Private Credit Portfolio Analysis | Prospect Capital Reports Q1 2025 Results with NAV Decline
- Editor
- Nov 7, 2024
- 2 min read
What's New: Prospect Capital Corp. reported its Q1 2025 results, showing a decrease in net asset value (NAV) per share to $8.10 as of September 30, 2024, down from $8.74 at the end of the previous quarter. The fund experienced a net loss of $134.01 million for the quarter, a significant shift from the $116.66 million net income reported in the same quarter of the previous year.
Portfolio Dynamics:
Total assets decreased to $7.59 billion as of September 30, 2024, from $7.86 billion on June 30, 2024.
Investments at fair value declined to $7.48 billion from $7.72 billion quarter-over-quarter.
Cash and cash equivalents dropped to $57.02 million from $85.87 million at the end of the previous quarter.
Investment Activity :
The fund made new investments totaling $255.98 million during Q1 2025.
Proceeds from investment dispositions amounted to $289.20 million in the quarter.
Net reductions to subordinated structured notes and related investment cost were $21.35 million.
Capital Structure:
Total liabilities decreased to $2.47 billion from $2.56 billion quarter-over-quarter.
Line of credit balance reduced to $547.23 million from $794.80 million.
The fund issued $101.73 million in unsecured debt through Prospect Capital InterNotes during the quarter.
Performance Profile:
Net investment income figures were not provided in the given financial data.
The fund reported unrealized losses on investments of $123.77 million for Q1 2025.
Realized losses on investments were $100.37 million for the quarter.
Risk & Quality:
Net assets decreased to $3.51 billion from $3.71 billion at the end of the previous quarter.
The fund's debt-to-equity ratio cannot be calculated from the provided data.
Interest receivable increased slightly to $27.49 million from $26.94 million.
The Wrap: Prospect Capital Corp. faced challenges in Q1 2025, with declining NAV, investment values, and total assets. The fund's net loss and significant unrealized and realized losses on investments indicate a difficult quarter. While the fund reduced its line of credit and issued new unsecured debt, the overall financial position weakened compared to the previous quarter. The decrease in cash and investments, coupled with the net loss, suggests potential headwinds for the fund's near-term performance.
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