Jim Miller
About Jim Miller
Jim (James R.) Miller is President of Ares Capital Corporation (ARCC) and a Partner in the Ares Credit Group; he became Co‑President on October 24, 2024 and, following the CEO transition effective April 30, 2025, continues as the Company’s sole President . He is 48, holds a B.A. in Economics from Fairfield University and an M.B.A. from Columbia Business School . Core credentials include Co‑Head of Ares’ U.S. Direct Lending (USDL) strategy and membership on the USDL Investment Committee; he also serves on Ares’ Sports, Media & Entertainment Investment Committee and is President of Ares Strategic Income Fund (ASIF) . As context, ARCC’s shares traded at a 9.33% premium to NAV on May 15, 2025 ($21.67 close vs. Q1’25 NAV), underscoring strong market positioning during his early tenure .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Ares Management Corporation (Ares) | Partner; Portfolio Manager; Co‑Head, U.S. Direct Lending; USDL Investment Committee member | 2006–present | Leads/directs sponsor finance origination, execution and portfolio management; senior leadership in Ares Credit Group . |
| Silver Point Capital | Vice President | Prior to 2006 | Built sponsor finance business for middle market financing and principal investing . |
| GE Capital | Vice President | Prior to 2006 | Provided investing and investment banking services to private equity funds (high yield, bank debt, mezzanine, rescue financing) . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Ares Strategic Income Fund (ASIF) | President; Investment Committee member | 2023–present | Leadership of a registered investment fund affiliated with Ares; reflects breadth across credit platforms . |
| Ares Sports, Media & Entertainment | Investment Committee member; co‑lead for strategy | N/A | Expands Ares’ thematic reach; supports deal origination and portfolio oversight . |
Fixed Compensation
ARCC is externally managed; its executive officers (including Jim Miller) receive no direct compensation from ARCC. Compensation is paid by Ares Management or affiliates.
| Component | ARCC pays Miller directly? | Source/Notes |
|---|---|---|
| Base salary | No | “Our executive officers do not receive any direct compensation from us.” |
| Annual bonus | No | Paid, if any, by Ares Management (not disclosed by ARCC) . |
| Benefits/perquisites | No | Executive services provided by Ares; ARCC reimburses administrator for allocable expenses of certain officers (CFO/CCO, etc.), but not investment professionals . |
Performance Compensation
While ARCC does not pay its executives, portfolio managers (including Miller) at Ares receive a mix of fixed draw and variable incentive compensation tied to performance.
| Incentive element | Metric linkage | Target/Actual | Payout/Vesting | Source |
|---|---|---|---|---|
| Ares PM variable incentive compensation | “Based…on our performance” (i.e., ARCC performance influences variable comp via the adviser’s structure) | Not disclosed | Not disclosed | |
| ARCC advisory fee (company‑level, informs adviser economics) | Base management fee; income‑based incentive fee; capital gains incentive fee accrual | 2024: Base $374m; Income‑based $364m; Capital gains accrued $18m | Fees payable per Investment Advisory & Mgmt Agreement |
Note: No ARCC equity grants, options, or RSUs are disclosed for Miller, given the external management model .
Equity Ownership & Alignment
| Data point | Detail |
|---|---|
| Beneficial ownership | 51,036 ARCC shares as of March 5, 2025; <1% of class (681,588,467 shares outstanding) . |
| Subsequent ownership disclosure | 51,036 ARCC shares as of May 13, 2025; <1% of class (694,181,754 shares outstanding) . |
| Recent insider transaction | Open‑market purchase of 40,000 shares on March 3, 2025 at a weighted avg price of $23.32 (Form 4) . |
| Hedging/pledging | Hedging, short selling, and pledging of ARCC securities are prohibited for executive officers and directors . |
| Ownership guidelines | Directors must hold ARCC equity ≥2.5x annual cash retainer; all directors were in compliance as of March 5, 2025 (guidelines are specified for directors; not specified for ARCC executive officers) . |
Insider transaction detail:
| Trade date | Type | Shares | Price |
|---|---|---|---|
| 2025‑03‑03 | Open‑market purchase | 40,000 | $23.32 weighted average |
Additional disclosure:
- Initial Form 3 underreported Miller’s holdings; an amended Form 3 was filed March 7, 2025 .
Employment Terms
| Term | Detail |
|---|---|
| Appointment dates | Appointed Co‑President effective October 24, 2024; continues as sole President following April 30, 2025 CEO transition . |
| Contract term/renewal | Not disclosed by ARCC (executives are employees/affiliates of Ares) . |
| Severance / CIC | Not disclosed by ARCC; no ARCC‑paid severance/CIC economics for executive officers . |
| Clawback | ARCC adopted a clawback policy compliant with Nasdaq/Exchange Act 10D for incentive‑based compensation “received from the Company” (note: executives do not receive incentive comp from ARCC) . |
| Non‑compete / non‑solicit | Not disclosed by ARCC. |
Performance & Track Record (select highlights)
- Leadership breadth: Co‑Head of USDL, member of USDL IC; leads ASIF and serves on Ares’ SME Investment Committee, signaling deep direct‑lending and thematic investing expertise .
- Market context: ARCC traded above NAV in 2025 YTD; on May 15, 2025 it closed at $21.67 (≈9.33% premium to Q1’25 NAV), reflecting continued investor demand for ARCC’s model .
Governance, Related Parties, and Risk Indicators
- External management and conflicts: ARCC is externally managed by an Ares subsidiary; USDL IC members (including Miller) also serve across Ares vehicles (~$348.8bn AUM as of 12/31/24), creating potential allocation and conflict risks disclosed in ARCC filings .
- Insider trading controls: ARCC policy prohibits hedging/pledging and short‑selling by executives and directors .
- Section 16 compliance: ARCC disclosed Miller’s amended Form 3 after initial underreporting; otherwise Section 16 compliance was noted for FY2024 .
Investment Implications
- Alignment: Miller’s open‑market purchase (40,000 shares on 3/3/25) and total beneficial ownership of 51,036 shares demonstrate incremental “skin in the game” despite the external manager model; hedging/pledging prohibitions further support alignment .
- Pay‑for‑performance visibility: ARCC does not disclose executive‑level pay metrics because executives are paid by Ares; however, Ares’ portfolio manager compensation includes variable elements linked to performance, and ARCC’s advisory fee structure (base + income‑based + capital gains accrual) makes adviser economics sensitive to portfolio outcomes .
- Retention risk: Employment terms (non‑compete, severance, CIC) are not disclosed at ARCC, but Miller’s senior roles across Ares platforms suggest strong internal career anchoring; recent promotion to President also supports continuity .
- Governance/risks: External management and cross‑platform roles can create perceived conflicts; ARCC’s committee oversight and co‑investment procedures, plus trading/pledging prohibitions and a clawback policy, mitigate but do not eliminate these concerns .