Ares Capital agrees to acquire MidCap Financial for $3B

Apollo: Apollo Global Management is a leading global alternative asset manager with significant operations in private credit and direct lending. It manages MidCap Financial Investment Corporation through a subsidiary. The firm is divesting the MidCap fund to Ares Capital as part of active steps to support stockholder value across its public vehicles. Ares Capital: Ares Capital Corporation is the largest publicly traded business development company focused on providing direct loans and other investments to private middle-market companies in the United States, managed by a subsidiary of Ares Management. It specializes in U.S. direct lending. The firm has agreed to acquire MidCap Financial Investment Corporation from Apollo Global Management to further strengthen its position as the largest public BDC and expand its middle-market lending platform. MidCap Financial: MidCap Financial Investment Corporation is a publicly traded business development company that focuses on senior secured investments and private credit for middle-market businesses. It operates as a closed-end fund externally managed by a subsidiary of Apollo Global Management. Apollo has agreed to sell the fund to Ares Capital in a cash-and-stock transaction. Industry Context: Private credit managers have pursued sales of funds amid broader market conditions, attracting interest from larger platforms seeking to expand their direct lending capabilities. Merger Rationale: The transaction is expected to be modestly accretive to Ares Capital’s core earnings and support future dividends while enhancing scale, diversification, and market presence in direct lending. Portfolio Benefits: The deal will provide Ares Capital access to MidCap's senior secured investments with compelling yields and deepen sponsor networks in the middle market.