Fidus Investment Corporation (FDUS) Bundle
An Overview of Fidus Investment Corporation (FDUS)
General Summary of Fidus Investment Corporation
Fidus Investment Corporation (FDUS) was founded in 2011 and is a publicly traded business development company that primarily invests in private middle-market companies. The company focuses on providing debt and equity financing to support the growth of its portfolio companies. As of 2024, Fidus Investment Corporation offers a range of financial products, including first lien debt, second lien debt, subordinated debt, and equity investments. Its investment strategy targets companies with established operations and strong management teams, aiming to generate attractive risk-adjusted returns for its shareholders.
As of 2024, Fidus Investment Corporation reported total sales of approximately $91.5 million, reflecting a robust demand for its financial services in the middle-market sector.
Company's Financial Performance in the Latest Financial Reports
In the third quarter of 2024, Fidus Investment Corporation achieved a net increase in net assets resulting from operations of $16.5 million, compared to $24.3 million for the same period in 2023. For the nine months ended September 30, 2024, the net increase was $60.7 million, up from $50.7 million in 2023. The company reported total investment income of $38.4 million for the third quarter of 2024, which marked a 12.3% increase from $34.2 million in the same quarter of 2023.
The company’s weighted average yield on debt investments was 13.8% as of September 30, 2024, compared to 14.2% at the end of 2023. Fidus Investment Corporation invested $274.2 million in debt and equity investments during the nine months ended September 30, 2024, an increase from $204.0 million in the same period in 2023. Proceeds from sales and repayments totaled $154.1 million, compared to $146.4 million in 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Increase in Net Assets | $16.5 million | $24.3 million | $60.7 million | $50.7 million |
| Total Investment Income | $38.4 million | $34.2 million | $91.5 million | $80.4 million |
| Weighted Average Yield on Debt Investments | 13.8% | 14.2% | N/A | N/A |
| Investments Made | $274.2 million | $204.0 million | N/A | N/A |
| Proceeds from Sales and Repayments | $154.1 million | $146.4 million | N/A | N/A |
Introduction to Fidus Investment Corporation as a Leader in the Industry
Fidus Investment Corporation is recognized as a leader in the business development sector, particularly in the middle-market financing space. The company leverages its extensive experience and established relationships to identify promising investment opportunities that align with its strategic objectives. With a diverse portfolio comprising 85 active companies, Fidus stands out for its commitment to delivering consistent returns to its shareholders while supporting the growth of its portfolio companies.
As of September 30, 2024, Fidus Investment Corporation had a net asset value of $658.8 million, with 33,914,652 shares outstanding. The company continues to be a prominent player in the market, backed by its strong financial performance and strategic investment focus, making it an attractive option for investors seeking exposure to the middle-market sector.
Mission Statement of Fidus Investment Corporation (FDUS)
Mission Statement Overview
Fidus Investment Corporation (FDUS) is dedicated to providing high-quality investment opportunities primarily in the lower middle market. The mission statement is a critical framework that informs the company's strategic objectives and operational focus. It emphasizes delivering superior returns to stockholders while supporting the growth of portfolio companies through various financial products and services.
Core Component 1: Commitment to Stockholders
The first core component of Fidus Investment Corporation's mission statement focuses on its commitment to stockholders. This commitment is reflected in the company's financial performance and distribution policies. For the nine months ended September 30, 2024, Fidus declared dividends amounting to $57.7 million, demonstrating its dedication to returning capital to investors. The net increase in net assets resulting from operations during this period was $60.7 million, up from $50.7 million in the previous year.
| Financial Metric | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) |
|---|---|---|
| Dividends Declared | $57.7 million | $54.0 million |
| Net Increase in Net Assets | $60.7 million | $50.7 million |
Core Component 2: Supporting Portfolio Companies
The second core component emphasizes supporting portfolio companies through strategic investments. During the nine months ending September 30, 2024, Fidus Investment Corporation made significant investments totaling $274.2 million across various sectors, including eleven new portfolio companies. This approach underscores the commitment to fostering growth and stability within the lower middle market.
| Investment Type | Amount (2024) | Percentage of Total Investments |
|---|---|---|
| First Lien Debt | $212.5 million | 77.5% |
| Second Lien Debt | $33.3 million | 12.1% |
| Subordinated Debt | $12.5 million | 4.6% |
| Equity | $15.9 million | 5.8% |
Core Component 3: High-Quality Investment Opportunities
The final core component highlights the aim to provide high-quality investment opportunities. As of September 30, 2024, the fair value of Fidus's investment portfolio totaled $1,090.7 million, with a weighted average yield on debt investments at 13.8%. This yield indicates a robust return on the investment portfolio, demonstrating the company's ability to generate attractive risk-adjusted returns for its stockholders.
| Portfolio Metric | Value |
|---|---|
| Fair Value of Investment Portfolio | $1,090.7 million |
| Weighted Average Yield on Debt Investments | 13.8% |
Vision Statement of Fidus Investment Corporation (FDUS)
Vision Statement of Fidus Investment Corporation (FDUS)
The vision statement of Fidus Investment Corporation (FDUS) is designed to reflect its commitment to providing exceptional investment opportunities while maintaining a strong focus on shareholder value and community impact.
Commitment to Shareholder Value
Fidus Investment Corporation aims to deliver sustainable returns to its shareholders through prudent investment strategies. As of September 30, 2024, the company reported a net asset value (NAV) per share of $19.42, reflecting a slight increase from $19.37 at the beginning of the period. The company has consistently paid dividends, with dividends declared per share for the nine months ended September 30, 2024, totaling $1.81.
