Barings BDC Reports $286.2M Investment Income, Net Investment Income Rises to $131.2M

Barings BDC, Inc. reported a total investment income of $286.2 million for the fiscal year ending December 31, 2024, a slight decrease from $289.2 million in the previous year. The company's net investment income after taxes rose to $131.2 million, compared to $128.1 million in 2023. However, Barings experienced a net realized loss of $38.1 million, a significant improvement from the $62.8 million loss reported in the prior year. The total fair value of the investment portfolio decreased to $2.45 billion from $2.49 billion, reflecting a challenging market environment.

The company made 45 new investments totaling $341.7 million during 2024, alongside $298.6 million in existing portfolio investments. Notably, Barings had 47 loans repaid, totaling $360.8 million, which resulted in a net realized loss of $13.5 million. The investment portfolio consisted primarily of senior debt and first lien notes, which accounted for 69% of the total fair value. The weighted average yield on the principal amount of outstanding debt investments was approximately 10.2%, down from 10.5% in 2023.

Strategically, Barings BDC has undergone significant changes, including the completion of the Sierra Income Corporation acquisition in February 2022, which expanded its portfolio and investment capabilities. The company also entered into a new share repurchase program in February 2025, allowing for the repurchase of up to $30 million of its common stock over the next year. This program aims to enhance shareholder value, particularly when the stock trades below its net asset value (NAV).

Operationally, Barings BDC's investment portfolio included 328 companies as of December 31, 2024, with no single investment exceeding 10% of the total fair value. The company reported eight portfolio companies on non-accrual status, representing 0.3% of the total fair value of the portfolio. The firm continues to focus on senior secured private debt investments in middle-market businesses, leveraging its relationship with Barings LLC to identify and manage investment opportunities effectively.

Looking ahead, Barings BDC anticipates navigating a complex economic landscape characterized by rising interest rates and potential market volatility. The company remains committed to maintaining its status as a regulated investment company (RIC) and business development company (BDC), which requires adherence to specific distribution and asset diversification requirements. The management team is focused on optimizing the investment strategy to generate sustainable returns while managing risks associated with its portfolio.