Ares Capital agrees to buy Apollo's MidCap Financial Investment for $2.6 billion
Ares Capital will acquire MidCap Financial Investment from Apollo in a stock-and-cash deal valued at about $2.6 billion, with a premium above 30%.
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what happened
Reuters reports that Ares Capital will purchase MidCap Financial Investment, a closed-end fund managed by a subsidiary of Apollo Global Management. The transaction carries an enterprise value of roughly $2.6 billion and combines shares with cash.
The offer represents a premium of more than 30% to MidCap's Monday close of $8.36. Holders will receive $10.88 per fully diluted share, made up of about $1.21 in cash and $9.67 in Ares Capital stock. WSJ also covered the deal, citing a fund size of $2.5 billion.
why it matters
Ares Capital is the largest publicly traded business development company. The deal gives it access to senior secured loans to mid-sized businesses, and the companies describe the effect on core earnings as modestly accretive. In premarket trading, Ares Capital shares fell about 2.4%, while MidCap rose about 18%.
market impact
Ares Capital and MidCap: the premium supports MidCap shares, while stock issued for the deal weighs on Ares Capital
- MidCap Financial Investment pressure up — the premium over the prior close supports the target's share price
- Ares Capital pressure down — issuing stock to pay for the deal puts pressure on the acquirer's shares
tags
instruments
sources
- Ares Capital Is Buying Midcap Financial Investment, A $2.5 Billion Fund, From Apollo — WSJ, 27 October 2026 at 09:32 UTC
- Ares Capital to buy Apollo's MidCap Financial Investment in $2.6 billion deal — Reuters, 27 October 2026 at 11:09 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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