Core Insights - The article emphasizes the importance of innovation and disruption in the financial sector, particularly focusing on high-tech and early growth companies [1] Group 1: Investment Focus - The company is keen on identifying growth buyouts and value stocks as potential investment opportunities [1] - There is a strong emphasis on monitoring the pace of technological advancements within the industry [1] Group 2: Research and Analysis - The article aims to provide readers with comprehensive research and insights into current events affecting the industry [1] - The focus is on delivering ample investment opportunities based on thorough analysis of market trends [1]

Financial Data and Key Metrics - Q2 net investment income per share was $0.51, representing an annualized yield of 11.6% on book value and covering the regular dividend by 121% [7] - Q2 earnings per share were $0.45, with an annualized return on equity of 10.2% [7] - Net asset value per share was $17.70 as of June 30, unchanged from the prior quarter [8] - Total investment income for Q2 was $72.3 million, down from $74.5 million in Q1, primarily due to a decrease in other income [21] - Net investment income for Q2 was $33.1 million or $0.51 per share, compared to $34 million or $0.53 per share in Q1 [21] - Net income for Q2 was $29.1 million or $0.45 per share [22] Business Line Data and Key Metrics - Gross originations during Q2 were $307 million, up 55% year-over-year but down 24% from Q1 levels of $403 million [10] - Q2 originations were split nearly half-and-half between new and existing borrowers [10] - 86% of new fundings were into first lien structures, with 9% into investment vehicles [17] - The investment portfolio at fair value was approximately $2.2 billion across 154 portfolio companies operating in 32 industries [17] - 63% of the investment portfolio at fair value was in first lien debt, 5% in second lien or subordinated debt, and 9% in equity and other interests [18] - The weighted average yield on the investment portfolio at amortized cost and fair value were 13.1% and 13.2% respectively, up from 12.9% and 13% in Q1 [18] Market Data and Key Metrics - The private credit market remains well positioned for future growth due to a large amount of private equity dry powder and pressure for sponsors to return capital to investors [9] - Market expectations for future rate cuts have increased, which could drive new activity levels into 2025 [9] - The median EBITDA of borrowers in the core middle market was approximately $45 million [11] - Weighted average yield on new originations was 11.6%, with median leverage levels of 4.6 times [12] Company Strategy and Industry Competition - The company remains focused on investing in first lien senior secured loans to manage downside risk and invest at the top of the capital structure [17] - The company leverages its long-standing relationships with private equity sponsors to grow and execute on longer-term business plans [16] - The company has deep restructuring and workout capabilities to maximize value for shareholders in various market environments [20] Management Commentary on Operating Environment and Future Outlook - The company believes the private credit market is well positioned for future growth despite lower new deal activity [9] - The company expects market conditions to remain favorable, with potential rate cuts driving new activity levels [9] - The company remains committed to delivering value for shareholders through attractive returns on equity [26] Other Important Information - The company declared a third quarter dividend of $0.42 per share and a special dividend, bringing the total Q3 dividend to $0.45 per share [24] - The company increased commitments under its secured revolving credit facility by nearly 30% and extended the maturity to mid-2029 [14] - The company's gross and net leverage ratios were 1.03 times and 0.95 times respectively at the end of Q2 [14] Q&A Session Summary Question: What drove the 20 basis point increase in the overall portfolio yield? - The increase in yield was driven by the optimization of assets between the balance sheet and the Senior Loan Program (SLP) joint venture, which holds lower-yielding assets off the balance sheet [29] Question: What is the interest coverage ratio for the portfolio? - The median interest coverage across the portfolio is more than 2x, with stress tests indicating that any significant degradation is limited to risk rating three and four investments [31] Question: What is the nature of the pick income and when would it become a concern? - The majority of pick income comes from original investment structures, particularly in junior capital investments, with some additional pick from amendments on underperforming companies [33] Question: How are the joint ventures performing, particularly in terms of non-accruals? - The SLP has lower non-accruals (1.5% to 2%) compared to the balance sheet, while the ISLP has seen a slight uptick in non-accruals but still maintains strong performance [38] Question: How does the company view relative value between international and US markets? - The company sees equivalent relative value between US and European markets, with Australia contributing a steady 5% plus or minus [41]

