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Ares Capital Defies AI Fears, Reports Stable Loans
29 Apr
Summary
- Ares Capital's software loan exposure is nearly 22% of its portfolio.
- An external review found limited AI-related risk across software loans.
- Portfolio net asset value per share decreased slightly to $19.59.
Ares Capital Corp. navigated recent industry liquidity challenges and concerns over artificial intelligence's impact on its portfolio, as evidenced by its balance sheet at the close of the March quarter. The firm reported a slight dip in earnings but maintained robust funding.
Despite software and services accounting for nearly 22% of Ares Capital's loan portfolio, an external review commissioned by the company indicated that AI-related risks across these holdings are relatively limited. Approximately 85% of the software portfolio was categorized as low risk.
While the fair value of Ares Capital's assets was $29.499 billion against an amortized cost of $29.648 billion, only a few software loans saw valuation adjustments. The net asset value per share declined from $19.94 at the end of 2025 to $19.59 at the end of the first quarter of 2026.
Analysts maintain a positive outlook, citing Ares Capital's extensive history through market cycles and its significant position as an origination platform in the industry.
