
Private Credit Portfolio Analysis | Phillip Street Middle Market Lending Fund Reports Q1 2025 Results
- Editor
- May 13
- 2 min read
Whats New:
Phillip Street Middle Market Lending Fund LLC reported its Q1 2025 financial results, showing significant growth in assets and investments compared to the previous quarter. The fund's total assets increased to $718.6 million as of March 31, 2025, up from $637.7 million at the end of 2024. The net asset value per share also improved to $20.26, compared to $19.84 at the end of the previous quarter.
Portfolio Dynamics:
Total assets grew to $718.6 million as of March 31, 2025, compared to $637.7 million at the end of 2024.
Investments owned at fair value increased to $677.3 million, up from $604.4 million at the end of 2024.
Cash and cash equivalents rose to $15.6 million from $11.4 million at the end of 2024.
Investment Activty:
The fund reported $75.7 million in payments for purchase of investments during Q1 2025, compared to $22.5 million in Q1 2024.
Proceeds from sales of investments and principal repayments were $3.0 million in Q1 2025, up from $2.7 million in Q1 2024.
Interest income paid in kind increased to $356,000 in Q1 2025 from $8,000 in Q1 2024.
Capital Structure:
Long-term debt increased to $291.1 million from $220.1 million at the end of 2024.
Stockholders' equity grew to $420.0 million from $402.2 million at the end of 2024.
The fund issued additional common stock, with the value increasing to $410.9 million from $401.8 million at the end of 2024.
Performance Profile:
Net asset value per share increased to $20.26 as of March 31, 2025, compared to $19.84 at the end of 2024.
Retained earnings grew to $9.1 million from $0.4 million at the end of 2024.
The fund reported a net profit of $8.7 million for Q1 2025, compared to $4.6 million in Q1 2024.
Risk & Quality:
The fund reported an incentive fee payable of $723,000, up from $676,000 at the end of 2024.
Management fee payable increased to $1.33 million from $1.25 million at the end of 2024.
Interest and other debt expenses payable rose to $4.73 million from $3.74 million at the end of 2024.
The Wrap:
Phillip Street Middle Market Lending Fund demonstrated strong growth in Q1 2025, with significant increases in total assets, investments at fair value, and stockholders' equity. The fund's net asset value per share also improved, reflecting positive performance. However, the increase in long-term debt and various fee payables suggests higher costs associated with the fund's expanded operations and investment activities. The fund's increased investment purchases and higher interest income paid in kind indicate an active investment strategy in the middle market lending space.
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