Bain Capital Specialty Finance NAV Slides to $17.23, Declares 9.8% Q1 Dividend
Bain Capital Specialty Finance’s NAV fell to $17.23 per share after $0.18 in special dividends, while Q4 net investment income of $0.46 per share (10.6% annualized) covered the $0.42 regular dividend by 110%. The board declared a $0.42 Q1 dividend (9.8% on book value) and cited 1.5% non-accruals.
1. NAV and Special Dividends
Net asset value per share declined to $17.23 at December 31, 2025, from $17.40 at September 30, primarily reflecting $0.18 per share of special dividends paid during the quarter. The board approved a Q1 dividend of $0.42 per share, representing a 9.8% annualized yield on ending book value.
2. Q4 Income and Dividend Coverage
Fourth-quarter net investment income reached $0.46 per share, equating to a 10.6% annualized yield that covered the $0.42 regular dividend by 110%. For full-year 2025, NII totaled $1.88 per share for an 11.1% return on equity, while earnings per share were $1.53 for a 9.0% return on equity.
3. Portfolio Composition and Credit Performance
The portfolio stood at $2.5 billion fair value across 203 middle-market companies, with 64% first-lien debt and non-accruals at 1.5% of cost. New first-lien originations yielded 535 basis points in Q4 and 560 basis points for 2025, supported by stable median borrower leverage of 4.7x.