Private credit ·
Ares Capital agrees to acquire MidCap Financial Investment Corp. in a stock-and-cash deal valued at about $2.6bn
Ares Capital (ARCC) and MidCap Financial Investment Corporation (MFIC), a BDC managed by an Apollo affiliate, signed a definitive merger agreement for a total enterprise value of approximately $2.6 billion. MFIC stockholders are expected to receive $10.88 per share, about $1.21 in cash provided by a subsidiary of Ares Management and about $9.67 in ARCC stock, adjusted for a pre-closing MFIC special dividend; the companies say this is a 30.1% premium to MFIC's Oct. 26 close. They expect ARCC's pro forma portfolio to exceed 800 portfolio companies and $31 billion at fair value as of Sept. 30, 2026, with MFIC adding more than 200 incumbent positions. Wells Fargo agreed to provide $750 million of additional secured financing; closing is expected in the first half of 2027, subject to MFIC stockholder and regulatory approvals.
Why it matters for deal teams: Consolidation between public BDCs merges two loan books, so overlapping borrower positions and differences in how each manager marked the same loans become visible in their public schedules of investments.
Source: Ares Capital / MFIC press release (Business Wire) and MFIC Form 8-K ↗ · more ↗