CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and can afford the risks. Trading CFDs is high risk and is not suitable for everyone. Refer to our PDS and Target Market Determination. AFSL 513393
Open platformOpen platform

Ares Capital to buy Apollo's MFIC in $2.6 billion deal

By Reuters News

Oct 27 (Reuters) - Ares Capital ARCC.O said on Tuesday it will buy Apollo's MidCap Financial Investment Corp MFIC.O in a deal valued at about $2.6 billion in stock and cash, strengthening its presence in direct lending to mid-sized businesses.


Here are some details:


• MidCap shareholders will receive $10.88 per fully diluted share, comprising about $1.21 in cash and $9.67 in Ares stock

• Offer represents a premium of more than 30% to MidCap stock's Monday close

• MidCap shares jumped over 23%, while Ares was trading flat

• Ares Capital is the largest publicly traded business development company, managed by a subsidiary of alternative investment manager Ares Management

• MidCap Financial Investment is a closed-end fund externally managed by a subsidiary of asset manager Apollo Global Management APO.N

• Deal, expected to close in the first half of 2027, will give Ares access to MidCap's senior secured investments with "compelling" yields, and "modestly" add to core earnings, the companies said

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.