Specialty finance lender Ares Capital (NYSE: ARCC) sent a letter to its shareholders. The letter aims to calm fears about the impact of the coronavirus.

The Business Development Company’s (BDC) stock is down 57% over the last month as investors have fled the high-risk private lending firms.

Ares Capital Managemen said its portfolio centers on senior secured loans and is highly diversified across 354 different portfolio companies. The firm has concentrated in defensive industries such as healthcare services, software and services, and commercial and professional services, and management feels that gives the loan portfolio an additional margin of safety.

Ares Capital and Its Letter to Shareholders

The letter said: Approximately 85% of our portfolio companies are backed by established private equity firms with robust resources and capabilities to support the liquidity needs of these portfolio companies. We believe this ultimately enhances the creditworthiness of our borrowers. Additionally, our portfolio companies are typically larger in size than other Business Development Company, which we believe makes them more resilient in this environment.”

The BDC also pointed out that they have $2.7 billion in cash right now, and the earliest maturity on any of the bank commitments was 2024.

The letter also stressed the BDCs relationship with it parent company telling investors that “In addition to the benefits mentioned above, ARCC’s capabilities are meaningfully enhanced by the resources, capital and expertise from the broader platform at Ares Management Corporation, a leading global alternative investment manager with $149 billion in assets under management as of December 31, 2019. We believe that Ares provides us with significant human resources, operational expertise, deep capital markets relationships, differentiated information, and industry research and an expanded view of relative value with which to approach investing in all environments.”

The letter concluded by reassuring investors that Ares Capital has experienced management that has weather downturns in the market and economy before and expects to be able to navigate the turmoil caused by the coronavirus as well.

You can read the entire letter here.