Bain Capital Specialty Finance, Inc. Q4 FY2025 earnings call

CEO Michael Ewald started with an overview of fourth quarter and 2025 full-year results. Discussed market environment with new deal activity picking up in second half of 2025 and into fourth quarter. BCSF benefits from Bain Capital's longstanding presence in middle market. New first lien originations spread details. Investment philosophy based on rigorous due diligence. Software and tech investment approach and AI disruption evaluation. Portfolio credit fundamentals resilient. Fourth quarter investment activity details including fundings, sales, and portfolio composition. Portfolio credit quality trends and financial statement review

Fourth quarter net investment income per share was $0.46, representing an annualized yield of 10.6% on equity. Q4 earnings per share were $0.43, representing an annualized return on equity of 9.9%. For the full year 2025, net investment income per share was $1.88, or 11.1% return on equity. 2025 earnings per share were $1.53, representing a 9.0% return on equity. The weighted average spread on our new first lien originations during the quarter was 535 basis points with net leverage of 4.6 times. The weighted average spread on our new originations during 2025 was approximately 560 basis points. At the end of the fourth quarter, the size of our portfolio at fair value was approximately $2.5 billion across a highly diversified set of 203 portfolio companies operating across 30 different industries. 64% of the investment portfolio of fair value was invested in first lien debt, 1% in second lien debt, 4% subordinated debt, 6% in preferred equity, 9% in equity and other interests, and 16% across our joint ventures

Subsequent to quarter end, board declared a first quarter dividend equal to 42 cents per share. Believe can maintain regular 42% per share dividend in current environment. Expect future growth levers including higher earnings from select joint venture and ADL investments and other income as new M&A deal volumes increase. Have healthy levels of spillover income totaling $1.29 per share

Any forward-looking statements made do not guarantee future performance and actual results may differ materially. These statements are based on current management expectations but include risks and uncertainties identified in the risk factor section of Form 10-K. Potential AI disruption risk in software and technology sector

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