)“Weighted average yields on debt and other income producing securities” are computed as (a) the annual stated interest rate or yield earned plus the net annual amortization of original issue discount and market discount or premium earned on accruing debt and other income producing securities (including the annualized amount of the dividend received by us related to our equity investment in IHAM during the most recent quarter end), divided by (b) the total accruing debt and other income producing securities at amortized cost or at fair value (including the amortized cost or fair value of our equity investment in IHAM as applicable), as applicable.

(2)“Weighted average yields on total portfolio” are computed as (a) the annual stated interest rate or yield earned plus the net annual amortization of original issue discount and market discount or premium earned on accruing debt and other income producing securities (including the annualized amount of the dividend received by us related to our equity investment in IHAM during the most recent quarter end), divided by (b) total investments at amortized cost or at fair value, as applicable.

(3)“Weighted average yields” are computed as (a) the annual stated interest rate or yield earned plus the net annual amortization of original issue discount and market discount or premium earned on the relevant accruing investments, divided by (b) the total relevant investments at amortized cost or at fair value, as applicable.

(4)Represents the yield on our equity investment in IHAM, which is computed as (a) the annualized amount of the dividend received by us related to our equity investment in IHAM during the most recent quarter end, divided by (b) the amortized cost or fair value of our equity investment in IHAM, as applicable.

(5)“Weighted average yield on other income producing equity securities” is computed as (a) the yield earned on the relevant income producing equity securities, divided by (b) the total relevant income producing equity securities at amortized cost or fair value, as applicable.

(6)The proceeds from these certificates were applied to co-investments with Varagon and its clients to fund first lien senior secured loans.
 
Ares Capital Management employs an investment rating system to categorize our investments. In addition to various risk management and monitoring tools, our investment adviser grades the credit risk of all investments on a scale of 1 to 4 no less frequently than quarterly. This system is intended primarily to reflect the underlying risk of a portfolio investment relative to our initial cost basis in respect of such portfolio investment (i.e., at the time of origination or acquisition), although it may also take into account under certain circumstances the performance of the portfolio company’s business, the collateral coverage of the investment and other relevant factors. The grade of a portfolio investment may be reduced or increased over time. The following is a description of each investment grade:

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Investment gradeDescription
4Involves the least amount of risk to our initial cost basis. The trends and risk factors for this investment since origination or acquisition are generally favorable, which may include the performance of the portfolio company or a potential exit.
3Involves a level of risk to our initial cost basis that is similar to the risk to our initial cost basis at the time of origination or acquisition. This portfolio company is generally performing as expected and the risk factors to our ability to ultimately recoup the cost of our investment are neutral to favorable. All investments or acquired investments in new portfolio companies are initially assessed a grade of 3.
2Indicates that the risk to our ability to recoup the initial cost basis of such investment has increased materially since origination or acquisition, including as a result of factors such as declining performance and non-compliance with debt covenants; however, payments are generally not more than 120 days past due. For investments graded 2, our investment adviser enhances its level of scrutiny over the monitoring of such portfolio company.
1Indicates that the risk to our ability to recoup the initial cost basis of such investment has substantially increased since origination or acquisition, and the portfolio company likely has materially declining performance. For debt investments with an investment grade of 1, most or all of the debt covenants are out of compliance and payments are substantially delinquent. For investments graded 1, it is anticipated that we will not recoup our initial cost basis and may realize a substantial loss of our initial cost basis upon exit. For investments graded 1, our investment adviser enhances its level of scrutiny over the monitoring of such portfolio company.
    
Set forth below is the grade distribution of our portfolio companies as of March 31, 2023 and December 31, 2022:

 As of
 March 31, 2023December 31, 2022
(dollar amounts in millions)Fair Value%Number of
Companies
%Fair Value%Number of
Companies
%
Grade 4$5,009 23.7 %74 15.8 %$5,051 23.2 %80 17.1 %
Grade 314,514 68.6 329 70.6 15,279 70.1 327 70.2 
Grade 21,282 6.1 41 8.8 1,342 6.2 40 8.6 
Grade 1343 1.6 22 4.8 108 0.5 19 4.1 
Total$21,148 100.0 %466 100.0 %$21,780 100.0 %466100.0 %

As of March 31, 2023 and December 31, 2022, the weighted average grade of the investments in our portfolio at fair value was 3.1 and 3.2, respectively.

As of March 31, 2023 and December 31, 2022, loans on non-accrual status represented 2.3% of the total investments at amortized cost (or 1.3% at fair value) and 1.7% at amortized cost (or 1.1% at fair value), respectively.

Senior Direct Lending Program

We have established a joint venture with Varagon to make certain first lien senior secured loans, including certain stretch senior and unitranche loans, primarily to U.S. middle-market companies. Varagon was formed in 2013 as a lending platform by American International Group, Inc. and other partners. The joint venture is called the Senior Direct Lending Program, LLC (d/b/a the “Senior Direct Lending Program” or the “SDLP”). In July 2016, we and Varagon and its clients completed the initial funding of the SDLP. The SDLP may generally commit and hold individual loans of up to $450 million. The SDLP is capitalized as transactions are completed and all portfolio decisions and generally all other decisions in respect of the SDLP must be approved by an investment committee of the SDLP consisting of representatives of ours and Varagon (with approval from a representative of each required).

We provide capital to the SDLP in the form of subordinated certificates (the “SDLP Certificates”), and Varagon and its clients provide capital to the SDLP in the form of senior notes, intermediate funding notes and SDLP Certificates. As of March 31, 2023, we and a client of Varagon owned 87.5% and 12.5%, respectively, of the outstanding SDLP Certificates.

    As of March 31, 2023 and December 31, 2022, we and Varagon and its clients had agreed to make capital available to the SDLP of $6.2 billion and $6.2 billion, respectively, in the aggregate, of which $1.4 billion and $1.4 billion, respectively, is
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to be made available from us. This capital will only be committed to the SDLP upon approval of transactions by the investment committee of the SDLP. Below is a summary of the funded capital and unfunded capital commitments of the SDLP.

 As of
(in millions)March 31, 2023December 31, 2022
Total capital funded to the SDLP(1)$5,160 $5,127 
Total capital funded to the SDLP by the Company(1)$1,282 $1,274 
Total unfunded capital commitments to the SDLP(2)$217 $294 
Total unfunded capital commitments to the SDLP by the Company(2)$50 $68 
___________________________________________________________________________
(1) At principal amount.

(2)These commitments to fund delayed draw loans have been approved by the investment committee of the SDLP and will be funded if and when conditions to funding such delayed draw loans are met.

The SDLP Certificates pay a coupon equal to LIBOR plus 8.0% and also entitle the holders thereof to receive a portion of the excess cash flow from the loan portfolio, after expenses, which may result in a return to the holders of the SDLP Certificates that is greater than the stated coupon. The SDLP Certificates are junior in right of payment to the senior notes and intermediate funding notes.

The amortized cost and fair value of our SDLP Certificates as of March 31, 2023 and December 31, 2022 were as follows:

As of
March 31, 2023December 31, 2022
(in millions)Amortized CostFair ValueAmortized CostFair Value
Subordinated certificates of the SDLP$1,282 $1,231 $1,274 $1,249 

Our yield on our investment in the SDLP Certificates at amortized cost and fair value as of March 31, 2023 and December 31, 2022 were as follows:

 As of
 March 31, 2023December 31, 2022
 Amortized CostFair ValueAmortized CostFair Value
Yield on subordinated certificates of the SDLP13.5 %14.1 %13.5 %13.8 %

The interest income from our investment in the SDLP Certificates and capital structuring service and other fees earned for the three months ended March 31, 2023 and 2022 were as follows:

For the Three Months Ended March 31,
(in millions)20232022
Interest income
$43 $33 
Capital structuring service and other fees
$$

As of March 31, 2023 and December 31, 2022, the SDLP portfolio was comprised entirely of first lien senior secured loans primarily to U.S. middle-market companies and were in industries similar to the companies in our portfolio. As of March 31, 2023 and December 31, 2022, one of the loans was on non-accrual status. Below is a summary of the SDLP’s portfolio as of March 31, 2023 and December 31, 2022:

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 As of
(dollar amounts in millions)March 31, 2023December 31, 2022
Total first lien senior secured loans(1)(2)$5,222 $5,174 
Weighted average yield on first lien senior secured loans(3)10.6 %10.1 %
Largest loan to a single borrower(1)$374 $377 
Total of five largest loans to borrowers(1)$1,644 $1,631 
Number of borrowers in the SDLP22 22 
Commitments to fund delayed draw loans(4)$217 $294 
_______________________________________________________________________________

(1)At principal amount.

(2)First lien senior secured loans include certain loans that the SDLP classifies as “unitranche” loans. As of March 31, 2023 and December 31, 2022, the total principal amount of loans in the SDLP portfolio that the SDLP classified as “unitranche” loans was $4,154 million and $4,108 million, respectively.

(3) Computed as (a) the annual stated interest rate on accruing first lien senior secured loans, divided by (b) total first lien senior secured loans at principal amount.

(4)As discussed above, these commitments have been approved by the investment committee of the SDLP.

Pursuant to Rule 4-08(g) of Regulation S-X, selected financial information of the SDLP, in conformity with GAAP, as of March 31, 2023 and December 31, 2022 and for the three months ended March 31, 2023 and 2022 are presented below:

As of
(in millions)March 31, 2023December 31, 2022
Selected Balance Sheet Information:
Investments at fair value (amortized cost of $5,210 and $5,166, respectively)
$4,932 $4,958 
Other assets176 150 
Total assets$5,108 $5,108 
Senior notes$3,562 $3,538 
Intermediate funding notes133 132 
Other liabilities130 110 
Total liabilities3,825 3,780 
Subordinated certificates and members’ capital1,283 1,328 
Total liabilities and members’ capital$5,108 $5,108 

For the Three Months Ended March 31,
(in millions)20232022
Selected Statement of Operations Information:
Total investment income$136 $72 
Interest expense69 24 
Other expenses
Total expenses75 29 
Net investment income61 43 
Net realized and unrealized losses on investments(68)(3)
Net (decrease) increase in members’ capital resulting from operations$(7)$40 

