**Sixth Street Specialty Lending Reports Year-End Financial Results**
Sixth Street Specialty Lending, Inc., a business development company, has released its financial results, reporting a net increase in net assets resulting from operations of $170.5 million for the year ended December 31, 2025. This compares to $186.6 million for the previous fiscal year. The company's total investment income reached $449.1 million, while net expenses totaled $233.7 million. The company's net investment income before income taxes was $215.3 million, with income taxes, including excise taxes, amounting to $5.3 million.
A significant change from the previous year was the shift from net realized gains of $8.6 million to net realized losses of $48.9 million. The company also experienced a net change in unrealized gains of $9.4 million, a decrease from the $42.0 million in unrealized losses reported in the prior year. The company's portfolio consisted primarily of first-lien debt investments, with smaller allocations to second-lien debt, mezzanine debt, equity and other investments, and structured credit investments. As of December 31, 2025, the weighted average total yield of debt and income-producing securities at fair value was 11.1%.
Operationally, the company funded $894.0 million in new investments across 65 new and 16 existing portfolio companies. Exits and repayments totaled $1,196.1 million. The company's investment portfolio was invested across 19 different industries, with the largest concentration in Internet Services. The company also had $338.5 million in commitments to fund investments in current portfolio companies.
Looking ahead, the company anticipates generating cash from operations, including interest income, and through issuances of common stock. The company is also permitted to issue multiple classes of indebtedness and one class of shares senior to its common stock, provided its asset coverage is at least 150%. As of December 31, 2025, the company's asset coverage was 191.5%. The company intends to continue paying quarterly dividends to its stockholders, subject to its earnings, financial condition, and compliance with regulatory requirements.
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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