Company says it is accelerating tilt toward defensive asset-based lending amid market uncertainties
SLR Investment Corp. says it has over $900 mln of available capital for new investments
Company says supply/demand imbalances in middle market private credit are impacting current conditions
Overview
US specialty finance lender's Q2 net investment income and EPS declined yr/yr
Gross investment income fell, mainly due to smaller portfolio and lower index rates
Company declared Q2 distribution of $0.31 per share
Result drivers
Portfolio shift - Co said it accelerated its tilt toward defensive asset-based lending and specialty finance investments in response to market uncertainties
Lower investment income - Co attributed yr/yr decrease in gross investment income to smaller average portfolio size and lower index rates
Credit quality - Co said 97% of income-producing portfolio performed at or above expectations, with watchlist accounts at 2.5% of portfolio fair value
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the closed end funds peer group is "buy"
Wall Street's median 12-month price target for SLR Investment Corp is $16.00, about 23.1% above its August 3 closing price of $13.00
SLRC•