168


SDLP Loan Portfolio as of March 31, 2023

(dollar amounts in millions)
Portfolio Company
Business DescriptionMaturity DateStated Interest Rate(1)Principal AmountFair
Value(2)
Arrowhead Holdco Company (3)(4)Distributor of non-discretionary, mission-critical aftermarket replacement parts8/20289.4 %$273.6 $254.5 
Benecon Midco II LLC (3)(4)Employee benefits provider for small and mid-size employers12/202610.2 %171.5 171.5 
Center for Autism and Related Disorders, LLC (3)(5)Autism treatment and services provider specializing in applied behavior analysis therapy11/2024148.0 11.2 
Concert Golf Partners Holdco LLC (3)Golf club owner and operator4/202917.5 %254.7 254.7 
Emergency Communications Network, LLC (3)Provider of mission critical emergency mass notification solutions6/20247.2 %242.0 217.8 
Excelligence Holdings Corp. (3)Developer, manufacturer and retailer of educational products1/202411.1 %146.3 146.3 
FS Squared Holding Corp. (3)(4)Provider of on-site vending and micro market solutions3/202515.9 %323.2 323.2 
Harvey Tool Company, LLC (3)Manufacturer of cutting tools used in the metalworking industry10/202710.7 %233.0 228.4 
HGC Holdings, LLC (3)Operator of golf facilities6/202610.0 %161.1 161.1 
ISQ Hawkeye Holdco, Inc. (3)(4)Provider of commercial and industrial waste processing and disposal services8/202911.1 %285.8 280.1 
Manna Pro Products, LLC (3)Manufacturer and supplier of specialty nutrition and care products for animals12/202610.8 %269.7 242.7 
n2y Holding, LLC (3)Developer of cloud-based special education platform11/202610.6 %193.0 193.0 
NCWS Intermediate, Inc. (3)(4)Manufacturer and supplier of car wash equipment, parts and supplies to the conveyorized car wash market12/202610.8 %269.2 261.1 
North Haven Falcon Buyer, LLC (3)(4)Manufacturer of aftermarket golf cart parts and accessories5/20278.9 %219.8 208.8 
Pegasus Global Enterprise Holdings, LLC (3)(4)Provider of plant maintenance and scheduling software5/202510.4 %337.5 337.5 
Penn Detroit Diesel Allison, LLCDistributor of aftermarket parts to the heavy-duty truck industry12/202711.9 %49.6 49.6 
Precinmac (US) Holdings Inc. and Trimaster Manufacturing Inc. (3)(4)Manufacturer of high-tolerance precision machined components and assemblies for the aerospace and defense industry8/202711.0 %258.0 252.9 
Pritchard Industries, LLC (3)(4)Provider of janitorial and facilities management services10/202710.8 %247.1 237.2 
Qnnect, LLC (3)(4)Manufacturer of highly engineered hermetic packaging products11/202911.7 %280.5 272.0 
THG Acquisition, LLC (3)Multi-line insurance broker12/202610.6 %323.2 319.8 
Towne Holdings, Inc.Parking management and hospitality services provider8/202310.8 %149.2 146.2 
Walnut Parent, Inc. (3)Manufacturer of natural solution pest and animal control products11/202710.5 %374.1 362.8 
$5,210.1 $4,932.4 
____________________________________________________________________________

(1)Represents the weighted average annual stated interest rate as of March 31, 2023. All interest rates are payable in cash, except for portions of the stated interest rates which are payment-in-kind for investments in Emergency Communications Network, LLC and Towne Holdings, Inc.

(2)Represents the fair value in accordance with Accounting Standards Codification 820-10, Fair Value Measurements and Disclosures (“ASC 820-10”). The determination of such fair value is not included in our valuation process described elsewhere herein.

(3)We also hold a portion of this company’s first lien senior secured loan.

(4)We hold an equity investment in this company.

(5)Loan was on non-accrual status as of March 31, 2023.









169


SDLP Loan Portfolio as of December 31, 2022
(dollar amounts in millions)
Portfolio Company
Business DescriptionMaturity DateStated Interest Rate(1)Principal AmountFair
Value(2)
Arrowhead Holdco Company (3)(4)Distributor of non-discretionary, mission-critical aftermarket replacement parts8/20288.9 %$274.3 $260.6 
Benecon Midco II LLC (3)(4)Employee benefits provider for small and mid-size employers12/202610.0 %171.9 171.9 
Center for Autism and Related Disorders, LLC (3)(5)Autism treatment and services provider specializing in applied behavior analysis therapy11/2024148.0 65.2 
Concert Golf Partners Holdco LLC (3)Golf club owner and operator4/202910.2 %255.3 255.3 
Emergency Communications Network, LLC (3)Provider of mission critical emergency mass notification solutions6/202411.8 %238.8 214.9 
Excelligence Holdings Corp. (3)Developer, manufacturer and retailer of educational products1/202410.7 %146.3 146.3 
FS Squared Holding Corp. (3)(4)Provider of on-site vending and micro market solutions3/20259.6 %308.0 308.0 
Harvey Tool Company, LLC (3)Manufacturer of cutting tools used in the metalworking industry10/202710.2 %233.6 231.3 
HGC Holdings, LLC (3)Operator of golf facilities6/20269.5 %141.4 141.4 
ISQ Hawkeye Holdco, Inc. (3)(4)Provider of commercial and industrial waste processing and disposal services8/202910.6 %286.5 280.8 
Manna Pro Products, LLC (3)Manufacturer and supplier of specialty nutrition and care products for animals12/202610.4 %270.3 251.4 
n2y Holding, LLC (3)Developer of cloud-based special education platform11/202610.1 %193.5 191.5 
NCWS Intermediate, Inc. (3)(4)Manufacturer and supplier of car wash equipment, parts and supplies to the conveyorized car wash market12/202610.4 %269.8 264.5 
North Haven Falcon Buyer, LLC (3)(4)Manufacturer of aftermarket golf cart parts and accessories5/202711.2 %217.2 202.0 
Pegasus Global Enterprise Holdings, LLC (3)(4)Provider of plant maintenance and scheduling software5/202510.0 %338.4 338.4 
Penn Detroit Diesel Allison, LLCDistributor of aftermarket parts to the heavy-duty truck industry12/202711.4 %49.6 49.6 
Precinmac (US) Holdings Inc. and Trimaster Manufacturing Inc. (3)(4)Manufacturer of high-tolerance precision machined components and assemblies for the aerospace and defense industry8/202710.4 %258.7 253.5 
Pritchard Industries, LLC (3)(4)Provider of janitorial and facilities management services10/202710.5 %242.3 235.0 
Qnnect, LLC (3)(4)Manufacturer of highly engineered hermetic packaging products11/202911.1 %277.3 268.9 
THG Acquisition, LLC (3)Multi-line insurance broker12/202610.1 %321.2 317.9 
Towne Holdings, Inc.Parking management and hospitality services provider8/202313.8 %146.9 143.9 
Walnut Parent, Inc. (3)Manufacturer of natural solution pest and animal control products11/202710.2 %377.0 365.8 
$5,166.3 $4,958.1 
____________________________________________________________________________

(1)Represents the weighted average annual stated interest rate as of December 31, 2022. All interest rates are payable in cash, except for portions of the stated interest rates which are payment-in-kind for investments in Emergency Communications Network, LLC and Towne Holdings, Inc.

(2)Represents the fair value in accordance with ASC 820-10. The determination of such fair value is not included in our valuation process described elsewhere herein.

(3)We also hold a portion of this company’s first lien senior secured loan.

(4)We hold an equity investment in this company.

(5)Loan was on non-accrual status as of December 31, 2022.
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Ivy Hill Asset Management, L.P.

Ivy Hill Asset Management, L.P. (“IHAM”), our wholly owned portfolio company, is an asset management services company and an SEC-registered investment adviser. As of March 31, 2023, IHAM had assets under management of approximately $13.5 billion. As of March 31, 2023, IHAM managed 22 vehicles and served as the sub-manager/sub-servicer for one other vehicle (these vehicles managed or sub-managed/sub-serviced by IHAM are referred to as the “IHAM Vehicles”). IHAM earns fee income from managing the IHAM Vehicles and has also invested in certain of these vehicles as part of its business strategy. The amortized cost of IHAM’s total investments as of March 31, 2023 and December 31, 2022 was $2,444 million and $2,370 million, respectively. For the three months ended March 31, 2023 and 2022, IHAM had management and incentive fee income of $14 million and $10 million, respectively. For the three months ended March 31, 2023 and 2022, IHAM also had other investment-related income of $61 million and $34 million, respectively, which included net realized gains or losses on investments and other transactions.

 The amortized cost and fair value of our investments in IHAM as of March 31, 2023 and December 31, 2022 were as follows:

As of
March 31, 2023December 31, 2022
(in millions)Amortized CostFair ValueAmortized CostFair Value
Subordinated loan
$438 $438 $500 $500 
Equity
1,701 1,857 1,548 1,701 
Total Company’s investment in IHAM$2,139 $2,295 $2,048 $2,201 

The interest income and dividend income that we earned from IHAM for the three months ended March 31, 2023 and 2022 were as follows:

For the Three Months Ended March 31,
(in millions)20232022
Interest income
$13 $— 
Dividend income
$57 $43 

From time to time, IHAM or certain IHAM Vehicles may purchase investments from, or sell investments to us. For any such sales or purchases by the IHAM Vehicles to or from us, the IHAM Vehicle must obtain approval from third parties unaffiliated with us or IHAM, as applicable. During the three months ended March 31, 2023 and 2022, IHAM or certain of the IHAM Vehicles purchased $652 million and $1,176 million, respectively, of loans from us. For the three months ended March 31, 2023 and 2022, we recognized $10 million and $6 million, respectively, of net realized losses from these sales. During the three months ended March 31, 2023, we did not purchase investments from IHAM or the IHAM Vehicles. During the three months ended March 31, 2022, we purchased $27 million of investments from certain IHAM Vehicles.

The yields at amortized cost and fair value of our investments in IHAM as of March 31, 2023 and December 31, 2022 were as follows:
 As of
 March 31, 2023December 31, 2022
 Amortized CostFair ValueAmortized CostFair Value
Subordinated loan
11.6 %11.6 %11.0 %11.0 %
Equity(1)
13.4 %12.3 %14.2 %12.9 %
_______________________________________________________________________________

(1)Represents the yield on our equity investment in IHAM, which is computed as (a) the annualized amount of the dividend received by us related to our equity investment in IHAM during the most recent quarter end, divided by (b) the amortized cost or fair value of our equity investment in IHAM, as applicable.

IHAM is party to an administration agreement, referred to herein as the “IHAM administration agreement,” with Ares Operations. Pursuant to the IHAM administration agreement, Ares Operations provides IHAM with, among other
171


things, office facilities, equipment, clerical, bookkeeping and record keeping services, services relating to the marketing and sale of interests in vehicles managed by IHAM, services of, and oversight of, custodians, depositories, accountants, attorneys, underwriters and such other persons in any other capacity deemed to be necessary. Under the IHAM administration agreement, IHAM reimburses Ares Operations for all of the actual costs associated with such services, including Ares Operations’ allocable portion of the compensation, rent and other expenses of its officers, employees and respective staff in performing its obligations under the IHAM administration agreement.

Selected Financial Information

Pursuant to Rule 4-08(g) of Regulation S-X, selected financial information of IHAM, in conformity with GAAP, as of March 31, 2023 and December 31, 2022 and for the three months ended March 31, 2023 and 2022 are presented below.

