Bain Capital Private Equity LP
11/10/2025 | Press release | Distributed by Public on 11/10/2025 22:26
Bain Capital Specialty Finance, Inc. Announces September 30, 2025 Financial Results and Declares Fourth Quarter 2025 Dividend of $0.42 per Share
BOSTON--Bain Capital Specialty Finance, Inc. (NYSE: BCSF, the "Company", "our" or "we") today announced financial results for the third quarter ended September 30, 2025, and that its Board of Directors (the "Board") has declared a dividend of $0.42 per share for the fourth quarter of 2025 and an additional dividend of $0.03 per share that was previously announced.
"BCSF delivered another strong quarter of earnings driven by high net investment income that exceeded our regular dividend and continued healthy credit performance," said Michael Ewald, Chief Executive Officer of BCSF. "Looking forward, we believe the Company is well-positioned to continue to source high-quality lending opportunities supported by our dedicated Private Credit Group's long heritage of disciplined investing in the core middle market."
QUARTERLY HIGHLIGHTS
- Net investment income (NII) per share was $0.45, equating to an annualized NII yield on book value of 10.3%(1);
- Net income per share was $0.29, equating to an annualized return on book value of 6.6%(1);
- Net asset value per share as of September 30, 2025 was $17.40, as compared to $17.56 as of June 30, 2025;
- Gross and net investment fundings were $340.1 million and $44.0 million, respectively; ending net debt-to-equity was 1.23x, as compared to 1.20x as of June 30, 2025(2);
- Investments on non-accrual represented 1.5% and 0.7% of the total investment portfolio at amortized cost and fair value, respectively, as of September 30, 2025; and
- Subsequent to quarter-end, the Company's Board of Directors declared a dividend of $0.42 per share for the fourth quarter of 2025 payable to stockholders of record as of December 16, 2025. The Board of Directors previously announced an additional dividend of $0.03 per share payable to stockholders of record as of December 16, 2025(3).
SELECTED FINANCIAL HIGHLIGHTS
|
($ in millions, unless otherwise noted) |
Q3 2025 |
Q2 2025 |
||||
|
Net investment income per share |
$ |
0.45 |
$ |
0.47 |
||
|
Net investment income |
$ |
29.2 |
$ |
30.6 |
||
|
Earnings per share |
$ |
0.29 |
$ |
0.37 |
||
|
Dividends per share declared and payable |
$ |
0.45 |
$ |
0.45 |
||
|
($ in millions, unless otherwise noted) |
As of September 30, 2025 |
As of June 30, 2025 |
||||
|
Total fair value of investments |
$ |
2,534.1 |
$ |
2,501.8 |
||
|
Total assets |
$ |
2,716.0 |
$ |
2,774.3 |
||
|
Total net assets |
$ |
1,128.5 |
$ |
1,139.0 |
||
|
Net asset value per share |
$ |
17.40 |
$ |
17.56 |
||
PORTFOLIO AND INVESTMENT ACTIVITY
For the three months ended September 30, 2025, the Company invested $340.1 million in 101 portfolio companies, including $123.9 million in 14 new companies, $210.2 million in 86 existing companies and $6.0 million in SLP. The Company had $296.1 million of principal repayments and sales in the quarter, resulting in net investment fundings of $44.0 million.
Investment Activity for the Quarter Ended September 30, 2025:
|
($ in millions) |
Q3 2025 |
Q2 2025 |
||||
|
Investment Fundings |
$ |
340.1 |
$ |
529.6 |
||
|
Sales and Repayments |
$ |
296.1 |
$ |
502.3 |
||
|
Net Investment Activity |
$ |
44.0 |
$ |
27.3 |
||
As of September 30, 2025, the Company's investment portfolio had a fair value of $2,534.1 million, comprised of investments in 195 portfolio companies operating across 31 different industries.
