MSDL vs. ARCC

Last updated Apr 1, 2026

Compare and contrast key facts about Morgan Stanley Direct Lending Fund (MSDL) and Ares Capital Corporation (ARCC).

Performance

MSDL vs. ARCC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Morgan Stanley Direct Lending Fund (MSDL) and Ares Capital Corporation (ARCC). The values are adjusted to include any dividend payments, if applicable.

MSDL vs. ARCC - Yearly Performance Comparison

	2026 (YTD)	2025	2024
MSDL Morgan Stanley Direct Lending Fund	-12.50%	-10.85%	10.95%
ARCC Ares Capital Corporation	-8.49%	1.07%	18.01%

Fundamentals

Market Cap MSDL : $1.22B ARCC : $12.60B
EPS MSDL : $1.58 ARCC : $1.64
PE Ratio MSDL : 8.85 ARCC : 11.00
PEG Ratio MSDL : 0.12 ARCC : 1.65
PS Ratio MSDL : 4.06 ARCC : 6.71
PB Ratio MSDL : 0.70 ARCC : 0.88
Total Revenue (TTM) MSDL : $299.77M ARCC : $1.88B
Gross Profit (TTM) MSDL : $100.38M ARCC : $1.18B
EBITDA (TTM) MSDL : $94.60M ARCC : $1.08B

Returns By Period

In the year-to-date period, MSDL achieves a -12.50% return, which is significantly lower than ARCC's -8.49% return.

MSDL

• 1D: 2.20%
• 1M: -2.57%
• YTD: -12.50%
• 6M: -7.60%
• 1Y: -21.21%
• 3Y*: —
• 5Y*: —
• 10Y*: —

ARCC

• 1D: 1.58%
• 1M: -0.58%
• YTD: -8.49%
• 6M: -7.16%
• 1Y: -10.69%
• 3Y*: 9.35%
• 5Y*: 8.75%
• 10Y*: 11.92%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Return for Risk

MSDL vs. ARCC — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

MSDL

MSDL Risk / Return Rank: 7
MSDL Sharpe Ratio Rank: 6
MSDL Sortino Ratio Rank: 7
MSDL Omega Ratio Rank: 9
MSDL Calmar Ratio Rank: 9
MSDL Martin Ratio Rank: 3

ARCC

ARCC Risk / Return Rank: 21
ARCC Sharpe Ratio Rank: 22
ARCC Sortino Ratio Rank: 20
ARCC Omega Ratio Rank: 20
ARCC Calmar Ratio Rank: 25
ARCC Martin Ratio Rank: 22

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

MSDL vs. ARCC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Morgan Stanley Direct Lending Fund (MSDL) and Ares Capital Corporation (ARCC). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	MSDL	ARCC	Difference
Sharpe ratio Return per unit of total volatility	-0.94	-0.46	-0.49
Sortino ratio Return per unit of downside risk	-1.31	-0.51	-0.80
Omega ratio Gain probability vs. loss probability	0.84	0.93	-0.09
Calmar ratio Return relative to maximum drawdown	-0.88	-0.54	-0.34
Martin ratio Return relative to average drawdown	-1.84	-1.12	-0.72
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MSDL vs. ARCC - Sharpe Ratio Comparison

The current MSDL Sharpe Ratio is -0.94, which is lower than the ARCC Sharpe Ratio of -0.46. The chart below compares the historical Sharpe Ratios of MSDL and ARCC, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	MSDL	ARCC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.94	-0.46	-0.49
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.44	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.47	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.28	0.37	-0.65

Correlation

The correlation between MSDL and ARCC is 0.46, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.

Dividends

MSDL vs. ARCC - Dividend Comparison

MSDL's dividend yield for the trailing twelve months is around 13.97%, more than ARCC's 10.65% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MSDL Morgan Stanley Direct Lending Fund	13.97%	12.14%	10.65%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
ARCC Ares Capital Corporation	10.65%	9.49%	8.77%	9.59%	10.12%	7.65%	9.47%	9.01%	9.88%	9.67%	9.22%	11.02%

Drawdowns

MSDL vs. ARCC - Drawdown Comparison

The maximum MSDL drawdown since its inception was -29.68%, smaller than the maximum ARCC drawdown of -79.36%. Use the drawdown chart below to compare losses from any high point for MSDL and ARCC.

Drawdown Indicators

	MSDL	ARCC	Difference
Max Drawdown Largest peak-to-trough decline	-29.68%	-79.36%	+49.68%
Max Drawdown (1Y) Largest decline over 1 year	-25.03%	-19.35%	-5.68%
Max Drawdown (5Y) Largest decline over 5 years	—	-21.76%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-56.77%	—
Current Drawdown Current decline from peak	-27.62%	-16.71%	-10.91%
Average Drawdown Average peak-to-trough decline	-11.26%	-9.07%	-2.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	11.98%	9.33%	+2.65%

Volatility

MSDL vs. ARCC - Volatility Comparison

Morgan Stanley Direct Lending Fund (MSDL) and Ares Capital Corporation (ARCC) have volatilities of 6.72% and 6.61%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSDL	ARCC	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.72%	6.61%	+0.11%
Volatility (6M) Calculated over the trailing 6-month period	16.39%	15.16%	+1.23%
Volatility (1Y) Calculated over the trailing 1-year period	22.58%	23.48%	-0.90%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.36%	19.88%	+3.48%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.36%	25.53%	-2.17%

Financials

MSDL vs. ARCC - Profitability Comparison

The chart below illustrates the profitability comparison between Morgan Stanley Direct Lending Fund and Ares Capital Corporation over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

MSDL - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Apr 2026, Morgan Stanley Direct Lending Fund reported a gross profit of 0.00 and revenue of 96.60M. Therefore, the gross margin over that period was 0.0%.

ARCC - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Apr 2026, Ares Capital Corporation reported a gross profit of 43.48M and revenue of 202.00M. Therefore, the gross margin over that period was 21.5%.

MSDL - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Apr 2026, Morgan Stanley Direct Lending Fund reported an operating income of 0.00 and revenue of 96.60M, resulting in an operating margin of 0.0%.

ARCC - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Apr 2026, Ares Capital Corporation reported an operating income of 26.85M and revenue of 202.00M, resulting in an operating margin of 13.3%.

MSDL - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Apr 2026, Morgan Stanley Direct Lending Fund reported a net income of 44.00M and revenue of 96.60M, resulting in a net margin of 45.5%.

ARCC - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Apr 2026, Ares Capital Corporation reported a net income of 142.36M and revenue of 202.00M, resulting in a net margin of 70.5%.