Earnings

SLR Investment Originations Reach a Record $575 Million

The Tip Desk · November 10, 2026 · 3 min read

Net investment income was $17.8 million, or $0.33 a share, matching the second quarter and covering the $0.31 distribution.

SLR Investment Corp. (SLRC) reported net investment income of $17.8 million, or $0.33 a share, for the quarter ended September 30, 2026, unchanged from the second quarter and still covering the $0.31 quarterly distribution the board declared on November 3.

The specialty finance business development company said net realized and unrealized losses widened to $10.2 million, or $0.19 a share, from $9.5 million, or $0.17 a share, in the prior quarter. Net increase in net assets from operations was $7.6 million, or $0.14 a share.

Net asset value declined to $17.83 a share from $18.00 a share at June 30, 2026. Net assets were $972.8 million.

Comprehensive Investment Portfolio originations rose to a record $575.1 million from $471.1 million in the second quarter. Co-CEO Michael Gross said 95% of those originations were in specialty finance, versus 98% in the prior quarter, and that the company expects that tilt to continue. Repayments were $429.2 million, producing net portfolio activity of $145.9 million. Comprehensive portfolio fair value increased to $3.4 billion from $3.2 billion at June 30. The on-balance-sheet Investment Portfolio fair value declined to $2.0 billion from $2.1 billion.

Originations by strategy were $29.6 million in sponsor finance, $277.2 million in asset-based lending, $263.3 million in equipment finance and $5.0 million in life science finance. Repayments were $14.9 million, $238.0 million, $176.3 million and zero, respectively. The comprehensive book was $3,377.3 million, of which $3,293.7 million, or 97.5%, was senior secured, including $3,256.1 million, or 96.4%, in first-lien senior secured loans. Weighted average asset yield on senior secured investments was 11.2%.

Gross investment income for the three months ended September 30, 2026 was $49.3 million, down from $57.0 million a year earlier. The company attributed the year-over-year decline primarily to a smaller average income-producing portfolio. Net expenses were $31.5 million, versus $35.4 million a year earlier, primarily due to lower incentive fees on lower net investment income.

Asset-based lending contributed $25.3 million of the quarter’s $49.3 million of investment income, or 51.4%, with sponsor finance $10.1 million, equipment finance $8.8 million and life science $5.1 million.

Watchlist exposure fell to 2% of portfolio fair value from 2.5% at June 30, below the company’s long-term average of 2.2%. Non-accruals remained two investments, at 1.2% of Investment Portfolio fair value and 2.9% at cost. Co-CEO Bruce Spohler said software exposure remained under 1% of fair value and that only 2% of gross income came from PIK interest resulting from amendments.

Net debt-to-equity leverage declined to 1.10x from 1.16x at June 30, inside the company’s 0.9x to 1.25x target range. Available capital, including anticipated borrowing capacity at SSLP and specialty finance portfolio companies, was over $850 million, down from over $900 million at June 30. The company had $627.9 million drawn on $995 million of revolving commitments and $143.3 million of term loans outstanding.

SSLP earned the company $1.3 million of income in the quarter, an 11.0% annual yield on cost, compared with an 11.8% annualized yield in the prior quarter.

On October 28, 2026, the company committed to a $135 million private offering of unsecured notes at 6.76% due June 10, 2030. From October 1 through October 30, it purchased 884,002 shares for $10.0 million under its repurchase plan. The next distribution is payable December 28, 2026, to holders of record as of December 14, 2026.

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