Legal & Disputes
Brodsky & Smith Probes MidCap Board Over $10.88-Per-Share Ares Capital Sale
By News Desk ·
Key takeaways
- Brodsky & Smith is investigating MidCap Financial Investment's board over possible breaches of fiduciary duty in the sale to Ares Capital.
- MidCap shareholders would receive about $10.88 per share, $1.21 in cash and $9.67 in Ares Capital stock, in a deal with an enterprise value of about $2.6 billion.
- Ares Capital is expected to retain about 95% ownership of the combined company, and the deal is expected to close in the first half of 2027.
Brodsky & Smith said it is investigating potential claims against the board of MidCap Financial Investment Corporation over possible breaches of fiduciary duty in the company's sale to Ares Capital Corporation. The deal pays MidCap shareholders approximately $10.88 per share, $1.21 in cash and $9.67 in Ares Capital common stock, for an enterprise value of approximately $2.6 billion, Aktien reported on October 27, 2026.
What the Brodsky & Smith Inquiry Covers
The investigation concerns whether the MidCap Financial Investment board breached its fiduciary duties by failing to conduct a fair process, including whether the proposed transaction pays fair value to shareholders. Brodsky Smith is a private plaintiff-side litigation law firm founded in 1998 and based in Bala Cynwyd, Pennsylvania, according to akta.pro company records. The firm said shareholders who own MidCap stock can contact Jason L. Brodsky or Marc L. Ackerman to discuss the legal ramifications of the investigation.
Quiver Quantitative reported that Ares Capital will retain about 95% ownership under the stock-and-cash deal and that the transaction is expected to close in the first half of 2027. Seeking Alpha reported that the deal is expected to be modestly accretive to Ares Capital's core EPS and to support future dividends.
Brodsky Smith's Litigation Background
Brodsky Smith has been providing counsel for over 25 years, according to the same records. Marc L. Ackerman joined as a partner in October 2002, formally establishing the firm's class action securities and shareholder litigation capability. The firm hired associate Devon Curran in 2023 to expand capacity in class action securities and stockholder litigation.
Earlier Brodsky & Smith Merger Probes
On October 5, 2026, Brodsky & Smith notified investors of investigations into four merger deals involving RXO, PTC, Lifecore Biomedical and WaFd, according to FinancialContent Business Page. On September 18, 2026, the firm notified investors of four merger investigations covering MISTRAS Group, Caesars Entertainment, The Baldwin Group and Utz Brands, FinancialContent Business Page reported. On September 11, 2026, Brodsky & Smith announced an investigation of ACV Auctions' board over the $10.50-per-share sale to Copart, which implies an equity value of about $1.9 billion, Newsfile reported.
MidCap's November 5 Earnings Call
MidCap Financial Investment will report quarterly results for the period ended September 30, 2026, before the Nasdaq Global Select Market opens on November 5, 2026, and will host a conference call at 8:30 a.m., Stock Titan reported.