Franklin BSP Capital Corporation reported its financial results for the third quarter of 2025, revealing a total investment income of $103.9 million, a slight decrease from $106.2 million in the same period last year. For the nine months ending September 30, 2025, total investment income increased to $314.9 million from $307.4 million in 2024, primarily due to the acquisition of $2.8 billion in investments from the merger with Franklin BSP Lending Corporation (FBLC) completed in January 2024. The company’s net investment income for the quarter was $40.1 million, down from $44.4 million year-over-year, while net investment income for the nine-month period was $124.6 million, compared to $142.8 million in 2024.
The company’s total assets as of September 30, 2025, stood at $4.3 billion, up from $4.2 billion at the end of 2024. This increase was driven by a rise in non-affiliated investments, which grew to $3.3 billion from $3.1 billion. However, total net assets attributable to common stock decreased to $1.84 billion from $1.91 billion, reflecting a decline in net asset value per share from $14.10 to $13.67. The company also reported a total debt of $2.3 billion, an increase from $2.1 billion, indicating a higher leverage ratio following the merger.
Operationally, Franklin BSP Capital Corporation's portfolio consisted of 151 companies, with 76.8% of its investments in senior secured first lien debt. The weighted average current yield for the total portfolio was 10.0%. The company experienced unrealized depreciation of $16.8 million in the third quarter, contributing to a net realized and unrealized loss of $15.8 million for the quarter. The number of portfolio companies on non-accrual status increased to nine, with a total amortized cost of $144.5 million and a fair value of $76.3 million.
Looking ahead, Franklin BSP Capital Corporation remains focused on generating both current income and capital appreciation through its investments in middle-market companies. The company has significant unfunded commitments totaling $426.4 million for delayed draw term loans and $268.0 million for revolver term loans. The management anticipates sufficient liquidity to meet these commitments and continue its investment strategy, despite the challenges posed by rising interest rates and inflationary pressures affecting its portfolio companies.
About Franklin BSP Capital Corp
Franklin BSP Capital Corporation is a non-diversified, externally managed business development company (BDC) focused on providing debt and equity financing to U.S. middle market companies. Its core activities include investing in senior secured loans, mezzanine debt, and equity, primarily targeting private companies with EBITDA of $25-100 million. The company aims to generate current income and capital appreciation through proprietary sourcing, risk management, and strategic co-investments in a large, underserved private credit market.
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