In conformity with GAAP, IHAM is required to consolidate entities in which IHAM has a direct or indirect controlling financial interest based on either a variable interest model or voting interest model, which include certain of the IHAM Vehicles (the “Consolidated IHAM Vehicles”). As such, for GAAP purposes only, IHAM consolidates (a) entities in which it holds a majority voting interest or has majority ownership and control over the operational, financial and investing decisions of that entity and (b) entities that it concludes are variable interest entities in which IHAM has more than insignificant economic interest and power to direct the activities that most significantly impact the entities, and for which IHAM is deemed to be the primary beneficiary.

When IHAM consolidates an IHAM Vehicle for GAAP purposes only, IHAM reflects the assets, liabilities, revenues and expenses of the Consolidated IHAM Vehicles on a gross basis, including the economic interests held by third-party investors in the Consolidated IHAM Vehicles as debt obligations, subordinated notes or non-controlling interests, in the consolidated IHAM financials below. All of the revenues earned by IHAM as the investment manager of the IHAM Consolidated Vehicles are eliminated in GAAP consolidation. However, because the eliminated amounts are earned from and funded by third-party investors, the GAAP consolidation of an IHAM Vehicle does not impact the net income or loss attributable to IHAM. As a result, we believe an assessment of IHAM's business and the impact to our investment in IHAM is best viewed on a stand-alone basis as reflected in the first column in the tables below.

As of March 31, 2023
(in millions)IHAMConsolidated IHAM Vehicles(1)EliminationsConsolidated
Selected Balance Sheet Information:
Assets
Investments at fair value(2)$2,426 $9,524 $(2,401)$9,549 
Cash and cash equivalents579 — 588 
Other assets64 98 (59)103 
Total assets$2,499 $10,201 $(2,460)$10,240 
Liabilities
Debt$313 $7,267 $— $7,580 
Subordinated note from ARCC438 — — 438 
Subordinated notes(3)— 1,296 (1,014)282 
Other liabilities10 347 (14)343 
Total liabilities761 8,910 (1,028)8,643 
Equity
Contributed capital1,701 — — 1,701 
Accumulated earnings56 — — 56 
Net unrealized losses on investments and foreign currency transactions(19)— — (19)
Non-controlling interests in Consolidated IHAM Vehicles(4)
— 1,291 (1,432)(141)
Total equity1,738 1,291 (1,432)1,597 
Total liabilities and equity$2,499 $10,201 $(2,460)$10,240 
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As of December 31, 2022
(in millions)IHAMConsolidated IHAM Vehicles(1)EliminationsConsolidated
Selected Balance Sheet Information:
Assets
Investments at fair value(2)$2,340 $8,973 $(2,315)$8,998 
Cash and cash equivalents499 — 504 
Other assets56 94 (51)99 
Total assets$2,401 $9,566 $(2,366)$9,601 
Liabilities
Debt$308 $6,968 $— $7,276 
Subordinated note from ARCC500 — — 500 
Subordinated notes(3)— 1,374 (1,093)281 
Other liabilities18 129 (15)132 
Total liabilities826 8,471 (1,108)8,189 
Equity
Contributed capital1,547 — — 1,547 
Accumulated earnings61 — — 61 
Net unrealized losses on investments and foreign currency transactions(33)— — (33)
Non-controlling interests in Consolidated IHAM Vehicles(4)
— 1,095 (1,258)(163)
Total equity1,575 1,095 (1,258)1,412 
Total liabilities and equity$2,401 $9,566 $(2,366)$9,601 
________________________________________

(1)Consolidated for GAAP purposes only.

(2)The determination of such fair value is determined in accordance with IHAM’s valuation procedures (separate and apart from our valuation process described elsewhere herein). The amortized cost of IHAM’s total investments as of March 31, 2023 and December 31, 2022 was $2,444 million and $2,370 million, respectively. The amortized cost of the total investments of IHAM on a consolidated basis as of March 31, 2023 and December 31, 2022 was $9,839 million and $9,306 million, respectively.

(3)Subordinated notes generally represent the most junior capital in certain of the Consolidated IHAM Vehicles and effectively represent equity in such vehicles.

(4)Non-controlling interests in Consolidated IHAM Vehicles includes net unrealized depreciation in the Consolidated IHAM Vehicles of $290 million and $309 million as of March 31, 2023 and December 31, 2022, respectively.



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For the Three Months Ended March 31, 2023
(in millions)IHAMConsolidated IHAM Vehicles(1)EliminationsConsolidated
Selected Statement of Operations Information:
Revenues
Investment income$71 $255 $(70)$256 
Management fees and other income14 (13)
Total revenues85 256 (83)258 
Expenses
Interest expense19 129 — 148 
Distributions to subordinated notes— 32 (24)
Management fees and other expenses18 (13)
Total expenses23 179 (37)165 
Net operating income62 77 (46)93 
Net realized losses on investments and other transactions(10)(17)— (27)
Net unrealized gains on investments and other transactions14 22 (13)23 
Total net realized and unrealized gains (losses) on investments and other transactions(13)(4)
Net income66 82 (59)89 
Less: Net income attributable to non-controlling interests in Consolidated IHAM Vehicles— 82 (59)23 
Net income attributable to Ivy Hill Asset Management, L.P.$66 $— $— $66 

For the Three Months Ended March 31, 2022
(in millions)IHAMConsolidated IHAM Vehicles(1)EliminationsConsolidated
Selected Statement of Operations Information:
Revenues
Investment income$33 $97 $(33)$97 
Management fees and other income10 (9)
Total revenues43 98 (42)99 
Expenses
Interest expense29 — 30 
Distributions to subordinated notes— 31 (23)
Management fees and other expenses13 (9)
Total expenses73 (32)46 
Net operating income38 25 (10)53 
Net realized gains on investments and other transactions— — 
Net unrealized losses on investments and other transactions(11)(34)10 (35)
Total net realized and unrealized losses on investments and other transactions(10)(34)10 (34)
Net income (loss)28 (9)— 19 
Less: Net loss attributable to non-controlling interests in Consolidated IHAM Vehicles— (9)— (9)
Net income attributable to Ivy Hill Asset Management, L.P. $28 $— $— $28 
________________________________________
(1)Consolidated for GAAP purposes only.



174


RESULTS OF OPERATIONS

For the three months ended March 31, 2023 and 2022

Operating results for the three months ended March 31, 2023 and 2022 were as follows:
 For the Three Months Ended March 31,
(in millions)20232022
Total investment income$618 $440 
Total expenses298 229 
Net investment income before income taxes320 211 
Income tax expense, including excise tax13 
Net investment income318 198 
Net realized (losses) gains on investments, foreign currency and other transactions(50)58 
Net unrealized gains on investments, foreign currency and other transactions10 
Realized loss on extinguishment of debt— (48)
Net increase in stockholders’ equity resulting from operations$278 $211 

Net income can vary substantially from period to period due to various factors, including acquisitions, the level of new investment commitments, the recognition of realized gains and losses and unrealized appreciation and depreciation. As a result, comparisons of net increase in stockholders’ equity resulting from operations may not be meaningful.

Investment Income
 For the Three Months Ended March 31,
(in millions)20232022
Interest income from investments$470 $310 
Capital structuring service fees10 30 
Dividend income121 88 
Other income17 12 
Total investment income$618 $440 

Interest income from investments for the three months ended March 31, 2023 increased from the comparable period in 2022 primarily as a result of the impact of rising interest rates as well as an increase in the average size of our portfolio. The average size and weighted average yield of our portfolio at amortized cost for the three months ended March 31, 2023 and 2022 were as follows:

 For the Three Months Ended March 31,
(dollar amounts in millions)20232022
Average size of portfolio$21,736 $19,559 
Weighted average yield on portfolio10.9 %8.1 %

Capital structuring service fees for the three months ended March 31, 2023 decreased from the comparable period in 2022 primarily due to a decrease in new investment commitments and a decrease in the weighted average capital structuring service fee percentage during the three months ended March 31, 2023. Excluding investment commitments to IHAM, the higher weighted average capital structuring service fee percentage during the three months ended March 31, 2023 was primarily due to higher fee opportunities as compared to the comparable period in 2022. The new investment commitments and weighted average capital structuring service fee percentages for the three months ended March 31, 2023 and 2022 were as follows:

 For the Three Months Ended March 31,
(dollar amounts in millions)20232022
New investment commitments$766 $2,001 
Weighted average capital structuring service fee percentages(1)1.3 %1.5 %

_______________________________________________________________________________
175



(1)    Excluding $283 million and $349 million of investment commitments to IHAM for the three months ended March 31, 2023 and 2022, respectively, the weighted average capital structuring service fee percentage was 2.0% and 1.8%, respectively.

Dividend income for the three months ended March 31, 2023 and 2022 were as follows:

 For the Three Months Ended March 31,
(in millions)20232022
Dividend income received from IHAM$57 $43 
Recurring dividend income55 39 
Non-recurring dividend income
Total dividend income$121 $88 

Dividend income received from IHAM for the three months ended March 31, 2023 increased from the comparable period in 2022 primarily due to the continued increase in IHAM’s assets under management, which generally has been supported by our additional investments in IHAM. Recurring dividend income for the three months ended March 31, 2023 increased from the comparable period in 2022 primarily due to an increase in yielding preferred equity investments.
    
Operating Expenses
 For the Three Months Ended March 31,
(in millions)20232022
Interest and credit facility fees$139 $93 
Base management fees79 73 
Income based fees76 51 
Capital gains incentive fees(1)(6)
Administrative fees
Other general and administrative
Total expenses$298 $229 
_______________________________________________________________________________
                        
(1)Calculated in accordance with GAAP as discussed below.

Interest and credit facility fees for the three months ended March 31, 2023 and 2022, were comprised of the following:
 For the Three Months Ended March 31,
(in millions)20232022
Stated interest expense$128 $84 
Credit facility fees
Amortization of debt issuance costs
Net amortization of premium on notes payable(1)(1)
Total interest and credit facility fees$139 $93 

Stated interest expense for the three months ended March 31, 2023 increased from the comparable period in 2022 primarily due to the increase in the average principal amount of debt outstanding and the rising interest rates on our floating rate revolving facilities. Our weighted average stated interest rate for the three months ended March 31, 2023 increased from the comparable period in 2022 due to the higher utilization of our floating rate revolving facilities and the impact of rising interest rates. Average debt outstanding and weighted average stated interest rate on our debt outstanding for the three months ended March 31, 2023 and 2022 were as follows:


176


 For the Three Months Ended March 31,
(dollar amounts in millions)20232022
Average debt outstanding$11,422 $10,731 
Weighted average stated interest rate on debt4.4 %3.2 %

Credit facility fees for the three months ended March 31, 2023 were higher from the comparable period in 2022 primarily due to the lower utilization of our revolving facilities as a result of the commitment increases during 2023, resulting in higher unused commitment fees.

Base management fees for the three months ended March 31, 2023 increased from the comparable period in 2022 primarily due to the increase in the average size of our portfolio for the three months ended March 31, 2023 as compared to the comparable period in 2022.

