Wed, May 14, 6:46 PM (40 days ago)
**WTI Fund XI, Inc. (Ticker: WTI)** reported its financial health and performance for the quarter ended March 31, 2025. Here are the key points: **Financial Health and Performance:** - **Revenue:** Total investment income was $1.8 million, primarily from interest on loans. - **Profit Margins:** The fund reported a net investment loss of $697,032, resulting in a net decrease in net assets of $697,032. - **Cash Flow:** Net cash used in operating activities was $15.6 million, while net cash provided by financing activities was $11.0 million, leading to a net decrease in cash and cash equivalents of $4.6 million. - **Earnings Changes:** The fund distributed $1.8 million of equity securities to the shareholder and received $10.0 million in contributions from the shareholder. **Quarterly Performance Discussion:** - **Investment Income:** The fund's investment income was driven by interest on loans, with a weighted-average interest rate of 22.66%. - **Expenses:** Management fees were $1.5 million, and other operating expenses totaled $2.5 million. - **Liquidity:** The fund's liquidity is supported by cash and cash equivalents, which were $4.9 million at the end of the quarter, and a revolving credit facility with $22.0 million outstanding. **Trends and Uncertainties:** - **Market Risks:** The fund is exposed to interest rate and credit risks, with a portfolio diversified by industry, size of investment, and stage of development. - **Economic Factors:** Global economic conditions, including inflation, interest rate volatility, and geopolitical events, may impact the fund's operations and liquidity. - **Future Operations:** The fund plans to continue investing in debt financing for venture-backed companies and will monitor market conditions and economic factors to manage risks. **Future Operations Impact:** - **Investment Strategy:** The fund will focus on providing debt financing to venture-backed companies, with a diversified portfolio to manage risks. - **Liquidity Management:** The fund will maintain liquidity through cash and cash equivalents, contributions from the shareholder, and access to the revolving credit facility. - **Risk Management:** The fund will continue to monitor market risks and economic factors to ensure the sustainability of its investment activities.