Bain Capital Specialty Finance Posts June 2025 Results, Declares Q3 Dividend

Bain Capital Specialty Finance, Inc. (NYSE: BCSF, the “Company”, “our” or “we”) announced financial results for the second quarter ended June 30, 2025, and that its Board of Directors (the “Board”) has declared a dividend of $0.42 per share for the third quarter of 2025 and an additional dividend of $0.03 per share that was previously announced.

“BCSF reported solid second quarter results driven by high net investment income that covered our regular dividend by 112%. Our diversified investment portfolio remains healthy with low non-accruals,” said Michael Ewald, Chief Executive Officer of BCSF. “We also had a strong quarter of new origination activity reflecting our longstanding presence in the core middle market. We believe the Company remains well positioned within this market segment to continue generating attractive risk-adjusted returns for our shareholders.”

QUARTERLY HIGHLIGHTS

  • Net investment income (NII) per share was $0.47, equating to an annualized NII yield on book value of 10.7%(1);
  • Net income per share was $0.37, equating to an annualized return on book value of 8.3%(1);
  • Net asset value per share as of June 30, 2025 was $17.56, as compared to $17.64 as of March 31, 2025;
  • Gross and net investment fundings were $529.6 million and $27.3 million, respectively; ending net debt-to-equity was 1.20x, as compared to 1.17x as of March 31, 2025(2);
  • Investments on non-accrual represented 1.7% and 0.6% of the total investment portfolio at amortized cost and fair value, respectively, as of June 30, 2025; and
  • Subsequent to quarter-end, the Company’s Board of Directors declared a dividend of $0.42 per share for the third quarter of 2025 payable to stockholders of record as of September 16, 2025. The Board of Directors previously announced an additional dividend of $0.03 per share payable to stockholders of record as of September 16, 2025(3).

SELECTED FINANCIAL HIGHLIGHTS

($ in millions, unless otherwise noted)Q2 2025 Q1 2025 
Net investment income per share$0.47 $0.50 
Net investment income$30.6 $32.1 
Earnings per share$0.37 $0.44 
Dividends per share declared and payable$0.45 $0.45 
($ in millions, unless otherwise noted)As of
June 30, 2025
 As of
March 31, 2025
 
Total fair value of investments$2,501.8 $2,464.9 
Total assets$2,774.3 $2,642.3 
Total net assets$1,139.0 $1,144.5 
Net asset value per share$17.56 $17.64 

PORTFOLIO AND INVESTMENT ACTIVITY

For the three months ended June 30, 2025, the Company invested $529.6 million in 94 portfolio companies, including $241.8 million in 12 new companies, $272.8 million in 81 existing companies and $15.0 million in SLP. The Company had $502.3 million of principal repayments and sales in the quarter, resulting in net investment fundings of $27.3 million.

Investment Activity for the Quarter Ended June 30, 2025:

($ in millions)Q2 2025 Q1 2025 
Investment Fundings$529.6 $277.2 
Sales and Repayments$502.3 $246.4 
Net Investment Activity$27.3 $30.8 

As of June 30, 2025, the Company’s investment portfolio had a fair value of $2,501.8 million, comprised of investments in 185 portfolio companies operating across 29 different industries.

Investment Portfolio at Fair Value as of June 30, 2025:

Investment Type$ in Millions % of Total 
First Lien Senior Secured Loan$1,578.0  63.1%
Second Lien Senior Secured Loan 20.4  0.8 
Subordinated Debt 91.1  3.6 
Preferred Equity 180.7  7.2 
Equity Interest 230.1  9.2 
Warrants 0.8  0.0 
Investment Vehicles 400.7  16.1 
Subordinated Note in ISLP 190.7  7.7 
Equity Interest in ISLP 50.8  2.0 
Subordinated Note in SLP 151.9  6.1 
Preferred and Equity Interest in SLP 7.3  0.3 
Total$2,501.8  100.0%

As of June 30, 2025, the weighted average yield on the investment portfolio at amortized cost and fair value were 11.4% and 11.4%, respectively, as compared to 11.5% and 11.5%, respectively, as of March 31, 2025(4)(5). 92.6% of the Company’s debt investments at fair value were in floating rate securities.

