Ares Capital Corporation and MidCap Financial Investment Corporation announced on October 27, 2026, that they entered into a definitive merger agreement under which Ares Capital would acquire MidCap Financial Investment in a stock-and-cash transaction with a total enterprise value of approximately $2.6 billion.
Both companies are publicly traded business development companies. According to the announcement, the proposed combination would bring Ares Capital’s investment portfolio to more than $31 billion at fair value, covering more than 800 portfolio companies, on a pro forma basis as of September 30, 2026.
The transaction is expected to close in the first half of 2027, subject to approval by MidCap Financial Investment’s stockholders, applicable regulatory approvals, and other customary closing conditions. The acquisition has not been completed.
Why We’re Watching
The proposed combination would expand Ares Capital’s lending portfolio. For advisors following BDCs, the transaction terms, portfolio overlap, and eventual effect on shareholder income warrant attention.
Source: Ares Capital Corporation and MidCap Financial Investment Corporation joint announcement dated October 27, 2026, distributed through Business Wire and reproduced by FinancialContent. Transaction details and expectations reflect company statements. Completion and anticipated benefits are not guaranteed. This article is informational and does not constitute an investment recommendation.
