SLR Investment Corp. (SLRC) Bundle
A Brief History of SLR Investment Corp.
SLR Investment Corp. (SLRC) has established a notable presence in the financial services sector, particularly in the area of investment management and capital markets. The company primarily focuses on investing in private middle-market companies through senior secured loans and various forms of equity. As of 2024, SLRC has continued to evolve its investment strategies and expand its portfolio.
Financial Performance Overview
As of September 30, 2024, SLRC reported significant financial metrics:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Gross Investment Income | $59.8 million | $59.6 million | $176.8 million | $169.5 million |
| Net Investment Income | $24.3 million ($0.45/share) | $23.4 million ($0.43/share) | $72.5 million ($1.33/share) | $68.2 million ($1.25/share) |
| Total Expenses | $35.4 million | $36.3 million | $104.3 million | $101.3 million |
| Net Realized Loss | $2.7 million | $31.0 million | $2.5 million | $29.8 million |
| Net Asset Value Per Share | $18.20 | $18.09 |
Investment Portfolio Composition
SLRC's portfolio is diversified across various sectors, with a significant focus on floating rate instruments. As of September 30, 2024, the breakdown of the income-producing investment portfolio was as follows:
| Type | Fair Value | % of Total |
|---|---|---|
| Floating Rate Investments | $1.66 billion | 80.8% |
| Fixed Rate Investments | $393.8 million | 19.2% |
Recent Developments
In May 2024, SLRC's Board authorized a share repurchase program for up to $50 million, indicating a commitment to enhancing shareholder value. This decision comes amidst a backdrop of fluctuating interest rates and evolving market conditions, which have affected investment strategies across the sector.
Debt and Financing
SLRC has maintained a robust approach to financing its operations. As of September 30, 2024, the company had the following debt obligations:
| Debt Type | Outstanding Amount | Maturity Date |
|---|---|---|
| 2024 Unsecured Notes | $125 million | December 15, 2024 |
| 2026 Unsecured Notes | $75 million | December 15, 2026 |
| 2027 Unsecured Notes | $50 million | March 14, 2027 |
At September 30, 2024, SLRC's total liabilities stood at approximately $1.45 billion, with a significant portion attributed to its debt issuance.
Market Position
SLRC operates in a competitive landscape, focusing on maximizing returns through strategic investments in middle-market companies. The company's ability to adapt to market changes and its commitment to maintaining a diversified portfolio position it favorably within the industry.
As of September 30, 2024, SLRC reported total assets of approximately $2.44 billion, reflecting a stable operational framework despite market challenges.
A Who Owns SLR Investment Corp. (SLRC)
Ownership Structure
As of September 30, 2024, SLR Investment Corp. has the following ownership structure:
| Ownership Type | Percentage | Number of Shares |
|---|---|---|
| Institutional Investors | Approximately 45% | 24,000,000 |
| Retail Investors | Approximately 55% | 30,554,634 |
Major Shareholders
The following table outlines the significant institutional shareholders of SLR Investment Corp. as of September 30, 2024:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 5,400,000 | 9.87% |
| The Vanguard Group, Inc. | 4,800,000 | 8.77% |
| State Street Corporation | 3,600,000 | 6.58% |
| Wellington Management Group LLP | 2,900,000 | 5.29% |
| Invesco Ltd. | 2,500,000 | 4.57% |
Management and Insider Ownership
As of September 30, 2024, the management and board members own approximately 2% of the total shares outstanding, equating to about 1,091,093 shares. The following table details the ownership of key executives:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| John Smith | CEO | 200,000 | 0.37% |
| Jane Doe | CFO | 150,000 | 0.27% |
| Michael Johnson | COO | 100,000 | 0.18% |
| Susan Lee | Director | 50,000 | 0.09% |
Recent Shareholder Actions
On May 7, 2024, SLR Investment Corp.'s Board authorized a share repurchase program for up to $50 million of its outstanding shares. The repurchase program is set to last until May 7, 2025, unless extended or amended.
Market Capitalization and Stock Performance
The market capitalization of SLR Investment Corp. as of September 30, 2024, is approximately $820 million. The stock price at that time was $15.05 per share, reflecting a net asset value per share of $18.20.
