On June 1, BofA adjusted its outlook on Kayne Anderson BDC Inc. (NYSE:KBDC) and lowered its price target from $17 to $16.50 while maintaining a Buy rating on the shares. This decision followed the business development company’s Q1 2025 results, which were deemed somewhat disappointing due to a weaker-than-anticipated profitability.
A close-up of a hand signing a contract, symbolizing deals being made in private equity and buyouts.
Kayne Anderson reported a net investment income of $28.7 million, which was a decrease from $34 million in the prior quarter. Quarterly revenue totaled $42.13 million, which also represented a 16.35% year-over-year drop due to reduced base rates and the expiration of an incentive management fee waiver. Despite the challenges, the company saw only a small uptick in non-accruals, which reached 2.9%, significantly below the industry’s longer-term average.
Kayne Anderson is prioritizing growth through its private middle market investment activity. In Q1, the company made $340 million in total commitments across 16 businesses, with $264 million funded. This marks a 113% increase year-over-year. The company focuses on senior secured first-lien loans, with over 90% of its portfolio in such securities and 99% of its private middle market investments backed by private equity sponsors.
Kayne Anderson BDC Inc. is a business development company and an externally managed, closed-end, and non-diversified management investment company.
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This article is originally published at Insider Monkey.
