Private Credit Portfolio Analysis | Oaktree Specialty Lending Reports Q2 2025 Results
- Editor
- Apr 30
- 2 min read
Whats New:
Oaktree Specialty Lending Corporation reported its Q2 2025 financial results, showing a decrease in total assets and stockholders' equity compared to the previous quarter. The fund's total assets decreased to $3.08 billion as of March 31, 2025, down from $3.20 billion at the end of September 2024. The fund reported a net loss of $36.25 million for the quarter.
Portfolio Dynamics:
Total assets decreased to $3.08 billion as of March 31, 2025, compared to $3.20 billion at the end of September 2024.
Investments owned at fair value decreased to $2.89 billion, down from $3.02 billion at the end of September 2024.
Cash and cash equivalents increased to $97.84 million from $63.97 million at the end of September 2024.
Investment Activity:
Receivable from investment sales increased to $18.53 million from $17.55 million at the end of September 2024.
Receivables from brokers, dealers, and clearing organizations increased to $25.19 million from $17.06 million at the end of September 2024.
Due from portfolio companies decreased to $0.32 million from $12.53 million at the end of September 2024.
Capital Structure:
Line of credit decreased to $520.00 million from $710.00 million at the end of September 2024.
Unsecured debt slightly decreased to $928.49 million from $928.69 million at the end of September 2024.
Stockholders' equity decreased to $1.48 billion from $1.49 billion at the end of September 2024.
Performance Profile:
Net loss of $36.25 million for the quarter ended March 31, 2025, compared to a net income of $9.34 million in the same quarter of the previous year.
Unrealized loss on investments and derivatives of $82.02 million for the quarter, compared to $25.25 million in the same quarter of the previous year.
Realized gain on investments and derivatives of $6.71 million for the quarter, compared to a loss of $6.60 million in the same quarter of the previous year.
Risk & Quality:
Derivative liabilities increased to $19.22 million from $16.84 million at the end of September 2024.
Management and incentive fee payable decreased to $7.33 million from $15.52 million at the end of September 2024.
Payable for investment purchases significantly increased to $110.20 million from $15.67 million at the end of September 2024.
The Wrap:
Oaktree Specialty Lending Corporation faced challenges in Q2 2025, with decreases in total assets and stockholders' equity. The fund reported a net loss, primarily due to significant unrealized losses on investments and derivatives. Despite these challenges, the fund saw increases in cash and cash equivalents and realized gains on investments. The decrease in line of credit and management fees payable, coupled with the increase in payables for investment purchases, suggests a shift in the fund's investment strategy and capital structure.
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