Willow Tree Capital Corp

Willow Tree Capital Corporation, a business development company (BDC) focused on private debt investments, reported strong portfolio growth in FY 2025 ending December 31, 2025. Total investment income reached $73.4 million, primarily from interest income of $68.8 million, PIK interest of $4.1 million, and other income of $483 thousand. Expenses totaled $44.7 million, led by interest and borrowing costs of $30.8 million, resulting in net investment income of $28.6 million after a $52 thousand excise tax. Net realized gains were $25 thousand, with unrealized appreciation of $5.8 million, driving a net increase in net assets from operations of $34.5 million, or $2 per basic and diluted share on 18.7 million weighted average shares. Balance sheet expanded significantly: non-controlled, non-affiliated investments grew to $884.4 million (cost basis $876.7 million from $488.5 million in 2024), total assets to $941.9 million, net assets to $387.6 million (NAV $16 per share), with shares outstanding rising to 24.1 million from 14.9 million. Leverage increased with borrowings at $531.2 million. Operating cash flow was negative $381.3 million due to $542.6 million in purchases versus $160.6 million proceeds, offset by $400.7 million financing inflow. This reflects aggressive deployment amid BDC strategy, enhancing scale for future income.

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