Saratoga Investment reported assets under management of approximately $1.15 billion at the end of its fiscal 2027 second quarter, up 2.1% sequentially and from $995.3 million a year earlier.
The business development company originated $76.1 million of investments during the quarter.
Repayments totaled $39 million, resulting in $37.1 million of net originations.
The company added two new portfolio companies during the period.
Total investment income increased 2% year-over-year to $31.2 million.
Net investment income totaled approximately $7.3 million, or $0.45 per share.
Adjusted net investment income was $7.4 million, or $0.46 per share, compared with $0.58 per share a year earlier.
Net asset value was $352.6 million, or $22.15 per share.
Saratoga repurchased 444,124 shares during the quarter, resulting in approximately $0.09 per share of NAV accretion.
Non-accrual investments represented 0% of portfolio fair value and 1.3% of cost at quarter-end.
Following the quarter, the company sold Pepper Palace and its CLO F-Note, eliminating the remaining non-accrual investments.
Saratoga also issued $85 million of baby bonds, subsequently increasing the issuance to $120.8 million, and used the financing to address its upcoming debt maturity profile.
The company reset its $350 million CLO with lower rates and a new three-year reinvestment period.
Saratoga recently declared monthly dividends totaling $0.75 per share for its fiscal third quarter.
KEY QUOTES:
“Our second-quarter results demonstrate the resilience of our platform despite the continued pressure affecting private credit markets.”
“We grew assets under management by 2.1% to $1.150 billion, generating $37.1 million of net originations, while adjusted NII remained relatively stable at $0.46 per share including the cost of our recently refinanced capital structure.”
Christian L. Oberbeck, Chairman and CEO of Saratoga Investment
