Private Credit Portfolio Analysis | Bain Capital Specialty Finance Reports Mixed Q3 Results
- Editor
- Nov 7, 2024
- 2 min read
What's New: Bain Capital Specialty Finance reported mixed results for Q3 2024. The fund saw a decrease in net investment income but an increase in net income compared to the previous quarter. Total assets grew slightly to $2.54 billion as of September 30, 2024, up from $2.47 billion at the end of 2023.
Portfolio Dynamics:
Total investments at fair value increased to $2.41 billion as of September 30, 2024, compared to $2.30 billion at the end of 2023.
Cash and cash equivalents decreased significantly to $25.3 million from $43.0 million at the end of 2023.
Restricted cash and cash equivalents declined to $29.3 million from $63.1 million at the end of 2023.
Investment Activity :
The fund made new investments totaling $1.10 billion during the first nine months of 2024.
Proceeds from sales and repayments of investments amounted to $1.00 billion in the same period.
Net realized losses on investments for the nine months ended September 30, 2024 were $7.6 million.
Capital Structure:
Long-term debt increased to $1.30 billion as of September 30, 2024, from $1.26 billion at the end of 2023.
The fund raised $565 million from issuance of long-term debt and repaid $522.3 million during the first nine months of 2024.
Total liabilities grew to $1.40 billion from $1.34 billion at the end of 2023.
Performance Profile:
Net investment income for Q3 2024 was $35.0 million, down from $36.3 million in Q3 2023.
Net income for Q3 2024 was $33.1 million, slightly lower than $33.9 million in Q3 2023.
Net asset value per share increased to $17.76 as of September 30, 2024, compared to $17.60 at the end of 2023.
Risk & Quality:
The fund reported net unrealized losses on investments of $1.6 million for the nine months ended September 30, 2024.
Derivative liabilities increased to $6.5 million from $2.3 million at the end of 2023.
The fund paid $85.2 million in dividends during the first nine months of 2024.
The Wrap: Bain Capital Specialty Finance demonstrated resilience in Q3 2024 with modest growth in total assets and investments. While net investment income declined slightly, the fund maintained a stable net income and increased its net asset value per share. The increase in long-term debt and total liabilities suggests a more leveraged position, which may present both opportunities and risks going forward.
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