Bain Capital Specialty Finance, Inc. (BCSF) reported its financial results for the year ended December 31, 2025, showcasing a net increase in net assets resulting from operations of $98.8 million, or $1.53 per share. This compares to $119.4 million, or $1.85 per share, for the year ended December 31, 2024. Total investment income for 2025 reached $273.2 million, while total expenses, net of waivers, amounted to $147.9 million, resulting in a net investment income of $121.6 million after taxes. The company's investment portfolio, at fair value, stood at $2.51 billion as of December 31, 2025.
A notable shift in the company's financial performance was the decrease in net investment income, which fell from $134.7 million in 2024 to $121.6 million in 2025. This change was influenced by a decrease in the weighted average yield of the investment portfolio, which decreased from 11.7% to 10.8% at amortized cost. The company also experienced a net realized loss of $33.3 million and a net change in unrealized appreciation of $10.4 million. The company declared total distributions of $346.0 million, or $5.35 per share, for the year ended December 31, 2025.
Operationally, BCSF continued to focus on senior middle market lending opportunities, with 63.8% of its portfolio invested in first lien senior secured loans at fair value as of December 31, 2025. The company actively managed its portfolio, investing $1.31 billion in 157 portfolio companies and realizing $1.24 billion from principal repayments and sales during the year. As of December 31, 2025, the company had $1.47 billion in outstanding debt, with a weighted average interest rate of 4.8%. The company also refinanced its 2019-1 CLO Reset Notes through a $430.3 million term debt securitization.
Looking ahead, BCSF intends to maintain its focus on middle-market direct lending, while also managing its capital structure and distribution policy to maintain its status as a regulated investment company (RIC). The company anticipates cash to be generated from future offerings of securities and cash flows from operations. The company is also subject to certain risks and uncertainties, including global capital market disruptions, dependence on key personnel, and conflicts of interest. The company's strategy involves a high degree of leverage, which magnifies the potential for gain or loss on amounts invested.
About Bain Capital Specialty Finance, Inc.
Bain Capital Specialty Finance, Inc. is a closed-end, externally managed business development company focused on senior direct lending to middle-market companies across North America, Europe, and Australia. It primarily invests in senior secured loans with strong collateral protections, targeting companies with $10 million to $150 million EBITDA. The company generates income through interest, fees, and capital gains, leveraging Bain Capital Credit’s expertise in credit underwriting and portfolio management.
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