Sixth Street Specialty Lending, Inc. reported its financial results for the second quarter of 2026, revealing a total investment income of $97.8 million, a decrease from $115.0 million in the same period last year. For the first half of 2026, total investment income was $191.2 million, down from $231.4 million in the prior year. The decline in revenue was primarily attributed to a decrease in interest income from investments, which fell to $85.2 million from $101.2 million year-over-year, largely due to lower reference rates. Net investment income for the quarter was $40.9 million, compared to $50.8 million in the previous year, while net investment income for the first half was $80.7 million, down from $108.8 million.
The company's total assets increased to $3.54 billion as of June 30, 2026, up from $3.42 billion at the end of 2025. This growth was driven by an increase in cash and cash equivalents, which rose to $193.6 million from $19.7 million. However, total net assets decreased to $1.55 billion from $1.61 billion, reflecting a decline in distributable earnings, which fell to $11.7 million from $81.6 million. The net asset value per share also decreased to $16.24 from $16.98.
Operationally, Sixth Street Specialty Lending's portfolio consisted of 137 companies, with a fair value of $3.30 billion. The company funded $136.7 million in new investments during the second quarter, compared to $208.6 million in the same period last year. The average investment size was approximately $24.1 million, with 88.3% of the portfolio in first-lien debt. The company also reported a weighted average yield of 11.1% on its debt investments, consistent with the previous year.
Looking ahead, Sixth Street Specialty Lending remains cautious amid ongoing economic uncertainties, including inflation and geopolitical tensions. The company emphasized its focus on middle-market lending, which it believes will continue to present attractive opportunities due to limited capital availability from traditional lenders. The firm plans to maintain its investment strategy while monitoring market conditions closely, with an eye on potential impacts from regulatory changes and interest rate fluctuations.
About Sixth Street Specialty Lending, Inc.
Sixth Street Specialty Lending, Inc. is a U.S.-focused specialty finance company that provides middle-market companies with direct loans, including senior secured, mezzanine, and unsecured debt, as well as equity investments. It generates income primarily from interest, fees, and capital gains, leveraging extensive resources of its adviser, Sixth Street Partners. The company aims to deliver current income and capital appreciation through disciplined, diversified investments in various industries.
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