8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of report (Date of earliest event reported) November 4, 2010

ARES CAPITAL CORPORATION

(Exact Name of Registrant as Specified in Charter)

Maryland	000-50697	33-1089684
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

280 Park Avenue, 22nd Floor, Building East, New York, NY	10017
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code (212) 750-7300

N/A

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02  Results of Operations and Financial Condition.

On November 4, 2010, the registrant issued a press release announcing its financial results for the quarter ended September 30, 2010. The text of the press release is included as Exhibit 99.1 to this Form 8-K.

In addition, on November 4, 2010, the registrant will host a webcast/conference call to discuss its financial results for the quarter ended September 30, 2010.  In connection therewith, the registrant will provide an investor presentation on its website at http://www.arescapitalcorp.com.  A copy of the investor presentation is included as Exhibit 99.2 to this Form 8-K.

The information disclosed under this Item 2.02, including Exhibits 99.1 and 99.2 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.

Item 7.01  Regulation FD Disclosure.

The registrant issued a press release, included herewith as Exhibit 99.1, and by this reference incorporated herein, on November 4, 2010 announcing the declaration of a fourth quarter dividend of $0.35 per share. The dividend is payable on December 31, 2010 to stockholders of record as of December 15, 2010.

In addition, on November 4, 2010, the registrant will host a webcast/conference call to discuss its financial results for the quarter ended September 30, 2010.  In connection therewith, the registrant will provide an investor presentation on its website at http://www.arescapitalcorp.com.  A copy of the investor presentation is included as Exhibit 99.2 to this Form 8-K.

The information disclosed under this Item 7.01, including Exhibits 99.1 and 99.2 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.

Item 9.01  Financial Statements and Exhibits.

(d)          Exhibits:

Exhibit Number	Description
99.1	Press Release, dated as of November 4, 2010
99.2	Ares Capital Corporation Third Quarter 2010 Investor Presentation

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	ARES CAPITAL CORPORATION
Date:   November 4, 2010
	By:	/s/ Richard S. Davis
	Name:	Richard S. Davis
	Title:	Chief Financial Officer

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Exhibit Index

Exhibit Number	Description
99.1	Press Release, dated as of November 4, 2010
99.2	Ares Capital Corporation Third Quarter 2010 Investor Presentation

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EX-99.1

Exhibit 99.1

ARES CAPITAL CORPORATION DECLARES
FOURTH QUARTER DIVIDEND OF $0.35 PER SHARE
AND ANNOUNCES SEPTEMBER 30, 2010 FINANCIAL RESULTS

FOURTH QUARTER DIVIDEND DECLARED

New York, NY —November 4, 2010 — Ares Capital Corporation (NASDAQ:  ARCC) announced that its Board of Directors has declared a fourth quarter dividend of $0.35 per share, payable on December 31, 2010 to stockholders of record as of December 15, 2010.

SEPTEMBER 30, 2010 FINANCIAL RESULTS

Ares Capital also announced financial results for its third quarter ended September 30, 2010.

HIGHLIGHTS

Financial

(dollar amounts in millions, except per share data)

	Q3-10						Q3-09
	Total Amount			Per Share			Total Amount			Per Share
Core EPS (Q3-10 excludes $0.01 per share of professional fees and other costs related to the acquisition of Allied Capital Corporation (the “Allied Acquisition”)(1)) — Basic and Diluted(2)				$	0.38					$	0.36
GAAP net income — Basic and Diluted	$	128.4		$	0.67		$	63.3		$	0.62
Net investment income — Basic and Diluted	$	71.2		$	0.37		$	32.9		$	0.32
Net realized gains (losses)	$	(0.3	)	$	(0.00	)	$	(1.7	)	$	(0.01	)
Net unrealized gains (losses)	$	57.5		$	0.30		$	32.0		$	0.31

·Total fair value of portfolio investments:

·September 30, 2010: $4.1 billion (including $1.7 billion acquired in the Allied Acquisition)

·September 30, 2009: $2.0 billion

·Net assets per share:

·September 30, 2010: $14.43

·September 30, 2009: $11.16

(1)  Ares Capital Corporation acquired Allied Capital Corporation on April 1, 2010.

(2)  Basic and diluted Core EPS (excluding professional fees and other costs related to the Allied Acquisition) is a non-GAAP financial measure. Core EPS (excluding professional fees and other costs related to the Allied Acquisition) is the net per share increase (decrease) in stockholders’ equity resulting from operations less professional fees and other costs related to the Allied Acquisition, realized and unrealized gains and losses, any incentive management fees attributable to such realized gains and losses and any income taxes related to such realized gains. Basic and diluted GAAP EPS is the most directly comparable GAAP financial measure. Ares Capital believes that Core EPS provides useful information to investors regarding financial performance because it is one method Ares Capital uses to measure its financial condition and results of operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Reconciliation of basic and diluted Core EPS (excluding professional fees and other costs related to the Allied Acquisition) to the most directly comparable GAAP financial measure is set forth in Schedule 1 hereto.

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·Stockholders’ equity:

·September 30, 2010: $2.8 billion

·September 30, 2009: $1.2 billion

·Dividends declared per share:

·Third quarter 2010: $0.35

·Third quarter 2009: $0.35

Portfolio Activity

(dollar amounts in millions, except as otherwise indicated)

	Q3-10			Q3-09
Portfolio Activity During the Period:
Gross commitments	$	511.8		$	54.5
Exits of commitments	$	230.7	(3)	$	85.4
Average total investments	$	3,936.7		$	2,049.5
Portfolio as of the End of the Period:
Number of portfolio company investments	184		(4)	94
Weighted average yield of debt and income producing securities:
At fair value(5)	12.90		%	12.53		%
At amortized cost(6)	13.10		%	11.70		%
Weighted average yield of debt and income producing securities for investments acquired in the Allied Acquisition:
At fair value(5)	13.68		%	—
At amortized cost(6)	14.35		%	—

OPERATING RESULTS

For the quarter ended September 30, 2010, Ares Capital reported GAAP net income of $128.4 million or $0.67 per share (basic and diluted). Net investment income for the third quarter was $71.2 million or $0.37 per share (basic and diluted). Net realized and unrealized gains were $57.2 million or $0.30 per share (basic and diluted).

Net income can vary substantially from period to period due to various factors, including the recognition of realized gains and losses and unrealized appreciation and depreciation. As a result, quarterly comparisons of net income may not be meaningful.

As of September 30, 2010, total assets were $4.4 billion, stockholders’ equity was $2.8 billion and net asset value per share was $14.43.

In the third quarter of 2010, Ares Capital made $511.8 million in new commitments across four new portfolio companies and 15 existing portfolio companies. In these new transactions, nine private equity sponsors were represented. In total, as of September 30, 2010, 86 separate private equity sponsors were represented in the Ares Capital portfolio. In these new transactions, 10 investments were in non-sponsored transactions. Of the $511.8 million in new commitments made during the quarter, approximately 45% were made in first lien senior secured debt, 2% in second lien senior secured debt, 8% in senior subordinated debt, 41% in subordinated notes of Senior Secured Loan Fund LLC (the “Senior Secured Loan Program”) to fund investments by the Senior Secured Loan Program and 4% in equity/other securities. Of these commitments, 48% were in floating rate debt securities all of which contain interest rate floors. During the third quarter, significant new commitments included:

·$128 million in first lien senior debt of a health plan management provider;

(3)  Includes exits of $99.1 million of commitments acquired as part of the Allied Acquisition.

(4)  Includes 95 investments acquired as part of the Allied Acquisition.

(5)  Computed as (a) annual stated interest rate or yield earned plus the net annual amortization of original issue discount and market discount earned on accruing debt included in such securities, divided by (b) total debt and income producing securities at fair value included in such securities.

(6)  Computed as (a) annual stated interest rate or yield earned plus the net annual amortization of original issue discount and market discount earned on accruing debt included in such securities, divided by (b) total debt and income producing securities at amortized cost included in such securities.

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·$57 million in subordinated notes of the Senior Secured Loan Program to fund an investment in a specialty apparel manufacturer, together with a direct investment by Ares Capital of $25 million in first lien senior debt of this manufacturer;

·$74 million in first lien senior debt and senior subordinated debt of a broadband communications services provider;

·$49 million in subordinated notes of the Senior Secured Loan Program to fund an investment in a full-service global contract research organization focused on late-stage pharmaceutical clinical trials, together with a direct investment by Ares Capital of $11 million in senior subordinated debt and equity of this entity;

·$34 million in subordinated notes of the Senior Secured Loan Program to fund an investment in a business-to-business wholesale distributor of first response fire protection equipment and related parts, together with a direct investment by Ares Capital of $3 million in equity of this wholesale distributor; and

·$34 million in subordinated notes of the Senior Secured Loan Program to fund an investment in a healthcare information technology and business solutions provider.

The fair value of Ares Capital’s portfolio investments at September 30, 2010 was approximately $4.1 billion, including $3.3 billion in debt and income producing equity securities. The $4.1 billion of portfolio investments (excluding cash and cash equivalents) were comprised of approximately 37% in senior secured debt securities (31% in first lien assets and 6% in second lien assets), 29% in senior subordinated debt securities, 10% in the Senior Secured Loan Program, 17% in equity/other securities, 6% in collateralized loan obligations and 1% in commercial real estate. As of September 30, 2010, the weighted average yield of debt and income producing securities at fair value was 12.90%(5) (13.10% at amortized cost(6)) and 25.6% of the Company’s investments at fair value were in floating rate debt securities.

