Great Elm Capital may be one of the smaller Business Development Companies but is regularly raising new equity capital. A new capital inflow has just been announced. We review how much new equity is coming in, from whom and on what terms. We also wonder aloud what the use of the new funds might be. There are many strings in the BDC’s bow…
We’ve been concerned about OFS Capital’s liquidity for some time. We recently concluded that any challenges might have been kicked down the road following two new debt raises. However, a new 8-K filing about the BDC’s Revolver has alarmed us all over again. We may very well be wrong, but we wanted to share our findings, thoughts and conclusions with our readers.
MSC Income Fund became public in January full of promise but has just reached a new 52 week price low. just 8 months later. We review the stock’s short – but bumpy path – and assess why investors are fleeing. We go on to explain how the falling price might also impact its external manager – Main Street Capital.
We were closing up shop for the week when we noticed a new filing from OFS Capital, which led us to learn a great deal more about how the troubled BDC has chosen to address a pressing upcoming debt maturity that previously had is worried about a potential liquidity crisis. Much is now clearer but OFS is not out of the woods in the medium term.
We take a long term look at Morgan Stanley Direct Lending’s earnings, both historically and prospectively in the context of the BDC’s strategic positioning and fundamental performance. Our conclusions serve as a useful insight not only for this BDC but for the sector as a whole.
Palmer Square BDC is unique in the sector because of its ability to publish its net book value per share on a monthly basis. We’ve just learned the result for July and this key metric is headed upward. However, if we look back over the recent history of book value changes, the picture is more mixed.
Two BDCs are at opposite ends of the price spectrum. Guessing who is not difficult given the recent financial performance of both.
Should an external BDC manager get paid a bonus/incentive even when performance is not up to snuff? Most externally managed BDCs think so, and here’s just one more example. For our part, we believe the sector could do better.
Many years ago the SEC adopted a rule regarding acquired fund fees and expenses (AFFE) that put a crimp on BDC investing, depressing optimal prices. Is that about to change ?
IAt the tail end of BDC earnings season and sector market prices mostly in “good enough” territory, three BDCs reached new price lows on Monday. What gives? We look at each BDC in turn to try and determine why this might be happening.
The CEO of Golub Capital had a lot to say during the BDC’s most recent conference call about his views on the credit cycle. We cover what Mr Golub had to say and offer a few supportive thoughts of our own.
Almost out of the blue we learn of a proposed merger of two under-performing BDCs who have a common external manager. We review the terms of the proposed deal; briefly look at recent financial results and express some concern about this grand plan.
Sixth Street Specialty – after absorbing a major realized loss this quarter – is in very good shape where credit matters are concerned. We review the latest conference call, 10-Q and use our BDC Credit Reporter resources to assess where the BDC stands on matters credit-related.
Ares Capital (ARCC) has kicked off IIQ 2025 BDC earnings season when almost everyone is at the beach – including the BDC Reporter. Nonetheless, we’ve reviewed the earnings press release, the 10-Q, the Investor Presentation and the conference call transcript. We won’t rehash all the numbers here that are available on all the financial platforms and – often – neatly summarised by AI to boot. Instead – and going forward – we’ll focus on offering insights from our research that might not be covered elsewhere. As you’ll find, we have a few interesting nuggets of information drawn from the research that might surprise as might some of our conclusions as well.
WhiteHorse Finance will be reporting its IIQ 2025 results and holding an earnings conference call on August 7th. Here are some key questions investors should be asking of management following several years of under-performance.
Main Street Capital has published a preview of key IIQ 2025 metrics. We offer a table of comparable numbers for the prior quarter and a year ago and juxtapose that with MAIN’s stock price change.
OFS has issued a new Baby Bond but neither for the tenor nor the amount we might have expected. The BDC Reporter remains worried.
OFS Capital has published a preview of certain IIQ 2025 metrics ahead of its formal earnings release. We discuss the implications for book value, earnings and the dividend – both for 2025 and 2026.
We have undertaken a full review of Saratoga Investment’s latest results through May 2025.
The much anticipated beginning of BDC earnings season began with Saratoga Investment’s quarterly results through May. Except for recurring earnings, everything was much like the quarter before.