As of June 30, 2025, five portfolio companies were on non-accrual status, representing 1.7% and 0.6% of the total investment portfolio at amortized cost and fair value, respectively.

As of June 30, 2025, ISLP’s investment portfolio had an aggregate fair value of $717.7 million, comprised of investments in 39 portfolio companies operating across 17 different industries. The investment portfolio on a fair value basis was comprised of 96.5% first lien senior secured loans, 0.7% second lien senior secured loans and 2.8% equity interests. 100% of ISLP’s debt investments at fair value were in floating rate securities.

As of June 30, 2025, SLP’s investment portfolio had an aggregate fair value of $1,518.7 million, comprised of investments in 87 portfolio companies operating across 24 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 June 30, 2025 and March 31, 2025, total investment income was $71.0 million and $66.8 million, respectively.

Total expenses (before taxes) for the three months ended June 30, 2025 and March 31, 2025 were $39.3 million and $33.7 million, respectively.

Net investment income for the three months ended June 30, 2025 and March 31, 2025 was $30.6 million or $0.47 per share and $32.1 million or $0.50 per share, respectively.

During the three months ended June 30, 2025, the Company had net realized and unrealized losses of $6.9 million.

Net increase in net assets resulting from operations for the three months ended June 30, 2025 was $23.7 million, or $0.37 per share.

CAPITAL AND LIQUIDITY

As of June 30, 2025, the Company had total principal debt outstanding of $1,565.5 million, including $263.0 million outstanding in the Company’s Sumitomo Credit Facility, $352.5 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 June 30, 2025, the weighted average interest rate on debt outstanding was 4.9%, as compared to 4.8% for the three months ended March 31, 2025.

As of June 30, 2025, the Company had cash and cash equivalents (including foreign cash) of $37.6 million, restricted cash and cash equivalents of $136.9 million, $29.5 million of unsettled trades, net of receivables and payables of investments, and $592.0 million of capacity under its Sumitomo Credit Facility. As of June 30, 2025, the Company had $512.7 million of undrawn investment commitments.

As of June 30, 2025, the Company’s debt-to-equity and net debt-to-equity ratios were 1.37x and 1.20x, respectively, as compared to 1.27x and 1.17x, respectively, as of March 31, 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 third quarter dividend is payable on September 30, 2025 to stockholders of record as of September 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 August 6, 2025. Please visit BCSF’s webcast link located on the Events & Presentations page of the Investor Resources section of BCSF’s website at 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: 1-833-316-2483
  • International: 1-785-838-9284
  • Conference ID: BAIN

All participants will need to reference “Bain Capital Specialty Finance – Second Quarter Ended June 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 August 13, 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: 11159706
Bain Capital Specialty Finance, Inc.
 
Consolidated Statements of Assets and Liabilities(in thousands, except share and per share data)
 
  As of  As of 
  June 30, 2025  December 31,
2024
 
  (Unaudited)     
Assets        
Investments at fair value:        
Non-controlled/non-affiliate investments (amortized cost of $1,826,043 and $1,784,019, respectively) $ 1,847,266  $ 1,773,742 
Non-controlled/affiliate investments (amortized cost of $68,516 and $77,269, respectively)   63,735    75,733 
Controlled affiliate investments (amortized cost of $594,957 and $585,702, respectively)   590,796    581,714 
Cash and cash equivalents   27,843    51,562 
Foreign cash (cost of $8,618 and $2,640, respectively)   9,734    1,963 
Restricted cash and cash equivalents   136,908    45,541 
Collateral on derivatives   9,208    9,755 
Deferred financing costs   4,071    4,591 
Interest receivable on investments   37,513    39,164 
Interest rate swap   8,704     
Receivable for sales and paydowns of investments   34,019    37,760 
Prepaid insurance   856    197 
Unrealized appreciation on forward currency exchange contracts       4,690 
Dividend receivable   3,653    5,745 
Total Assets $ 2,774,306  $ 2,632,157 
         