President Michael Arougheti commented, “We are pleased with the growth in our quarterly core earnings per share driven by significant new investment activity and improved credit performance.  Our strong quarterly GAAP earnings of $0.67 per share include net investment gains of $0.30 per share, reflecting higher asset values and improved investment performance from both the core ARCC and legacy Allied portfolios.  We continued to make progress rotating and repositioning the legacy Allied portfolio during the third quarter.  We exited or received repayment on approximately $99 million in primarily non-core investments at a small gain, including a reduction in the legacy Allied portfolio’s non-accruing investments.”

Mr. Arougheti continued, “Our balance sheet remained solid at quarter end with a net debt to equity ratio of 0.51 times and with debt capacity and cash of over $590 million, subject to leverage and borrowing base restrictions.  Our third quarter investment pace and our strong backlog and pipeline reflect favorable market conditions and what we believe is our enhanced competitive position following the Allied acquisition.”

PORTFOLIO QUALITY

Ares Capital Management LLC, our investment adviser, employs an investment rating system to categorize our investments. In addition to various risk management and monitoring tools, our investment adviser grades the risk of all investments on a scale of 1 to 4 no less frequently than quarterly. This system is intended primarily to reflect the underlying risk of a portfolio investment relative to our initial cost basis in respect of such portfolio investment (i.e. at the time of acquisition), although it may also take into account under certain circumstances the performance of the portfolio company’s business, the collateral coverage of the investment and other relevant factors. Under this system, investments with a grade of 4 involve the least amount of risk to our initial cost basis. The trends and risk factors for this investment since origination or acquisition are generally favorable, which may include the performance of the portfolio company or a potential exit. Investments graded 3 involve a level of risk to our initial cost basis that is similar to the risk to our initial cost basis at the time of origination or acquisition. This portfolio company is generally performing as expected and the risk factors to our ability to ultimately recoup the cost of our investment are neutral to favorable. All investments or acquired investments in new portfolio companies are initially assessed a grade of 3. Investments graded 2 indicate that the risk to our ability to recoup the cost of such investment has increased materially since origination or acquisition, including as a result of factors such as declining performance and non- compliance with debt covenants; however, payments are generally not more than 120 days past due. An investment grade of 1 indicates that the risk to our ability to recoup the cost of such investment has substantially increased since origination or acquisition, and the portfolio company likely has materially declining performance. For debt investments with an investment grade of 1, most or all of the debt covenants are out of compliance and payments are substantially delinquent. For investments graded 1, it is not anticipated that we will be repaid in an amount equal to our full initial cost basis. For investments graded 1 or 2, our investment adviser enhances its level of scrutiny over the monitoring of such portfolio company.

Each investment acquired in the Allied Acquisition was assessed a grade of 3 (i.e., the grade we generally assign a portfolio company at acquisition) upon its initial acquisition on April 1, 2010, reflecting the relative risk to our initial cost basis of such investments.  Ares Capital grades the investments in its portfolio each quarter and it is possible that the grade of certain of these portfolio investments may be reduced or increased over time.

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As of September 30, 2010, the weighted average grade of the investments in our portfolio (excluding investments acquired in connection with the Allied Acquisition), the investments in our portfolio acquired in connection with the Allied Acquisition and the investments in our portfolio as a whole were each 3.0.

As of September 30, 2010:

·2.2% of our investments (excluding investments acquired in connection with the Allied Acquisition) at amortized cost (0.2% at fair value) were on non-accrual status;

·5.3% of our investments acquired in connection with the Allied Acquisition at amortized cost (5.0% at fair value) were on non-accrual status; and

·7.5% of the investments in our portfolio as a whole at amortized cost (or 5.2% at fair value) were on non-accrual status.

LIQUIDITY AND CAPITAL RESOURCES

As of September 30, 2010, Ares Capital had $134 million in cash and cash equivalents and $1.6 billion in aggregate principal amount of debt outstanding ($1.5 billion in carrying value). Subject to leverage and borrowing base restrictions, Ares Capital had approximately $495 million available for additional borrowings under its existing credit facilities as of September 30, 2010.

During the three months ended September 30, 2010, we increased the size of the amended and restated senior secured revolving credit facility (“Revolving Credit Facility”) by an aggregate amount of $60 million under the “accordion” feature, bringing the total amount available for borrowing under the Revolving Credit Facility as of September 30, 2010 to $810 million.

DIVIDEND

For the three months ended September 30, 2010, Ares Capital declared a dividend on August 5, 2010 of $0.35 per share for a total of $67.3 million. The record date was September 15, 2010 and the dividend was paid on September 30, 2010.

RECENT DEVELOPMENTS

On October 21, 2010, we issued $200 million of senior unsecured notes that mature on October 15, 2040 (the “2040 Notes”) and may be redeemed in whole or in part at our option at any time or from time to time on or after October 15, 2015 at a par redemption price of $25 per security plus accrued and unpaid interest.  The principal of the 2040 Notes will be payable at maturity. The 2040 Notes bear interest at a rate of 7.75% per year payable quarterly commencing on January 15, 2011.  Total proceeds from the 2040 Notes, net of underwriters’ discount and offering costs, were approximately $193 million. Ares Capital used the net proceeds of this offering to repay outstanding indebtedness under its Revolving Credit Facility.

As of November 3, 2010, we had made new investment commitments of $128 million, all of which were funded, since September 30, 2010. Of these new investment commitments, 61% were in investments in subordinated notes of the Senior Secured Loan Fund, 29% were in first lien senior secured debt, 2% were in second lien senior secured debt, and 8% were in equity securities. Of the $128 million of new investment commitments, 66% were fixed rate with a weighted average yield at amortized cost of 15.2% and 31% were floating rate with a weighted average spread at amortized cost of 6.2%.

As of November 3, 2010, we had exited $146 million of investments since September 30, 2010. Of these investments, 33% were in first lien senior secured debt, 37% were in senior subordinated debt, 17% were in second lien senior secured debt and 13% were in equity investments. Of the $146 million of investments, 30% were in fixed rate investments with a weighted average yield at amortized cost of 17.4%. Of the remaining investments, 54% were in floating rate investments with a weighted average spread at amortized cost of 6.7%, 3% were investments on non-accrual status and 13% were non-interest earning.  Of the $146 million of investments exited since September 30, 2010, $66 million were investments acquired as part of the Allied Acquisition, including $4 million that were on non-accrual status. Additionally, we recognized net realized gains of approximately $19 million on the investments exited that were acquired as part of the Allied Acquisition.

In addition, as of November 3, 2010, we had an investment backlog and pipeline of $180 million and $310 million, respectively. We may syndicate a portion of these investments and commitments to third parties. The consummation of any of the investments in this backlog and pipeline depends upon, among other things: satisfactory completion of our due diligence investigation of the prospective portfolio company, our acceptance of the terms and structure of such investment and the execution and delivery of satisfactory transaction documentation. We cannot assure you that we will make any of these investments or that we will syndicate any portion of such investments and commitments if made.

WEBCAST / CONFERENCE CALL

Ares Capital will host a webcast/conference call on November 4, 2010, at 11:00 p.m. (ET) to discuss its financial results for the third quarter ended September 30, 2010. PLEASE VISIT OUR WEBCAST LINK LOCATED ON THE HOME PAGE OF THE

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INVESTOR RESOURCES SECTION OF OUR WEBSITE FOR A SLIDE PRESENTATION THAT COMPLEMENTS THE EARNINGS CONFERENCE CALL.

All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the home page of the Investor Resources section of our website at http://www.arescapitalcorp.com. Please visit the website to test your connection before webcast. Domestic callers can access the conference call by dialing (866) 843-0890. International callers can access the conference call by dialing +1 (412) 317-9250. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected. All callers will need to reference “Ares Capital Corporation” and Elite Entry #2402864 to join the conference. For interested parties, an archived replay of the call will be available one hour after the end of the conference through November 19, 2010 to domestic callers by dialing (877) 344-7529 and to international callers by dialing +1 (412) 317-0088. For all replays, please reference conference passcode #445047. An archived replay will also be available on a webcast link located on the home page of the Investor Resources section of our website.

ABOUT ARES CAPITAL CORPORATION

Ares Capital is a closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. With offices in Atlanta, Chicago, Los Angeles, New York and Washington, D.C., Ares Capital is a specialty finance company that provides integrated debt and equity financing solutions to U.S. middle market companies. Ares Capital invests primarily in first- and second-lien loans and mezzanine debt, which in some cases includes an equity component. To a lesser extent, Ares Capital also makes equity investments. Ares Capital is externally managed by Ares Capital Management LLC, an affiliate of Ares Management LLC, a global alternative asset manager and a Securities and Exchange Commission registered investment adviser. As of September 30, 2010, Ares Management LLC had approximately $37 billion of committed capital under management.

FORWARD-LOOKING STATEMENTS

Statements included herein or on the webcast/conference call may constitute “forward-looking statements,” which relate to future events or our future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results and condition may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission. Ares Capital Corporation undertakes no duty to update any forward-looking statements made herein or on the webcast/conference call.

AVAILABLE INFORMATION

Ares Capital Corporation’s filings with the Securities and Exchange Commission, press releases, earnings releases and other financial information are available on its website at www.arescapitalcorp.com.