Focus on Sustainable Growth
Fidus seeks to grow its investment portfolio strategically. For the nine months ended September 30, 2024, the company invested $274.2 million in debt and equity investments, up from $204.0 million during the same period in 2023. The fair value of its investment portfolio reached $1,090.7 million as of September 30, 2024, indicating robust growth.
| Investment Type | Fair Value (Sept 2024) | Percentage of Total Investments |
|---|---|---|
| First Lien Debt | $696.3 million | 63.9% |
| Second Lien Debt | $113.9 million | 10.4% |
| Subordinated Debt | $149.2 million | 13.7% |
| Equity | $123.5 million | 11.3% |
| Warrants | $7.8 million | 0.7% |
| Total | $1,090.7 million | 100% |
Community Impact and Responsibility
Fidus Investment Corporation emphasizes its role in fostering economic development within communities. It aims to support small and medium-sized enterprises (SMEs) by providing capital that enables growth and job creation. The company’s investment strategy includes a focus on portfolio companies that demonstrate a commitment to social responsibility and sustainable practices.
Adaptability to Market Conditions
In light of evolving market conditions, Fidus Investment Corporation has demonstrated adaptability. As of September 30, 2024, the company had $54.4 million in cash and cash equivalents, which positions it well for future investment opportunities. The weighted average yield on debt investments was reported at 13.8%, slightly down from 14.2% at the end of 2023, reflecting adjustments to market dynamics.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Investment Income per Share | $0.64 | $0.63 |
| Net Increase in Net Assets | $60.7 million | $50.7 million |
| Dividends Declared per Share | $1.81 | $2.08 |
Long-term Strategic Goals
Fidus Investment Corporation is committed to long-term strategic goals that align with its vision of being a leading investment firm. The company continues to evaluate opportunities that enhance its portfolio while ensuring compliance with regulatory standards. This includes the ability to issue SBA debentures, which allow for favorable borrowing conditions and support its investment strategy.
Core Values of Fidus Investment Corporation (FDUS)
Integrity
The core value of integrity at Fidus Investment Corporation (FDUS) emphasizes transparency and accountability in all business practices. This commitment is essential for building trust with stakeholders, including investors, clients, and employees.
Fidus has demonstrated integrity through various initiatives, such as maintaining stringent compliance with regulatory standards and providing detailed disclosures in their financial statements. For instance, in the nine months ended September 30, 2024, Fidus reported a net increase in net assets resulting from operations of $60.7 million. The company also ensures that its investment practices align with ethical standards, regularly updating stakeholders on the performance and risks associated with their investments.
Client Focus
Fidus Investment Corporation prioritizes client satisfaction by tailoring investment strategies to meet the specific needs of its diverse clientele. A client-focused approach is reflected in the company’s extensive portfolio management services.
For example, during the nine months ended September 30, 2024, Fidus invested $274.2 million in various debt and equity investments, including eleven new portfolio companies. This proactive investment strategy highlights the company's dedication to generating value for its clients while adapting to market dynamics.
Excellence
Excellence is a cornerstone of Fidus’s operational philosophy, driving the company to achieve superior performance and innovation in its investment processes. The company invests in continual improvement and professional development for its team.
As of September 30, 2024, Fidus reported a weighted average yield on its debt investments of 13.8%, showcasing the effectiveness of its investment strategies. The commitment to excellence is also evident in its rigorous due diligence process and the selection of high-quality portfolio companies, resulting in a fair value of the investment portfolio totaling $1,090.7 million.
Collaboration
Collaboration at Fidus Investment Corporation fosters teamwork among employees and partners, enhancing decision-making and operational efficiency. This value is critical in navigating complex market conditions and achieving collective goals.
Fidus has engaged in partnerships that leverage complementary strengths, resulting in increased investment opportunities. For instance, the company successfully exited six portfolio companies in the nine months ended September 30, 2024, which reflects effective collaboration between the investment team and external advisors.
Responsibility
Responsibility is central to Fidus’s mission, encompassing financial stewardship and a commitment to sustainable investment practices. The company recognizes its role in contributing positively to the economy and society.
In 2024, Fidus has also focused on responsible investing, targeting sectors that promote environmental sustainability. Their portfolio composition shows a balanced approach, with significant investments in healthcare and technology, which are positioned for growth while adhering to responsible investment criteria.
| Core Value | Description | Key Initiatives | Performance Metrics |
|---|---|---|---|
| Integrity | Transparency and accountability in business practices | Regulatory compliance and detailed financial disclosures | Net increase in net assets: $60.7 million |
| Client Focus | Tailoring investment strategies for client satisfaction | Proactive investment in diverse portfolios | Total investments: $274.2 million |
| Excellence | Achieving superior performance and innovation | Professional development and rigorous due diligence | Weighted average yield: 13.8% |
| Collaboration | Fostering teamwork and enhancing decision-making | Partnerships for investment opportunities | Exits from six portfolio companies |
| Responsibility | Financial stewardship and sustainable investing | Focus on sectors promoting sustainability | Balanced portfolio composition in healthcare and technology |
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Article updated on 8 Nov 2024
Resources:
- Fidus Investment Corporation (FDUS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Fidus Investment Corporation (FDUS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Fidus Investment Corporation (FDUS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.