PIMCO Capital Solutions BDC Corp.

For fiscal year 2025 ending December 31, 2025, the Company, a Business Development Company (BDC), reported total investment income of $22.8 million, a 5.1% decline from $24.0 million in 2024, driven by lower payment-in-kind (PIK) interest of $5.5 million versus $6.8 million prior year, despite stable interest income at $17.2 million. Net investment income after taxes remained solid at $17.2 million, supported by waivers of $2.5 million on management fees. However, net realized losses of $11.0 million and unrealized changes of $0.5 million resulted in net realized and unrealized losses of $10.5 million, yielding a net increase in net assets from operations of $6.6 million, down sharply from $20.2 million in 2024. Balance sheet showed total assets of $212.8 million, including $183.1 million in non-controlled, non-affiliated investments at fair value (mostly Level 3), cash and restricted cash of $16.1 million, and debt of $34.6 million. Net assets totaled $173.3 million, with NAV per share at $9. Operating cash flow was robust at $42.0 million, fueled by $132.5 million in sales proceeds and $101.3 million purchases. The portfolio yield fell to 6.7% from 10.0%, reflecting market conditions, but 99.9% rated Category 2 risk. This performance underscores resilience in income generation amid valuation pressures, positioning the BDC for middle-market lending amid economic volatility.

Key Takeaways