CONTACT

Carl Drake
Ares Capital Corporation
310-201-4200

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ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET

(dollar amounts in thousands, except per share data)

	As of
	September 30, 2010			December 31, 2009
	(unaudited)
ASSETS
Investments at fair value (amortized cost of $4,174,139 and $2,376,384, respectively)	$	4,149,790		$	2,171,814
Cash and cash equivalents	134,362			99,227
Interest receivable	88,184			28,019
Other assets	59,845			14,455
Total assets	$	4,432,181		$	2,313,515
LIABILITIES
Debt	$	1,524,143		$	969,465
Accounts payable and accrued expenses	79,996			16,533
Management and incentive fees payable	33,241			66,495
Interest and facility fees payable	16,325			2,645
Payable for open trades	—			489
Total liabilities	1,653,705			1,055,627
STOCKHOLDERS’ EQUITY
Common stock, par value $.001 per share, 300,000,000 common shares authorized, 192,566,434 and 109,944,674 common shares issued and outstanding, respectively	193			110
Capital in excess of par value	2,656,890			1,490,458
Accumulated (overdistributed) undistributed net investment income	(25,264		)	3,143
Accumulated net realized gain (loss) on investments, foreign currency transactions, extinguishment of debt and acquisitions	171,454			(31,115		)
Net unrealized loss on investments and foreign currency transactions	(24,797		)	(204,708		)
Total stockholders’ equity	2,778,476			1,257,888
Total liabilities and stockholders’ equity	$	4,432,181		$	2,313,515
NET ASSETS PER SHARE	$	14.43		$	11.44

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ARES CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

(dollar amounts in thousands, except per share data)

	For the three months ended						For the nine months ended
	September 30, 2010			September 30, 2009			September 30, 2010			September 30, 2009
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
INVESTMENT INCOME:
Interest from investments	$	107,834		$	56,899		$	273,432		$	163,233
Capital structuring service fees	20,611			—			30,404			1,847
Dividend income	3,923			2,184			7,828			3,364
Management fees	4,438			92			10,054			2,695
Interest from cash & cash equivalents	47			35			75			245
Other income	1,273			1,671			4,433			4,624
Total investment income	138,126			60,881			326,226			176,008
EXPENSES:
Interest and credit facility fees	22,755			5,721			54,453			18,603
Incentive management fees	17,805			8,227			40,922			23,764
Base management fees	15,436			7,508			35,574			22,502
Professional fees	3,233			2,044			9,191			5,749
Administrative	2,642			809			6,251			2,905
Professional fees and other costs related to the acquisition of Allied Capital	1,450			1,989			17,773			1,989
Rent	1,565			301			3,659			1,458
Insurance	539			313			1,433			988
Depreciation	252			167			662			505
Directors fees	198			134			476			370
Other	1,195			308			3,006			1,558
Total expenses	67,070			27,521			173,400			80,391
NET INVESTMENT INCOME BEFORE INCOME TAXES	71,056			33,360			152,826			95,617
Income tax expense (benefit), including excise tax	(164		)	454			360			563
NET INVESTMENT INCOME	71,220			32,906			152,466			95,054
REALIZED AND UNREALIZED NET GAINS (LOSSES) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gains (losses):
Investments	1,228			(1,656		)	8,569			(4,300		)
Foreign currency transactions	—			—			85			68
Net realized gains (losses)	1,228			(1,656		)	8,654			(4,232		)
Net unrealized gains (losses):
Investments	57,507			32,063			180,063			15,753
Foreign currency transactions	—			(37		)	(152		)	(55		)
Net unrealized gains (losses)	57,507			32,026			179,911			15,698
Net realized and unrealized gains (losses) from investments and foreign currency transactions	58,735			30,370			188,565			11,466
GAIN FROM THE ACQUISITION OF ALLIED CAPITAL	—			—			195,876			—
REALIZED GAIN (LOSS) ON EXTINGUISHMENT OF DEBT	(1,578		)	—			(1,961		)	26,543
NET INCREASE IN STOCKHOLDERS’ EQUITY RESULTING FROM OPERATIONS	$	128,377		$	63,276		$	534,946		$	133,063
BASIC AND DILUTED EARNINGS PER COMMON SHARE	$	0.67		$	0.62		$	3.16		$	1.34
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING — BASIC AND DILUTED	192,167,337			102,831,909			169,499,905			99,066,652

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SCHEDULE 1

Reconciliations of basic and diluted Core EPS to basic and diluted GAAP EPS

Reconciliations of basic and diluted Core EPS (excluding professional fees and other costs related to the acquisition of Allied Capital Corporation (the “Allied Acquisition”)) to basic and diluted GAAP EPS, the most directly comparable GAAP financial measure, for the three months ended September 30, 2010 and 2009 are provided below.

	For the three months ended
	September 30, 2010			September 30, 2009
	(unaudited)			(unaudited)
Basic and diluted Core EPS (excluding professional fees and other costs related to the Allied Acquisition)(1)	$	0.38		$	0.36
Dilution from equity add-on offering	—			(0.02		)
Professional fees and other costs related to the Allied Acquisition	(0.01		)	(0.02		)
Net realized and unrealized gains (losses)	0.30			0.30
Incentive fees attributed to realized gains (losses)	—			—
Income tax expense related to realized gains	—			—
Basic and diluted GAAP EPS	$	0.67		$	0.62

(1) Basic and diluted Core EPS (excluding professional fees and other costs related to the Allied Acquisition) is a non-GAAP financial measure. Core EPS (excluding professional fees and other costs related to the Allied Acquisition) is the net per share increase (decrease) in stockholders’ equity resulting from operations less professional fees and other costs related to the Allied Acquisition, realized and unrealized gains and losses, any incentive management fees attributable to such realized gains and losses and any income taxes related to such realized gains. Basic and diluted GAAP EPS is the most directly comparable GAAP financial measure. Ares Capital believes that Core EPS provides useful information to investors regarding financial performance because it is one method Ares Capital uses to measure its financial condition and results of operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.

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EX-99.2

Exhibit 99.2

Third Quarter 2010 Investor Presentation ARES CAPITAL CORPORATION

Important Notice This presentation contains “forward looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, that are subject to risks and uncertainties. Actual outcomes and results could differ materially from those suggested by this presentation due to the impact of many factors beyond the control of Ares Capital Corporation, including those listed in the "Risk Factors" section of our filings with the Securities and Exchange Commission (“SEC”). Any such forward-looking statements are made pursuant to the safe harbor provisions available under applicable securities laws and Ares Capital Corporation assumes no obligation to update or revise any such forward-looking statements. Certain information discussed in this presentation (including information relating to portfolio companies) was derived from third party sources and has not been independently verified and, accordingly, the Company makes no representation or warranty in respect of this information. The following slides contain summaries of certain financial and statistical information about Ares Capital Corporation. The information contained in this presentation is summary information that is intended to be considered in the context of our SEC filings and other public announcements that we may make, by press release or otherwise, from time to time. We undertake no duty or obligation to publicly update or revise the information contained in this presentation. In addition, information related to past performance, while helpful as an evaluative tool, is not necessarily indicative of future results, the achievement of which cannot be assured. You should not view the past performance of Ares Capital Corporation, or information about the market, as indicative of Ares Capital Corporation’s future results. This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities of Ares Capital Corporation.

Financial and Portfolio Highlights Endnotes begin on page 34. Gross commitments Q3-10: $511.8 million Q2-10: $409.9 million*** Q3-09: $54.5 million Exits of commitments for core ARCC portfolio(2) Q3-10: $131.6 million Q2-10: $530.3 million Q3-09: $85.4 million Exits of commitments for investments purchased in the Allied Acquisition Q3-10: $99.1 million Q2-10: $151.1 million Total fair value of investments As of 9/30/10: $4.1 billion As of 6/30/10: $3.8 billion As of 9/30/09: $2.0 billion Asset mix at fair value As of 9/30/10: 31% 1st Lien, 6% 2nd Lien, 29% Sr. Sub., 6% CLOs, 17% Equity/Other, 10% Senior Secured Loan Fund LLC (“Senior Secured Loan Program”), 1% Commercial Real Estate As of 6/30/10: 31% 1st Lien, 7% 2nd Lien, 33% Sr. Sub., 6% CLOs, 17% Equity/Other, 5% Senior Secured Loan Program, 1% Commercial Real Estate As of 9/30/09: 32% 1st Lien, 22% 2nd Lien, 31% Sr. Sub., 15% Equity/Other Number of portfolio company investments As of 9/30/10: 184 As of 6/30/10: 188 As of 9/30/09: 94 Weighted avg. rates are as follows: Portfolio Highlights Financial Highlights Wt. avg. investment spread at amortized cost(6) * Excludes $0.01 and $0.06 per share of professional fees and other costs related to the acquisition of Allied Capital Corporation (the "Allied Acquisition") in Q3-10 and Q2-10, repectively. Q3-10 Q2-10 Q3-09 $ 0.38 * $ 0.32 * $ 0.36 ** $ 0.37 $ 0.26 $ 0.32 $ 0.67 $ 1.73 $ 0.62 $ - $ 0.06 $ (0.01) $ 0.30 $ 0.38 $ 0.31 $ - $ 1.03 $ - $ 14.43 $ 14.11 $ 11.16 ** Excludes $0.02 per share of professional fees and other costs related to the Allied Acquisition and $0.02 per share dilution from the August 2009 equity add-on offering. Weighted avg. rates are as follows: Capital*** Capital**** Total Capital*** Capital**** Total Wt. avg. yield of debt & income producing securities at amortized cost (3)(4) 12.40% 14.35% 13.10% 12.79% 14.29% 13.40% 11.70% Wt. avg. cost of debt(5) 3.13% 6.56% 4.63% 2.43% 6.54% 4.74% 2.02% Wt. avg. investment spread at amortized cost(6) 9.27% 7.79% 8.47% 10.36% 7.75% 8.66% 9.68% ***Excludes investments purchased and/or debt assumed as part of the Allied Acquisition. ****Represents investments purchased and debt assumed as part of the Allied Acquisition. 9/30/10 6/30/10 9/30/09 Ares Allied Ares Allied 9/30/10 6/30/10 9/30/09 Ares Allied Ares Allied

