Headquartered in London, Ares Capital Europe invests primarily in first and second lien senior loans and long-term mezzanine debt in European middle market companies. ACE seeks to provide financing across a potential borrower’s capital structure which may include an equity component in some cases. ACE focuses on self-originated and lead transactions combined with an agency capability. ACE will also selectively participate in “club” and broader syndicated transactions, particularly during periods of market dislocation.

ACE works with the broader Ares Management investment platform, including the investment professionals overseeing the activities of the Private Debt Group’s U.S. activities, to bring best-in-class products and services to the European middle market. Senior members of the Ares Management team sit on the Board of Directors and Investment Committee of ACE.

ACE’s principal orientation, flexibility and non-bureaucratic approach differentiates it from other capital providers in the European middle market. In addition to offering senior and subordinated debt products, ACE actively promotes the concept of the “unitranche” facility to the European market. The unitranche structure is a blended senior plus mezzanine debt strip which can be syndicated on a “first dollar out” basis which seeks to enhance lender returns and also benefit borrowers with a single lender interface.

The following highlights ACE’s strategy:

• Leverage Ares Management platform
  
• Pursue risk-adjusted returns by investing in the most attractive assets for a given borrower’s structure
• Drive proprietary originations by pursuing multiple origination channels
• Actively manage portfolio mix based upon macro-economic outlook
• Lead transactions and remain an active investor
• Emphasize flexible transactions where ACE’s competitive advantages are strongest

Portfolio Summary

Balanced Portfolio. Defensive Industries. Well Diversified.

As of September 30, 2011, Ares Capital Europe Limited’s portfolio was valued in excess of $990 million, invested across 36 companies and backed by 25 different private equity sponsors. Ares Capital Europe has a diversified portfolio in terms of asset class, industry sector and geographic representation.