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Barings Participation Investors reports Q3 financial growth

EditorRachael Rajan
Published 16/11/2023, 22:20
© Reuters.

CHARLOTTE - Barings Participation Investors, a closed-end management investment company advised by Barings LLC, has reported a notable increase in its third-quarter financial metrics. The Trust's Board met today to review the Q3 results, highlighting a significant net unrealized appreciation and a rise in assets from operations.

The Trust's net investment income saw an uptick to $0.41 per share, driven by non-recurring income and elevated base rates. This quarter, Barings Participation Investors made seven new investments, continuing its strategy of investing in senior secured and mezzanine debt.

As of September 30, the net asset value (NAV) per share climbed to $15.68. This boost is attributed to the net investment income surpassing the quarterly dividend by $0.09 per share, alongside a net unrealized appreciation of $0.11 per share. However, these gains were partially offset by net realized losses amounting to $0.06 per share.

The Trust also declared a quarterly dividend of $0.34 per share on October 10, which is set for distribution on November 17 to shareholders recorded as of November 6. This declaration marks the fifth consecutive dividend increase for the Trust's shareholders.

Looking back at the second quarter ending June 30, Barings Participation Investors reported total investment income of $5.3 million and a net investment income of $4.3 million ($0.41/share). The increase in net assets from operations was $4.8 million ($0.46/share).

During the third quarter, the Trust made not only seven new investments but also 24 add-on investments, maintaining a cash position of $4.9 million against borrowings of $21.5 million. Realized net capital losses for this period were reported at $647,807 or $0.06/share.

Barings LLC, advising the Trust, manages assets totaling over $347 billion as of September 30, maintaining a significant presence in the investment management landscape.

The next board meeting is scheduled for December 14, where discussions will include the loan repayment made during Q3 and unfunded commitments totaling $10.7 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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