Selected Historical Financial Information **Excludes $1.03 per share gain on the Allied Acquisition. "As of and for the Three Months Ended" (unaudited) (Dollar amounts in 000s, except per share data and stock prices) 9/30/10 6/30/10 3/31/10 12/31/09 9/30/09 "Core EPS (excludes professional fees and other costs related to the Allied Acquisition) – Basic and Diluted(1)" $0.38 * $0.32 * $0.28 * $0.37 * $0.34 Net Investment Income Per Share – Basic and Diluted $0.37 $0.26 $0.25 $0.35 $0.32 GAAP EPS – Basic and Diluted $0.67 $1.73 $0.61 $0.64 $0.62 Net Realized and Unrealized Gains Per Share – Basic and Diluted $0.30 $0.44 ** $0.36 $0.29 $0.30 Gain on the Allied Acquisition $- $1.03 $- $- $- Dividend Declared Per Share $0.35 $0.35 $0.35 $0.35 $0.35 Stockholders' Equity $2,778,476 $2,711,273 $1,568,982 $1,257,888 $1,222,591 Net Asset Value Per Share $14.43 $14.11 $11.78 $11.44 $11.16 Book Debt/Book Equity Ratio .55x .46x .49x .77x .63x Book Debt/Book Equity Ratio, Net of Available Cash(11) .51x .41x .44x .69x .58x Unsecured Principal Debt to Total Principal Debt 43.7% 56.0% — — — Ratio of Earnings to Fixed Charges(8) 4.1 3.2 4.7 7.8 6.8 Market Capitalization Principal Debt $1,583,331 $1,307,797 $771,358 $969,465 $767,871 Equity 3,013,711 2,407,857 1,973,957 1,368,811 1,207,712 Total Market Capitalization $4,597,042 $3,715,654 $2,745,315 $2,338,276 $1,975,583 Common Stock Data: High Price $15.89 $16.40 $14.82 $12.71 $11.02 Low Price $12.44 $12.53 $11.75 $10.21 $7.04 Closing Price $15.65 $12.53 $14.82 $12.45 $11.02 *Excludes $0.01, $0.06, $0.03, $0.02 and $0.02 per share of professional fees and other costs related to the Allied Acquisition for Q3-10, Q2-10, Q1-10, Q4-09 and Q3-09, respectively. **Excludes $1.03 per share gain on the Allied Acquisition.

Selected Historical Financial Information (cont’d) *Q2-10 excludes investments purchased as part of the Allied Acquisition on April 1, 2010. In addition to the $1.8 billion of funded investments purchased as part of the Allied Acquisition, $83.3 million in unfunded commitments were also acquired. As of and for the Three Months Ended (unaudited) (Dollar amounts in 000s, except per share data) 9/30/10 6/30/10 3/31/10 12/31/09 9/30/09 Investments at Fair Value $ 4,149,790 $ 3,794,020 $ 2,220,229 $ 2,171,814 $ 1,967,724 % Fixed Rate 53.2% 51.9% 51.5% 48.8% 56.9% % Floating Rate(9) 25.6% 23.7% 32.5% 39.5% 30.5% % Equity and Other Non-Interest Earning 21.2% 24.4% 16.0% 11.7% 12.6% Portfolio Companies(10) 184 188 94 95 94 Weighted Avg. Yield on Debt and Income Producing Securities at Amortized Cost(3) 13.1% 13.4% 12.2% 12.1% 11.7% Weighted Avg. Stated Interest Rate of Debt at End of Period(5) 4.6% 4.7% 2.3% 2.1% 2.0% Weighted Avg. Investment Spread at Amortized Cost(6) 8.5% 8.7% 9.9% 10.0% 9.7% Weighted Avg. Yield on Debt and Income Producing Securities at Fair Value(3) 12.9% 13.4% 12.4% 12.7% 12.5% Gross Commitments $ 511,769 $ 409,864 * $ 298,772 $ 344,407 $ 54,515 Net Commitments(7)** $ 281,070 $ (271,466) $ (9,859) $ 10,738 $ (30,851) Gross Fundings $ 509,294 $ 275,502 * $ 304,685 $ 355,925 $ 65,860 Net Fundings(7)*** $ 278,671 $ (344,314) $ (8,371) $ 112,706 $ (40,194) Investments Purchased as Part of the Allied Acquisition $ - $ 1,833,766 $ - $ - $ - Portfolio Turnover 0.06 0.20 0.14 0.11 0.03 **Includes exits of investment commitments acquired in the Allied Acquisition of $99.1 million and $151.1 million in Q3-10 and Q2-10, respectively. ***Includes exits of and repayments on investments purchased in the Allied Acquisition of $99.4 million and $161.7 million in Q3-10 and Q2-10, respectively.

Selected Investment Portfolio Information as of September 30, 2010 As of September 30, 2010 (unaudited) (Dollar amounts in 000s) Ares Capital Excluding Investments Acquired in the Allied Acquisition ("Core ARCC Portfolio") Investments Acquired in the Allied Acquisition Ares Capital Total Investments at Fair Value $ 2,469,488 $ 1,680,302 $ 4,149,790 % Fixed Rate 47.9% 60.9% 53.2% % Floating Rate(9) 35.4% 11.3% 25.6% % Equity and Other Non-Interest Earning 16.7% 27.8% 21.2% Portfolio Companies(10) 92 95 184 * Debt and Income Producing Securities at Amortized Cost $ 2,064,418 $ 1,156,371 $ 3,220,789 Debt and Income Producing Securities at Fair Value $ 2,057,022 $ 1,213,267 $ 3,270,289 Weighted Avg. Yield on Debt and Income Producing Securities at Amortized Cost(3) 12.4% 14.4% 13.1% Weighted Avg. Yield on Debt and Income Producing Securities at Fair Value(3) 12.5% 13.7% 12.9% Non-Accrual Investments at Amortized Cost $ 90,972 $ 222,919 $ 313,891 Non-Accrual Investments as % of Total Portfolio at Amortized Cost 2.2% ** 5.3% 7.5% Non-Accrual Investments at Fair Value $ 7,828 $ 207,980 $ 215,808 Non-Accrual Investments as % of Total Portfolio at Fair Value 0.2% ** 5.0% 5.2% *Three portfolio companies were a part of both Ares Capital Corporation and Allied Capital Corporation's respective portfolios at the time of the Allied Acquisition. **Core ARCC Portfolio non-accrual investments were 3.6% at amortized cost and 0.3% at fair value of the total Core ARCC Portfolio.

Quarterly Operating Results *Excludes $0.01, $0.06, $0.03, $0.02 and $0.02 per share of professional fees and other costs related to the Allied Acquisition for Q3-10, Q2-10, Q1-10, Q4-09 and Q3-09, respectively. **Includes realized gain on the Allied Acquisition of $195,876. Three Months Ended (unaud ited ) (Dollar amounts in 000s, except per share data) 9/30/10 6/30/10 3/31/10 12/31/09 9/30/09 Investment income $ 138,126 $ 121,590 $ 66,510 $ 69,264 $ 60,881 Expenses 67,070 71,363 34,967 30,899 27,521 Net investment income before taxes 71,056 50,227 31,543 38,365 33,360 Income tax expense (benefit), including excise tax (164) 686 (162) 13 454 Net investment income 71,220 49,541 31,705 38,352 32,906 Net realized and unrealized gains 57,157 280,613 ** 44,710 31,278 30,370 Net Income $ 128,377 $ 330,154 $ 76,415 $ 69,630 $ 63,276 Per Share: Core EPS (excludes professional fees related to the Allied Acquisition) - Basic and Diluted(1) $ 0.38 * $ 0.32 * $ 0.28 * $ 0.37 * $ 0.34 * Net Income (Loss) - Basic and Diluted $ 0.67 $ 1.73 $ 0.61 $ 0.64 $ 0.62 Dividends declared $ 0.35 $ 0.35 $ 0.35 $ 0.35 $ 0.35 Weighted average common shares outstanding - Basic and Diluted 192,167,337 191,045,239 124,544,026 109,592,728 102,831,909 Common shares outstanding at end of period 192,566,434 192,167,337 133,195,477 109,944,674 109,592,728 Nine Months Ended (Dollar amounts in 000s, except per share data) 9/30/10 9/30/09 Investment income $ 326,226 $ 176,008 Expenses 173,400 80,391 Net investment income before taxes 152,826 95,617 Income tax expense (benefit), including excise tax 360 563 Net investment income 152,466 95,054 Net realized and unrealized gains (losses) 382,480 ** 38,009 Net Income $ 534,946 $ 133,063 Per Share: Net Income - Basic and Diluted $ 3.16 $ 1.34 Dividends declared $ 1.05 $ 1.12 Weighted average common shares outstanding - Basic and Diluted 169,499,905 99,066,652 Common shares outstanding at end of period 192,566,434 109,592,728