Income based fees for the three months ended March 31, 2023 increased from the comparable period in 2022 primarily due to the pre-incentive fee net investment income, as defined in the investment advisory and management agreement for the three months ended March 31, 2023 being higher than in the comparable period in 2022.

For the three months ended March 31, 2023, the reduction in the capital gains incentive fee calculated in accordance with GAAP was $6 million. For the three months ended March 31, 2022, the capital gains incentive fee calculated in accordance with GAAP was $2 million. The capital gains incentive fee accrual for the three months ended March 31, 2023 changed from the comparable period in 2022 primarily due to net losses on investments, foreign currency, other transactions and the extinguishment of debt of $40 million compared to net gains of $13 million for the three months ended March 31, 2022. The capital gains incentive fee accrued under GAAP includes an accrual related to unrealized capital appreciation, whereas the capital gains incentive fee actually payable under our investment advisory and management agreement does not. There can be no assurance that such unrealized capital appreciation will be realized in the future. The accrual for any capital gains incentive fee under GAAP in a given period may result in an additional expense if such cumulative amount is greater than in the prior period or a reduction of previously recorded expense if such cumulative amount is less than in the prior period. If such cumulative amount is negative, then there is no accrual. As of March 31, 2023, there was $29 million of capital gains incentive fees accrued in accordance with GAAP. As of March 31, 2023, there was no capital gains incentive fee actually payable under our investment advisory and management agreement. See Note 3 to our consolidated financial statements for the three months ended March 31, 2023, for more information on the base management fees, income based fees and capital gains incentive fees.
 
Cash payment of any income based fees and capital gains incentive fees otherwise earned by our investment adviser is deferred if during the most recent four full calendar quarter period ending on or prior to the date such payment is to be made the sum of (a) the aggregate distributions to our stockholders and (b) the change in net assets (defined as total assets less indebtedness and before taking into account any income based fees and capital gains incentive fees payable during the period) is less than 7.0% of our net assets (defined as total assets less indebtedness) at the beginning of such period. These calculations will be adjusted for any share issuances or repurchases. Any income based fees and capital gains incentive fees deferred for payment are carried over for payment in subsequent calculation periods to the extent such fees are payable under the terms of the investment advisory and management agreement. Pursuant to these terms, payment of $81 million of the income based fees earned by our investment adviser for the fourth quarter of 2022 had been previously deferred. As of March 31, 2023, such deferred income based fees were payable under the terms of the investment advisory and management agreement. See Note 3 to our consolidated financial statements for the three months ended March 31, 2023, for more information on the related deferral terms.

Administrative fees represent fees paid to Ares Operations for our allocable portion of overhead and other expenses incurred by Ares Operations in performing its obligations under the administration agreement, including our allocable portion of the compensation, rent and other expenses of certain of our corporate officers and their respective staffs. See Note 3 to our consolidated financial statements for the three months ended March 31, 2023, for more information on the administrative fees.

Other general and administrative expenses include, among other costs, professional fees, insurance, fees and expenses related to evaluating and making investments in portfolio companies and independent directors’ fees.

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Income Tax Expense, Including Excise Tax

We have elected to be treated as a RIC under the Code and operate in a manner so as to qualify for the tax treatment applicable to RICs. To qualify as a RIC, we must, among other requirements, meet certain source-of-income and asset diversification requirements and timely distribute to our stockholders at least 90% of our investment company taxable income, as defined by the Code, for each year. We have made and intend to continue to make the requisite distributions to our stockholders which will generally relieve us from U.S. federal corporate-level income taxes.
 
Depending on the level of taxable income earned in a tax year, we may choose to carry forward such taxable income in excess of current year dividend distributions from such current year taxable income into the next tax year and pay a 4% excise tax on such income, as required. To the extent that we determine that our estimated current year taxable income will be in excess of estimated dividend distributions for the current year from such income, we accrue excise tax, if any, on estimated excess taxable income as such taxable income is earned. For the three months ended March 31, 2023 and 2022, we recorded an expense of $9 million and $9 million, respectively, for U.S. federal excise tax.

Certain of our consolidated subsidiaries are subject to U.S. federal and state income taxes. For the three months ended March 31, 2023 and 2022, we recorded a net tax (benefit) expense of $(7) million and $3 million, respectively, for these subsidiaries. The income tax expense for our taxable consolidated subsidiaries will vary depending on the level of realized gains from the exits of investments held by such taxable subsidiaries during the respective periods.

Net Realized Gains/Losses

The net realized gains (losses) from the sales, repayments or exits of investments during the three months ended March 31, 2023 and 2022 were comprised of the following:
For the Three Months Ended March 31,
(in millions)20232022
Sales, repayments or exits of investments(1)$1,771 $2,521 
Net realized gains (losses) on investments:
Gross realized gains$41 $81 
Gross realized losses(61)(12)
Total net realized (losses) gains on investments$(20)$69 
_______________________________________________________________________________

(1)Includes $0.7 billion and $1.2 billion of loans sold to IHAM and certain vehicles managed by IHAM during the three months ended March 31, 2023 and 2022, respectively. Net realized losses of $10 million and $6 million, respectively, were recorded on these transactions with IHAM during the three months ended March 31, 2023 and 2022. See Note 4 to our consolidated financial statements for the three months ended March 31, 2023 for more information on IHAM and its managed vehicles.

The net realized losses on investments during the three months ended March 31, 2023 consisted of the following:
(in millions)
Portfolio Company
Net Realized Gains (Losses)
Cipriani USA, Inc. and Cipriani Group Holding S.A.R.L.18 
National College of Business and Technology Inc. & Leeds IV Advisors, Inc.(50)
Other, net12 
Total$(20)

During the three months ended March 31, 2023, we also recognized net realized losses on foreign currency and other transactions of $30 million.

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The net realized gains on investments during the three months ended March 31, 2022 consisted of the following:
(in millions)
Portfolio Company
Net Realized Gains (Losses)
Athenahealth, Inc., VVC Holding Corp., Virence Intermediate Holding Corp., and Virence Holdings LLC$37 
Navisun LLC and Navisun Holdings LLC19 
Other, net13 
Total$69 

During the three months ended March 31, 2022, we also recognized net realized losses on foreign currency transactions of $11 million.

During the three months ended March 31, 2022, we repaid in full the $388 million in aggregate principal amount of unsecured convertible notes (the “2022 Convertible Notes”) upon their maturity at a premium in accordance with the terms of the indenture governing the 2022 Convertible Notes, resulting in a realized loss on the extinguishment of debt of $48 million.

Net Unrealized Gains/Losses

We value our portfolio investments quarterly and the changes in value are recorded as unrealized gains or losses in our consolidated statement of operations. Net unrealized gains and losses on investments for the three months ended March 31, 2023 and 2022, were comprised of the following:
 For the Three Months Ended March 31,
(in millions)20232022
Unrealized appreciation$224 $169 
Unrealized depreciation(287)(139)
Net unrealized depreciation (appreciation) reversed related to net realized gains or losses(1)48 (40)
Total net unrealized losses on investments$(15)$(10)
_______________________________________________________________________________

(1)The net unrealized depreciation reversed related to net realized gains or losses represents the unrealized appreciation or depreciation recorded on the related asset at the end of the prior period.

For the three months ended March 31, 2023, the net unrealized losses recorded on investments were largely due to declining prices in the credit and equity markets as market participants expected a higher return on similar investments as a result of the higher rate environment.

The changes in net unrealized appreciation and depreciation on investments during the three months ended March 31, 2023 consisted of the following:
(in millions)
Portfolio Company
Net Unrealized Appreciation (Depreciation)
Heelstone Renewable Energy, LLC and Heelstone Renewable Energy Investors, LLC$11 
Production Resource Group, L.L.C. and PRG III, LLC11 
SHO Holding I Corporation(12)
Neptune Bidco US Inc. and Elliott Metron Co-Investor Aggregator L.P.(15)
Senior Direct Lending Program, LLC(26)
ADG, LLC and RC IV GEDC Investor LLC(55)
Other, net23 
Total$(63)

During the three months ended March 31, 2023, we also recognized net unrealized gains on foreign currency and other transactions of $25 million.

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The changes in net unrealized appreciation and depreciation on investments during the three months ended March 31, 2022 consisted of the following:
(in millions)
Portfolio Company
Net Unrealized Appreciation (Depreciation)
Imaging Business Machines, L.L.C. and Scanner Holdings Corporation$13 
PhyMED Management LLC(38)
Other, net55 
Total$30 

During the three months ended March 31, 2022, we also recognized net unrealized gains on foreign currency and other transactions of $13 million.

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

Our liquidity and capital resources are generated primarily from the net proceeds of public offerings of equity and debt securities, advances from the Revolving Credit Facility, the Revolving Funding Facility, the SMBC Funding Facility and the BNP Funding Facility (each as defined below, and together, the “Facilities”), net proceeds from the issuance of other securities, including unsecured notes, as well as cash flows from operations.
 
In accordance with the Investment Company Act, we are allowed to borrow amounts such that our asset coverage, calculated pursuant to the Investment Company Act, is at least 150% after such borrowings (i.e., we are able to borrow up to two dollars for every dollar we have in assets less all liabilities and indebtedness not represented by senior securities issued by us). As of March 31, 2023, we had $359 million in cash and cash equivalents and $11.2 billion in total aggregate principal amount of debt outstanding ($11.2 billion at carrying value) and our asset coverage was 189%. Subject to borrowing base and other restrictions, we had approximately $4.4 billion available for additional borrowings under the Facilities as of March 31, 2023.
 
We may from time to time seek to retire or repurchase our common stock through cash purchases, as well as retire, cancel or purchase our outstanding debt through cash purchases and/or exchanges, in open market purchases, privately negotiated transactions or otherwise. The amounts involved may be material. In addition, we may from time to time enter into additional debt facilities, increase the size of existing facilities or issue additional debt securities, including secured debt, unsecured debt and/or debt securities convertible into common stock. Any such purchases or exchanges of common stock or outstanding debt, or incurrence or issuance of additional debt would be subject to prevailing market conditions, our liquidity requirements, contractual and regulatory restrictions and other factors.
Equity Capital Activities

As of March 31, 2023 and December 31, 2022, our total equity market capitalization was $9.9 billion and $9.6 billion, respectively.
    
We may from time to time issue and sell shares of our common stock through public or “at the market” offerings. In connection with the issuance of our common stock, we issued and sold the following shares of common stock during the three months ended March 31, 2023:

(in millions, except per share amount)
Issuances of Common Stock
Number of Shares IssuedGross ProceedsUnderwriting Fees/Offering ExpensesNet ProceedsAverage Offering Price Per Share(1)
Public offerings12.1$236.8 $13.4 $223.4 $19.61 (2)
“At the market” offerings13.2257.3 3.7 253.6 $19.48 
Total25.3$494.1 $17.1 $477.0 
________________________________________

(1)    Represents the gross offering price per share before deducting underwriting discounts and commissions and offering expenses.