Investment Portfolio at Fair Value as of September 30, 2025:
|
Investment Type |
$ in Millions |
% of Total |
||||
|
First Lien Senior Secured Loan |
$ |
1,639.4 |
64.6 |
% |
||
|
Second Lien Senior Secured Loan |
30.0 |
1.2 |
||||
|
Subordinated Debt |
93.3 |
3.7 |
||||
|
Preferred Equity |
146.5 |
5.8 |
||||
|
Equity Interest |
225.9 |
8.9 |
||||
|
Warrants |
0.8 |
0.0 |
||||
|
Investment Vehicles |
398.2 |
15.8 |
||||
|
Subordinated Note in ISLP |
190.7 |
7.6 |
||||
|
Equity Interest in ISLP |
41.0 |
1.9 |
||||
|
Subordinated Note in SLP |
157.9 |
6.2 |
||||
|
Preferred and Equity Interest in SLP |
8.6 |
0.1 |
||||
|
Total |
$ |
2,534.1 |
100.0 |
% |
||
As of September 30, 2025, the weighted average yield on the investment portfolio at amortized cost and fair value were 11.1% and 11.2%, respectively, as compared to 11.4% and 11.4%, respectively, as of June 30, 2025(4)(5). 92.8% of the Company's debt investments at fair value were in floating rate securities.
As of September 30, 2025, six portfolio companies were on non-accrual status, representing 1.5% and 0.7% of the total investment portfolio at amortized cost and fair value, respectively.
As of September 30, 2025, ISLP's investment portfolio had an aggregate fair value of $717.8 million, comprised of investments in 41 portfolio companies operating across 17 different industries. The investment portfolio on a fair value basis was comprised of 96.0% first lien senior secured loans, 1.0% second lien senior secured loans and 3.0% equity interests. 100% of ISLP's debt investments at fair value were in floating rate securities.
As of September 30, 2025, SLP's investment portfolio had an aggregate fair value of $1,548.9 million, comprised of investments in 94 portfolio companies operating across 26 different industries. The investment portfolio on a fair value basis was comprised of 99.7% first lien senior secured loans and 0.3% second lien senior secured loans. 100.0% of SLP's debt investments at fair value were in floating rate securities.
RESULTS OF OPERATIONS
For the three months ended September 30, 2025 and June 30, 2025, total investment income was $67.2 million and $71.0 million, respectively.
Total expenses (before taxes) for the three months ended September 30, 2025 and June 30, 2025 were $37.2 million and $39.3 million, respectively.
Net investment income for the three months ended September 30, 2025 and June 30, 2025 was $29.2 million or $0.45 per share and $30.6 million or $0.47 per share, respectively.
During the three months ended September 30, 2025, the Company had net realized and unrealized losses of $10.5 million.
Net increase in net assets resulting from operations for the three months ended September 30, 2025 was $18.7 million, or $0.29 per share.
CAPITAL AND LIQUIDITY
As of September 30, 2025, the Company had total principal debt outstanding of $1,498.6 million, including $398.0 million outstanding in the Company's Sumitomo Credit Facility, $150.6 million outstanding of the debt issued through BCC Middle Market CLO 2019-1 LLC, $300.0 million outstanding in the Company's senior unsecured notes due March 2026, $300.0 million outstanding in the Company's senior unsecured notes due October 2026, and $350.0 million outstanding in the Company's senior unsecured notes due March 2030.
For the three months ended September 30, 2025, the weighted average interest rate on debt outstanding was 4.8%, as compared to 4.9% for the three months ended June 30, 2025.
As of September 30, 2025, the Company had cash and cash equivalents (including foreign cash) of $60.6 million, restricted cash and cash equivalents of $26.2 million, $26.5 million of unsettled trades, net of receivables and payables of investments, and $457.0 million of capacity under its Sumitomo Credit Facility. As of September 30, 2025, the Company had $493.6 million of undrawn investment commitments.
As of September 30, 2025, the Company's debt-to-equity and net debt-to-equity ratios were 1.33x and 1.23x, respectively, as compared to 1.37x and 1.20x, respectively, as of June 30, 2025(2).
