**Oaktree Specialty Lending Corp. Reports Fiscal Year 2025 Results**
Oaktree Specialty Lending Corporation (OCSL), a specialty finance company, released its financial results for the fiscal year ended September 30, 2025, showcasing a net increase in net assets resulting from operations of $33.9 million. The company's total investment income amounted to $316.8 million, comprised of $307.5 million in interest income, $5.8 million in fee income, and $3.5 million in dividend income. This compares to the previous fiscal year's total investment income of $381.7 million. The company's portfolio totaled $2.8 billion at fair value as of September 30, 2025, consisting of investments in 143 portfolio companies.
A significant change from the previous fiscal year was the decrease in net expenses, which totaled $163.3 million compared to $206.6 million in fiscal year 2024. This decrease was primarily driven by a reduction in Part I incentive fees, lower interest expense, and lower management fees. The company's net investment income for the year was $152.6 million, a decrease from the $175.1 million reported in the prior fiscal year. The company also reported net realized losses of $17.1 million and net unrealized depreciation of $101.2 million.
Key operational developments included the origination of $960.5 million in investment commitments across 43 new and 32 existing portfolio companies, with $970.8 million in funded investments. The company also received $1,058.2 million in proceeds from prepayments, exits, other paydowns, and sales, exiting 44 portfolio companies. The weighted average annual yield of the company's debt investments at fair value as of September 30, 2025, including the return on its debt investments in SLF JV I and Glick JV, was approximately 9.8%, including 8.9% representing cash payments.
Looking ahead, Oaktree Specialty Lending Corporation intends to maintain its focus on generating current income and capital appreciation through flexible financing solutions. The company expects to continue financing its investments through borrowings, targeting a long-term debt to equity ratio of 0.90x to 1.25x. As of September 30, 2025, the company's net debt to equity ratio was 0.97x. The company also announced a quarterly distribution of $0.40 per share, payable on December 31, 2025, to stockholders of record on December 15, 2025. The company's stock was trading at $13.05 as of September 30, 2025.
About Oaktree Specialty Lending Corp
Oaktree Specialty Lending Corporation is a specialty finance company providing customized credit solutions to middle-market companies. Its core activities include originating and managing debt and equity investments such as first and second lien loans, unsecured and mezzanine debt, bonds, and co-investments. Serving primarily U.S. companies, it leverages deep credit expertise, proprietary deal sourcing, and structured finance strategies to generate income and capital appreciation through disciplined, risk-aware investments.
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