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(2)    12.1 million of the shares were sold to the underwriters for a price of $18.53 per share which the underwriters were then permitted to sell at variable prices to the public.

“At the Market” Offerings

We are a party to equity distribution agreements with several banks (the “Equity Distribution Agreements”). The Equity Distribution Agreements provide that we may from time to time issue and sell, by means of “at the market” offerings, up to $500 million shares of our common stock. Subject to the terms and conditions of the Equity Distribution Agreements, sales of common stock, if any, may be made in transactions that are deemed to be “at the market” offerings as defined in Rule 415(a)(4) under the Securities Act of 1933, as amended. Under the currently effective Equity Distribution Agreements, common stock with an aggregate offering amount of $137 million remained available for issuance as of March 31, 2023.

Stock Repurchase Program

We are authorized under our stock repurchase program to purchase up to $500 million in the aggregate of our outstanding common stock in the open market at certain thresholds below our net asset value per share, in accordance with the guidelines specified in Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The timing, manner, price and amount of any share repurchases will be determined by us, in our sole discretion, based upon an evaluation of economic and market conditions, stock price, applicable legal and regulatory requirements and other factors. The stock repurchase program does not require us to repurchase any specific number of shares of common stock or any shares of common stock at all. Consequently, we cannot assure stockholders that any specific number of shares of common stock, if any, will be repurchased under the stock repurchase program. As of March 31, 2023, the expiration date of the stock repurchase program is February 15, 2024. The program may be suspended, extended, modified or discontinued at any time. As of March 31, 2023, there was $500 million available for additional repurchases under the program. See “Recent Developments,” as well as Note 14 to our consolidated financial statements for the three months ended March 31, 2023 for a subsequent event relating to our stock repurchase program.
 

During the three months ended March 31, 2023 and 2022, we did not repurchase any shares of our common stock in the open market under the stock repurchase program.

Price Range of Common Stock

The following table sets forth, for the first quarter of the year ending December 31, 2023 and each fiscal quarter for the fiscal years ended December 31, 2022 and 2021, the net asset value per share of our common stock, the range of high and low closing sales prices of our common stock, the closing sales price as a premium (discount) to net asset value and the dividends or distributions declared by us. On April 19, 2023, the last reported closing sales price of our common stock on the NASDAQ Global Select Market was $18.40 per share, which represented a discount of approximately 0.27% to the net asset value per share reported by us as of March 31, 2023.

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Net Asset Value(1)
Price Range
High
Sales Price
Premium
(Discount)
to Net Asset Value(2)
Low
Sales Price
Premium
(Discount)
to Net Asset Value(2)
Cash
Dividend
Per Share(3)
High
Low
Year ended December 31, 2021
First Quarter
$17.45 $19.23 $16.51 10.20 %(5.39)%$0.40 
Second Quarter
$18.16 $19.97 $18.29 9.97 %0.72 %$0.40 
Third Quarter
$18.52 $20.43 $19.52 10.31 %5.40 %$0.41 
Fourth Quarter
$18.96 $21.70 $19.66 14.45 %3.69 %$0.41 
Year ended December 31, 2022
First Quarter
$19.03 $22.58 $19.70 18.65 %3.52 %$0.54 (4)
Second Quarter
$18.81 $22.44 $17.12 19.30 %(8.98)%$0.42 
Third Quarter $18.56 $20.70 $16.84 11.53 %(9.27)%$0.43 
Fourth Quarter
$18.40 $19.76 $17.30 7.39 %(5.98)%$0.48 
Year ending December 31, 2023
First Quarter
$18.45 $20.04 $17.19 8.62 %(6.83)%$0.48 
_______________________________________________________________________________

(1)    Net asset value per share is determined as of the last day in the relevant quarter and therefore may not reflect the net asset value per share on the date of the high and low closing sales prices. The net asset values shown are based on outstanding shares at the end of the relevant quarter.

(2)    Calculated as the respective high or low closing sales price less net asset value, divided by net asset value (in each case, as of the applicable quarter).
(3)    Represents the dividend or distribution declared in the relevant quarter.
(4)    Consists of a quarterly dividend of $0.42 per share and additional quarterly dividends totaling $0.12 per share, all of which were declared in the first quarter of 2022 and paid on March 31, 2022, June 30, 2022, September 30, 2022 and December 29, 2022.
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Debt Capital Activities

Our debt obligations consisted of the following as of March 31, 2023 and December 31, 2022:
 As of 
 March 31, 2023December 31, 2022 
(in millions)Total
Aggregate
Principal
Amount
Available/
Outstanding(1)
 Principal Amount OutstandingCarrying
Value
 Total
Aggregate
Principal
Amount
Available/
Outstanding(1)
 Principal Amount OutstandingCarrying
Value
 
Revolving Credit Facility$4,843 (2)$1,872 $1,872 $4,843 (2)$2,246 $2,246 
Revolving Funding Facility1,775 850 850 1,775 800 800 
SMBC Funding Facility800 (3)401 401 800 (3)451 451 
BNP Funding Facility500 320 320 300 245 245 
2024 Convertible Notes403 403 400 (4)403 403 399 (4)
2023 Notes— — — 750 750 750 (4)
2024 Notes900 900 899 (4)900 900 898 (4)
March 2025 Notes600 600 598 (4)600 600 597 (4)
July 2025 Notes1,250 1,250 1,257 (4)1,250 1,250 1,258 (4)
January 2026 Notes1,150 1,150 1,145 (4)1,150 1,150 1,144 (4)
July 2026 Notes1,000 1,000 991 (4)1,000 1,000 991 (4)
2027 Notes500 500 494 (4)500 500 494 (4)
2028 Notes1,250 1,250 1,247 (4)1,250 1,250 1,247 (4)
2031 Notes700 700 690 (4)700 700 690 (4)
Total$15,671 $11,196 $11,164 $16,221 $12,245 $12,210 
________________________________________

(1)Represents the total aggregate amount committed or outstanding, as applicable, under such instrument. Borrowings under the committed Revolving Credit Facility, Revolving Funding Facility, SMBC Funding Facility and BNP Funding Facility (each as defined below) are subject to borrowing base and other restrictions.

(2)Provides for a feature that allows us, under certain circumstances, to increase the size of the Revolving Credit Facility (as defined below) to a maximum of $7.3 billion.

(3)Provides for a feature that allows ACJB (as defined below), under certain circumstances, to increase the size of the SMBC Funding Facility (as defined below) to a maximum of $1.0 billion.

(4)Represents the aggregate principal amount outstanding, less unamortized debt issuance costs and the net unaccreted/amortized discount or premium recorded upon issuance. In February 2023, we repaid in full the 2023 Notes (as defined below) upon their maturity.

 The weighted average stated interest rate and weighted average maturity, both on aggregate principal amount outstanding, of all our debt outstanding as of March 31, 2023 were 4.4% and 3.5 years, respectively, and as of December 31, 2022 were 4.2% and 3.6 years, respectively.
 
The ratio of total principal amount of debt outstanding to stockholders’ equity as of March 31, 2023 was 1.12:1.00 compared to 1.29:1.00 as of December 31, 2022.
 
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Revolving Credit Facility
 
We are party to a senior secured revolving credit facility (as amended and restated, the “Revolving Credit Facility”), that allows us to borrow up to $4.8 billion at any one time outstanding. The Revolving Credit Facility consists of a $1.1 billion term loan tranche and a $3.7 billion revolving tranche. For $1.0 billion of the term loan tranche, the stated maturity date is March 31, 2027. For $28 million of the term loan tranche, the stated maturity date is March 31, 2026. For the remaining $50 million of the term loan tranche, the stated maturity date is March 30, 2025. For $3.5 billion of the revolving tranche, the end of the revolving period and the stated maturity date are March 31, 2026 and March 31, 2027, respectively. For $107 million of the revolving tranche, the end of the revolving period and the stated maturity date are March 31, 2025 and March 31, 2026, respectively. For the remaining $150 million of the revolving tranche, the end of the revolving period and the stated maturity date are March 30, 2024 and March 30, 2025, respectively. The Revolving Credit Facility also provides for a feature that allows us, under certain circumstances, to increase the overall size of the Revolving Credit Facility to a maximum of $7.3 billion. The interest rate charged on the Revolving Credit Facility is based on Secured Overnight Financing Rate (“SOFR”) (or an alternative rate of interest for certain loans, commitments and/or other extensions of credit denominated in Sterling, Canadian Dollars, Euros and certain other foreign currencies) plus a credit spread adjustment of 0.10% and an applicable spread of either 1.75% or 1.875% or an “alternate base rate” (as defined in the agreements governing the Revolving Credit Facility) plus a credit spread adjustment of 0.10% and an applicable spread of either 0.75% or 0.875%, in each case, determined monthly based on the total amount of the borrowing base relative to the sum of (i) the greater of (a) the aggregate amount of revolving exposure and term loans outstanding under the Revolving Credit Facility and (b) 85% of the total commitments of the Revolving Credit Facility (or, if higher, the total revolving exposure) plus (ii) other debt, if any, secured by the same collateral as the Revolving Credit Facility. As of March 31, 2023, the applicable spread in effect was 1.75%. We are also required to pay a letter of credit fee of either 2.00% or 2.125% per annum on letters of credit issued, determined monthly based on the total amount of the borrowing base relative to the total commitments of the Revolving Credit Facility and other debt, if any, secured by the same collateral as the Revolving Credit Facility. Additionally, we are required to pay a commitment fee of 0.375% per annum on any unused portion of the Revolving Credit Facility. As of March 31, 2023, there was $1.9 billion outstanding under the Revolving Credit Facility and we were in compliance in all material respects with the terms of the Revolving Credit Facility. See “Recent Developments,” as well as Note 14 to our consolidated financial statements for the three months ended March 31, 2023 for a subsequent event relating to the Revolving Credit Facility.
 
Revolving Funding Facility
 
We and our consolidated subsidiary, Ares Capital CP Funding LLC (“Ares Capital CP”), are party to a revolving funding facility (as amended, the “Revolving Funding Facility”), that allows Ares Capital CP to borrow up to $1.8 billion at any one time outstanding. The Revolving Funding Facility is secured by all of the assets held by, and the membership interest in, Ares Capital CP. The end of the reinvestment period and the stated maturity date for the Revolving Funding Facility are December 29, 2024 and December 29, 2026, respectively. The interest rate charged on the Revolving Funding Facility is based on SOFR plus a credit spread adjustment of 0.10% or a “base rate” (as defined in the agreements governing the Revolving Funding Facility) plus an applicable spread of 1.90% per annum. Ares Capital CP is also required to pay a commitment fee of between 0.50% and 1.25% per annum depending on the size of the unused portion of the Revolving Funding Facility. As of March 31, 2023, there was $850 million outstanding under the Revolving Funding Facility and we and Ares Capital CP were in compliance in all material respects with the terms of the Revolving Funding Facility.

