Private Credit Portfolio Analysis | FS Specialty Lending Fund Reports Q1 2025 Results
- Editor
- May 9
- 2 min read
Whats New:
FS Specialty Lending Fund reported its Q1 2025 financial results, showing a decrease in total assets compared to the previous quarter. The fund's total assets decreased to $1.95 billion as of March 31, 2025, down from $2.13 billion at the end of 2024. However, the fund's net asset value per share increased to $3.37, up from $3.30 at the end of the previous quarter.
Portfolio Dynamics:
Total assets decreased to $1.95 billion as of March 31, 2025, compared to $2.13 billion at the end of 2024.
Investments owned at fair value decreased to $1.83 billion, down from $1.84 billion at the end of 2024.
Cash and cash equivalents decreased to $95.02 million from $202.09 million at the end of 2024.
Investment Activty:
Receivable from investment sales decreased significantly to $501,000 from $33.90 million at the end of 2024.
Interest receivable increased to $15.84 million from $14.38 million at the end of 2024.
Derivative income receivable decreased to $286,000 from $773,000 at the end of 2024.
Capital Structure:
Total liabilities decreased to $418.69 million from $627.78 million at the end of 2024.
Stockholders' equity increased to $1.53 billion from $1.50 billion at the end of 2024.
The fund maintained its common stock value at $456,000.
Performance Profile:
Net asset value per share increased to $3.37 as of March 31, 2025, compared to $3.30 at the end of 2024.
Retained earnings deficit decreased to $1.60 billion from $1.63 billion at the end of 2024.
The fund reported a net income of $34.43 million for Q1 2025.
Risk & Quality:
The fund reported a derivative fair value of derivative liability of $190,000, up from zero at the end of 2024.
Management fee payable increased slightly to $8.87 million from $8.67 million at the end of 2024.
Accrued liabilities and other liabilities increased to $3.27 million from $3.16 million at the end of 2024.
The Wrap:
FS Specialty Lending Fund demonstrated mixed results in Q1 2025, with a decrease in total assets but an increase in net asset value per share. The fund's investment portfolio contracted slightly, while cash and cash equivalents decreased significantly. Despite the reduction in total assets, the fund's stockholders' equity improved, and it reported a positive net income for the quarter. The decrease in liabilities, particularly in payables for investment purchases, contributed to the overall improvement in the fund's financial position.
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