Kayne Anderson BDC, Inc. reported its third‑quarter 2025 results on November 10, 2025, showing net investment income of $30.0 million, or $0.43 per share, and a net asset value of $16.34 per share, down slightly from $16.37 at the end of June. The company’s earnings per share of $0.43 beat the consensus estimate of $0.4039 by $0.0261, while total investment income of $61.3 million surpassed the $60.2 million forecast.
The earnings beat was driven by higher net investment income and disciplined expense management. Net expenses rose to $31.3 million from $28.6 million, largely due to increased average borrowings and a higher base management fee after a partial fee waiver in the prior quarter. Revenue growth was supported by a rotation from lower‑yielding broadly syndicated loans into middle‑market loans, accelerated amortization, and fee income from repayments, all of which lifted total investment income.
The slight decline in NAV to $16.34 per share was attributable to unrealized losses of $0.08 per share, offset by $0.03 from net investment income earned over distributions and $0.02 from share repurchases. Market volatility and specific portfolio company performance contributed to the unrealized losses, but the company’s defensive positioning—94% of the portfolio in first‑lien senior secured loans with an average leverage of 4.2x—helps mitigate downside risk.
Kayne Anderson BDC declared a quarterly dividend of $0.40 per share, fully covered by the net investment income of $0.43 per share. The dividend coverage ratio of 0.93 underscores the company’s commitment to a sustainable dividend policy while maintaining sufficient earnings to support future growth.
Co‑CEO Doug Goodwillie highlighted strong origination activity, stable credit performance, and a pickup in M&A‑related financing opportunities. He emphasized that the firm remains defensively positioned, with a high‑quality earnings mix and a portfolio that continues to demonstrate strong fundamentals despite broader market volatility.
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