Private Credit Portfolio Analysis | CION Investment Corporation Reports Q3 2024 Results
- Editor
- Nov 7, 2024
- 2 min read
What's New: CION Investment Corporation's Q3 2024 results show a decrease in total assets and net asset value per share compared to the previous quarter. The fund's investment portfolio at fair value declined to $1.81 billion as of September 30, 2024, from $1.95 billion at the end of 2023. Net asset value per share dropped to $15.73, down from $16.23 at the end of the previous year.
Portfolio Dynamics:
Total assets decreased to $1.92 billion as of September 30, 2024, from $2.00 billion at December 31, 2023.
Investments owned at fair value declined to $1.81 billion from $1.95 billion at the end of 2023.
Cash and cash equivalents increased significantly to $29.77 million from $8.42 million at the end of 2023.
Investment Activity :
The fund received $129.23 million in proceeds from principal repayments of investments in Q3 2024.
Payments for purchase of investments were $92.47 million in Q3 2024.
Proceeds from sale of investments amounted to $24.36 million in Q3 2024.
Capital Structure:
Long-term debt decreased to $1.05 billion as of September 30, 2024, from $1.08 billion at December 31, 2023.
The fund repaid $130 million of debt and issued $130 million of new debt in Q3 2024.
Stockholders' equity decreased to $839.19 million from $879.56 million at the end of 2023.
Performance Profile:
Net investment income for Q3 2024 was not explicitly provided in the given financial data.
The fund reported a net loss of $379,000 for Q3 2024, compared to a net income of $47.47 million in Q3 2023.
Realized and unrealized losses on investments totaled $21.997 million in Q3 2024.
Risk & Quality:
Interest receivable increased to $49.45 million from $36.72 million at the end of 2023, potentially indicating higher interest-earning assets.
The fund's cash position improved, with cash and cash equivalents rising to $29.77 million from $8.42 million at year-end 2023.
Total liabilities decreased to $1.08 billion from $1.12 billion at the end of 2023, potentially reducing the fund's overall risk profile.
The Wrap: CION Investment Corporation faced challenges in Q3 2024, with a decrease in total assets and net asset value per share. While the fund maintained significant investment activity, it experienced a net loss for the quarter. The improved cash position and reduced liabilities may provide some financial flexibility, but the decline in investment portfolio value and stockholders' equity suggests ongoing pressures in the fund's operations.
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