Private Credit Portfolio Analysis | Oaktree Specialty Lending Reports Q1 2025 Results
- Editor
- Feb 3
- 1 min read
What's New: Oaktree Specialty Lending Corp reported its Q1 2025 financial results, showing a decrease in total assets and stockholders' equity compared to the previous quarter. The fund's investment portfolio and liabilities also declined, while cash and cash equivalents increased significantly.
Portfolio Dynamics:
Total assets decreased from $3.20 billion to $3.08 billion quarter-over-quarter.
Investments owned at fair value declined from $3.02 billion to $2.84 billion.
Cash and cash equivalents increased from $64.0 million to $112.9 million.
Investment Activity :
Receivable from investment sales rose from $17.5 million to $55.7 million.
Due from portfolio companies decreased from $12.5 million to $0.4 million.
Derivative assets increased from $0 to $6.7 million.
Capital Structure:
Total liabilities decreased from $1.71 billion to $1.63 billion.
Line of credit reduced from $710 million to $660 million.
Unsecured debt declined slightly from $928.7 million to $917.8 million.
Performance Profile:
Stockholders' equity decreased from $1.49 billion to $1.45 billion.
Retained earnings deficit increased from $777.5 million to $815.5 million.
Common stock value and additional paid-in capital remained unchanged at $822,000 and $2.26 billion respectively.
Risk & Quality:
Derivative liabilities increased from $16.8 million to $24.8 million.
Deferred income tax liabilities increased from $0 to $14,000.
Management and incentive fee payable decreased from $15.5 million to $8.9 million.
The Wrap: Oaktree Specialty Lending Corp's Q1 2025 results reflect a contraction in its investment portfolio and overall asset base. While the fund reduced its liabilities, particularly its line of credit, it also experienced a decline in stockholders' equity. The significant increase in cash and receivables from investment sales suggests potential portfolio rebalancing or preparation for new investment opportunities.
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