Sixth Street Specialty Lending, Inc. reported its financial results for the second quarter of 2025, revealing a total investment income of $115 million, a decrease from $121.8 million in the same period last year. For the first half of 2025, total investment income was $231.4 million, down from $239.6 million in the prior year. The decline in revenue was primarily attributed to a decrease in interest income from investments, which fell to $101.2 million from $105 million year-over-year. The company’s net investment income for the quarter was $50.8 million, compared to $55.1 million in Q2 2024, while net investment income for the first half of 2025 was $108.8 million, slightly up from $107.5 million in the previous year.
The company’s total assets decreased to $3.42 billion as of June 30, 2025, down from $3.58 billion at the end of 2024. This decline was driven by a reduction in the fair value of investments, which fell to $3.29 billion from $3.52 billion. The company’s net assets increased to $1.62 billion, with a net asset value per share of $17.17, a slight increase from $17.16 at the end of 2024. The decrease in total investments was influenced by a combination of realized losses on investments and a reduction in unrealized gains, which were impacted by market conditions and portfolio company performance.
In terms of operational developments, Sixth Street Specialty Lending continued to focus on its core strategy of lending to middle-market companies, with 92.4% of its portfolio consisting of first-lien debt investments. The company funded $208.6 million in new investments during the second quarter, compared to $163.6 million in the same period last year. The total number of portfolio companies decreased to 109 from 116, reflecting a strategic decision to optimize the investment portfolio. The weighted average yield of debt investments at fair value was reported at 11.7%, down from 12.3% at the end of 2024.
Looking ahead, the company remains cautious about the economic environment, which is characterized by inflationary pressures and geopolitical uncertainties. Management indicated that these factors could impact the performance of portfolio companies and the availability of investment opportunities. Despite these challenges, Sixth Street Specialty Lending is committed to maintaining its investment strategy and leveraging its relationships to identify attractive lending opportunities. The company’s outlook suggests a focus on managing risk while seeking to capitalize on favorable market conditions as they arise.
About Sixth Street Specialty Lending, Inc.
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