Bain Capital Specialty Finance Reports Q3 and Nine-Month Financial Results, Notable Changes in Revenue and Profitability

Bain Capital Specialty Finance, Inc. reported its financial results for the quarter and nine months ended September 30, 2024, showing notable changes in revenue, profitability, and asset management compared to the previous fiscal period.

As of September 30, 2024, total assets increased to $2,543.7 million from $2,472.3 million at the end of 2023. Non-controlled/non-affiliate investments at fair value rose to $1,754.2 million, up from $1,593.4 million, while non-controlled/affiliate investments decreased to $80.0 million from $148.0 million. Controlled affiliate investments increased to $573.7 million from $557.0 million. Total liabilities, specifically debt net of unamortized debt issuance costs, rose to $1,300.6 million from $1,255.9 million, leading to total net assets of $1,146.6 million, a slight increase from $1,136.5 million.

For the three months ended September 30, 2024, total investment income from non-controlled/non-affiliate investments was $56.9 million, compared to $51.4 million in the same period of 2023. However, total investment income from controlled affiliate investments remained relatively stable at $72.5 million, slightly up from $72.4 million. Net investment income before taxes decreased to $35.0 million from $36.3 million year-over-year, while net investment income fell to $34.0 million from $35.6 million. The net increase in net assets resulting from operations was $33.1 million, down from $33.9 million in the prior year.

For the nine months ended September 30, 2024, total investment income from non-controlled/non-affiliate investments was $165.5 million, a modest increase from $163.8 million. In contrast, total investment income from controlled affiliate investments decreased to $219.3 million from $222.8 million. Net investment income for the nine months was $101.1 million, down from $106.7 million, while the net increase in net assets resulting from operations rose to $97.3 million from $92.3 million.

The company’s net asset value per share increased to $17.76 from $17.60, reflecting a positive trend in asset management. The weighted average yield of the investment portfolio decreased to 12.1% from 12.9% year-over-year. The company also reported a significant increase in management fees, totaling $26.5 million for the nine months ended September 30, 2024, down from $27.2 million in the previous year.

Bain Capital Specialty Finance continues to focus on middle-market companies, with a strategy centered on senior direct lending. The company has maintained a strong asset coverage ratio of 187.8% as of September 30, 2024, slightly down from 189.9% at the end of 2023.