Bain Capital Specialty Finance, Inc. reported a net increase in net assets resulting from operations of $14.1 million for the three months ended June 30, 2026, a decrease from $23.7 million in the same period of the prior year. For the six months ended June 30, 2026, the net increase in net assets was $17.4 million, down from $52.3 million for the same period in 2025. Total investment income for the three months ended June 30, 2026 was $62.3 million, a decrease from $71.0 million in the prior year's comparable period.
Total expenses for the three months ended June 30, 2026 were $33.0 million, down from $39.3 million in the same period of 2025. This reduction was primarily driven by lower interest and debt financing expenses, as well as a decrease in incentive fees. For the six months ended June 30, 2026, total expenses were $70.9 million, a slight decrease from $73.0 million in the prior year's comparable period.
The company's investment portfolio, valued at fair value, stood at $2.36 billion as of June 30, 2026, a decrease from $2.51 billion as of December 31, 2025. The portfolio is predominantly composed of First Lien Senior Secured Loans, representing 63.4% of total investments at fair value as of June 30, 2026. The weighted average yield on the investment portfolio at amortized cost was 10.8% as of June 30, 2026, down from 11.4% as of June 30, 2025.
During the six months ended June 30, 2026, the company invested $425.2 million in 134 portfolio companies, while principal repayments and sales amounted to $532.6 million, resulting in a net decrease in investments of $107.4 million. This compares to the six months ended June 30, 2025, when investments totaled $806.8 million and principal repayments and sales were $748.7 million, leading to a net increase in investments of $58.1 million.
As of June 30, 2026, the company had $438.0 million in unfunded commitments under loan and financing agreements. The company's asset coverage ratio was 171.0% as of June 30, 2026, indicating compliance with regulatory requirements. The company's debt obligations include $272.0 million in 2019-1 Debt, $350.0 million in March 2030 Notes, $350.0 million in March 2031 Notes, and $249.0 million under the Sumitomo Credit Facility as of June 30, 2026.
The company's net investment income before taxes for the three months ended June 30, 2026 was $29.3 million, a decrease from $31.7 million in the prior year period. For the six months ended June 30, 2026, net investment income before taxes was $57.6 million, down from $64.9 million in the comparable period of 2025. This decrease was primarily attributed to a reduction in interest income due to a lower portfolio yield.
The company's outlook suggests continued focus on its senior direct lending strategy within the middle market. Management believes its experience and disciplined approach position it to navigate the current market landscape, despite ongoing economic uncertainties. The company continues to monitor market conditions and take proactive steps to evaluate the impact of global events on its business and portfolio companies.
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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