Ares Capital agrees to buy MidCap Financial Investment Corporation for $2.6 billion

The deal is expected to close in the first half of 2027, subject to MidCap Financial stockholder approval and regulatory clearance.

Ares Capital has agreed to buy MidCap Financial Investment Corporation in a deal valued at about $2.6 billion in total enterprise value. Both companies' boards have approved it.

MidCap Financial stockholders are expected to receive total consideration of $10.88 per fully diluted share, meaning per share counting all shares that could be issued. About $1.21 of that would be paid in cash, funded by a subsidiary of Ares Management. About $9.67 would be paid in Ares Capital common stock.

The final amount is subject to adjustment for MidCap Financial's special dividend. The stock portion is set by an exchange ratio tied to Ares Capital's net asset value and share price. The value received by MidCap Financial holders will therefore move with Ares Capital's own valuation until the deal closes.

MidCap Financial will pay a termination fee of $31,360,000 under certain circumstances.

Ares has been active in other areas. On October 19, Ares made a purchase of Infinity Transportation from KKR. Ares also works in credit and infrastructure. Combining MidCap Financial with Ares Capital would place its business development company assets under one roof. Business development companies are investment vehicles that make loans to companies. The deal would also add scale to Ares' direct lending platform, which is lending made directly to companies rather than through public markets. The deal is expected to close in the first half of 2027.