The Board of Trustees of Barings Participation Investors (NYSE:
MPV) (the "Trust") met on February 27, 2025, and would like to
report its preliminary financial results for the fourth quarter of
2024.
Financial
Highlights(1)
Three Months Ended
December 31, 2024
Three Months Ended
September 30, 2023
Total Amount
Per
Share(5)
Total Amount
Per Share(4)
Net investment income(2)
$
5,077,391
$
0.48
$
3,553,378
$
0.33
Net realized gains / (losses)(3)
$
327,989
$
0.03
$
(1,505,789
)
$
(0.14
)
Net unrealized appreciation /
(depreciation)
$
(295,452
)
$
(0.03
)
$
1,604,338
$
0.15
Net increase in net assets resulting from
operations
$
5,390,925
$
0.50
$
3,658,567
$
0.34
Total net assets (equity)
$
165,121,426
$
15.46
$
168,387,245
$
15.80
(1)
All figures for 2024 are unaudited
(2)
December 31, 2024 figures net of
approximately $0.04 per share of excise tax
(3)
December 31, 2024 figures net of
approximately $0.02 per share of capital gains tax
(4)
Based on shares outstanding at the end of
the period of 10,660,746.61
(5)
Based on shares outstanding at the end of
the period of 10,680,266.61
Key Highlights:
Commenting on the year, Christina Emery, President, stated, "We
are pleased to have grown net investment income, net of taxes,
during 2024 to $1.55 per share compared to $1.50 per share in 2023.
The increase is a function of both the sound credit quality and
diversity of the portfolio coupled with rising base rates. Both
credit quality and capital structure of portfolio companies are key
factors in our analysis, along with the quality of the ownership
and management groups. As fundamental long-term investors, we
believe it is imperative to remain disciplined and underwrite
capital structures which will remain sound through economic cycles
(and varying interest rate environments). We also seek to maintain
a high level of portfolio diversification overall, looking at both
industry and individual credit concentration. This approach has
historically generated stable returns and relative stability during
economic stress.”
In 2024, the Trust’s dividend increased by $0.01 per share in
the first quarter to $0.37 per share and remained at $0.37 per
share for the second, third and fourth quarter. In addition to the
regular dividend, the Trust paid a special dividend in the fourth
quarter of $0.10 per share made possible by non-recurring dividend
income received from one of the equity investments. This results in
a total annual dividend of $1.57 per share, representing a 7.3%
increase to the 2023 total annual dividend of $1.29 per share.
Based on the Trust’s December 31, 2024, share price of $17.09 per
share, the most recent regular quarterly distribution of $0.37 per
share represents an annualized yield of 8.7%.
During the three months ended December 31, 2024, the Trust
reported total investment income of $6.6 million, net investment
income of $5.1 million, or $0.48 per share, and a net increase in
net assets resulting from operations of $5.4 million, or $0.50 per
share.
Net asset value ("NAV") per share as of December 31, 2024, was
$15.46, as compared to $15.80 as of September 30, 2024. The
decrease in NAV per share was primarily attributable to the payment
of a $0.37 per share dividend on November 15, 2024, and the
declaration of a $0.37 per share regular dividend and a $0.10 per
share special dividend which were both paid on January 17, 2025,
net unrealized depreciation of $0.03 per share, net realized gains
of $0.03 per share, partially offset by net investment income of
$0.48 per share.
Recent Portfolio
Activity
During the three months ended December 31, 2024, the Trust made
nine new private investments totaling $7.9 million, six new public
investments totaling $7.6 million and 30 add-on investments in
existing private portfolio companies totaling $3.7 million. During
the three months ended December 31, 2024, the Trust had six loans
repaid at par totaling $7.9 million and realized three equity
investments totaling $1.3 million for a realized gain of $0.8
million, or approximately $0.08 per share.
Liquidity and
Capitalization
As of December 31, 2024, the Trust had cash of $7.0 million and
$23.5 million of borrowings outstanding. The Trust had unfunded
commitments of $15.6 million as of December 31, 2024.
Net Capital Gains
The Trust realized net capital gains of $327,989 or $0.03 per
share during the quarter ended December 31, 2024, which resulted in
realized net capital losses for the year ended December 31, 2024,
of $860,920 or $0.06 per share. By comparison, for the year ended
December 31, 2023, the Trust realized net capital losses of
$1,447,280 or $0.07 per share. During the quarter ended September
30, 2023, the Trust realized net capital losses of $1,970,622 or
$0.10 per share.
Annual Meeting
The Trust’s annual shareholders' meeting will be held on
Thursday, May 15, 2025. Shareholders of record at the close of
business on March 17, 2025, will be entitled to vote at the
meeting.
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 $421+ 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 December 31, 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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Media Contact: MediaRelations@barings.com
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