Saratoga Investment Reports 13.4% AUM Growth and $101.1M Q4 Deployments
SAR•Saratoga Investment reported a 13.4% year-over-year increase in assets under management to $1.109 billion, a 0.9% NAV rise to $396.2 million and 9.1% ROE versus the 4.3% industry average. Fourth-quarter net deployments totaled $101.1 million across five new investments and 15 follow-ons, with non-accruals at 0.2% of fair value.
1. Fiscal 2026 Annual Results
For the year ended February 28, 2026, AUM rose 13.4% to $1.109 billion and NAV increased 0.9% to $396.2 million. Annual ROE reached 9.1%, up from 7.5% a year earlier and well above the 4.3% BDC industry average, driven by $309.5 million in originations and $178.9 million in repayments.
2. Fourth-Quarter Financial Performance
In Q4, AUM held at $1.109 billion while NAV per share declined to $24.42 after a $0.25 special dividend. The quarter produced $31.1 million in investment income, adjusted NII of $0.53 per share ($0.61 excluding a $1.7 million excise tax), EPS of -$0.16 and net deployments of $101.1 million. Non-accruals remained minimal at 0.2% of fair value.
3. Dividend and Yield Update
The board declared a base monthly dividend of $0.25 per share, totaling $0.75 for Q1 of fiscal 2027 and implying a 12.6% annualized yield based on a $23.89 share price. Total dividends per share for fiscal 2026 reached $3.74, including a $0.25 special dividend versus $3.30 in the prior year.
4. Portfolio Quality and Market Commentary
Management highlighted strong deal flow with five new platform investments and fifteen follow-ons in Q4, offsetting multiple repayments. The portfolio saw a $9.6 million markdown driven by market volatility but maintained low credit risk, reflecting disciplined underwriting in a competitive M&A environment.
