The Board of Trustees of Barings Participation Investors (NYSE:
MPV) (the "Trust") met on November 14, 2024, and would like to
report its preliminary financial results for the third quarter of
2024.
Financial
Highlights(1)
Three Months Ended
September 30, 2024
Three Months Ended June
30, 2024
Total Amount
Per Share(5)
Total Amount
Per Share(4)
Net investment income(2)
$ 3,553,378
$ 0.33
$ 4,066,456
$ 0.38
Net realized (losses) / gains(3)
$(1,505,789)
$(0.14)
$(580,926)
$(0.05)
Net unrealized depreciation /
appreciation
$ 1,604,338
$ 0.15
$ (214,820)
$ (0.02)
Net increase in net assets resulting from
operations
$ 3,658,567
$ 0.34
$ 3,178,814
$ 0.30
Total net assets (equity)
$168,387,245
$ 15.80
$ 168,359,378
$ 15.82
(1) All figures for 2024 are unaudited
(2) September 30, 2024 figures net of less
than $0.01 per share of taxes
(3) September 30, 2024 figures net of less
than $0.01 per share of taxes
(4) Based on shares outstanding at the end
of the period of 10,641,293
(5) Based on shares outstanding at the end
of the period of 10,660,747
Key Highlights:
Commenting on the quarter, Christina Emery, President, stated,
"The Trust earned $0.33 per share of net investment income, net of
taxes, for the third quarter of 2024, compared to $0.38 per share
in the previous quarter. The decrease in net investment income was
predominantly due to non-recurring income (repayment of past due
income) received in the second quarter, coupled with net
realization activity in the second quarter that decreased total
invested assets. The Trust has maintained its dividend this
quarter, which is further confirmation of our credit philosophy,
where we focus on leading businesses backed by strong sponsor
ownership and conservative capital structures. This approach has
historically generated stable returns and relative stability during
economic stress. During the quarter, Barings continued to drive
origination flow into quality, 1st lien senior secured
middle-market investments as well as capitalizing on public fixed
income investments where applicable. When constructing portfolios,
we focus on investing in high-quality businesses that are leaders
in their space and offer defensive characteristics that will allow
them to perform through economic cycles.”
During the three months ended September 30, 2024, the Trust
reported total investment income of $4.5 million, net investment
income of $3.6 million, or $0.33 per share, and a net increase in
net assets resulting from operations of $3.7 million, or $0.34 per
share.
Net asset value ("NAV") per share as of September 30, 2024, was
$15.80, as compared to $15.82 as of June 30, 2024. The decrease in
NAV per share was primarily attributable to the quarterly dividend
payment exceeding net investment income by $0.04 per share,
partially offset by net realized and unrealized appreciation of
$0.01 per share.
The next scheduled meeting of the Board of Trustees will be held
on December 12, 2024.
Recent Portfolio
Activity
During the three months ended September 30, 2024, the Trust made
nine new investments totaling $9.1 million and 33 add-on
investments in existing portfolio companies totaling $4.0 million.
During the three months ended September 30, 2024, the Trust had six
senior loans repaid at par totaling $7.0 million, one mezzanine
loan repaid at par for $0.5 million, realized one mezzanine note
for a loss of $1.5 million and realized three equity investments
that generated realized gains of $0.3 million.
Liquidity and
Capitalization
As of September 30, 2024, the Trust had cash and short-term
investments of $0.3 million and $15.0 million of borrowings
outstanding. The Trust had unfunded commitments of $12.3 million as
of September 30, 2024.
Net Capital Gains
The Trust realized net capital losses of $1,505,789 or $0.14 per
share during the quarter ended September 30, 2024. By comparison,
for the quarter ended June 30, 2024, the Trust realized net capital
losses of $580,926 or $0.05 per share.
About Barings Participation
Investors
Barings Participation Investors is a closed-end management
investment company advised by Barings LLC. Its shares are traded on
the New York Stock Exchange under the trading symbol ("MPV").
About Barings LLC
Barings is a $431+ billion* global investment manager sourcing
differentiated opportunities and building long-term portfolios
across public and private fixed income, real estate, and specialist
equity markets. With investment professionals based in North
America, Europe and Asia Pacific, the firm, a subsidiary of
MassMutual, aims to serve its clients, communities and employees,
and is committed to sustainable practices and responsible
investment. Learn more at www.barings.com.
*Assets under management as of September 30, 2024
Per share amounts are rounded to the nearest cent.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE
RESULTS
Cautionary Notice: Certain statements contained in this press
release may be "forward looking" statements. Investors are
cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date on which they are made
and which reflect management’s current estimates, projections,
expectations or beliefs, and which are subject to risks and
uncertainties that may cause actual results to differ materially.
These statements are subject to change at any time based upon
economic, market or other conditions and may not be relied upon as
investment advice or an indication of the fund's trading intent.
References to specific securities are not recommendations of such
securities, and may not be representative of the fund's current or
future investments. We undertake no obligation to publicly update
forward looking statements, whether as a result of new information,
future events, or otherwise.
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