Endnotes
|
(1) |
Net investment income yields and net income returns are calculated on average net assets, or book value, for the respective periods shown. |
|
(2) |
Net debt-to-equity represents principal debt outstanding less cash and cash equivalents and unsettled trades, net of receivables and payables of investments. |
|
(3) |
The fourth quarter dividend is payable on December 30, 2025 to stockholders of record as of December 16, 2025. |
|
(4) |
The weighted average yield is computed as (a) the annual stated interest rate or yield earned on the relevant accruing debt and other income producing securities plus amortization of fees and discounts on the performing debt and other income producing investments, divided by (b) the total relevant investments at amortized cost or fair value. The weighted average yield does not represent the total return to our stockholders. |
|
(5) |
For non-stated rate income producing investments, computed based on (a) the dividend or interest income earned for the respective trailing twelve months ended on the measurement date, divided by (b) the ending amortized cost or fair value, as applicable. In instances where historical dividend or interest income data is not available or not representative for the trailing twelve months ended, the dividend or interest income is annualized. |
CONFERENCE CALL INFORMATION
A conference call to discuss the Company's financial results will be held live at 8:30 a.m. Eastern Time on November 11, 2025. Please visit BCSF's webcast link located on the Events & Presentations page of the Investor Resources section of BCSF's website at https://http://www.baincapitalspecialtyfinance.com for a slide presentation that complements the Earnings Conference Call.
Participants are also invited to access the conference call by dialing one of the following numbers:
- Domestic: 1-800-343-4136
- International: 1-203-518-9843
- Conference ID: BAIN
All participants will need to reference "Bain Capital Specialty Finance - Third Quarter Ended September 30, 2025 Earnings Conference Call" once connected with the operator. All participants are asked to dial in 10-15 minutes prior to the call.
Replay Information:
An archived replay will be available approximately three hours after the conference call concludes through November 18, 2025 via a webcast link located on the Investor Resources section of BCSF's website, and via the dial-in numbers listed below:
- Domestic: 1-844-512-2921
- International: 1-412-317-6671
- Conference ID: 11160408
|
Bain Capital Specialty Finance, Inc. Consolidated Statements of Assets and Liabilities (in thousands, except share and per share data) |
||||||||||
|
As of |
As of |
|||||||||
|
September 30, |
December 31, |
|||||||||
|
(Unaudited) |
||||||||||
|
Assets |
||||||||||
|
Investments at fair value: |
||||||||||
|
Non-controlled/non-affiliate investments (amortized cost of $1,913,737 and $1,784,019, respectively) |
$ |
1,934,475 |
$ |
1,773,742 |
||||||
|
Non-controlled/affiliate investments (amortized cost of $7,480 and $77,269, respectively) |
15,158 |
75,733 |
||||||||
|
Controlled affiliate investments (amortized cost of $603,520 and $585,702, respectively) |
584,465 |
581,714 |
||||||||
|
Cash and cash equivalents |
40,874 |
51,562 |
||||||||
|
Foreign cash (cost of $18,858 and $2,640, respectively) |
19,730 |
1,963 |
||||||||
|
Restricted cash and cash equivalents |
26,168 |
45,541 |
||||||||
|
Collateral on derivatives |
11,110 |
9,755 |
||||||||
|
Deferred financing costs |
3,807 |
4,591 |
||||||||
|
Interest receivable on investments |
37,241 |
39,164 |
||||||||
|
Interest rate swap |
9,062 |
- |
||||||||
|
Receivable for sales and paydowns of investments |
29,162 |
37,760 |
||||||||
|
