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As the largest publicly traded businessdevelopmentcompany ( BDC ) in the U.S., Ares provides privatecompanies with the cash they need to expand. It specializes in loans to "middle-market" businesses that typically have sales of between $10 million and $1 billion.
By comparison, publicly traded companies that don't offer a payout have clawed their way to a more pedestrian annualized return of 3.95% over the same five-decade stretch. They're just the type of business we'd expect to increase in value over long periods. I'm talking about smaller, generally unproven privatecompanies.
Brookfield Renewable (NYSE: BEPC) (NYSE: BEP) is particularly well suited to deliver gains to shareholders fueled by clean energy. Ares operates as a businessdevelopmentcompany ( BDC ). That's how it can afford to pay such sizable dividends to its shareholders.
For example, Amy Stone of Barron's recently discussed Blackstone’s gigantic private credit fund, BCRED, stating this: The fund, which launched on Jan. annually to investors since inception, the company said in a letter to shareholders on Monday. Like some other private credit vehicles, BCRED has some defensive characteristics.
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