Quarterly Operating Results Detail 67,070 Three Months Ended (unaud ited ) (Dollar amounts in 000s) 9/30/10 6/30/10 3/31/10 12/31/09 9/30/09 Net Investment Income Before Taxes: Investment Income: Interest $ 107,881 $ 104,079 $ 61,547 $ 61,853 $ 56,934 Structuring fees 20,611 7,692 2,101 3,776 - Dividends 3,923 3,424 481 474 2,184 Management fees 4,438 4,129 1,487 803 92 Other 1,273 2,266 894 2,358 1,671 138,126 121,590 66,510 69,264 60,881 Expenses: Interest and credit facility fees 22,755 23,110 8,588 5,659 5,721 Incentive management fees 17,805 14,975 8,144 9,568 8,227 Base management fees 15,436 11,669 8,456 7,907 7,508 Professional fees (excluding professional fees and other costs related to the Allied Acquisition) 3,233 3,454 2,504 2,071 2,044 Administrative 2,642 2,378 1,231 1,104 809 Rent 1,565 1,341 753 346 301 Professional fees and other costs related to the Allied Acquisition 1,450 12,534 3,789 2,950 1,989 Insurance 539 535 359 378 313 Depreciation 252 247 163 167 167 Other 1,393 1,120 980 749 442 67,070 71,363 34,967 30,899 27,521 Net investment income before taxes $ 71,056 $ 50,227 $ 31,543 $ 38,365 $ 33,360

Quarterly Gain/Loss Detail Realized gain on the Allied Acquisition Three Months Ended (unaud ited ) (Dollar amounts in 000s) 9/30/10 6/30/10 3/31/10 12/31/09 9/30/09 Net Realized and Unrealized Gains (Losses): Realized gains (losses) on investments: Ares Capital excluding investments purchased in the Allied Acquisition: Gains $ 185 $ 13,637 $ 8,926 $ 7,295 $ 12,757 Losses - (1,836) (13,792) (49,163) (14,413) From investments purchased in the Allied Acquisition: Gains 3,457 506 - - -Losses (2,414) - - - -Net realized gains (losses) on investments 1,228 12,307 (4,866) (41,868) (1,656) Unrealized gains (losses) on investments: Ares Capital excluding investments purchased in the Allied Acquisition: Unrealized appreciation 56,206 52,358 57,677 46,674 45,748 Unrealized depreciation (17,870) (16,500) (16,476) (24,312) (17,539) From investments purchased in the Allied Acquisition: Unrealized appreciation 59,348 73,059 - - -Unrealized depreciation (41,517) (26,757) - - -Net unrealized gains (losses) on investments 56,167 82,160 41,201 22,362 28,209 Reversal of prior period unrealized (appreciation) depreciation on investments: Ares Capital excluding investments purchased in the Allied Acquisition (48) (9,347) 8,542 50,779 3,854 From investments purchased in the Allied Acquisition 1,388 - - - - 1,340 (9,347) 8,542 50,779 3,854 Net unrealized gains (losses) on investments 57,507 72,813 49,743 73,141 32,063 Gain (loss) on extinguishment of debt (1,578) (383) - - - Realized and unrealized gains (losses) on foreign currencies - - (67) 5 (37) Net realized and unrealized gains (excluding realized gain on the Allied Acquisition) $ 57,157 $ 84,737 $ 44,710 $ 31,278 $ 30,370 Net Realized and Unrealized Gains (Losses): Net realized and unrealized gain on investments (excluding realized gain on Allied Acquisition) $ 84,237 Realized and unrealized gains (losses) on foreign currencies -Realized gain on the Allied Acquisition 195,876 Net realized and unrealized gains $ 280,613

Debt Summary *Represents the aggregate principal amount of the notes currently outstanding less the unaccreted discount initially recorded as part of the Allied Acquisition. **Represents the total aggregate principal amount outstanding of $1,583,331. (15) Aggregate Principal Amount Available/ Outstanding(32) $300,584 $161,210 $714,374 $407,163 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 2010 2011 2012 2013 Thereafter Debt Maturities as of September 30, 2010**

Quarterly Balance Sheets As of (unaudited, except for 12/31/09) (Dollar amounts in 000s, except per share data) 9/30/10 6/30/10 3/31/10 12/31/09 9/30/09 ASSETS Investments at fair value $ 4,149,790 $ 3,794,020 $ 2,220,229 $ 2,171,814 $ 1,967,724 Cash and cash equivalents 134,362 138,778 83,813 99,227 61,469 Interest receivable 88,184 78,690 26,155 28,019 21,159 Other assets 59,845 62,214 29,862 14,455 14,729 Receivable for open trades - - 19,288 - -Total assets $ 4,432,181 $ 4,073,702 $ 2,379,347 $ 2,313,515 $ 2,065,081 LIABILITIES Debt $ 1,524,143 $ 1,244,938 $ 771,358 $ 969,465 $ 767,871 Management and incentive fees payable 33,241 26,655 16,600 66,495 56,527 Accounts payable and accrued expenses 79,996 71,882 19,241 16,533 14,750 Interest and facility fees payable 16,325 18,899 3,166 2,645 2,717 Dividend payable - 55 - - 136 Payable for open trades - - - 489 489 Total liabilities 1,653,705 1,362,429 810,365 1,055,627 842,490 STOCKHOLDERS' EQUITY Common stock 193 192 133 110 110 Capital in excess of par value 2,656,890 2,650,799 1,771,630 1,490,458 1,505,031 Accumulated undistributed (overdistributed) net investment income and net realized gain (loss) on investments, foreign currency transactions, extinguishment of debt and acquisitions 146,190 142,586 (47,664) (27,972) (4,833) Net unrealized loss on investments and foreign currency transactions (24,797) (82,304) (155,117) (204,708) (277,717) Total stockholders' equity 2,778,476 2,711,273 1,568,982 1,257,888 1,222,591 Total liabilities and stockholders' equity $ 4,432,181 $ 4,073,702 $ 2,379,347 $ 2,313,515 $ 2,065,081 NET ASSETS PER SHARE $ 14.43 $ 14.11 $ 11.78 $ 11.44 $ 11.16

Quarterly Dividends (17) (16) $0.35 $0.35 $0.35 $0.35 $0.35 $0.35 $0.35 $0.32 $0.34 $0.34 $0.36 $0.38 $0.40 $0.40 $0.41 $0.41 $0.42 $0.42 $0.42 $0.42 $0.42 $0.42 $0.42 $0.10 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Regular Dividends Additional Dividend

Portfolio Activity *6/30/10 excludes investments purchased as part of the Allied Acquisition on April 1, 2010. **Includes 95 portfolio companies at 9/30/10 and 99 portfolio companies at 6/30/10 that were acquired in the Allied Acquisition. Three portfolio companies were a part of both Ares Capital Corporation and Allied Capital Corporation’s respective portfolios at the time of the Allied Acquisition. ***$24 million and $22 million of these investments for the three months ended 9/30/10 and 6/30/10, respectively, were on non-accrual status or non-income producing at the time of exit. Three Months Ended (una udite d) (Dollar amounts in 000s) 9/30/10 6/30/10 3/31/10 12/31/09 9/30/09 Gross Commitments $ 511,769 $ 409,864 * $ 298,772 $ 344,407 $ 54,515 Exits of Commitments(18): Ares Capital Excluding Commitments Purchased in the Allied Acquisition (131,593) (530,265) (308,631) (333,569) (85,366) Commitments Purchased in the Allied Acquisition (99,106) *** (151,065) *** - - -Total Exits of Commitments (230,699) (681,330) (308,631) (333,569) (85,366) Net Commitments $ 281,070 $ (271,466) * $ (9,859) $ 10,838 $ (30,851) Gross Commitments: Number of Transactions 19 13 * 16 11 7 Weighted Average Commitment Term in Months 57 58 * 67 65 47 Average Commitment in Period $ 26,935 $ 31,528 * $ 18,673 $ 31,310 $ 7,788 Portfolio Companies at Period End** 184 188 94 95 94

Portfolio Activity *Excludes investments purchased in the Allied Acquisition. **Exits of investments purchased in the Allied Acquisition. Gross Commitments by Asset Class Exits of Commitments by Asset Class 26% 46% 34% 50% 31% 46% 47% 91% 66% 15% 38% 33% 25% 10% 5% 3% 1% 1% 51% 36% 24% 15% 47% 22% 43% 5% 27% 22% 3% 1% 22% 6% 4% 2% 0% 20% 40% 60% 80% 100% Excluding Allied* Allied** Total ARCC Excluding Allied* Allied** Total ARCC Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% First Lien Debt Second Lien Debt Senior Secured Loan Program Senior Subordinated Debt Equity & Other % Floating 63% 27% 5% 56% 45% 7% 18% 2% 47% 4% 8% 41% 15% 57% 17% 8% 30% 11% 34% 1% 4% 0% 20% 40% 60% 80% 100% Q3-09 Q4-09 Q1-10 Q2-10* Q3-10 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% First Lien Debt Second Lien Debt Subordinated Notes in Senior Secured Loan Program Senior Subordinated Debt Equity & Other % Floating

