Private Credit Portfolio Analysis | Ares Capital Reports Q1 2025 Results
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- 4 days ago
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Whats New:
Ares Capital Corporation reported its Q1 2025 financial results, showing growth in total assets and investments owned at fair value compared to the previous quarter. The fund's total assets increased to $28.32 billion as of March 31, 2025, up from $28.25 billion at the end of 2024. Investments owned at fair value rose to $27.13 billion from $26.72 billion in the previous quarter.
Portfolio Dynamics:
Total assets grew to $28.32 billion as of March 31, 2025, compared to $28.25 billion at the end of 2024.
Investments owned at fair value increased to $27.13 billion, up from $26.72 billion at the end of 2024.
Cash and cash equivalents rose to $647 million from $635 million at the end of 2024.
Investment Activty:
Receivable from investment sales decreased to $33 million from $224 million at the end of 2024.
Interest receivable decreased to $239 million from $292 million at the end of 2024.
Other assets increased to $173 million from $158 million at the end of 2024.
Capital Structure:
Long-term debt increased to $13.92 billion from $13.73 billion at the end of 2024.
Stockholders' equity grew to $13.67 billion from $13.36 billion at the end of 2024.
Additional paid-in capital increased to $12.91 billion from $12.50 billion at the end of 2024.
Performance Profile:
Net asset value per share decreased to $19.82 as of March 31, 2025, compared to $19.89 at the end of 2024.
Retained earnings decreased to $765 million from $852 million at the end of 2024.
Net income for Q1 2025 was $241 million, compared to $449 million in Q1 2024.
Risk & Quality:
Management fee payable increased to $102 million from $100 million at the end of 2024.
Income-based fees payable decreased to $85 million from $91 million at the end of 2024.
Incentive fee payable decreased to $80 million from $105 million at the end of 2024.
The Wrap:
Ares Capital Corporation demonstrated modest growth in Q1 2025, with increases in total assets and investments at fair value. However, the fund experienced a slight decrease in net asset value per share and a significant reduction in net income compared to the same quarter last year. The fund's capital structure shows increased long-term debt and stockholders' equity, reflecting ongoing investment activities and capital management strategies.