Fidus Investment (FDUS) has issued its annual Proxy and asked shareholders-as usual-to approve the ability to issue new stock below Net Asset Value, if deemed appropriate by the Powers-That-Be. The BDC Activist cheers the Company’s long term performance but questions whether shareholders and manager are on the same page…
A leading institutional corporate governance advisory organization has come out in favor of the proposals advanced by “activist” Ironsides Partners in the upcoming shareholder vote at Fifth Street Senior Floating Rate. We provide details and analysis. However the BDC Activist remains uncertain what outcome will best favor FSFR’s shareholders. CORRECTED VERSION.
With a shareholder vote coming in April, BDC Activist revisits the challenge of Fifth Street Senior Floating Rate by Ironsides Partners, who seek to appoint 2 directors to the Board, fire the External Manager & sell the BDC to improve the stock price from the current huge discount to book. New dawn for BDC activism or dead-end ?
The BDC Credit Reporter takes a quick look at Monroe Capital’s credit performance and investment portfolio at year end 2015. There is much to cheer about, but we also point out incipient risks that might affect future underwriting performance.
While continuing the BDC Credit Reporter’s compilation of all potential under-performing investments in the BDC universe, we turned to Garrison Capital (GARS). While drilling (pun intended) into the company’s portfolio, we added a few names to our Watch List, including one which just announced big news. Read on for all the details.
We continue to develop the BDC Credit Reporter by building a database of every investment at every BDC. In the interim, we offer up some highlights and low lights from our credit research into mid-market BDC Capitala Finance (CPTA), which has managed to both be very successful and make many credit mistakes in recent quarters.
BDC Reporter takes a look at what’s happening at OHA Investment (OHAI) following the publishing of the latest 10-K. We pose the rhetorical question of what is the end game here and return with the answer: nothing to look forward to whatever happens. A bleak but necessary look at one of the smallest BDCs.
The BDC Credit Reporter has a quick look at Harvest Capital Credit Corporation’s (HCAP) latest portfolio list, and identifies a short list of potentially troubled investments. However, the Company’s own rating system involves a greater number of companies and dollars at risk.
A representative of Skopos Financial-whom we mentioned in an article yesterday concerning Stellus Capital Investment’s (SCM) BDC Credit Reporter Watch List-questioned elements of our discussion of the sub-prime auto lender. We pass on their rebuttal, but keep Skopos Financial on SCM’s Watch List.
The BDC Credit Reporter reviews a BDC’s portfolio periodically and identifies investments that are or may drop in value for its Watch List. We begin with an analysis of Stellus Investment Corporation (SCM) and its Watch List names. The trend here is not the investor’s friend, but everyone may have a different take on the data compiled.
The BDC Reporter has a look at the recently announced new fee agreement between Apollo Investment (AINV) and its External Manager (Apollo Global management) and the proposed new stock buy-back initiative. Although the stock price is flying on the news, the BDC Activist is unmoved…
In Part II of our potential new series “Under The Hood”, where we dive into the 10-K of a BDC to highlight key items of interest to investors, we look at the principal terms of Stellus Capital Investment’s advisory agreement with its External Manager and the conflicts of interest revealed in the filing.
The BDC Reporter goes under the hood of Stellus Capital Investment’s (SCM) 10-K, in the first of a two part article, to highlight key issues important to investors. Part I looks at the investment’s performance, the company’s financial results, the use of leverage & the availability of equity & SBIC capital. Part Two will tackle how the manager is paid and conflicts of interest..
Review of Stellus Capital Management (SCM)
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The BDC Activist looks at the long term performance of Fifth Street Finance (FSC) through a shareholder’s lens, and finds that performance has been very poor. Unfortunately, the financial model the Company has negotiated with its External Manager is both root cause and the reason the BDC Activist expects more of the same going forward.
We review how Ares Capital (ARCC) is doing 6 months after breaking up with its GE Capital joint venture partner, and as credit conditions have deteriorated. The stock price has been at 6 year lows. Opportunity or just another way station to a previously unimaginable lower price point for this BDC aristocrat ?
The shareholders of Gladstone Capital (GLAD) have given them permission to raise equity below Net Asset Value. The BDC Reporter-wearing its actvisit hat-believes this will be good for the external manager, but not the shareholders and explains why. We end by discussing the BDC-wide implications of this story.
The BDC Reporter hones in on the Security and Exchange Commission’s frequently granted Exemptive Relief allowing asset management organizations that own one or more Business Development Companies to co-invest together. We point out the unfairness and potential risk to BDC shareholders from this seemingly anodyne consent.
We are updating surprising developments at Alcentra Capital (ABDC) from a review of its latest filings, which have provided additional details about the write-down of one of its portfolio investments in the IVQ of 2015, and included rosy expectations for write-ups elsewhere in 2016. We also provide details on how we are invested in this environment, and our approach going forward.