Ares Capital Corporation has agreed to acquire MidCap Financial Investment Corporation, a business development company managed by an Apollo affiliate, in a cash-and-stock transaction valuing MFIC at about US$2.6bn including debt, the companies said on 27 October 2026.
Why Ares Capital Corporation is buying MidCap Financial Investment Corporation (MFIC)
Ares Capital said the deal should be accretive to core earnings and support future dividends. MFIC adds more than 200 incumbent positions, lifting the combined portfolio to more than 800 companies and over US$31bn of investments at fair value as of 30 September 2026, and extends Ares Capital's sponsor relationships to more than 600.
Deal terms and financing
MFIC shareholders will receive US$10.88 per fully diluted share, comprising about US$1.21 in cash paid by an Ares Management subsidiary and about US$9.67 in Ares Capital stock, adjusted for a special dividend MFIC expects to pay before closing. The price represents a 30.1% premium to MFIC's 26 October close. Wells Fargo has agreed to provide US$750m of additional secured financing.
Regulatory approvals and timing
The merger requires MFIC shareholder approval and applicable regulatory approvals. Apollo-affiliated holders of about 5.2% of MFIC have signed voting agreements. Completion is expected in the first half of 2027.
Market context
Ares Capital, externally managed by a subsidiary of Ares Management, was the largest publicly traded BDC by market capitalisation at 30 September 2026. MFIC invests mainly in first-lien senior secured loans to US middle-market companies with less than US$75m of EBITDA.
