Kayne Anderson BDC Reports Q1 2025 Financial Results with Increased Investment Income

Kayne Anderson BDC, Inc. reported its financial results for the first quarter of 2025, revealing a total investment income of $55.2 million, an increase from $46.5 million in the same period last year. The company's net investment income rose to $28.7 million, or $0.40 per share, compared to $23.8 million, or $0.52 per share, in the prior year. However, the net increase in net assets resulting from operations decreased to $22.2 million, down from $27.8 million in the previous year, primarily due to a net change in unrealized losses on investments, which totaled $(6.5) million compared to a gain of $4.0 million in the prior year.

The company's total assets as of March 31, 2025, were $2.23 billion, up from $2.08 billion at the end of 2024. This growth was driven by an increase in investments at fair value, which rose to $2.15 billion from $1.98 billion. The company’s liabilities also increased, totaling $1.05 billion, compared to $896.3 million at the end of the previous fiscal year. The net asset value per share decreased slightly to $16.51 from $16.70, reflecting the impact of dividend distributions and unrealized losses.

In terms of strategic developments, Kayne Anderson BDC, Inc. has continued to focus on its investment strategy in middle-market companies, with a portfolio that includes 116 companies and a significant emphasis on first-lien senior secured loans, which comprised 98.1% of its debt investments. The company reported that it had $235.5 million in unfunded commitments to its portfolio companies as of March 31, 2025, indicating ongoing investment opportunities. The company also executed a share repurchase plan, repurchasing 23,688 shares for a total of $384,000 during the quarter.

Operationally, the company has maintained a strong focus on managing its portfolio, with a weighted average yield on debt investments of 10.4%. The company’s average position size for private credit and equity investments was $23 million, and it reported a weighted average loan-to-enterprise-value ratio of 42.6%. As of March 31, 2025, four debt investments were on non-accrual status, representing 1.6% of total debt investments at fair value.

Looking ahead, Kayne Anderson BDC, Inc. anticipates that its cash and liquidity needs will continue to be met through cash generated from operations and financing activities. The company has expressed confidence in its ability to navigate market conditions and maintain compliance with its debt covenants, targeting an asset coverage ratio of 200% to 180%. The company plans to continue focusing on its investment strategy while managing risks associated with market fluctuations and interest rates.