Oxford Square Capital Corp. (OXSQ) Bundle
An Overview of Oxford Square Capital Corp. (OXSQ)
General Summary of Oxford Square Capital Corp. (OXSQ)
Oxford Square Capital Corp. (OXSQ) is a business development company (BDC) that specializes in investing in a diversified portfolio of debt and equity investments in U.S. middle-market companies. The company was established to provide capital to these businesses, enabling them to grow and thrive. As of 2024, OXSQ has focused on building a portfolio that includes senior secured loans, collateralized loan obligations (CLOs), and various equity investments, with a keen emphasis on generating attractive risk-adjusted returns.
As of September 30, 2024, OXSQ reported a total asset value of $312.9 million, with net assets amounting to approximately $159.5 million. The company’s investment portfolio is diversified across various sectors, with a significant allocation to senior secured notes and CLO equity. The company’s current sales as of 2024 primarily stem from interest income generated from its debt investments and management fees associated with its investment activities.
Company's Financial Performance in the Latest Financial Reports
In the latest financial reports for the three and nine months ended September 30, 2024, Oxford Square Capital Corp. showcased a robust financial performance:
| Financial Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Investment Income | $6,187,155 | $6,438,818 | $20,446,617 | $19,595,383 |
| Net Change in Unrealized Appreciation | $5,843,293 | $13,900,802 | $33,609,348 | $21,931,432 |
| Net Realized Losses | $(12,904,989) | $(13,646,784) | $(51,439,891) | $(16,978,092) |
| Net (Decrease)/Increase in Net Assets | $(874,541) | $6,692,836 | $2,616,074 | $24,548,723 |
| Total Investment Income | $10,340,924 | $13,045,354 | $32,463,804 | $39,500,132 |
OXSQ achieved a weighted average annualized yield on debt investments of approximately 14.50% as of September 30, 2024. The company’s strategic focus on leveraging its investment capabilities resulted in a substantial increase in net investment income, with year-to-date figures showing a notable improvement from the previous year. Despite experiencing net realized losses, the overall investment strategy has continued to yield positive net investment income, supporting the company's operational objectives.
Introduction to Oxford Square Capital Corp. as a Leader in the Industry
Oxford Square Capital Corp. is recognized as a leading player in the business development sector, particularly in providing capital to middle-market companies. Its strategic approach to investing in senior secured notes and CLOs positions it favorably within the competitive landscape of BDCs. The company’s commitment to maintaining a diversified portfolio and focusing on high-yield investments allows it to navigate market fluctuations effectively.
With a total net asset value per share of $2.35 as of September 30, 2024, and a solid capital base, OXSQ continues to attract investor interest. The company’s proactive investment strategy and commitment to delivering shareholder value through consistent distributions and equity growth underscore its standing as a formidable entity in the industry. For further insights into the company's success and operational strategies, readers are encouraged to explore more detailed sections below.
Mission Statement of Oxford Square Capital Corp. (OXSQ)
Mission Statement Overview
Oxford Square Capital Corp. (OXSQ) aims to provide attractive risk-adjusted returns to its shareholders through investments in structured finance and other debt instruments. The mission statement serves as a guiding principle for the company's strategic direction, emphasizing the importance of delivering high-quality financial products while maintaining a commitment to integrity and transparency.
Core Component 1: Delivering Strong Financial Returns
Oxford Square Capital Corp. is dedicated to generating strong financial returns for its investors. This commitment is evidenced by the company's financial performance metrics. For the nine months ended September 30, 2024, OXSQ reported a net increase in net assets resulting from operations of approximately $2.6 million, compared to $24.5 million for the same period in 2023. The net investment income per common share was $0.33 for the nine months ended September 30, 2024, down from $0.37 in 2023. This illustrates the company's ability to adapt to changing market conditions while striving to provide value to its shareholders.
Core Component 2: Commitment to Investment Quality
Another key aspect of Oxford Square Capital Corp.'s mission is its focus on high-quality investments. The company's portfolio includes a diverse range of investments, primarily in senior secured notes, which accounted for 58.1% of the total portfolio as of September 30, 2024. The fair value of the company's investment portfolio was approximately $262.9 million. Additionally, the weighted average annualized yield on debt investments was approximately 14.50%, indicating a robust return potential from its investment strategy.
Core Component 3: Upholding Ethical Standards
Oxford Square Capital Corp. emphasizes ethical standards and transparency in its operations. The company is committed to regulatory compliance and has established rigorous internal controls to ensure adherence to industry regulations. As of September 30, 2024, the company's asset coverage for borrowed amounts was approximately 226%, well above the required minimum of 150% under the 1940 Act. This strong asset coverage reflects the company's prudent risk management practices and commitment to maintaining financial stability.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Increase in Net Assets from Operations ($ million) | 2.6 | 24.5 | -89.4% |
| Net Investment Income per Common Share ($) | 0.33 | 0.37 | -10.8% |
| Weighted Average Annualized Yield on Debt Investments (%) | 14.50 | N/A | N/A |
| Asset Coverage for Borrowed Amounts (%) | 226 | 219 | +7% |
| Fair Value of Investment Portfolio ($ million) | 262.9 | N/A | N/A |
Vision Statement of Oxford Square Capital Corp. (OXSQ)
Vision Statement Overview
The vision statement of Oxford Square Capital Corp. (OXSQ) as of 2024 emphasizes the company's commitment to becoming a leading investment firm focused on providing superior risk-adjusted returns to its shareholders. The company aims to achieve this through strategic investments in a diverse portfolio of debt and equity securities.
