Lafayette Square USA, Inc.

Lafayette Square USA, Inc., an externally managed BDC, reported strong FY 2025 performance with total investment income of $84.7 million, up 50% from $56.2 million in 2024, driven by portfolio expansion through $458.1 million in new investments, growing fair value to $789.2 million from $557.1 million. Net investment income increased 20% to $35.5 million from $29.6 million, yielding $1.00 per basic and diluted share. Total expenses rose to $49.1 million from $26.6 million, primarily due to higher interest and financing expenses of $29.2 million amid expanded leverage. Net increase in net assets from operations reached $34.3 million, up 23% from $27.8 million prior year. Balance sheet strengthened with total assets at $1.00 billion, net assets $411.3 million, and NAV per share $15. Operating cash flow was negative $196.1 million reflecting investment activity, offset by $192.9 million financing inflow. Portfolio spans 54 companies across diverse industries, focused on first lien senior secured loans. Robust pipeline of $555.5 million and backlog $161.9 million signal continued deployment and income growth potential.

Key Takeaways