Financial highlights underscore a year of robust growth and strategic positioning for Bain Capital Specialty Finance Inc. (NYSE:BCSF). The company's investment income per share reached $0.52 in the fourth quarter, contributing to an annualized yield on book value of 11.8%. For the full year 2024, net investment income stood at $2.09 per share, maintaining a solid return on equity. The company also achieved a dividend coverage ratio of 124%, reflecting its strong financial health and commitment to shareholder returns.

The company's earnings per share for Q4 came in at $0.34, with an annualized return on book value of 7.8%. Over the full year, EPS was recorded at $1.85, representing a total return on equity of 10.9%. Despite a slight decrease in net asset value per share from $17.76 in the previous quarter to $17.65 at year-end, the overall portfolio remained resilient. Total dividends paid in 2024 amounted to $1.80 per share, marking a 13% increase from the previous year. This underscores BCSF's dedication to enhancing shareholder value through consistent and growing dividends.

The investment portfolio, valued at $2.4 billion at fair value by year-end, showcased a diversified strategy focused on first lien senior secured loans, which comprised 64% of the portfolio. Although there were minor markdowns in certain sectors, such as hospitality, these did not significantly impact the overall portfolio strength. The weighted average yield on investments stood at 11.7% at amortized cost and 11.8% at fair value, indicating a stable income generation potential. Liquidity positions remained strong, with $520 million in liquidity at year-end and pro forma liquidity reaching $870 million.

Looking ahead, BCSF remains optimistic about the middle market loan environment. Management expressed confidence in capitalizing on anticipated growth in M&A activities, which could drive increased loan volumes in 2025. The company continues to prioritize conservative investments with financial maintenance covenants and majority control positions, ensuring long-term stability and value creation. Overall, BCSF's strategic focus and financial resilience position it well to navigate future market conditions while delivering sustainable returns to shareholders.