Investment Performance - Net investment income per share for Q2 2024 was $0.51, with an annualized NII yield on book value of 11.6%[5] - Net income per share for Q2 2024 was $0.45, equating to an annualized return on book value of 10.2%[5] - Total investment income for Q2 2024 was $72.3 million, a decrease from $74.5 million in Q1 2024[13] - Net investment income for Q2 2024 was $33.1 million, or $0.51 per share, compared to $34.0 million, or $0.53 per share, in Q1 2024[13] - Total investment income for the six months ended June 30, 2024, was $146,770, compared to $150,452 for the same period in 2023[24] - Net investment income before taxes for the six months ended June 30, 2024, was $69,242, compared to $72,762 for the same period in 2023[24] - Net increase in net assets resulting from operations for the six months ended June 30, 2024, was $64,185, compared to $58,456 for the same period in 2023[24] Investment Portfolio - Total fair value of investments as of June 30, 2024 was $2,237.5 million, a decrease from $2,406.0 million as of March 31, 2024[2] - Investments on non-accrual declined to 1.2% of the total investment portfolio at amortized cost and 1.0% at fair value as of June 30, 2024[5] - Net investment fundings for Q2 2024 were $(167.0) million, compared to $107.1 million in Q1 2024[8] - BCSF has invested approximately $7.8 billion in aggregate principal amount of debt and equity investments since commencing operations[25] Financial Position - Total assets decreased to $2,414,847 as of June 30, 2024, compared to $2,472,348 as of December 31, 2023[20] - Total liabilities decreased to $1,272,302 as of June 30, 2024, compared to $1,335,882 as of December 31, 2023[20] - Net asset value per share increased to $17.70 as of June 30, 2024, compared to $17.60 as of December 31, 2023[20] - The Company's debt-to-equity and net debt-to-equity ratios as of June 30, 2024 were 1.03x and 0.95x, respectively, compared to 1.19x and 1.09x as of March 31, 2024[16] Credit Facility and Commitments - The Company increased commitments under its Sumitomo Credit Facility to $855.0 million from $665.0 million and extended the maturity date to May 18, 2029[5] Dividends - The Company declared a dividend of $0.42 per share for the third quarter of 2024, payable to stockholders of record as of September 30, 2024[5] Expenses - Interest and debt financing expenses for the six months ended June 30, 2024, were $35,687, compared to $40,009 for the same period in 2023[24] - Base management fee for the six months ended June 30, 2024, was $17,587, compared to $18,026 for the same period in 2023[24] - Incentive fee for the six months ended June 30, 2024, was $17,156, compared to $15,118 for the same period in 2023[24]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 814-01175 BAIN CAPITAL SPECIALTY FINANCE, INC. Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange ...

PM Images Select business development companies with good pay-out metrics and discounts to net asset value are still available in the market, but one has to look harder for them compared to just six months ago. One such BDC gem, in my view, is Bain Capital Specialty Finance Inc. (NYSE:BCSF) which offers passive income investors a well-covered 10% yield as well as a reasonable discount to net asset value. The BDC’s net investment income is growing, the portfolio is diversified and well-performing and Bai ...

PM Images Overview Within the Business Development Company sector, there are tons of high-quality options to choose from. However, they tend to often times trade at a significant premium to their actual net asset value as investors pile in because of the quality offered. This can make it difficult to find a deal within BDCs, and this has been especially challenging in this higher interest rate environment. BDCs typically have a portfolio full of floating rate debt that's able to utilize the current high ...

Bain Capital Specialty Finance, Inc. (NYSE:BCSF) Q1 2024 Results Conference Call May 7, 2024 8:00 AM ET Company Participants Katherine Schneider - Director, Investor Relations Michael Ewald - Chief Executive Officer Mike Boyle - President Amit Joshi - Chief Financial Officer Conference Call Participants Finian O'Shea - Wells Fargo Paul Johnson - KBW Derek Hewett - Bank of America Operator Good morning, ladies and gentlemen, and welcome to the Bain Capital Specialty Finance first quarter ended March 31, 2024 ...

Exhibit 99.1 ($ in millions, unless otherwise noted) Q1 2024 Q4 2023 Bain Capital Specialty Finance, Inc. Bain Capital Specialty Finance, Inc. Announces March 31, 2024 Financial Results and Declares Second Quarter 2024 Dividend of $0.42 per Share BOSTON – May 6, 2024 – Bain Capital Specialty Finance, Inc. (NYSE: BCSF, the "Company", "our" or "we") today announced financial results for the first quarter ended March 31, 2024, and that its Board of Directors (the "Board") has declared a dividend of $0.42 per s ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 814-01175 BAIN CAPITAL SPECIALTY FINANCE, INC. Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchang ...

For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Bain Capital Specialty (BCSF) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Finance peers, we might be able to answer that question.Bain Capital Specialty is a member of our Finance group, which includes 85 ...