Prepaid insurance |
727 |
197 |
||||||||
|
Unrealized appreciation on forward currency exchange contracts |
- |
4,690 |
||||||||
|
Dividend receivable |
4,057 |
5,745 |
||||||||
|
Total Assets |
$ |
2,716,036 |
$ |
2,632,157 |
||||||
|
Liabilities |
||||||||||
|
Debt (net of unamortized debt issuance costs of $11,205 and $4,929, respectively) |
$ |
1,496,360 |
$ |
1,390,270 |
||||||
|
Interest payable |
12,945 |
13,860 |
||||||||
|
Payable for investments purchased |
2,682 |
29,490 |
||||||||
|
Collateral payable on derivatives |
8,310 |
- |
||||||||
|
Unrealized depreciation on forward currency exchange contracts |
10,619 |
1,185 |
||||||||
|
Base management fee payable |
9,430 |
9,160 |
||||||||
|
Incentive fee payable |
4,599 |
4,696 |
||||||||
|
Accounts payable and accrued expenses |
42,544 |
14,771 |
||||||||
|
Distributions payable |
- |
29,053 |
||||||||
|
Total Liabilities |
1,587,489 |
1,492,485 |
||||||||
|
Commitments and Contingencies (See Note 10) |
||||||||||
|
Net Assets |
||||||||||
|
Common stock, par value $0.001 per share, 100,000,000,000 and 100,000,000,000 shares authorized, 64,868,507 and 64,562,265 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively |
65 |
65 |
||||||||
|
Paid in capital in excess of par value |
1,164,045 |
1,159,493 |
||||||||
|
Total distributable loss |
(35,563 |
) |
(19,886 |
) |
||||||
|
Total Net Assets |
1,128,547 |
1,139,672 |
||||||||
|
Total Liabilities and Total Net Assets |
$ |
2,716,036 |
$ |
2,632,157 |
||||||
|
Net asset value per share |
$ |
17.40 |
$ |
17.65 |
||||||
See Notes to Consolidated Financial Statements
|
Bain Capital Specialty Finance, Inc. Consolidated Statements of Operations (in thousands, except share and per share data) (Unaudited) |
||||||||||||||||||||
|
For the Three Months Ended |
For the Nine Months Ended |
|||||||||||||||||||
|
2025 |
2024 |
2025 |
2024 |
|||||||||||||||||
|
Income |
||||||||||||||||||||
|
Investment income from non-controlled/non-affiliate investments: |
||||||||||||||||||||
|
Interest from investments |
$ |
43,677 |
$ |
45,135 |
$ |
129,641 |
$ |
134,193 |
||||||||||||
|
Dividend income |
600 |
826 |
5,265 |
1,261 |
||||||||||||||||
|
PIK income |
7,462 |
5,231 |
21,569 |
15,941 |
||||||||||||||||
|
Other income |
1,538 |
5,704 |
8,529 |
14,100 |
||||||||||||||||
|
Total investment income from non-controlled/non-affiliate investments |
53,277 |
56,896 |
165,004 |
165,495 |
||||||||||||||||
|
Investment income from non-controlled/affiliate investments: |
||||||||||||||||||||
|
Interest from investments |
- |
120 |
135 |
2,980 |
||||||||||||||||
|
Dividend income |
- |
85 |
- |
906 |
||||||||||||||||
|
PIK income |
- |
- |
30 |
458 |
||||||||||||||||
|
Other income |
67 |
- |
109 |
- |
||||||||||||||||
|
Total investment income from non-controlled/affiliate investments |
67 |
205 |
274 |
4,344 |
||||||||||||||||
|
Investment income from controlled affiliate investments: |
||||||||||||||||||||
|
Interest from investments |
10,273 |
10,165 |
29,228 |
28,948 |
||||||||||||||||
|
Dividend income |
3,581 |
5,274 |
10,490 |
20,523 |
||||||||||||||||
|
PIK income |
2 |
- |
8 |
- |
||||||||||||||||
|
Total investment income from controlled affiliate investments |
13,856 |
15,439 |
39,726 |
49,471 |
||||||||||||||||
|
Total investment income |
67,200 |
72,540 |
205,004 |
219,310 |
||||||||||||||||
|
Expenses |
||||||||||||||||||||
|
Interest and debt financing expenses |
20,310 |
18,117 |
60,986 |
53,804 |
||||||||||||||||
|
Base management fee |
9,430 |
8,897 |
27,755 |
26,484 |
||||||||||||||||
|
Incentive fee |
4,599 |
7,020 |
12,267 |
24,176 |
||||||||||||||||
|
Professional fees |
713 |
870 |
2,141 |
2,700 |
||||||||||||||||
|
Directors fees |
182 |
173 |
538 |
521 |
||||||||||||||||
