Ares Capital (ARCC) reported third-quarter core earnings of 0.46 per share, below its 0.48 quarterly dividend and down from 0.50 a year earlier, although it carried forward 1.37 per share of taxable income into this year. Management said the current dividend reflects the underlying earnings power of the business. Ares agreed to acquire MidCap Financial Investment Corporation (MFIC) in a $2.6 billion transaction, including assumed liabilities, which it expects to be modestly accretive to core earnings per share and would expand its portfolio to more than 800 companies with over $31 billion of investments. The stock trades around $18.75, a 10.2% yield, and a roughly 3% discount to the $19.31 net asset value per share, which has declined from $19.94 over the past year due to weaker credit quality. The author concludes that ARCC remains an attractive option for income-focused investors willing to accept the risks of private credit.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
dividendsmergers and acquisitionsprivate credit
Open a keyword to see other news on the same topic.
Related tickers and likely impact
SPY
• NeutralSPDR S&P 500 ETF
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/28/2026 | 772.31 |
| Change that session | +0.34% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Is Blackstone a Buy After Its Latest Earnings Report?
Blackstone's third-quarter AUM rose 10% to nearly $1.4 trillion, with $63.3 billion of inflows and fee-related earnings up 6% to almost $1.6 billion. Distributable earnings fell 9% to $1.7 billion and distributable EPS fell 13% to $1.52, as net realizations dropped 34%, cutting the variable dividend to $1.12 per share from $1.29. The CFO anticipates a significant step-up in net realizations in the fourth quarter, including the sales of multiple companies. The shares, around $117, are down 28.5% from their 52-week high and trade below 20 times the $5.95 distributable EPS of the last 12 months. The author sees this as a reasonable price for a leading asset manager, citing AI investing and the growth of private wealth and private credit platforms, while noting risks from heavy AI infrastructure bets and private credit's recent growing pains.
- LSEG Goes Shopping for Private Credit Growth
London Stock Exchange Group jumped after finalizing a $3.5 billion takeover of credit-data specialist Octus. The group also raised its full-year outlook for growth, margins and cash flow.
- Ares Capital Corporation Q3 2026 Earnings Call Summary
- Goldman, BlackRock Alumni Raise $4 Million to Put Farm and Apartment Loans Onchain
Birch Hill, a New York startup founded by Wall Street alumni, closed a $4 million seed round led by Multicoin Capital, bringing its total funding to $6.5 million. The firm curates vaults on Morpho and has applied to FINRA for broker-dealer membership to offer private credit to verified accredited investors. Longer term, it plans to securitize U.S. multifamily, agriculture and energy loans to be held onchain within the U.S. regulatory framework, and says it met the SEC's Crypto Task Force in August. The funding will support an eight-person team that includes three hires from Yearn and a business development lead from Gauntlet.
- How scrutiny of private - credit valuations will impact banks
The SEC and state insurance regulators are tightening scrutiny of valuations for opaque, illiquid private-credit loans, since changes in how these assets are valued could affect banks. Private credit in registered funds surged to $270 billion in 2025, a 60% jump from $170 billion in 2020. Life insurers are a key link: the Federal Reserve Bank of Chicago estimates they have invested about $1 trillion in private credit, while the NAIC puts their exposure at $1.21 trillion at the end of 2025. Some experts warn that losses on AI-linked loans held by life insurers could spread to banks, which have significant counterparty exposure to these insurers. The SEC's statement is part of a proposal that would let registered investment advisers charge performance fees to a broader range of investors, which makes valuation accuracy more important.
- BlackRock Record Asset Holdings Are Half The Size Of US Economy
BlackRock reported record assets under management of $15.49 trillion at the end of the third quarter, after $205 billion in net client inflows, according to its earnings release filed with the SEC on Oct. 14. GAAP earnings were $10.57 per share and as-adjusted earnings were $15.93, while revenue rose 19% to $7.75 billion and net inflows into its iShares ETFs reached about $135 billion. The company also repurchased $550 million of its shares and raised $68 billion in private markets over the past twelve months. Net inflows into its private credit funds rose $5 billion from the previous quarter, and redemption requests at its Corporate Lending Fund eased to about 11.5% of shares from 13.3%, though Moody's warned that risks could be worse than reported default rates suggest. BlackRock shares rose as much as 5% after the results but gave back those gains as the session progressed.