Investments Acquired in the Allied Acquisition *Includes fundings of revolver and other commitments of $23 million, PIK interest and accretion of purchase discounts. $ % of Total Yield $ % of Total Yield $ Lower Yielding / Non-Yielding Debt Securities Yielding < 10% 128,311 7.0% 6.5% 110,605 6.6% 7.3% (17,706) Debt Securities on Non-Accrual 335,554 18.3% — 207,980 12.4% — (127,574) Equity Securities 270,820 14.8% — 249,620 14.9% 0.2% (21,200) Commercial Real Estate and Other 34,525 1.9% 3.3% 33,232 1.9% 2.8% (1,293) Total 769,210 42.0% 1.2% 601,437 35.8% 1.6% (167,773) Higher Yielding Debt Securities Yieldings >= 10% 950,226 51.8% 14.3% 937,095 55.8% 14.0% (13,131) CLO's 114,330 6.2% 18.9% 141,770 8.4% 18.0% 27,440 Total 1,064,556 58.0% 14.8% 1,078,865 64.2% 14.5% 14,309 Total 1,833,766 100.0% 9.1% 1,680,302 100.0% 9.9% (153,464)$Total Investments at Fair Value as of April 1, 2010 1,833,766 Exits and Repayments (261,086) Net Unrealized Appreciation 67,194 Other* 40,428 Total Investments at Fair Value as of September 30, 2010 1,680,302 (Dollar amounts in 000s) "Investments at Fair Value as of April 1, 2010" "Investments at Fair Value as of September 30, 2010" "As of 9/30/2010" Net Change in Fair Value (Dollar amounts in 000s) Reconciliation of Net Change in Fair Value from April 1, 2010 Through September 30, 2010

Investment Spread and Portfolio Company Credit Statistics * Excludes the weighted average total leverage multiple for the Senior Secured Loan Program as well as the portfolio companies in the Senior Secured Loan Program. As of September 30, 2010, the weighted average total leverage multiple for the portfolio companies in the Senior Secured Loan Program was 3.9x. (24). ** Excludes the weighted average interest coverage ratio for the Senior Secured Loan Program as well as the portfolio companies in the Senior Secured Loan Program. As of September 30, 2010, the weighted average interest coverage ratio for the portfolio companies in the Senior Secured Loan Program was 3.0x. (22). *** The portfolio weighted average total leverage multiple for the investments purchased in the Allied Acquisition was 4.5x and 4.4x for Q2-10 and Q3-10, respectively. The portfolio weighted average interest coverage ratio for the investments purchased in the Allied Acquisition was 2.2x and 2.4x for Q2-10 and Q3-10, respectively. 9.7% 9.9% 10.0% 8.7% 9.7% 8.5% 4.1x 4.1x 3.9x 3.7x 3.7x 3.8x 2.7x 2.7x 2.7x 2.9x 3.3x 3.2x 4.1x 4.1x 2.8x 2.8x 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Q2-09 Q3-09 Q4-09 Q1-10 Q2-10*** Q3-10*** 0.5x 1.0x 1.5x 2.0x 2.5x 3.0x 3.5x 4.0x 4.5x 5.0x 5.5x Investment Spread at Amortized Cost (6) Portfolio Weighted Average Total Leverage Multiple for Core ARCC Portfolio (excludes investments purchased in Allied Acquisition) (19)(21)* Portfolio Weighted Average Interest Coverage Ratio for Core ARCC Portfolio (excludes investments purchased in Allied Acquisition) (19)(22)** Total Portfolio Weighted Average Total Leverage Multiple (includes investments purchased in the Allied Acquisition beginning Q2-10) (19)(21)* Total Portfolio Weighted Average Interest Coverage Ratio (includes investments purchased in the Allied Acquisition beginning Q2-10) (19)(22)**

Portfolio Company EBITDA(19) Total Portfolio Weighted Average EBITDA for Core ARCC Portfolio (excludes investments purchased in the Allied Acquisition) (20) Total Portfolio Weighted Average EBITDA (includes investments purchased in the Allied Acquisition beginning Q2-10) (20) Total Portfolio Weighted Average EBITDA for Gross Commitments made during the Quarter (excludes investments purchased in the Allied Acquisition) (20) $46.4 $44.1 $44.2 $44.9 $50.2 $26.5 $31.1 $30.8 $29.6 $34.7 $36.4 $49.4 $47.6 $31.9 $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 (MMs) $

Investment Portfolio as of September 30, 2010 $4.1 Billion Total Fair Value of Investments Number of Portfolio Company Investments 184 Investments * *Three portfolio companies were a part of both Ares Capital Corporation and Allied Capital Corporation’s respective portfolios at the time of the Allied Acquisition. Ares Capital Excluding Allied Investments $2.4 Investments Purchased in the Allied Acquisition $1.7 Investments Purchased in the Allied Acquisition 95 Ares Capital Excluding Allied Investments 92

Portfolio by Issuer Concentration as of September 30, 2010* Remaining 169 Investments Top 15 Investments 39.31% $4.1 billion Portfolio *At fair value. **Senior Secured Loan Program portfolio consists of first lien senior secured debt to 17 different issuers. ***Investments purchased in the Allied Acquisition. 10.25% 3.08% 2.94% 2.89% 2.51% 2.17% 2.08% 2.08% 1.90% 1.64% 1.64% 1.61% 1.54% 1.50% 1.48% 60.69% Senior Secured Loan Program** MagnaCare Holdings, Inc. American Broadband Holding Company Ivy Hill Asset Management, LP DSI Renal, Inc. BenefitMall Holdings Inc.*** The Step2 Company, LLC*** DirectBuy*** Ciena Capital LLC*** Insight Pharmaceuticals Corporation*** Hot Stuff Foods, LLC*** Vistar Corporation Citipostal, Inc.*** MVL Group, Inc*** R3 Education, Inc. Remaining 169 Investments

Investment Portfolio by Asset Class as of September 30, 2010* Investments Purchased in the Allied Acquisition Ares Capital Ares Capital Excluding Investments Purchased in the Allied Acquisition *At fair value. 31% 6% 10% 6% 1% 29% 17% 1st Lien Senior Debt 2nd Lien Senior Debt Senior Subordinated Debt Senior Secured Loan Program Equity CLO Commercial Real Estate 32% 6% 8% 2% 15% 37% 30% 7% 17% 4% 24% 18%

Ares Capital Excluding Investments Purchased in the Allied Acquisition Investment Portfolio by Industry as of September 30, 2010* Investments Purchased in the Allied Acquisition Ares Capital *At fair value. 23% 6% 19% 5% 10% 6% 5% 4% 5% 2% 4% 7% 2% 11% 28% 4% 17% 7% 9% 4% 3% 4% 4% 3% 3% 2% 1% 15% 4% 7% 2% 3% 1% 10% 13% 9% 1% 4% 5% 3% 3% 2% 18% Investment Funds Business Services Healthcare-Services Consumer Products Restaurants and Food Services Financial Services Education Manufacturing Telecommunications Beverage, Food and Tobacco Services-Other Retail Real estate Wholesale Distribution Computers and Electronics Other

Portfolio by Region as of September 30, 2010* Investments Purchased in the Allied Acquisition Ares Capital Ares Capital Excluding Investments Purchased in the Allied Acquisition *At fair value. 33% 37% 13% 16% 1% 26% 13% 29% 21% 7% 4% 29% 23% 22% 19% 4% 3% Mid-Atlantic Midwest West Southeast International Northeast

Portfolio By Grade Portfolio by Grade (23) *Excludes investments purchased in the Allied Acquisition. **Represents investments purchased in the Allied Acquisition. % By Fair Value 0% 20% 40% 60% 80% 100% Core ARCC Portfolio* Allied** Total ARCC Core ARCC Portfolio* Allied** Total ARCC Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Grade 1 Grade 2 Grade 3 Grade 4 % By Number of Companies 0% 20% 40% 60% 80% 100% Core ARCC Portfolio* Allied** Total ARCC Core ARCC Portfolio* Allied** Total ARCC Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Grade 1 Grade 2 Grade 3 Grade 4

Investments on Non-Accrual Status Amortized Cost* Fair Value* *Core ARCC Portfolio non-accrual investments were 4.0% at amortized cost and 0.4% at fair value of the total Core ARCC Portfolio investments at Q2-10, respectively, and 3.6% at amortized cost and 0.3% at fair value at Q3-10, respectively. $141 $118 $60 $101 $87 $91 $277 $223 6.2% 5.3% 2.5% 4.2% 9.4% 7.5% 2.2% 2.3% $0 $100 $200 $300 $400 $500 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 (MMs) 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% % of Total Investment Portfolio Investments purchased in the Allied Acquisition Core ARCC Portfolio (excludes investments purchased in the Allied Acquisition) Core ARCC Portfolio (excludes investments purchased in the Allied Acquisition) Total $42 $33 $10 $22 $9 $8 $279 $208 1.0% 0.2% 0.2% 2.0% 1.7% 0.5% 1.0% 7.6% 5.2% $0 $100 $200 $300 $400 $500 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 (MMs) 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% % of Total Investment Portfolio