|
Other general and administrative expenses |
1,965 |
2,454 |
6,464 |
7,374 |
||||||||||||||||
|
Total expenses, net of fee waivers |
37,199 |
37,531 |
110,151 |
115,059 |
||||||||||||||||
|
Net investment income before taxes |
30,001 |
35,009 |
94,853 |
104,251 |
||||||||||||||||
|
Income tax expense, including excise tax |
801 |
1,025 |
2,953 |
3,200 |
||||||||||||||||
|
Net investment income |
29,200 |
33,984 |
91,900 |
101,051 |
||||||||||||||||
|
Net realized and unrealized gains (losses) |
||||||||||||||||||||
|
Net realized gain (loss) on non-controlled/non-affiliate investments |
1,345 |
245 |
(14,780 |
) |
(7,631 |
) |
||||||||||||||
|
Net realized gain (loss) on non-controlled/affiliate investments |
(11,081 |
) |
3,008 |
(14,759 |
) |
7,727 |
||||||||||||||
|
Net realized gain (loss) on foreign currency transactions |
335 |
(465 |
) |
667 |
(888 |
) |
||||||||||||||
|
Net realized gain (loss) on forward currency exchange contracts |
(1,016 |
) |
20 |
(4,830 |
) |
1,916 |
||||||||||||||
|
Net change in unrealized appreciation on foreign currency translation |
(183 |
) |
998 |
1,736 |
967 |
|||||||||||||||
|
Net change in unrealized appreciation on forward currency exchange contracts |
3,023 |
(5,693 |
) |
(14,124 |
) |
(4,289 |
) |
|||||||||||||
|
Net change in unrealized appreciation on non-controlled/non-affiliate investments |
(485 |
) |
(2,135 |
) |
31,015 |
16,925 |
||||||||||||||
|
Net change in unrealized appreciation on non-controlled/affiliate investments |
12,459 |
2,534 |
9,214 |
(10,803 |
) |
|||||||||||||||
|
Net change in unrealized appreciation on controlled affiliate investments |
(14,894 |
) |
600 |
(15,067 |
) |
(7,694 |
) |
|||||||||||||
|
Total net loss |
(10,497 |
) |
(888 |
) |
(20,928 |
) |
(3,770 |
) |
||||||||||||
|
Net increase in net assets resulting from operations |
$ |
18,703 |
$ |
33,096 |
$ |
70,972 |
$ |
97,281 |
||||||||||||
|
Basic and diluted net investment income per share of common stock |
$ |
0.45 |
$ |
0.53 |
$ |
1.42 |
$ |
1.57 |
||||||||||||
|
Basic and diluted increase in net assets resulting from operations per share of common stock |
$ |
0.29 |
$ |
0.51 |
$ |
1.10 |
$ |
1.51 |
||||||||||||
|
Basic and diluted weighted average common stock outstanding |
64,868,507 |
64,562,265 |
64,805,106 |
64,562,265 |
||||||||||||||||
See Notes to Consolidated Financial Statements
About Bain Capital Specialty Finance, Inc.
Bain Capital Specialty Finance, Inc. is an externally managed specialty finance company focused on lending to middle market companies. BCSF is managed by BCSF Advisors, LP, an SEC-registered investment adviser and a subsidiary of Bain Capital Credit, LP. Since commencing investment operations on October 13, 2016, and through September 30, 2025, BCSF has invested approximately $9,688.5 million in aggregate principal amount of debt and equity investments prior to any subsequent exits or repayments. BCSF's investment objective is to generate current income and, to a lesser extent, capital appreciation through direct originations of secured debt, including first lien, first lien/last out, unitranche and second lien debt, investments in strategic joint ventures, equity investments and, to a lesser extent, corporate bonds. BCSF has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended.
Forward-Looking Statements
This letter may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this letter may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the U.S. Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this letter.
Bain Capital Private Equity LP published this content on November 10, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on November 11, 2025 at 04:26 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]