Tue, May 13, 9:39 PM (41 days ago)
### Willow Tree Capital Corporation (WTCC) - Q1 2025 Financial Summary **Company Overview:** Willow Tree Capital Corporation (WTCC) is a Maryland-based investment company focusing on floating-rate middle-market senior secured loans. It operates as a Business Development Company (BDC) and aims to qualify as a Regulated Investment Company (RIC) for tax purposes. **Q1 2025 Financial Performance:** - **Revenue:** Total investment income was $14.6 million, driven by interest income of $14.4 million. - **Expenses:** Total operating expenses were $9.0 million, including interest and borrowing expenses of $6.3 million, incentive fees of $0.8 million, and management fees of $0.7 million. - **Net Investment Income:** $5.6 million before excise tax, resulting in a net increase in net assets of $7.5 million. - **Net Asset Value (NAV) per Share:** Increased from $15.76 to $16.25, with 18.0 million shares outstanding. - **Total Return:** 3.11% for the quarter. **Investment Portfolio:** - **Total Value:** $637.4 million as of March 31, 2025, up from $490.5 million in December 2024. - **Investments:** 43 portfolio companies with an aggregate cost of $633.6 million. - **Industry Composition:** Diversified across healthcare, insurance, commercial services, and other sectors. - **Geographic Focus:** Primarily in the United States. **Financial Health:** - **Liquidity:** $17.4 million in cash, with available borrowing capacity under the Credit Facility. - **Asset Coverage Ratio:** 180.3%, indicating a strong financial position. - **Borrowings:** $364.8 million outstanding, with a weighted average interest rate of 6.86%. **Operational Highlights:** - **New Investments:** Made 11 new investments totaling $142.6 million. - **No Investment Realizations:** No sales or repayments of investments during the quarter. - **Credit Quality:** All investments rated as either Grade 1 (strong) or Grade 2 (stable). **Future Outlook:** - **Market Risks:** Exposure to interest rate fluctuations and valuation risks due to illiquid investments. - **Strategic Goals:** Continue to generate current income and capital appreciation through strategic investments. **Conclusion:** Willow Tree Capital Corporation demonstrated strong financial health and strategic investment activities in Q1 2025. The company's focus on middle-market senior secured loans and diversified portfolio positions it well for future growth and stability. However, it faces market risks that could impact its financial performance.