
Private Credit Portfolio Analysis | New Mountain Guardian IV BDC Reports Q1 2025 Results
- Editor
- May 13
- 2 min read
Whats New:
New Mountain Guardian IV BDC, L.L.C. reported its Q1 2025 financial results, showing significant growth in net income compared to the same quarter in the previous year. The fund's net income increased to $19.45 million for the quarter ended March 31, 2025, up from $12.85 million in Q1 2024. The fund also reported increased borrowings from its credit facilities, indicating an expansion of its investment activities.
Portfolio Dynamics:
Net income rose to $19.45 million in Q1 2025, compared to $12.85 million in Q1 2024.
Realized investment losses increased to $767,000 in Q1 2025 from $39,000 in Q1 2024.
Unrealized losses on investments were $1.65 million in Q1 2025, compared to a gain of $3.36 million in Q1 2024.
Investment Activity:
Payments for purchase of investments increased to $121.06 million in Q1 2025 from $124.48 million in Q1 2024.
Proceeds from disposition of investments rose significantly to $83.00 million in Q1 2025 from $15.08 million in Q1 2024.
Drawn revolvers increased to $4.45 million in Q1 2025 from $2.07 million in Q1 2024.
Capital Structure:
Proceeds from long-term lines of credit totaled $93.30 million in Q1 2025, including $38.00 million from BMO Subscription Line and $55.30 million from Wells Credit Facility.
Repayments of long-term lines of credit amounted to $57.00 million in Q1 2025, including $38.00 million for BMO Subscription Line and $19.00 million for Wells Credit Facility.
The fund incurred $1.11 million in debt issuance costs and $59,000 in placement fees during Q1 2025.
Performance Profile:
Net cash used in operating activities was $32.90 million in Q1 2025, compared to $70.71 million in Q1 2024.
Net cash provided by financing activities was $35.14 million in Q1 2025, down from $73.99 million in Q1 2024.
Cash and cash equivalents increased to $22.10 million as of March 31, 2025, from $19.87 million at the end of 2024.
Risk & Quality:
Accretion/amortization of discounts and premiums on investments increased to $2.34 million in Q1 2025 from $1.03 million in Q1 2024.
Amortization of financing costs rose to $353,000 in Q1 2025 from $132,000 in Q1 2024.
The fund reported $928,000 in other non-cash income/expense for Q1 2025, compared to $1.12 million in Q1 2024.
The Wrap:
New Mountain Guardian IV BDC, L.L.C. demonstrated strong growth in Q1 2025, with a significant increase in net income compared to the same period in 2024. The fund's investment activities expanded, as evidenced by increased borrowings from credit facilities and higher investment purchases. However, the fund also faced challenges, including larger realized investment losses and a shift from unrealized gains to unrealized losses on investments. The overall cash position improved, despite decreased net cash from financing activities, indicating a more balanced approach to managing its portfolio and capital structure.
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