SMBC Funding Facility
 
We and our consolidated subsidiary, Ares Capital JB Funding LLC (“ACJB”), are party to a revolving funding facility (as amended, the “SMBC Funding Facility”), with ACJB, as the borrower, and Sumitomo Mitsui Banking Corporation, as the administrative agent and collateral agent, that allows ACJB to borrow up to $800 million at any one time outstanding. The SMBC Funding Facility also provides for a feature that allows ACJB, subject to receiving certain consents, to increase the overall size of the SMBC Funding Facility to $1.0 billion. The SMBC Funding Facility is secured by all of the assets held by ACJB. The end of the reinvestment period and the stated maturity date for the SMBC Funding Facility are May 28, 2024 and May 28, 2026, respectively. The reinvestment period and the stated maturity date are both subject to two one-year extensions by mutual agreement. The interest rate charged on the SMBC Funding Facility is based on an applicable spread of either 1.75% or 2.00% over LIBOR or 0.75% or 1.00% over a “base rate” (as defined in the agreements governing the SMBC Funding Facility), in each case, determined monthly based on the amount of the average borrowings outstanding under the SMBC Funding Facility. As of March 31, 2023, the applicable spread in effect was 1.75%. ACJB is also required to pay a commitment fee of between 0.50% and 1.00% per annum depending on the size of the unused portion of the SMBC Funding Facility. As of March 31, 2023, there was $401 million outstanding under the SMBC Funding Facility and we and ACJB were in compliance in all material respects with the terms of the SMBC Funding Facility.
  
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BNP Funding Facility
 
We and our consolidated subsidiary, ARCC FB Funding LLC (“AFB”), are party to a revolving funding facility (as amended, the “BNP Funding Facility”) with AFB, as the borrower, and BNP Paribas, as the administrative agent and lender, that allows AFB to borrow up to $500 million at any one time outstanding. The BNP Funding Facility is secured by all of the assets held by AFB. The end of the reinvestment period and the stated maturity date for the BNP Funding Facility are June 11, 2023 and June 11, 2025, respectively. The reinvestment period and the stated maturity date are both subject to a one-year extension by mutual agreement. As of March 31, 2023, the interest rate charged on the BNP Funding Facility was based on three month LIBOR, or a “base rate” (as defined in the agreements governing the BNP Funding Facility) plus a margin of (i) 1.80% during the reinvestment period and (ii) 2.30% following the reinvestment period. Beginning on December 11, 2020, AFB is required to pay a commitment fee of between 0.00% and 1.25% per annum depending on the size of the unused portion of the BNP Funding Facility. As of March 31, 2023, there was $320 million outstanding under the BNP Funding Facility and we and AFB were in compliance in all material respects with the terms of the BNP Funding Facility. See “Recent Developments,” as well as Note 14 to our consolidated financial statements for the three months ended March 31, 2023 for a subsequent event relating to the BNP Funding Facility.

Convertible Unsecured Notes
 
We have issued $403 million in aggregate principal amount of unsecured convertible notes that mature on March 1, 2024 (the “2024 Convertible Notes”) unless previously converted or repurchased in accordance with its terms. We do not have the right to redeem the 2024 Convertible Notes prior to maturity. The 2024 Convertible Notes bear interest at a rate of 4.625% per annum, payable semi-annually.

In certain circumstances, assuming the conversion date below has not already passed, the 2024 Convertible Notes will be convertible into cash, shares of our common stock or a combination of cash and shares of our common stock, at our election, at the conversion rate (listed below as of March 31, 2023) subject to customary anti-dilution adjustments and the requirements of the indenture (the “2024 Convertible Notes Indenture”). Prior to the close of business on the business day immediately preceding the conversion date (listed below), holders may convert their 2024 Convertible Notes only under certain circumstances set forth in the 2024 Convertible Notes Indenture. On or after the conversion date until the close of business on the second scheduled trading day immediately preceding the maturity date for the 2024 Convertible Notes, holders may convert their 2024 Convertible Notes at any time. In addition, if we engage in certain corporate events as described in the 2024 Convertible Notes Indenture, holders of the 2024 Convertible Notes may require us to repurchase for cash all or part of the 2024 Convertible Notes at a repurchase price equal to 100% of the principal amount of the 2024 Convertible Notes to be repurchased, plus accrued and unpaid interest through, but excluding, the required repurchase date.

Certain key terms related to the convertible features for the 2024 Convertible Notes as of March 31, 2023 are listed below.
2024 Convertible Notes
Conversion premium15.0 %
Closing stock price at issuance$17.29 
Closing stock price dateMarch 5, 2019
Conversion price(1)$19.62 
Conversion rate (shares per one thousand dollar principal amount)(1)50.9784 
Conversion dateDecember 1, 2023
________________________________________

(1)Represents conversion price and conversion rate, as applicable, as of March 31, 2023, taking into account any applicable de minimis adjustments that will be made on the conversion date.
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Unsecured Notes
 
We issued certain unsecured notes (each issuance of which is referred to herein using the “defined term” set forth under the “Unsecured Notes” column of the table below and collectively referred to as the “Unsecured Notes”), that pay interest semi-annually and all principal amounts are due upon maturity. Each of the Unsecured Notes may be redeemed in whole or in part at any time at our option at a redemption price equal to par plus a “make whole” premium, if applicable, as determined pursuant to the indentures governing each of the Unsecured Notes, plus any accrued and unpaid interest. Certain key terms related to the features for the Unsecured Notes as of March 31, 2023 are listed below.

(dollar amounts in millions)
Unsecured Notes
Aggregate Principal Amount IssuedInterest RateOriginal Issuance DateMaturity Date
2024 Notes$900 4.200%June 10, 2019June 10, 2024
March 2025 Notes$600 4.250%January 11, 2018March 1, 2025
July 2025 Notes$1,250 3.250%January 15, 2020July 15, 2025
January 2026 Notes$1,150 3.875%July 15, 2020January 15, 2026
July 2026 Notes$1,000 2.150%January 13, 2021July 15, 2026
2027 Notes$500 2.875%January 13, 2022June 15, 2027
2028 Notes$1,250 2.875%June 10, 2021June 15, 2028
2031 Notes$700 3.200%November 4, 2021November 15, 2031

In February 2023, the $750 million in aggregate principal amount of unsecured notes that matured on February 10, 2023 (the “2023 Notes”) were redeemed at par plus accrued and unpaid interest for a total redemption price of approximately $763 million. The 2023 Notes bore interest at a rate of 3.500% per annum, payable semi-annually.

See Note 5 to our consolidated financial statements for the three months ended March 31, 2023 for more information on our debt obligations.

As of March 31, 2023, we were in compliance in all material respects with the terms of the 2024 Convertible Notes Indenture and the indentures governing the Unsecured Notes.

The 2024 Convertible Notes and the Unsecured Notes are our senior unsecured obligations and rank senior in right of payment to any future indebtedness that is expressly subordinated in right of payment to the 2024 Convertible Notes and the Unsecured Notes; equal in right of payment to our existing and future unsecured indebtedness that is not expressly subordinated; effectively junior in right of payment to any of our secured indebtedness (including existing unsecured indebtedness that we later secure) to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by our subsidiaries, financing vehicles or similar facilities.

RECENT DEVELOPMENTS

In April 2023, we amended our Revolving Credit Facility. The amendment, among other things, (a) extended the expiration of the revolving period for lenders electing to extend their revolving commitments in an amount equal to approximately $2.9 billion from March 31, 2026 to April 19, 2027, during which period we, subject to certain conditions, may make borrowings under the Revolving Credit Facility, (b) extended the stated maturity date for lenders electing to extend their revolving commitments in an amount equal to approximately $2.9 billion from March 31, 2027 to April 19, 2028 and (c) extended the stated maturity date for $908 million of the lenders electing to extend their term loan commitments from March 31, 2027 to April 19, 2028. Lenders who elected not to extend their revolving commitments in an amount equal to approximately $150 million, $107 million and $494 million will remain subject to a revolving period expiration of March 30, 2024, March 31, 2025 and March 31, 2026, respectively, and stated maturity dates of March 30, 2025, March 31, 2026 and March 31, 2027, respectively. Lenders who elected not to extend their term loan commitments in an amount equal to $50
186


million, $28 million and $116 million will remain subject to maturity dates of March 30, 2025, March 31, 2026 and March 31, 2027, respectively.

In April 2023, we and our consolidated subsidiary, AFB, entered into an amendment to the BNP Funding Facility. The amendment among other things, (a) increased the commitments under the BNP Funding Facility from $500 million to $790 million, (b) extended the end of the reinvestment period and the stated maturity date from June 11, 2023 and June 11, 2025 to April 20, 2026 and April 20, 2028, respectively and (c) adjusted the interest rate charged on the BNP Funding Facility from an applicable SOFR or a "base rate" (as defined in the BNP Funding Facility) plus a margin of (i) 2.30% during the reinvestment period and (ii) 2.80% following the reinvestment period to an applicable SOFR or a "base rate" plus a margin of (i) 2.80% during the reinvestment period and (ii) 3.30% following the reinvestment period.

In April 2023, our board of directors authorized an amendment to our stock repurchase program to increase the total authorization from $500 million to $1.0 billion. Under the stock repurchase program, we may repurchase up to $1.0 billion in the aggregate of our outstanding common stock in the open market at a price per share that meets certain thresholds below our net asset value per share, in accordance with the guidelines specified in Rule 10b-18 of the Exchange Act. The timing, manner, price and amount of any share repurchases will be determined by us, in our discretion, based upon the evaluation of economic and market conditions, stock price, applicable legal and regulatory requirements and other factors.

From April 1, 2023 through April 19, 2023, we made new investment commitments of approximately $369 million, of which $311 million were funded. Of these new investment commitments, 66% were in first lien senior secured loans and 34% were in second lien senior secured loans. Of the approximately $369 million of new investment commitments, 67% were floating rate and 33% were fixed rate. The weighted average yield of debt and other income producing securities funded during the period at amortized cost was 11.4% and the weighted average yield on total investments funded during the period at amortized cost was 11.3%. We may seek to sell all or a portion of these new investment commitments, although there can be no assurance that we will be able to do so.

From April 1, 2023 through April 19, 2023, we exited approximately $397 million of investment commitments, including $4 million of loans sold to IHAM or certain vehicles managed by IHAM. Of the total investment commitments exited, 78% were first lien senior secured loans, 21% were second lien senior secured loans and 1% were senior subordinated loans. Of the approximately $397 million of exited investment commitments, 99% were floating rate and 1% were fixed rate. The weighted average yield of debt and other income producing securities exited or repaid during the period at amortized cost was 10.8% and the weighted average yield on total investments exited or repaid during the period at amortized cost was 10.8%. Of the approximately $397 million of investment commitments exited from April 1, 2023 through April 19, 2023, we recognized total net realized losses of approximately $1 million, with no realized gains or losses recognized from the sale of loans to IHAM or certain vehicles managed by IHAM.