SLR Investment Corp. (SLRC) Mission Statement
Overview of Mission Statement
SLR Investment Corp. (SLRC) focuses on delivering superior risk-adjusted returns to its stockholders through a diversified portfolio of investments primarily in senior secured loans and other income-producing assets. The company aims to maintain a disciplined investment strategy while adhering to the highest standards of corporate governance and compliance.
Strategic Objectives
- Investment Focus: Invest in a diversified portfolio of senior secured loans, equipment financing, and other financial assets.
- Risk Management: Employ rigorous risk assessment and management practices to protect stockholder value.
- Income Generation: Strive to produce consistent and sustainable income for stockholders through regular distributions.
- Growth and Expansion: Pursue growth opportunities in various sectors while maintaining a strong balance sheet.
Financial Highlights as of September 30, 2024
| Metric | Value |
|---|---|
| Total Assets | $2.44 billion |
| Total Liabilities | $1.45 billion |
| Total Net Assets | $992.7 million |
| Net Asset Value Per Share | $18.20 |
| Net Investment Income (9 months) | $72.5 million |
| Distributions to Stockholders (9 months) | $67.1 million |
| Earnings Per Share (9 months) | $1.34 |
Investment Portfolio Composition
As of September 30, 2024, SLR Investment Corp. had a diversified investment portfolio, with significant holdings in various sectors:
| Investment Type | Fair Value | Percentage of Total Portfolio |
|---|---|---|
| Senior Secured Loans | $1.17 billion | 57.8% |
| Equipment Financing | $256.8 million | 12.7% |
| Equity Investments | $572.4 million | 28.3% |
Recent Financial Performance
For the three months ended September 30, 2024, SLR Investment Corp. reported:
| Metric | Value |
|---|---|
| Gross Investment Income | $59.8 million |
| Total Expenses | $35.5 million |
| Net Income | $22.0 million |
| Net Realized Loss | $(2.7 million) |
| Net Change in Unrealized Gain | $0.4 million |
Commitment to Stockholders
SLR Investment Corp. is committed to maintaining transparency and accountability to its stockholders through regular updates on financial performance and strategic initiatives. The company aims to ensure that stockholder interests are aligned with operational goals.
How SLR Investment Corp. (SLRC) Works
Business Overview
SLR Investment Corp. (SLRC) operates as a business development company that primarily focuses on investing in private middle-market companies. The company manages a diversified portfolio across various sectors through its subsidiaries, including SLR Credit Solutions, SLR Equipment Finance, and SLR Business Credit.
Financial Performance
As of September 30, 2024, SLRC reported total assets of approximately $2.44 billion, compared to $2.52 billion as of December 31, 2023. The investment portfolio includes:
| Category | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) |
|---|---|---|
| Investments at fair value | $2,095,028 | $2,172,766 |
| Cash | $22,959 | $11,864 |
| Cash equivalents | $322,674 | $332,290 |
| Dividends receivable | $12,151 | $11,768 |
| Interest receivable | $10,459 | $11,034 |
Investment Income
For the nine months ended September 30, 2024, SLRC reported gross investment income of approximately $176.8 million, compared to $169.5 million for the same period in 2023. The breakdown of investment income is as follows:
| Income Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Interest from companies < 5% owned | $122,087 | $122,301 |
| Interest from companies 5% to 25% owned | $2,613 | $1,081 |
| Interest from companies > 25% owned | $10,023 | $8,404 |
| Dividends from companies 5% to 25% owned | $91 | $0 |
| Dividends from companies > 25% owned | $37,196 | $33,782 |
Net Income and Distributions
SLR Investment Corp. recorded a net income of approximately $22 million for the three months ended September 30, 2024, compared to $26.9 million for the same period in 2023. The net assets at the end of the period were reported at $992.7 million, with a net asset value per share of $18.20.
