Private Credit Portfolio Analysis | OFS Capital Corp Reports FY 2024 Results
- Editor
- Mar 4
- 2 min read
Whats New:
OFS Capital Corp has reported its financial results for the fiscal year 2024, showing improvements in key financial metrics. The fund's total assets decreased to $428.1 million as of December 31, 2024, from $469.8 million at the end of 2023. Net income for the year was $28.4 million, a significant improvement from a net loss of $465,000 in the previous year. The net asset value per share increased to $12.85, up from $12.09 at the end of 2023.
Portfolio Dynamics:
Total assets decreased to $428.1 million as of December 31, 2024, compared to $469.8 million at the end of 2023.
Investments owned at fair value declined to $409.7 million from $420.3 million at the end of 2023.
Cash and cash equivalents significantly decreased to $6.1 million from $45.3 million at the end of 2023.
Investment Activty:
Receivable from investment sales increased to $9.2 million from zero at the end of 2023.
Payments for purchase of investments were $93.4 million in 2024.
Proceeds from disposition of investments (principal payments and sales/redemptions) totaled $113.3 million in 2024.
Capital Structure:
Total liabilities decreased to $255.9 million from $307.8 million at the end of 2023.
Line of credit reduced to $68.4 million from $90.5 million at the end of 2023.
Unsecured debt slightly increased to $178.3 million from $177.3 million at the end of 2023.
Performance Profile:
Net income for 2024 was $28.4 million, compared to a net loss of $465,000 in 2023.
Net asset value per share increased to $12.85 as of December 31, 2024, from $12.09 at the end of 2023.
Total investment income for 2024 was not provided in the given data.
Risk & Quality:
Realized losses on investments were $17.1 million in 2024, compared to $11.4 million in 2023.
Unrealized gains on investments were $28.9 million in 2024, compared to unrealized losses of $9.0 million in 2023.
The fund reported a payable for investment purchases of $1.8 million, up from zero at the end of 2023.
The Wrap:
OFS Capital Corp demonstrated improved financial performance in fiscal year 2024, with a significant turnaround in net income and an increase in net asset value per share. While total assets and investments at fair value decreased, the fund saw substantial unrealized gains on investments. The reduction in liabilities, particularly the line of credit, suggests a more conservative capital structure. However, the sharp decrease in cash and cash equivalents and the increase in receivables from investment sales indicate potential liquidity considerations.
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