Crescent Capital BDC (CCAP) Earnings Transcript
The Motley Fool
by newsfeedback@fool.com (Motley Fool Transcribing)February 26, 2026
AI-Generated Deep Dive Summary
Crescent Capital BDC (CCAP) reported lower net investment income per share in its latest earnings transcript, driven by lower interest income due to declining reference rates. Despite this, the company maintained strong dividend coverage, with net investment income covering the $0.42 quarterly dividend by 107%. The firm’s Net Asset Value (NAV) per share stood at $19.10 as of year-end, down slightly from $19.28 in September due to unrealized losses from certain portfolio companies. Crescent Capital continues to manage its investment portfolio effectively, with a total fair value of $1.6 billion across 184 companies, ensuring minimal concentration risk through an average position size of just 0.6% per company. The portfolio remains heavily weighted toward first lien loans (91%) and sponsor-backed companies (99%), with a weighted average loan-to-value ratio of 40% at origination.
The company’s strategic focus on covenant protection is notable, with 71% of the portfolio benefiting from such protections—well above typical levels in the upper middle market. Crescent Capital demonstrated active deployment and management of its assets, investing $71 million in the fourth quarter, including $29 million in five new platform investments at an average spread of 490 basis points. Additionally, $42 million was allocated to incremental investments in existing companies. On the exit side, the company saw $78 million in realizations, leading to net realizations of approximately $7 million for the quarter. The weighted average yield on income-producing securities remained strong at 10% (down 40 basis points sequentially due to lower base rates), while portfolio companies maintained a weighted average interest coverage of 2.2x.
Crescent Capital’s liquidity position remains robust, with $242 million in undrawn capacity and over $30 million in cash at year-end. However, the company faced headwinds from lower base rates across the BDC sector, which contributed to a decline in NAV per share over several quarters. Nonaccrual investments increased to 4.1% of cost and 2.0% of fair value at year-end, though management noted that these figures were driven by specific company issues rather than systemic risks. Despite strong fundamentals, the firm’s supplemental dividend policy was not triggered for the fourth quarter due to the NAV measurement test, which applies a two-quarter look-back period.
Looking ahead, Crescent Capital is actively evaluating its
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Originally published on The Motley Fool on 2/26/2026