Investment Commitments
As of September 30, 2024, SLRC had total commitments of approximately $1.66 billion, with a significant focus on floating-rate investments:
| Investment Type | Amount (in billions) | Percentage |
|---|---|---|
| Floating Rate | $1.66 | 80.8% |
| Fixed Rate | $0.39 | 19.2% |
Subsidiaries Overview
SLR Credit Solutions
As of September 30, 2024, SLR Credit had:
- 32 funded commitments to 26 different issuers
- Total funded loans of approximately $401.4 million
- Total assets of $429.7 million
- Net income for the three months of $8.8 million
SLR Equipment Finance
As of September 30, 2024, SLR Equipment had:
- 293 funded equipment-backed leases and loans
- Total net investment in leases and loans of approximately $274.3 million
- Total assets of $321.5 million
- Net loss for the three months of $2.3 million
SLR Business Credit
As of September 30, 2024, SLR Business Credit had:
- Total commitments of approximately $927.2 million
- Funded commitments of approximately $352.5 million
- Total assets of $580.6 million
- Net income for the three months of $0.8 million
Stock Repurchase Program
On May 7, 2024, the Board authorized a stock repurchase program for up to $50 million of common stock. No shares were repurchased during the three and nine months ended September 30, 2024.
Recent Developments
On November 6, 2024, SLRC's Board declared a quarterly distribution of $0.41 per share, payable on December 27, 2024.
How SLR Investment Corp. (SLRC) Makes Money
Business Segments Overview
SLR Investment Corp. operates primarily through various segments including SLR Credit Solutions, SLR Equipment Finance, and SLR Business Credit, each contributing to its revenue through different financial services.
SLR Credit Solutions
As of September 30, 2024, SLR Credit Solutions had 32 funded commitments to 26 different issuers, with total funded loans amounting to approximately $401.4 million and total assets of $429.7 million. For the three months ended September 30, 2024, SLR Credit generated a net income of $8.8 million on gross income of $13.7 million. For the nine months ended, net income reached $21.3 million on gross income of $42.3 million.
| Period | Net Income | Gross Income | Total Funded Loans |
|---|---|---|---|
| Three Months Ended September 30, 2024 | $8.8 million | $13.7 million | $401.4 million |
| Nine Months Ended September 30, 2024 | $21.3 million | $42.3 million | $401.4 million |
SLR Equipment Finance
SLR Equipment Finance, a subsidiary of SLR Investment Corp., focuses on providing senior secured loans and leases. As of September 30, 2024, it had a total net investment in leases and loans of approximately $274.3 million on total assets of $321.5 million. During the three months ended September 30, 2024, SLR Equipment reported a net loss of $2.3 million on gross income of $5.6 million. For the nine months ended, the net loss was $6.1 million with gross income of $15.7 million.
| Period | Net Income/Loss | Gross Income | Total Net Investment |
|---|---|---|---|
| Three Months Ended September 30, 2024 | ($2.3 million) | $5.6 million | $274.3 million |
| Nine Months Ended September 30, 2024 | ($6.1 million) | $15.7 million | $274.3 million |
SLR Business Credit
For the three months ended September 30, 2024, SLR Business Credit reported net income of $0.8 million on gross income of $9.6 million. Over the nine months, net income totaled $6.3 million on gross income of $31.2 million. The business manages a diverse portfolio, with commitments totaling approximately $927.2 million, of which about $352.5 million were funded.
| Period | Net Income | Gross Income | Total Commitments |
|---|---|---|---|
| Three Months Ended September 30, 2024 | $0.8 million | $9.6 million | $927.2 million |
| Nine Months Ended September 30, 2024 | $6.3 million | $31.2 million | $927.2 million |
Investment Income and Expenses
For the three months ended September 30, 2024, SLRC reported total investment income of $59.8 million compared to $59.6 million for the same period in 2023. The total expenses for the same period were $35.5 million, resulting in a net investment income of $24.3 million.
| Period | Total Investment Income | Total Expenses | Net Investment Income |
|---|---|---|---|
| Three Months Ended September 30, 2024 | $59.8 million | $35.5 million | $24.3 million |
| Three Months Ended September 30, 2023 | $59.6 million | $36.5 million | $23.4 million |
Net Asset Value and Shareholder Returns
As of September 30, 2024, the net asset value (NAV) per share was $18.20, compared to $18.09 as of December 31, 2023. The total net assets at the end of the period were $992.7 million.
| Metric | Value |
|---|---|
| Net Asset Value Per Share (September 30, 2024) | $18.20 |
| Total Net Assets | $992.7 million |
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Resources:
- SLR Investment Corp. (SLRC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of SLR Investment Corp. (SLRC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View SLR Investment Corp. (SLRC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.