Private Credit Portfolio Analysis | Redwood Enhanced Income Corp Reports Q1 2025 Results
- Editor
- May 14
- 2 min read
Whats New:
Redwood Enhanced Income Corp reported its Q1 2025 financial results, showing growth in total assets and long-term debt compared to the previous quarter. The fund's total assets increased to $413.66 million as of March 31, 2025, up from $397.77 million at the end of 2024. Long-term debt rose to $183.24 million from $169.16 million, while net asset value per share decreased to $12.54 from $12.80 at the end of the previous quarter.
Portfolio Dynamics:
Total assets grew to $413.66 million as of March 31, 2025, compared to $397.77 million at the end of 2024.
Investments owned at fair value increased to $406.47 million, up from $388.14 million at the end of 2024.
Cash and cash equivalents decreased to $176,000 from $384,000 at the end of 2024.
Investment Activity:
Receivable from investment sales increased to $1.02 million from $803,000 at the end of 2024.
Interest receivable decreased to $5.47 million from $7.53 million at the end of 2024.
Derivative assets decreased to $150,000 from $299,000 at the end of 2024.
Capital Structure:
Long-term debt increased to $183.24 million from $169.16 million at the end of 2024.
Stockholders' equity decreased to $212.21 million from $214.99 million at the end of 2024.
The fund's common stock value remained unchanged at $17,000.
Performance Profile:
Net asset value per share decreased to $12.54 as of March 31, 2025, compared to $12.80 at the end of 2024.
Retained earnings deficit increased to $30.53 million from $26.05 million at the end of 2024.
Additional paid-in capital increased to $242.72 million from $241.02 million at the end of 2024.
Risk & Quality:
Incentive fee payable decreased to $388,000 from $1.34 million at the end of 2024.
Management fee payable increased to $675,000 from $477,000 at the end of 2024.
Payable for investment purchased significantly increased to $10.12 million from $286,000 at the end of 2024.
The Wrap:
Redwood Enhanced Income Corp's Q1 2025 results show mixed performance with growth in total assets and investments at fair value, but a decrease in net asset value per share. The fund increased its long-term debt and saw significant changes in various receivables and payables. While the overall asset base expanded, the decrease in stockholders' equity and NAV per share suggests challenges in maintaining value for shareholders in the current quarter.
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