Ares Capital to absorb American Capital in $3.43B deal
May 24, 2016
Ares Capital has reached an agreement to acquire rival American Capital for about $3.43 billion, a deal that will merge the two business development companies into one entity with more than $13 billion in investments as of March 31. Ares Capital is the middle-market-lending subsidiary of Ares Management, which will provide $275 million in cash to support the transaction.
PE investor activity in the capital markets & institutions sector (e.g. asset management firms, i-banks and brokerages) has climbed slowly, according to the PitchBook Platform, from 83 deals worldwide in 2012 to 109 in 2015. Only 17 deals in the sector have been completed so far this year, however, on pace for a major downturn.
Here are the most active PE firms in capital markets and institutions since 2010, along with deal counts (incl. add-ons):