Ares Capital Corporation Files 10-K/A: Key Financial Details, New Disclosures, and Audited IHAM Statements

Overview

Ares Capital Corporation (“Ares Capital” or the “Company”) has filed Amendment No. 1 (10-K/A) to its Annual Report on Form 10-K for the fiscal year ended December 31, 2025. The amendment incorporates the audited financial statements of Ivy Hill Asset Management, L.P. (“IHAM”), an unconsolidated, wholly owned portfolio company, as required by Rule 3-09 of Regulation S-X. This is a significant update shareholders need to understand, as it provides new transparency into the performance and financial position of a major subsidiary, which may have implications for the overall valuation of Ares Capital.

Key Points for Investors

• Amendment Focus: The sole purpose of this 10-K/A is to add IHAM’s audited financial statements for 2025, 2024, and 2023, and related notes. No other sections of the original 10-K have been updated, and there is no restatement of prior financial results for Ares Capital itself.
• IHAM’s Financial Results (2025):
  • Total Assets: \$9,276 million (up from \$8,957 million in 2024)
  • Total Equity: \$1,667 million (up from \$1,527 million in 2024)
  • Investment Income (Revenue): \$930 million in 2025
  • Net Operating Income: \$331 million in 2025
  • Interest Expense: \$487 million (down from \$564 million in 2024)
  • Commitments and Contingencies: Noted in the report but details are in Note 7
• Corporate Structure and Issuer Status: Ares Capital remains a well-known seasoned issuer, not a shell company, and continues to meet all SEC reporting obligations.
• Market Data: As of June 30, 2025, public float was approximately \$15.4 billion (based on a closing price of \$21.96 per share), with 718,021,545 shares outstanding as of March 20, 2026.
• Internal Controls: The company’s management, with attestation by its independent auditor, maintains that internal controls over financial reporting are effective and have not materially changed during the period.
• No Error Correction or Restatement: There are no restatements of financials or corrections of prior errors, and no need for clawback of executive compensation under SEC rules.
• Exhibits and Audit: The amendment includes new consents from KPMG LLP, the independent auditor for IHAM, and relevant certifications from the Chief Executive Officer and Chief Financial Officer.

Potential Price-Sensitive and Shareholder-Relevant Information

• Transparency on IHAM: The inclusion of audited financial statements for IHAM is a notable event. IHAM is a large, wholly-owned portfolio company, and its performance can impact Ares Capital’s valuation and risk profile. Investors now have detailed, independently audited visibility into the scale (\$9.3 billion assets) and profitability of IHAM.
• Growth in Assets and Equity: Both total assets and total equity for IHAM increased year-over-year, supporting the view that the portfolio company is growing and potentially increasing in value for Ares Capital shareholders.
• Stable Internal Controls and No Restatement: The confirmation of effective internal controls and no need for restated results may reassure investors regarding the integrity of Ares Capital’s accounting and reporting practices.
• Continued Large Public Float: The Company’s significant public float and large number of shares outstanding signal continued market confidence and liquidity.

Summary of IHAM Consolidated Financial Statements (2025)

What Shareholders Should Watch

• Impact of IHAM’s Performance: As IHAM is fully owned by Ares Capital and represents a major asset, changes in its financial condition—especially positive growth in assets and equity—could enhance Ares Capital’s book value and earnings power.
• Regulatory Compliance: This filing ensures Ares Capital remains in compliance with SEC rules, reducing risk of regulatory action.
• Future Developments: While no changes were made to the original 10-K except for the IHAM statements, investors should monitor for subsequent disclosures or events that may impact Ares Capital’s consolidated results.

Conclusion

The 10-K/A filing by Ares Capital is primarily a regulatory update to provide greater transparency into the financial results of IHAM, a large and significant subsidiary. While there is no restatement or correction of prior results, the positive financial trends at IHAM and the absence of internal control weaknesses may be viewed favorably by investors. This enhanced disclosure may support confidence in the Company’s valuation and risk profile.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review the full SEC filings and consult with their financial advisors before making investment decisions. The information summarized herein is based on public filings as of March 23, 2026, and may not reflect subsequent events or disclosures.

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