Liabilities        
Debt (net of unamortized debt issuance costs of $11,515 and $4,929, respectively) $ 1,562,578  $ 1,390,270 
Interest payable   13,645    13,860 
Payable for investments purchased   4,482    29,490 
Collateral payable on derivatives   12,490     
Unrealized depreciation on forward currency exchange contracts   13,642    1,185 
Base management fee payable   9,257    9,160 
Incentive fee payable   5,446    4,696 
Accounts payable and accrued expenses   13,731    14,771 
Distributions payable       29,053 
Total Liabilities   1,635,271    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 June 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   (25,075)   (19,886)
Total Net Assets   1,139,035    1,139,672 
Total Liabilities and Total Net Assets $ 2,774,306  $ 2,632,157 
         
Net asset value per share $ 17.56  $ 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
June 30,
  For the Six Months Ended
June 30,
 
   2025   2024   2025   2024 
Income                
Investment income from non-controlled/non-affiliate investments:                
Interest from investments $ 44,292  $ 45,209  $ 85,964  $ 89,058 
Dividend income   2,940    435    4,665    435 
PIK income   7,501    5,643    14,107    10,710 
Other income   4,158    3,141    6,991    8,396 
Total investment income from non-controlled/non-affiliate investments   58,891    54,428    111,727    108,599 
                 
Investment income from non-controlled/affiliate investments:                
Interest from investments   127    279    135    2,860 
Dividend income               821 
PIK income   13    143    30    458 
Other income           42     
Total investment income from non-controlled/affiliate investments   140    422    207    4,139 
                 
Investment income from controlled affiliate investments:                
Interest from investments   9,807    9,618    18,955    18,783 
Dividend income   2,123    7,803    6,909    15,249 
PIK income   4        6     
Total investment income from controlled affiliate investments   11,934    17,421    25,870    34,032 
Total investment income   70,965    72,271    137,804    146,770 
                 
Expenses                
Interest and debt financing expenses   21,772    17,631    40,676    35,687 
Base management fee   9,257    8,769    18,325    17,587 
Incentive fee   5,446    7,924    7,668    17,156 
Professional fees   714    1,029    1,428    1,830 
Directors fees   182    174    356    348 
Other general and administrative expenses   1,928    2,477    4,499    4,920 
Total expenses, net of fee waivers   39,299    38,004    72,952    77,528 
Net investment income before taxes   31,666    34,267    64,852    69,242 
Income tax expense, including excise tax   1,076    1,150    2,152    2,175 
Net investment income   30,590    33,117    62,700    67,067 
                 
Net realized and unrealized gains (losses)                
Net realized gain (loss) on non-controlled/non-affiliate investments   4,861    (5,340)   (16,125)   (7,876)
Net realized gain (loss) on non-controlled/affiliate investments   (711)       (3,678)   4,719 
Net realized gain (loss) on foreign currency transactions   581    (446)   332    (423)
Net realized gain (loss) on forward currency exchange contracts   (1,409)   169    (3,814)   1,896 
Net change in unrealized appreciation on foreign currency translation   1,484    177    1,919    (31)
Net change in unrealized appreciation on forward currency exchange contracts   (15,074)   163    (17,147)   1,404 
Net change in unrealized appreciation on non-controlled/non-affiliate investments   7,507    8,502    31,500    19,060 
Net change in unrealized appreciation on non-controlled/affiliate investments   (1,379)   21    (3,245)   (13,337)
Net change in unrealized appreciation on controlled affiliate investments   (2,728)   (7,273)   (173)   (8,294)
Total net loss   (6,868)   (4,027)   (10,431)   (2,882)
Net increase in net assets resulting from operations $ 23,722  $ 29,090  $ 52,269  $ 64,185 
                 
Basic and diluted net investment income per share of common stock $ 0.47  $ 0.51  $ 0.97  $ 1.04 
Basic and diluted increase in net assets resulting from operations per share of common stock $ 0.37  $ 0.45  $ 0.81  $ 1.00 
Basic and diluted weighted average common stock outstanding   64,868,507    64,562,265    64,772,881    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 June 30, 2025, BCSF has invested approximately $9,497.4 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.

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