Related markets
Latest news
- FBI Blames North Korea for $6B Binance Hack as Exchange Reopens Withdrawals
The FBI said North Korea's TraderTraitor was behind the theft of more than $6 billion from Binance and published hundreds of linked addresses. Binance began restoring withdrawals on Sunday, processing $4.649 billion in withdrawals and $1.01 billion in deposits in the first nine and a half hours, a net outflow of about $3.64 billion, or 2.1% of the $171 billion in assets reported in its latest proof of reserves. The FBI said the hackers mainly converted stolen assets into Ethereum and were expected to launder funds through DeFi and instant swap services, urging businesses to block transactions tied to hundreds of Ethereum addresses, 19 Bitcoin addresses and one Solana address. Chainalysis said more than $500 million had moved through Tron, while CEO Richard Teng said Binance had replenished about 95% of affected assets and would absorb the financial impact. According to Reuters, Circle has frozen more than $1.1 billion in USDC.
- The latest market wobble sees Citi giving up on this big tech trade
Hyperscaler stocks and growth plays have underperformed amid a sharp rotation in the market.
- Tech stock plunge aftermath a seen in 3 pictures
The technology sector has fallen 10% from its peak as investors scrutinize AI capital spending, free cash flow and the durability of earnings growth, according to Keith Lerner, chief markets strategist at Truist, who said further downside risk is possible. More than $1 trillion in market value was wiped out on Friday as worries grew over weaker cash flow at Big Tech firms spending heavily on AI. Google (GOOG) reported negative free cash flow in the third quarter, Amazon (AMZN) did the same, and Meta (META) posted negative free cash flow for the first time since 2012 a week earlier. Tech stocks now trade below their 10-year average P/E ratio, and history suggests more selling pressure could follow.
- Stock Market Today: Dow Jones, S&P 500 Futures Rise Ahead of Apple, Palantir Earnings: RYAAY, USLM, INO in Focus
U.S. stocks rose on Monday as Dow Jones, S&P 500 and Nasdaq 100 index futures advanced following Friday's lower close. President Donald Trump said Sunday that the U.S. has already won in Iran and will wrap up the war.
- Gold Prices Recover Above $3,900 as Investors Return Following October Selloff
Gold climbed back above $3,900 an ounce on Monday as investors returned after its sharpest monthly decline since 2008, with spot gold up 0.7% to $3,902.81. A weaker US dollar, with the Dollar Index down 0.4% to 101.45, supported the recovery, while silver rose 2.6% to $50.4095 an ounce. The previous session saw gold fall 3.7% to a one-year low. ANZ said elevated bond yields were an obstacle to a sustained rebound, citing US consumer spending expanding at an annualised rate of 3.8%, though gold-backed ETFs attracted more than 50 tonnes of inflows in September even as US Treasury yields exceeded 5%. Oil prices fell for a second straight session after Secretary of State Marco Rubio said President Trump preferred a diplomatic settlement.
- S&P 500, Nasdaq Futures Rise Premarket After Wall Street’s Worst Week In Months: AAPL, PLTR, GOOGL, INTC, TGTX In Focus
U.S. stock futures edged higher premarket on Monday, recovering some ground after Wall Street ended the previous week in the red. S&P 500 and Nasdaq-100 futures rose 0.5% and 0.83%, after the S&P 500 fell 2% and the Nasdaq 100 dropped 3.5% on Friday as investors pulled back from tech and AI-related stocks. Oil fell more than 4% as optimism over diplomatic efforts to end the U.S.-Israeli war with Iran eased supply concerns, with Brent for January delivery down 4.21% to $108.66 a barrel and WTI down 4.1% to $99.85. Apple and Palantir report earnings after the close, while Alphabet fell 12.6% last week and Intel dropped 24% after a weaker-than-expected fourth-quarter outlook.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.