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Zitat:One other stock we’ll take a look at this week in light of the Fed’s recent moves is Ares Capital (ARCC: $18.50, down 1%, Yield = 8.4%). Ares is the largest middle-market lender in the world – so large, in fact, that the company occasionally does deals that qualify as large-cap ($500 million and above).
In light of the Fed’s recent moves, Ares is poised to benefit for a different reason than Annaly. As a middle-market lender, the company invests in private portfolio companies. As the broader market improves and achieves some measure of stability, private companies earn enough breathing room to make strategic and operational decisions that enable them to grow, which means Ares benefits as their lender. In other words, what’s good for the broader economy is good for Ares. And stable interest rates are good for the broader economy.
Ares is also benefitting from the flight of institutional capital to the private equity sector. If you’ve been following BMR, you know we’ve written about this several times in our coverage of PE titans Blackstone and Carlyle. The two are raising record amounts of capital at the moment. This impacts Ares because with the big boys in the space focused on multibillion-dollar deals, there is less competition for Ares to worry about. Suddenly, management doesn’t have to be concerned that Blackstone, Carlyle or KKR will swoop in and eat their lunch by doing a nine-figure deal. Those firms are focused on much bigger fish, which leaves Ares – as the largest middle-market lender in existence – in a dominant position.
Es ist für mich wichtig zu verstehen, wie ein Unternehmer sein Geld verdient.