As of November 3, 2010, we made $128 million of new investment commitments since September 30, 2010 61% were investments in the Senior Secured Loan Program, 29% were in 1st lien senior secured debt, 2% were in 2nd lien senior secured debt and 8% were in equity securities 66% were fixed rate with a weighted average yield at amortized cost of 15.2% and 31% were floating rate with a weighted average spread at amortized cost of 6.2% As of November 3, 2010, we exited $146 million of investments since September 30, 2010 Investment Activity Since Quarter End $66 million of investments exited 16% was 1st lien senior secured debt, 56% was senior subordinated debt and 28% were equity securities 52% were in fixed rate investments with a weighted average yield at amortized cost of 18.0% 14% were in floating rate investments with a weighted average spread at amortized cost of 3.9% $4 million were on non-accrual status Net realized gains on exits of approximately $19 million Investments Purchased in the Allied Acquisition $80 million of investments exited 47% was 1st lien senior secured debt, 21% was senior subordinated debt and 31% was 2nd lien senior secured debt and 1% were in equity securities 87% were in floating rate investments with a weighted average spread at amortized cost of 6.9% 12% were in fixed rate investments with a weighted average yield at amortized cost of 15.3% Ares Capital Excluding Allied Investments

As of November 3, 2010, we had a current committed backlog and pipeline of $180 million and $310 million, respectively(25) Backlog are deals that are committed and/or under LOI, and we believe are likely to close Pipeline are deals where significant due diligence and analysis are in process, but no formal mandate or commitment has been signed Although there can be no assurance, we expect to syndicate a portion of these amounts The following is a breakdown of our current backlog and pipeline commitments by asset class and by industry Committed Backlog and Pipeline Asset Class Industry 29% 9% 20% 13% 6% 22% Investment Funds Education Restaurants /Food Services Healthcare Services - Other Manufacturing

Corporate Data Corporate Counsel PROSKAUER ROSE LLP Los Angeles, CA SUTHERLAND ASBILL & BRENNAN LLP Washington, D.C. Independent Registered Public Accounting Firm KPMG LLP Los Angeles, CA Corporate Headquarters 280 Park Avenue, 22nd Floor, Building East New York, NY 10017 Tel: (212) 750-7300 Fax: (212) 750-1777 Securities Listing NASDAQ: ARCC Transfer Agent Computershare Investor Services, LLC Tel: (312) 588-4993 www.computershare.com Investor Relations Contact CARL DRAKE Senior Vice President of Finance/Head of Capital Markets and Investor Relations of Ares Capital Management LLC Tel: (310) 201-4200 Please visit our website at: www.arescapitalcorp.com Research Coverage BANK OF AMERICA MERRILL LYNCH Faye Elliott – (646) 855-5253 BB&T CAPITAL MARKETS Vernon C. Plack – (804) 780-3257 BMO CAPITAL MARKETS David Chiaverini – (212) 885-4115 CITIGROUP GLOBAL MARKETS Donald Fandetti – (212) 816-2971 EVERCORE PARTNERS Arren Cyganovich – (212) 497-0862 Bradley Ball – (212) 497-0866 JANNEY MONTGOMERY SCOTT John T.G. Rogers – (202) 955-4316 JMP SECURITIES John Hecht – (415) 835-3912 KEEFE, BRUYETTE & WOODS Sanjay Sakhrani – (212) 887-7723 LADENBURG THALMANN & CO. E. Brian Harvey – (212) 572-4110 LAZARD CAPITAL MARKETS James Ballan – (212) 632-6762 MACQUARIE USA LLC Matthew Howlett – (212) 231-8063 RBC CAPITAL MARKETS Jason Arnold – (415) 633-8594 STIFEL NICOLAUS Greg Mason – (314) 342-2194 Troy Ward – (314) 342-2714 SUNTRUST ROBINSON HUMPHREY John Stilmar – (404) 926-5009 WELLS FARGO SECURITIES LLC Christopher Harris – (443) 263-6513 Corporate Officers and Senior Management MICHAEL J. AROUGHETI President JOSHUA M. BLOOMSTEIN Vice President, General Counsel and Assistant Secretary RICK DAVIS Chief Financial Officer MERRITT HOOPER Secretary and Assistant Treasurer SCOTT LEM Assistant Treasurer and Chief Accounting Officer of Ares Capital Management LLC DANIEL NGUYEN Treasurer PENNI ROLL Executive Vice President of Finance of Ares Capital Management LLC KAREN A. TALLMAN Chief Compliance Officer MICHAEL D. WEINER Vice President Investment Committee MICHAEL J. AROUGHETI President, Director - Ares Capital Corporation Senior Partner – Ares Capital Management LLC Senior Partner – Ares Management LLC ERIC BECKMAN Senior Partner Ares Capital Management LLC R. KIPP DEVEER Senior Partner Ares Capital Management LLC MITCHELL GOLDSTEIN Senior Partner Ares Capital Management LLC JOHN KISSICK Senior Partner Ares Management LLC BENNETT ROSENTHAL Chairman – Ares Capital Corporation Senior Partner – Ares Management LLC DAVID SACHS Senior Advisor Ares Management LLC MICHAEL SMITH Senior Partner Ares Capital Management LLC KENNETH GORDON WATTERS Senior Partner Ares Capital Europe Limited Board of Directors MICHAEL J. AROUGHETI President – Ares Capital Corporation Senior Partner – Ares Capital Management LLC Senior Partner – Ares Management LLC ANN TORRE BATES Former Executive Vice President, Chief Financial Officer and Treasurer NHP, Inc. DOUGLAS E. COLTHARP Executive Vice President & Chief Financial Officer Health South Corporation FRANK O’BRYAN Former Chairman of WMC Mortgage Company GREGORY PENSKE President and CEO Penske Motor Group ANTONY P. RESSLER Senior Partner Ares Management LLC ROBERT L. ROSEN Managing Partner RLR Capital Partners BENNETT ROSENTHAL Chairman – Ares Capital Corporation Senior Partner – Ares Management LLC ERIC B. SIEGEL Retired Partner of Apollo Advisors, L.P.; Chairman of Executive Committee of El Paso Electric Company

Reconciliations of Core EPS The following are reconciliations of basic and diluted earnings per share computed in accordance with GAAP to basic and diluted Core earnings per share: *Excludes $0.01, $0.06, $0.03, $0.02 and $0.02 per share of professional fees and other costs related to the Allied Acquisition for Q3-10, Q2-10, Q1-10, Q4-09 and Q3-09, respectively. Three Months Ended (unaudited) 9/30/10 6/30/10 3/31/10 12/31/09 9/30/09 Basic and Diluted Core EPS (excluding professional fees and other costs related to the Allied Acquisition) (1) $ 0.38 * $ 0.32 * $ 0.28 * $ 0.37 * $ 0.34 * Professional fees and other costs related to the Allied Acquisition (0.01) (0.06) (0.03) (0.02) (0.02) Net realized and unrealized gains (losses) 0.30 0.44 0.36 0.29 0.30 Gain on the Allied Acquisition - 1.03 - - -Incentive fees attributed to realized gains - - - - -Income tax expense related to realized gains - - - - -Basic and Diluted GAAP EPS $ 0.67 $ 1.73 $ 0.61 $ 0.64 $ 0.62

Change in Net Asset Value *Excludes equity issued for the Allied Acquisition. Equity issuances, including DRIP* (27) (Dollar amounts in 000s, except per share data (26)) (unaudited) Quarter ended Quarter ended Quarter ended Quarter ended Quarter ended September 30, 2010 June 30, 2010 March 31, 2010 December 31, 2009 September 30, 2009 $ Per share $ Per share $ Per share $ Per share $ Per share NAV at beginning of period $ 2,711,273 $ 14.11 $ 1,568,982 $ 11.78 $ 1,257,888 $ 11.44 $ 1,222,591 $ 11.16 $ 1,088,722 $ 11.21 Net investment income (net of taxes) 71,220 0.37 49,541 0.26 31,705 0.25 38,352 0.35 32,906 0.32 Net realized gains (losses) (350) 0.00 11,924 0.06 (4,881) (0.04) (41,731) (0.38) (1,656) (0.01) Net unrealized gains (losses) 57,507 0.30 72,813 0.38 49,591 0.40 73,009 0.67 32,026 0.31 Gain on the Allied Acquisition - - 195,876 1.03 - - - - - -Distributions to stockholders (67,264) (0.35) (67,091) (0.35) (46,516) (0.35) (38,358) (0.35) (38,493) (0.35) Equity issued for the Allied Acquisition - - 872,727 0.94 - - - - - -Equity issuances, including DRIP* (27) 6,090 0.00 6,501 0.01 281,195 0.08 4,025 (0.01) 109,086 (0.32) NAV at end of period $ 2,778,476 $ 14.43 $ 2,711,273 $ 14.11 $ 1,568,982 $ 11.78 $ 1,257,888 $ 11.44 $ 1,222,591 $ 11.16

Portfolio Income Summary Revenues by Source (28) Interest and Dividend Income by Asset Class $54,730 $59,118 $62,327 $62,028 $107,503 $111,757 93% 97% 90% 93% 88% 81% 15% 1% 5% 3% 7% 6% 3% 5% 5% 4% 4% $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $110,000 $120,000 $130,000 $140,000 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 In 000s Interest and Dividends Structuring Fees Other $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 In 000s First Lien Debt Second Lien Debt Subordinated Notes in Senior Secured Loan Program Senior Subordinated Debt Equity/Other

