Barings BDC : 1st Quarter 2025 Earnings Presentation
BBDC
Published on 05/08/2025 at 20:08
MAY 8, 2025
Cautionary Notice: Certain statements contained in this presentation are "forward-looking" statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made and which reflect management's current estimates, projections, expectations or beliefs, and which are subject to risks and uncertainties that may cause actual results or events to differ materially. Forward-looking statements include, but are not limited to, Barings BDC, Inc.'s ("Barings BDC", "BBDC" or the "Company") distribution levels and frequency of distributions, the Company's share repurchase activity, the ability of Barings LLC to manage the Company and identify investment opportunities, and the Company's portfolio composition and some of the factors that could cause actual results or events to differ materially from those identified in forward-looking statements are enumerated in the filings the Company makes with the Securities and Exchange Commission (the "SEC"). These statements are subject to change at any time based upon economic, market or other conditions, including with respect to Barings BDC's and its portfolio companies' results of operations and financial condition. Important factors that could cause actual results or activities to differ materially from plans, estimates, targets or expectations included in this presentation include, among others, those risk factors detailed in Barings BDC's annual report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 20, 2025, in Barings BDC's subsequently filed quarterly reports on Form 10-Q, and as may be included from time to time in Barings BDC's other filings with the SEC, including current reports on Form 8-K. In addition, there is no assurance that Barings BDC or any of its affiliates will purchase additional shares of Barings BDC at any specific discount levels or in any specific amounts or that the market price of Barings BDC's shares, either absolutely or relative to net asset value, will increase as a result of any share repurchases, or that any repurchase plan will enhance stockholder value over the long term. The Company undertakes no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so by law.
This presentation contains statistics and other data that has been obtained from or compiled from information made available by third-party service providers. We have not independently verified such statistics or data.
These materials and any presentation of which they form a part are neither an offer to sell, or a solicitation of an offer to purchase, an interest in the Company. The information presented in this presentation is as of March 31, 2025 unless indicated otherwise.
Other Important Information
Any forecasts in this document are based upon Barings' opinion of the market at the date of preparation and are subject to change without notice, dependent upon many factors. Any prediction, projection or forecast is not necessarily indicative of the future or the Company's likely performance. Investment in the Company's securities involves risk. The value of any investments and any income generated may increase or decrease and are not guaranteed. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. Any investment results, portfolio compositions and/or examples set forth in this document are provided for illustrative purposes only and are not indicative of any future investment results, future portfolio composition or investments. The composition, size of, and risks associated with an investment may differ substantially from any examples set forth in this document. No representation is made that an investment will be profitable or will not incur losses. Where appropriate, changes in the currency exchange rates may affect the value of investments.
Non-GAAP Financial Measures
To provide additional information about the Company's results, the Company's management has discussed in this presentation the Company's net debt (calculated as (i) total debt less (ii) unrestricted cash and foreign currencies (excluding restricted cash) net of net payables/receivables from unsettled transactions) and its net debt-to-equity ratio (calculated as net debt divided by total net assets), which are not prepared in accordance with GAAP. These non-GAAP measures are included to supplement the Company's financial information presented in accordance with GAAP and because the Company uses such measures to monitor and evaluate its leverage and financial condition and believes the presentation of these measures enhances investors' ability to analyze trends in the Company's business and to evaluate the Company's leverage and ability to take on additional debt. However, these non-GAAP measures have limitations and should not be considered in isolation or as a substitute for analysis of the Company's financial results as reported under GAAP.
These non-GAAP measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. These measures should only be used to evaluate the Company's results of operations in conjunction with their corresponding GAAP measures. Pursuant to the requirements of Regulation G as promulgated under the Securities Exchange Act of 1934, as amended, the Company has provided a reconciliation of these non-GAAP measures in the last table included in this presentation.
ERIC LLOYD
ChiefExecutiue Officer
Executive Chairman of the Board
MATTHEW FREUND
President Co-Portfolio Manager
BRYAN HIGH
Head of Global Private Finance Co-Port folio Manager
ELIZABETH MURRAY
ChiefFinancial Officer & Chief Operating O/Jeer
1Q 2025 HIGHLIGHTS (LLOYD)
Summary points of the quarter.
BARINGS BDC MARKET UPDATE & INVESTMENT PORTFOLIO (FREUND & HIGH)
Update on the portfolio performance.
BARINGS BDC FINANCIALS (MURRAY)
A walk through the balance sheet, income statement, NAV bridge and liquidity.
BARINGS OVERVIEW
Barings is a global asset management firm that works with institutional, insurance and intermediary clients to provide excess returns across public and private markets in fixed income, real assets and capital solutions.
Global Headquarters
Investment Offices
Other Locations
External AUM by Region1
EMEA 26%
Americas 47%
Asia Pacific 27%
$442+ B
ASSETS UNDER MANAGEMENT
1,300+
EXTERNAL CLIENTS
2,000+
PROFESSIONALS GLOBALLY
Includes third party, external AUM only.
All figures are as of March 31, 2025 unless otherwise indicated. Assets shown are denominated in USD. Percentages may not equal 100 due to rounding.
Sponsor Backed Investments
What is it? Financing the operating companies of issuers Owned by Private Equity
Typical Terms
<50% Loan to Value
Maintenance Covenants
Private credit expertise delivering comprehensive exposure to the
with a focus on first lien loans and securities
firms
Assets are Directly Originated by the Barings team through proprietary relationships with leading Private Equity firms through the United States and Europe
EBITDA between $15 and
$75 million
Non-Sponsored Investments
5-15%
5-10%
What is it? Financing the Operating Companies of issuers irrespective of ownership. Leverages Barings brand and scale to source optimal risk adjusted return in upper middle market and opportunistic middle market transactions
Typical Terms
<50% Loan to Value
Maintenance Covenants
EBITDA between $25 and
$150 million
Platform Investments
75-85%
What is it? BDC investments in two originators of uncorrelated middle market first-lien loans
Typical Terms
LTV <80% of Liquidation Value
Floating Rate
Highly diversified underlying loan exposures
The above is being shown for illustrative purposes only.
Disclaimer
Barings BDC Inc. published this content on May 08, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2025 at 22:26 UTC.