Ares Capital reports rise in non-payment risk and new non-accrual in loan portfolio
Updated
Updated · The Wall Street Journal · Apr 28
Ares Capital reports rise in non-payment risk and new non-accrual in loan portfolio
6 articles · Updated · The Wall Street Journal · Apr 28
Non-payment risk investments increased to 3.1% in Q1, with a new non-accrual in a Varagon Capital joint venture.
Ares Capital posted $58 million and $63 million unrealized write-downs on Symplr Software and Cornerstone OnDemand, while its investment yield dropped to 9.2%.
Earnings per share fell slightly below estimates at $0.47, and exposure to software and services companies declined to 21.7% as falling interest rates pressured returns.
With earnings missing estimates, is Ares Capital's high-yield dividend now at risk?
Are Ares' software write-downs the first sign of a larger private credit collapse?
Can Ares Capital turn market turmoil into a strategic buying opportunity?
What does rising non-payment risk reveal about the true health of private companies?
How is the 'AI Apocalypse' forcing a revaluation of the entire software sector?