Portfolio Summary – Weighted Average Yields(29)Portfolio Purchased in the Allied Acquisition Ares Capital Ares Capital Excluding Portfolio Purchased in the Allied Acquisition 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 16.00% Total Debt and Income Producing Securities 14.00% First Lien Debt 12.00% Second Lien Debt 10.00% 8.00% Sr. Subordinated Debt 6.00% 3-month Libor 4.00% 2.00% Wtd. Avg. Cost of Debt (5) 0.00% Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10

Portfolio Summary – Weighted Average Spread on Floating Rate Investments(30) Portfolio Purchased in the Allied Acquisition Ares Capital Ares Capital Excluding Portfolio Purchased in the Allied Acquisition 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 14.00% 12.00% 10.00% First Lien Debt 8.00% 6.00% Second Lien Debt 4.00% 2.00% 0.00% Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10

Distribution of ARCC IRRs(31) Total of 103 exits from portfolio from October 8, 2004 through September 30, 2010 for an aggregate cash flow IRR to ARCC of approximately 14% Original capital invested of $2.5 billion and total proceeds from exits of $2.9 billion Approximately 81% of exits with IRRs to ARCC of 10% or greater Exits above include total of 6 exits of investments purchased in the Allied Acquisition from April 1, 2010 through September 30, 2010 for an aggregate cash flow IRR to ARCC of approximately 7% 2 exits had an IRR to ARCC between 10% to 20% 2 exits had an IRR to ARCC between 0% to 10% 1 exit had an IRR to ARCC between -10% to 0% 1 exit had an IRR to ARCC between -20% to -10% (unaudited) 4 3 1 12 54 10 5 1 5 8 0 5 10 15 20 25 30 35 40 45 50 55 60 <-50% -50% to -40% -40% to -30% -30% to -20% -20% to -10% -10% to -0% 0% to 10% 10% to 20% 20% to 30% 30% to 40% 40% to 50% >50% >100% IRR% # of Exits

Endnotes Basic and diluted Core EPS (excluding professional fees and other costs related to the acquisition of Allied Capital Corporation (the "Allied Acquisition") is a non-GAAP financial measure. Core EPS (excluding professional fees and other costs related to the Allied Acquisition) is the net per share increase (decrease) in stockholders’ equity resulting from operations less professional fees and other costs related to the Allied Acquisition, realized and unrealized gains and losses, any incentive management fees attributable to such realized gains and losses and any income taxes related to such realized gains. Basic and diluted GAAP EPS is the most directly comparable GAAP financial measure. Ares Capital believes that Core EPS provides useful information to investors regarding financial performance because it is one method Ares Capital uses to measure its financial condition and results of operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Reconciliation of basic and diluted Core EPS (excluding professional fees and other costs related to the Allied Acquisition) to the most directly comparable GAAP financial measure is set forth on page 28 hereof. Net income can vary substantially from period to period as a result of various factors, including the recognition of realized gains and losses and unrealized appreciation and depreciation. As a result, quarterly comparisons of net income may not be meaningful. Includes sales to Ivy Hill Middle Market Credit Fund, Ltd. (“Ivy Hill”) and Ivy Hill Middle Market Credit Fund II, Ltd. (“Ivy Hill II”), which are managed by Ivy Hill Asset Management, L.P., a portfolio company of Ares Capital. See discussion of portfolio activity on page 13. The weighted average yield on debt and income producing securities at amortized cost is computed as (a) annual stated interest rate or yield earned plus the net annual amortization of original issue discount and market discount earned on accruing debt included in such securities, divided by (b) total debt and income producing securities at amortized cost included in such securities. The weighted average yield of debt and income producing securities at fair value is computed as (a) annual stated interest rate or yield earned plus the net annual amortization of original issue discount and market discount earned on accruing debt included in such securities, divided by (b) total debt and income producing securities at fair value included in such securities. The weighted average yield of debt and income producing securities at fair value was 12.90% as of September 30, 2010, 13.40% as of June 30, 2010 and 12.53% as of September 30, 2009. Computed as (a) annual stated interest rate on our debt obligations divided by (b) total debt obligations at principal amount. Weighted average investment spread equals weighted average yield of debt and income producing securities at amortized cost minus weighted average cost of debt. Represents gross commitments or fundings less commitments or investments exited, as applicable. Q1-10 and Q3-09 amounts include sales to Ivy Hill of $8.0 million and $5.0 million, respectively. Q1-10 also includes sales to Ivy Hill II of $86.5 million. Excludes realized and unrealized gains (losses). As of September 30, 2010, 18% of the total investments at fair value or 69% of the floating rate investments at fair value contain interest rate floor features. Includes portfolio companies for which there are outstanding commitments, but for which no amounts were funded at the end of the period. Computed as total book debt less cash not restricted for dividends, open trades or for uses specifically designated for other than repaying debt, divided by total stockholders equity. Effective rate as of September 30, 2010. For the three months ended September 30, 2010, the weighted average rate on principal was 4.77%. Requires periodic payments of interest only, with the outstanding principal balance due on maturity. Blended pricing across all notes. In October 2008, we entered into a two-year interest rate swap agreement for a total notional amount of $75 million where we pay a fixed interest rate of 2.985% and receive a floating rate based on the prevailing three-month LIBOR. Represents a regular dividend of $0.40 per share and an additional dividend of $0.10 per share. To be paid on December 31, 2010 to stockholders of record on December 15, 2010. Q1-10 and Q3-09 amounts include sales to Ivy Hill of $8.0 million and $5.0 million, respectively. Q1-10 also includes sales to Ivy Hill II of $86.5 million. (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18)

Endnotes (cont’d) EBITDA is a non-GAAP financial measure. For a particular portfolio company, EBITDA typically represents net income before net interest expense, income tax expense, depreciation and amortization. EBITDA amounts are estimated from the most recent portfolio company financial statements, have not been independently verified by Ares Capital and may reflect a normalized or adjusted amount. Accordingly, Ares Capital makes no representation or warranty in respect of this information. Weighted average EBITDA amounts are weighted based on the fair value of the portfolio company investments. Portfolio average total leverage multiples and portfolio weighted average total leverage multiples represent Ares Capital’s last dollar of invested debt capital as a multiple of EBITDA. Portfolio company credit statistics are derived from the most recently available portfolio company financial statements and have not been independently verified by Ares Capital. Accordingly, Ares Capital makes no representation or warranty in respect of this information. Portfolio average interest coverage ratio and portfolio weighted average interest coverage ratio represent the portfolio company’s EBITDA as a multiple of interest and facility fees expense. Portfolio company credit statistics are derived from the most recently available portfolio company financial statements and have not been independently verified by Ares Capital. Accordingly, Ares Capital makes no representation or warranty in respect of this information. Based on our investment adviser’s internal investment rating system scale from 1 to 4. Investments with a grade of 4 involve the least amount of risk to our initial cost basis and the trends and risk factors for these investments since origination or acquisition are generally favorable, which may include the performance of the portfolio company or a potential exit. Grade of 1 indicates that the risk to our ability to recoup the cost of such investment has substantially increased since origination or acquisition and our investment advisers does not anticipate we will be repaid in an amount equal to our full initial cost basis. All investments or acquired investments in new portfolio companies are initially assessed a grade of 3. As such, the investments purchased in the Allied Acquisition were initially assigned a Grade 3 rating upon acquisition on April 1, 2010. It is possible that the grade of certain of these investments may be reduced or increased over time. Portfolio average total leverage multiples and portfolio weighted average total leverage multiples represent the Senior Secured Loan Program’s last dollar of invested debt capital as a multiple of EBITDA. Portfolio company credit statistics are derived from the most recently available portfolio company financial statements and have not been independently verified by Ares Capital. Accordingly, Ares Capital makes no representation or warranty in respect of this information. The consummation of any of the investments in this backlog and pipeline depends upon, among other things, one or more of the following: satisfactory completion of our due diligence investigation of the prospective portfolio company, our acceptance of the terms and structure of such investment and the execution and delivery of satisfactory transaction documentation. The Company cannot assure you that we will make any of these investments. All amounts are unaudited except NAV amounts as of December 31, 2009. Due to the purchase of shares in the open market to satisfy the DRIP, an additional $0.1 million was paid by the Company to fund the dividend in Q3-09. Excludes realized and unrealized gains and losses. Weighted average yields on investments are computed as (a) annual stated interest rate or yield earned plus the net annual amortization of original issue discount and market discount earned on accruing debt included in such securities, divided by (b) total debt and income producing securities at fair value included in such securities. Weighted average cost of debt is the (a) annual stated interest rate on our debt obligations divided by (b) total debt obligations at principal value. Computed as (a) annual stated interest rate in excess of base rate divided by (b) total floating rate debt securities at fair value. Depicts the unlevered internal rate of return on Ares Capital’s exits of portfolio investments from October 8, 2004 through September 30, 2010. Internal rate of return is the discount rate that makes the net present value of all cash flows related to a particular investment equal to zero. Internal rate of return is gross of expenses related to investments as these expenses are not allocable to specific investments. Investments are considered to be exited when the original investment objective has been achieved through the receipt of cash and/or non-cash consideration upon the repayment of our debt investment or sale of an investment, or through the determination that no further consideration was collectible and, thus, a loss may have been realized. These IRR results are historical results relating to our past performance and are not necessarily indicative of future results, the achievement of which cannot be assured. Subject to borrowing base and leverage restrictions. (19) (20) (21) (22) (23) (24) (25) (26) (27) (28) (29) (30) (31) (32)