After spending the past six months at a middle-of-the-road three-star rank, Ares Capital
The business of lending to small companies has been good lately, and Ares Capital is finding more opportunities in the business development market. Many CAPS members were happy to see Ares Capital purchase rival Allied Capital and believe it will not only give it an opportunity to reposition some loans into higher-yielding investments but also improve its competitive and financing position. With Ares now the nation's largest business development company, investors see the larger amount of assets under management after the Allied purchase as an advantage.
Ares reported a big jump in first-quarter earnings helped by improved portfolio performance and higher asset values. Strong performance is evident in sector peers as well. Asset appreciation has also been reported by debt-laden peer American Capital
Although Wells Fargo's
Peer Apollo Investment
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