Fri, Mar 7, 9:16 PM (50 days ago)
**SL Investment Fund II LLC (Ticker: SLIC)** is a newly formed BDC focusing on middle-market lending, with a fiscal year ending December 31, 2024. The fund reported a total investment income of $7,098,000, with a net investment income of $4,596,000 after expenses of $2,502,000. The investment portfolio, valued at $280,384,000, is primarily composed of first lien debt (99.4%), with a weighted average yield of 9.7%. The fund's strategy emphasizes direct lending to U.S. middle-market companies, targeting those with EBITDA between $15 million and $200 million. The fund aims to distribute at least 90% of its taxable income to maintain RIC status. Risks include interest rate fluctuations, economic downturns impacting portfolio company performance, and regulatory changes affecting BDC operations. The company faces competitive pressures from other investment funds and must navigate potential conflicts of interest due to its ties with Morgan Stanley. Looking ahead, SLIC plans to leverage its relationships with private equity sponsors to identify investment opportunities, although market conditions could impact its ability to raise capital and achieve desired returns. The company's financial condition remains stable, with a significant asset coverage ratio of 660.0%.