Saratoga Investment Corp. Reports $8.8M Net Increase in Assets for Quarter Ending November 30, 2024

Saratoga Investment Corp. reported its financial results for the quarter ending November 30, 2024, revealing a net increase in net assets resulting from operations of $8.8 million, or $0.64 per share, compared to a net decrease of $4.1 million, or $(0.31) per share, in the same period last year. For the nine months ended November 30, 2024, the company achieved a net increase of $28.8 million, or $2.09 per share, up from $3.6 million, or $0.29 per share, in the prior year. Total investment income for the quarter was $35.9 million, a slight decrease from $36.3 million in the previous year, while year-to-date investment income increased to $117.6 million from $106.5 million.

The company’s total assets as of November 30, 2024, were valued at $1.22 billion, with total liabilities amounting to $845.1 million, resulting in net assets of $374.9 million. This represents a modest increase from $370.2 million at the end of the previous fiscal period. The net asset value per share decreased to $26.95 from $27.12, reflecting changes in the valuation of investments. Notably, the company’s cash and cash equivalents surged to $250.2 million, up from $40.5 million, indicating improved liquidity.

Saratoga Investment Corp. engaged in significant investment activity during the quarter, deploying $84.4 million into new and existing portfolio companies while experiencing $160.4 million in exits and repayments, leading to a net investment reduction of $76.0 million. In contrast, the previous year saw net investments of $33.5 million. The company’s investment portfolio remains diversified, with a focus on senior and unitranche leveraged loans and mezzanine debt primarily in the U.S. middle-market sector.

The filing also highlighted operational changes, including the completion of the fifth refinancing of the Saratoga CLO, which did not extend the reinvestment period or legal maturity but adjusted interest rates on existing notes. The company’s leverage strategy remains cautious, with an asset coverage ratio of 160.1% as of November 30, 2024, slightly down from 161.1% in the previous period. The company continues to navigate a challenging economic environment characterized by elevated interest rates and inflation, which may impact future investment performance and capital raising efforts.

Looking ahead, Saratoga Investment Corp. aims to maintain its focus on generating attractive risk-adjusted returns while managing its portfolio amidst fluctuating market conditions. The company plans to leverage its liquidity and capital resources to support future investments and meet its distribution requirements as a regulated investment company.