In addition, as of April 19, 2023, we had an investment backlog and pipeline of approximately $310 million and $190 million, respectively. Investment backlog includes transactions approved by our investment adviser’s investment committee and/or for which a formal mandate, letter of intent or a signed commitment have been issued, and therefore we believe are likely to close. Investment pipeline includes transactions where due diligence and analysis are in process, but no formal mandate, letter of intent or signed commitment have been issued. The consummation of any of the investments in this backlog and pipeline depends upon, among other things, one or more of the following: satisfactory completion of our due diligence investigation of the prospective portfolio company, our acceptance of the terms and structure of such investment and the execution and delivery of satisfactory transaction documentation. In addition, we may sell all or a portion of these investments and certain of these investments may result in the repayment of existing investments. We cannot assure you that we will make any of these investments or that we will sell all or any portion of these investments.

CRITICAL ACCOUNTING ESTIMATES

The preparation of our consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Changes in the economic environment, financial markets, and any other parameters used in determining such estimates could cause actual results to differ. Our critical accounting estimates, including those relating to the valuation of our investment portfolio, are described below. The critical accounting estimates should be read in conjunction with our risk factors as disclosed in “Item 1A. Risk Factors.” See Note 2 to our consolidated financial statements for the three months ended March 31, 2023 for more information on our critical accounting policies.

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Investments

Investment transactions are recorded on the trade date. Realized gains or losses are measured by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment using the specific identification method without regard to unrealized gains or losses previously recognized, and include investments charged off during the period, net of recoveries. Unrealized gains or losses primarily reflect the change in investment values, including the reversal of previously recorded unrealized gains or losses when gains or losses are realized.

Effective October 1, 2022, pursuant to Rule 2a-5 under the 1940 Act, our board of directors selected our investment adviser as our valuation designee to perform the fair value determinations for investments held by us without readily available market quotations.

Investments for which market quotations are readily available are typically valued at such market quotations. In order to validate market quotations, our investment adviser, as the valuation designee, looks at a number of factors to determine if the quotations are representative of fair value, including the source and nature of the quotations. Debt and equity securities that are not publicly traded or whose market prices are not readily available (i.e., substantially all of our investments) are valued at fair value as determined in good faith by our investment adviser, as the valuation designee, subject to the oversight of our board of directors, based on, among other things, the input of independent third‑party valuation firms that have been engaged to support the valuation of such portfolio investments at least once during a trailing 12‑month period (with certain de minimis exceptions) and under a valuation policy and a consistently applied valuation process. The valuation process is conducted at the end of each fiscal quarter by our investment adviser, and a portion of our investment portfolio at fair value is subject to review by an independent third-party valuation firm each quarter. In addition, our independent registered public accounting firm obtains an understanding of, and performs select procedures relating to, our valuation process within the context of performing our integrated audit.

As part of the valuation process, our investment adviser may take into account the following types of factors, if relevant, in determining the fair value of our investments: the enterprise value of a portfolio company (the entire value of the portfolio company to a market participant, including the sum of the values of debt and equity securities used to capitalize the enterprise at a point in time), the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flow, the markets in which the portfolio company does business, a comparison of the portfolio company’s securities to any similar publicly traded securities, changes in the interest rate environment and the credit markets, which may affect the price at which similar investments would trade in their principal markets and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent sale occurs, our investment adviser considers the pricing indicated by the external event to corroborate the valuation.

Because there is not a readily available market value for most of the investments in our portfolio, substantially all of our portfolio investments are valued at fair value as determined in good faith by our investment adviser, as the valuation designee, as described herein. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may fluctuate from period to period. Additionally, the fair value of our investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that we may ultimately realize. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we could realize significantly less than the value at which we have recorded it.

In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the valuations currently assigned.

Our investment adviser, as the valuation designee, subject to the oversight of our board of directors, undertakes a multi‑step valuation process each quarter, as described below:

Our quarterly valuation process begins with a preliminary valuation being prepared by the investment professionals responsible for the portfolio investment in conjunction with our portfolio management and valuation team.

Preliminary valuations are reviewed and discussed by our investment adviser’s valuation committee.

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Our investment adviser’s valuation committee determines the fair value of each investment in our portfolio without a readily available market quotation in good faith based on, among other things, the input of the independent third‑party valuation firms, where applicable.

Fair Value of Financial Instruments

We follow ASC 825-10, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASC 825-10”), which provides companies the option to report selected financial assets and liabilities at fair value. ASC 825-10 also establishes presentation and disclosure requirements designed to facilitate comparisons between companies that choose different measurement attributes for similar types of assets and liabilities and a better understanding of the effect of our choice to use fair value on its earnings. ASC 825-10 also requires entities to display the fair value of the selected assets and liabilities on the face of the balance sheet. We have not elected the ASC 825-10 option to report selected financial assets and liabilities at fair value. With the exception of the line items entitled “other assets” and “debt,” which are reported at amortized cost, the carrying value of all other assets and liabilities approximate fair value.

We also follow ASC 820-10, which expands the application of fair value accounting. ASC 820-10 defines fair value, establishes a framework for measuring fair value in accordance with GAAP and expands disclosure of fair value measurements. ASC 820-10 determines fair value to be the price that would be received for an investment in a current sale, which assumes an orderly transaction between market participants on the measurement date. ASC 820-10 requires us to assume that the portfolio investment is sold in its principal market to market participants or, in the absence of a principal market, the most advantageous market, which may be a hypothetical market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact. In accordance with ASC 820-10, we have considered its principal market as the market in which we exit our portfolio investments with the greatest volume and level of activity. ASC 820-10 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. In accordance with ASC 820-10, these inputs are summarized in the three broad levels listed below:

Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access.

Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

In addition to using the above inputs in investment valuations, we continue to employ the net asset valuation policy approved by our board of directors that is consistent with ASC 820-10. Consistent with our valuation policy, our investment adviser evaluates the source of inputs, including any markets in which our investments are trading (or any markets in which securities with similar attributes are trading), in determining fair value. Our valuation policy considers the fact that because there is not a readily available market value for most of the investments in our portfolio, the fair value of the investments must typically be determined using unobservable inputs.

Our portfolio investments (other than as described below in the following paragraph) are typically valued using two different valuation techniques. The first valuation technique is an analysis of the enterprise value (“EV”) of the portfolio company. Enterprise value means the entire value of the portfolio company to a market participant, including the sum of the values of debt and equity securities used to capitalize the enterprise at a point in time. The primary method for determining EV uses a multiple analysis whereby appropriate multiples are applied to the portfolio company’s EBITDA (generally defined as net income before net interest expense, income tax expense, depreciation and amortization). EBITDA multiples are typically determined based upon review of market comparable transactions and publicly traded comparable companies, if any. Our investment adviser may also employ other valuation multiples to determine EV, such as revenues or, in the case of certain portfolio companies in the power generation industry, kilowatt capacity. The second method for determining EV uses a discounted cash flow analysis whereby future expected cash flows of the portfolio company are discounted to determine a present value using estimated discount rates (typically a weighted average cost of capital based on costs of debt and equity consistent with current market conditions). The EV analysis is performed to determine the value of equity investments, the value of debt investments in portfolio companies where we have control or could gain control through an option or warrant security, and to determine if there is credit impairment for debt investments. If debt investments are credit impaired, an EV analysis may be used to value such debt investments; however, in addition to the methods outlined above, other methods such as a liquidation or wind-down analysis may be utilized to estimate enterprise value. The second valuation technique is a yield analysis, which is typically performed for non-credit impaired debt investments in portfolio companies where we do not own a
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controlling equity position. To determine fair value using a yield analysis, a current price is imputed for the investment based upon an assessment of the expected market yield for a similarly structured investment with a similar level of risk. In the yield analysis, our investment adviser considers the current contractual interest rate, the maturity and other terms of the investment relative to the risk of the company and the specific investment. A key determinant of risk, among other things, is the leverage through the investment relative to the enterprise value of the portfolio company. As debt investments held by us are substantially illiquid with no active transaction market, our investment adviser, as the valuation designee, depends on primary market data, including newly funded transactions, as well as secondary market data with respect to high yield debt instruments and syndicated loans, as inputs in determining the appropriate market yield, as applicable.

For other portfolio investments such as investments in the SDLP Certificates and IHAM, discounted cash flow analysis is the primary technique utilized to determine fair value. Expected future cash flows associated with the investment are discounted to determine a present value using a discount rate that reflects estimated market return requirements.

See Note 8 to our consolidated financial statements for the three months ended March 31, 2023 for more information on our valuation process.

Item 3.    Quantitative and Qualitative Disclosures About Market Risk

We are subject to financial market risks, including changes in interest rates and the valuations of our investment portfolio. Uncertainty with respect to the rising interest rates, inflationary pressures, risks in respect of a failure to increase the U.S. debt ceiling, the war in Ukraine and Russia and the failure of major financial institutions introduced significant volatility in the financial markets, and the effects of this volatility has materially impacted and could continue to materially impact our market risks, including those listed below. For additional information concerning these risks and their potential impact on our business and our operating results, see “Risk Factors—General Risk Factors—Global economic, political and market conditions, including uncertainty about the financial stability of the United States, could have a significant adverse effect on our business, financial condition and results of operations”, “Risk Factors—Risks Relating to Our Investments—Economic recessions or downturns could impair our portfolio companies and harm our operating results” and “Risk Factors—Risks Relating to Our Business—Inflation has adversely affected and may continue to adversely affect the business, results of operations and financial condition of our portfolio companies” in our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 7, 2023.

Investment Valuation Risk

Because there is not a readily available market value for most of the investments in our portfolio, substantially all of our portfolio investments are valued at fair value as determined in good faith by our investment adviser, as the valuation designee, subject to the oversight of our board of directors based on, among other things, the input of the independent third-party valuation firms that have been engaged to support the valuation of each portfolio investment without a readily available market quotation at least once during a trailing 12-month period (with certain de minimis exceptions). Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may fluctuate from period to period. Additionally, the fair value of our investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that we may ultimately realize. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we could realize significantly less than the value at which we have recorded it. In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the valuations currently assigned. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” as well as Notes 2 and 8 to our consolidated financial statements for the three months ended March 31, 2023 for more information relating to our investment valuation.

Interest Rate Risk
 
Interest rate sensitivity refers to the change in our earnings that may result from changes in the level of interest rates. Because we fund a portion of our investments with borrowings, our net investment income is affected by the difference between the rate at which we invest and the rate at which we borrow. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income. See “Risk Factors—Risks Relating to Our Business—We are exposed to risks associated with changes in interest rates, including the current rising interest rate environment” in our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 7, 2023.
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In a prolonged low interest rate environment, the difference between the total interest income earned on interest earning assets and the total interest expense incurred on interest bearing liabilities may be compressed, reducing our net income and potentially adversely affecting our operating results. Conversely, in a rising interest rate environment, such difference could potentially increase thereby increasing our net income as indicated per the table below.