Commitment to Shareholder Value
Oxford Square Capital Corp. prioritizes enhancing shareholder value as a core component of its vision. As of September 30, 2024, the company's net assets totaled approximately $159.47 million, reflecting a strategic focus on maintaining robust financial health and delivering consistent returns to investors.
| Financial Metric | Value |
|---|---|
| Net Assets | $159,470,834 |
| Weighted Average Shares Outstanding | 67,869,056 |
| Net Asset Value per Share | $2.35 |
| Distributions per Share | $0.315 |
Diverse Investment Strategy
The company's vision includes a commitment to a diversified investment strategy, which encompasses senior secured notes, CLO equity, and other investment vehicles. As of September 30, 2024, the composition of the investment portfolio is as follows:
| Investment Type | Fair Value | Percentage of Total Portfolio |
|---|---|---|
| Senior Secured Notes | $152.7 million | 58.1% |
| CLO Equity | $103.5 million | 39.3% |
| Equity and Other Investments | $6.8 million | 2.6% |
| Total | $262.9 million | 100% |
Risk Management and Sustainable Growth
Oxford Square Capital Corp. emphasizes robust risk management practices as part of its vision. The company maintains an asset coverage ratio of approximately 226% as of September 30, 2024, which indicates a strong capacity to manage leverage effectively while pursuing growth opportunities.
| Risk Management Metric | Value |
|---|---|
| Asset Coverage Ratio | 226% |
| Weighted Average Stated Interest Rate on Debt | 5.77% |
| Weighted Average Maturity of Debt | 3.0 years |
Commitment to Innovation
The vision of Oxford Square Capital Corp. also includes a commitment to innovation in investment approaches, ensuring adaptability to changing market conditions. The company actively monitors market trends and adjusts its investment strategy accordingly to optimize returns and minimize risks.
As of September 30, 2024, the company's investment income from non-affiliated/non-control investments amounted to approximately $32.46 million, highlighting the effectiveness of its investment strategies in generating revenue.
| Investment Income | Value |
|---|---|
| Total Investment Income | $32,463,804 |
| Net Investment Income | $20,446,617 |
| Net Realized Losses | ($51,439,891) |
Core Values of Oxford Square Capital Corp. (OXSQ)
Integrity
Integrity stands at the core of Oxford Square Capital Corp.'s (OXSQ) values, guiding the company in its operations and interactions with stakeholders.
In 2024, OXSQ has maintained a commitment to transparency in financial reporting, as evidenced by its detailed quarterly earnings reports. For instance, as of September 30, 2024, the company reported net assets of approximately $159.47 million, reflecting a consistent approach to accurate financial disclosure.
Furthermore, OXSQ has implemented strict compliance protocols to adhere to regulatory standards, ensuring that all investment activities are conducted ethically and transparently. This commitment is reflected in the company’s adherence to the 1940 Act, which governs its asset coverage ratios, reported at 226% as of September 30, 2024.
Commitment to Excellence
OXSQ's commitment to excellence is demonstrated through its strategic investment decisions and performance metrics.
For the nine months ended September 30, 2024, the company reported net investment income of $20.45 million, showcasing its ability to generate substantial returns on its investments. This reflects a proactive approach to identifying high-quality investment opportunities, particularly in senior secured notes and collateralized loan obligations (CLOs).
Additionally, the company’s portfolio turnover rate was reported at 10.95%, indicating a disciplined investment strategy that balances active management while maintaining a focus on long-term value.
Customer Focus
Oxford Square Capital Corp. prioritizes customer focus, ensuring that the needs and interests of its stakeholders are central to its operational strategies.
The company has established a robust communication framework, providing regular updates to shareholders regarding investment performance and market conditions. For instance, OXSQ has engaged in monthly distributions, totaling approximately $2.1 million per month in early 2024, thereby reinforcing its commitment to returning value to shareholders.
This focus on customer satisfaction is also evident in the company’s efforts to maintain a strong relationship with its investment advisors, ensuring that the strategies employed align with shareholder interests.
Innovation
Innovation is a key value for OXSQ, as the company continuously seeks to enhance its investment strategies and operational efficiencies.
In 2024, OXSQ has adopted advanced analytics tools to assess investment performance and market trends, enabling informed decision-making. This innovative approach has contributed to a net change in unrealized appreciation on investments amounting to approximately $33.61 million.
The company has also diversified its investment portfolio, with CLO equity investments increasing to 39.3% of the total portfolio as of September 30, 2024, reflecting a strategic pivot towards more dynamic investment vehicles.
Social Responsibility
Oxford Square Capital Corp. embraces social responsibility as a core value, integrating sustainable practices into its investment processes.
The company has committed to investing in businesses that adhere to Environmental, Social, and Governance (ESG) criteria, which has become increasingly important in the investment landscape. As of 2024, OXSQ has allocated a portion of its capital to companies demonstrating strong ESG performance.
Additionally, OXSQ has engaged in community initiatives aimed at supporting local economic development, which further underscores its commitment to social responsibility.
| Core Value | Description | Key Metrics/Examples |
|---|---|---|
| Integrity | Commitment to transparency and ethical practices. | Net assets of $159.47 million; asset coverage ratio of 226%. |
| Commitment to Excellence | Focus on high-quality investment performance. | Net investment income of $20.45 million; portfolio turnover rate of 10.95%. |
| Customer Focus | Prioritizing stakeholder needs and satisfaction. | Monthly distributions of approximately $2.1 million. |
| Innovation | Enhancing investment strategies through technology. | Net change in unrealized appreciation of $33.61 million; CLO equity investments at 39.3%. |
| Social Responsibility | Integrating sustainable and ethical investment practices. | Investment in businesses adhering to ESG criteria. |
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Resources:
- Oxford Square Capital Corp. (OXSQ) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Oxford Square Capital Corp. (OXSQ)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Oxford Square Capital Corp. (OXSQ)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.