As of March 31, 2023, 69% of the investments at fair value in our portfolio bore interest and dividends at variable rates (including our investment in the SDLP Certificates which accounted for 6% of our total investments at fair value), 11% bore interest at fixed rates, 10% were non-income producing, 1% were on non-accrual status and 9% was our equity investment in IHAM which generally pays a quarterly dividend. Additionally, excluding our investment in the SDLP Certificates, 94% of the remaining variable rate investments at fair value contained interest rate floors. The Revolving Credit Facility, the Revolving Funding Facility, the SMBC Funding Facility and the BNP Funding Facility bear interest at variable rates with no interest rate floors. The Unsecured Notes and the 2024 Convertible Notes bear interest at fixed rates.
 
We regularly measure our exposure to interest rate risk. We assess interest rate risk and manage our interest rate exposure on an ongoing basis by comparing our interest rate sensitive assets to our interest rate sensitive liabilities. Based on that review, we determine whether or not any hedging transactions are necessary to mitigate exposure to changes in interest rates.

Based on our March 31, 2023 balance sheet, the following table shows the annual impact on net income of base rate changes in interest rates (considering interest rate floors for variable rate instruments) assuming no changes in our investment and borrowing structure:
(in millions)
Basis Point Change
Interest and Dividend
Income
Interest
Expense
Net
Income(1)
Up 300 basis points$463 $103 $360 
Up 200 basis points$313 $69 $244 
Up 100 basis points$163 $34 $129 
Down 100 basis points$(133)$(34)$(99)
Down 200 basis points$(278)$(69)$(209)
Down 300 basis points$(415)$(103)$(312)
________________________________________

(1)Excludes the impact of income based fees. See Note 3 to our consolidated financial statements for the three months ended March 31, 2023 for more information on the income based fees.

Based on our December 31, 2022 balance sheet, the following table shows the annual impact on net income of base rate changes in interest rates (considering interest rate floors for variable rate instruments) assuming no changes in our investment and borrowing structure:
(in millions)
Basis Point Change
Interest and Dividend
Income
Interest
Expense
Net
Income(1)
Up 300 basis points$499 $112 $387 
Up 200 basis points$343 $75 $268 
Up 100 basis points$187 $37 $150 
Down 100 basis points$(155)$(37)$(118)
Down 200 basis points$(308)$(75)$(233)
Down 300 basis points$(454)$(112)$(342)
_______________________________________________________________________________

(1)Excludes the impact of income based fees. See Note 3 to our consolidated financial statements for the three months ended March 31, 2023 for more information on the income based fees.


Item 4.    Controls and Procedures
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Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as that term is defined in Rules 13a‑15(e) and 15d‑15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosures. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Our management, with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2023. Based upon that evaluation and subject to the foregoing, our principal executive officer and principal financial officer concluded that, as of March 31, 2023, the design and operation of our disclosure controls and procedures were effective to accomplish their objectives at the reasonable assurance level.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Rules 13a‑15(f) and 15d‑15(f) under the Exchange Act) during the quarter ended March 31, 2023 that have materially affected, or that are reasonably likely to materially affect, our internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1.    Legal Proceedings
    
    We are subject to certain legal proceedings, from time to time, in the ordinary course of business. From time to time,
we, our executive officers, directors and our investment adviser may, in the ordinary course of business, be named as
defendants in litigation arising from our investments in our portfolio companies and may, as a result, incur significant costs and
expenses in connection with such litigation. We and our investment adviser are also subject to extensive regulation, which may
result in regulatory proceedings or investigations against us or our investment adviser, respectively. While the outcome of any
such future legal or regulatory proceedings cannot be predicted with certainty, neither us nor our investment adviser expect that
any such future proceedings will have a material effect upon our financial condition or results of operations.

Item 1A.     Risk Factors

In addition to the other information set forth in this report, you should carefully consider the risk factors described below and in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and those set forth under the caption “Risk Factors” in our Form N-2, which could materially affect our business, financial condition and/or operating results. The risks described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, and in the Form N-2 are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results.

Our business is dependent on bank relationships and recent strain on the banking system may adversely impact us.

The financial markets recently have encountered volatility associated with concerns about the balance sheets of banks, especially small and regional banks who may have significant losses associated with investments that make it difficult to fund demands to withdraw deposits and other liquidity needs. Although the federal government has announced measures to assist these banks and protect depositors, some banks have already been impacted and others may be materially and adversely impacted. Our business is dependent on bank relationships and we are proactively monitoring the financial health of such bank relationships. Continued strain on the banking system may adversely impact our business, financial condition and results of operations.

Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds.
 
Dividend Reinvestment Plan

We did not sell any equity securities during the period covered in this report that were not registered under the Securities Act of 1933, as amended.
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During the quarter ended March 31, 2023, as part of our dividend reinvestment plan for our common stockholders, we did not purchase shares of our common stock in the open market in order to satisfy the reinvestment portion of our dividends.

Stock Repurchase Program

In February 2023, our board of directors authorized an amendment to our existing stock repurchase program to (a) extend the expiration date of the program from February 15, 2023 to February 15, 2024 and (b) increase the amount of the stock repurchase program to a full $500 million. Under the program, we may repurchase up to $500 million in the aggregate of our outstanding common stock in the open market at certain thresholds below our net asset value per share, in accordance with the guidelines specified in Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The timing, manner, price and amount of any share repurchases will be determined by us, in our sole discretion, based upon an evaluation of economic and market conditions, stock price, applicable legal and regulatory requirements and other factors. The stock repurchase program will be in effect through February 15, 2024, unless extended or until the approved dollar amount has been used to repurchase shares. The stock repurchase program does not require us to repurchase any specific number of shares of common stock or any shares of common stock at all. Consequently, we cannot assure stockholders that any specific number of shares of common stock, if any, will be repurchased under the stock repurchase program. The program may be suspended, extended, modified or discontinued at any time. See “Recent Developments,” as well as Note 14 to our consolidated financial statements for the three months ended March 31, 2023 for a subsequent event relating to our stock repurchase program.

During the quarter ended March 31, 2023, there were no repurchases of our common stock under our stock repurchase program. As of March 31, 2023, the approximate dollar value of shares that may yet be purchased under the program was $500 million.

Item 3.     Defaults Upon Senior Securities.
 
Not applicable.

Item 4.     Mine Safety Disclosures
 
Not applicable.

Item 5.    Other Information

Effective as of April 19, 2023, the Company amended its Revolving Credit Facility. The amendment, among other things, (a) extended the expiration of the revolving period for lenders electing to extend their revolving commitments in an amount equal to approximately $2.9 billion from March 31, 2026 to April 19, 2027, during which period the Company, subject to certain conditions, may make borrowings under the Revolving Credit Facility, (b) extended the stated maturity date for lenders electing to extend their revolving commitments in an amount equal to approximately $2.9 billion from March 31, 2027 to April 19, 2028 and (c) extended the stated maturity date for $908 million of the lenders electing to extend their term loan commitments from March 31, 2027 to April 19, 2028. Lenders who elected not to extend their revolving commitments in an amount equal to approximately $150 million, $107 million and $494 million will remain subject to a revolving period expiration of March 30, 2024, March 31, 2025 and March 31, 2026, respectively, and stated maturity dates of March 30, 2025, March 31, 2026 and March 31, 2027, respectively. Lenders who elected not to extend their term loan commitments in an amount equal to $50 million, $28 million and $116 million will remain subject to maturity dates of March 30, 2025, March 31, 2026 and March 31, 2027, respectively.

A copy of the Revolving Credit Facility, as amended, is filed as Exhibit 10.1 to this report and incorporated herein by reference.

Effective as of April 20, 2023, the Company and its consolidated subsidiary, AFB, entered into an amendment to the BNP Funding Facility. The amendment among other things, (a) increased the commitments under the BNP Funding Facility from $500 million to $790 million, (b) extended the end of the reinvestment period and the stated maturity date from June 11, 2023 and June 11, 2025 to April 20, 2026 and April 20, 2028, respectively and (c) adjusted the interest rate charged on the BNP Funding Facility from an applicable SOFR or a "base rate" (as defined in the BNP Funding Facility) plus a margin of (i) 2.30% during the reinvestment period and (ii) 2.80% following the reinvestment period to an applicable SOFR or a "base rate" plus a margin of (i) 2.80% during the reinvestment period and (ii) 3.30% following the reinvestment period.

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A copy of the BNP Funding Facility, as amended, is filed as Exhibit 10.3 to this report and incorporated herein by reference.

Effective as of April 24, 2023, the Company amended its charter to increase the number of shares of common stock it is authorized to issue from 700,000,000 to 1,000,000,000. The Company effected the increase by filing Articles of Amendment (the "Amendment") with the State Department of Assessments and Taxation of Maryland.

A copy of our Articles of Amendment and Restatement, as further amended by the Amendment, is filed as Exhibit 3.1 to this report and incorporated herein by reference.

Item 6.     Exhibits.    
 
EXHIBIT INDEX
Exhibit Number Description
 Articles of Amendment and Restatement, as amended*
 Third Amended and Restated Bylaws, as amended(1)
Fourteenth Amended and Restated Senior Secured Revolving Credit Agreement, dated as of April 19, 2023, among Ares Capital Corporation, the lenders party thereto, and JPMorgan Chase Bank, N.A., as administrative agent*
Fourth Amendment to the Revolving Credit and Security Agreement, dated as of January 9, 2023, among ARCC FB Funding LLC, as borrower, the lenders from time to time parties thereto, BNP Paribas, as administrative agent and lender, Ares Capital Corporation, as equityholder and servicer, and U.S. Bank National Association, as collateral agent(2)
Fifth Amendment to the Revolving Credit and Security Agreement, dated as of April 20, 2023, among ARCC FB Funding LLC, as borrower, the lenders from time to time parties thereto, BNP Paribas, as administrative agent and lender, Ares Capital Corporation, as equityholder and servicer, and U.S. Bank National Association, as collateral agent*
 Certification by Chief Executive Officer pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
 Certification by Chief Financial Officer pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
 Certification by Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**
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 ________________________________________

*    Filed herewith
**    This certification is not deemed filed by the SEC and is not to be incorporated by reference in any filing we make under the Securities Act of 1933 or the Securities Exchange Act of 1934, irrespective of any general incorporation language in any filings.
(1)Incorporated by reference to Exhibit 3.2 to the Company’s Form 10-K (File No. 814-00663) for the year ended December 31, 2018, filed on February 12, 2019.
(2)Incorporated by reference to Exhibit 10.38 to the Company's Form 10-K (File No. 814-00663) for the year ended December 31, 2022, filed on February 7, 2022.

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SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

  
 ARES CAPITAL CORPORATION
  
   
Date: April 25, 2023By/s/ R. KIPP DEVEER
  R. Kipp deVeer
Chief Executive Officer
   
Date: April 25, 2023By/s/ PENNI F. ROLL
  Penni F. Roll
Chief Financial Officer
Date: April 25, 2023By/s/ SCOTT C. LEM
  Scott C. Lem
Chief Accounting Officer, Vice President and Treasurer
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