BARINGS PARTICIPATION INVESTORS REPORTS FOURTH QUARTER 2021 RESULTS

Rhea-AI Summary

Barings Participation Investors (NYSE: MPV) reported its financial results for Q4 2021, showcasing a net investment income of $2.9 million ($0.28 per share) and total investment income of $4.0 million. The Trust experienced net realized losses of $1.58 million, leading to a decrease in net asset value (NAV) per share to $15.19, down from $15.32 in Q3 2021. Additionally, Barings made 26 new investments totaling $29.8 million during the quarter. The Trust had $11.6 million in cash and $21 million in borrowings, with $10.9 million in unfunded commitments as of December 31, 2021.

Positive

• Net investment income of $2.9 million ($0.28 per share), an increase from Q3's $2.08 million.
• Total investment income stood at $4.0 million for Q4 2021.
• 26 new investments made totaling $29.8 million during Q4.
• Cash balance of $11.6 million as of December 31, 2021.

Negative

• Net realized losses of $1.58 million ($0.15 per share) during Q4 2021.
• Decrease in net asset value (NAV) per share from $15.32 in Q3 2021 to $15.19.
• Dividend payments and realized losses contributed to NAV decline.

CHARLOTTE, N.C., March 1, 2022 /PRNewswire/ -- The Board of Trustees of Barings Participation Investors (NYSE: MPV) (the "Trust") would like to report its financial results for the fourth quarter of 2021.

 

Financial Highlights	Three Months Ended December 31, 2021		Three Months Ended September 30, 2021
	Total Amount	Per Share(3)	Total Amount	Per Share(3)
Net investment income(1)	$ 2,941,038	$ 0.28	$ 2,079,256	$ 0.20
Net realized gains / (losses)(2)	$ (1,582,272)	$ (0.15)	$ 5,147,354	$ 0.49
Net unrealized appreciation	$ 1,563,966	$ 0.15	$ 2,849,942	$ 0.27
Net increase in net assets resulting from operations	$ 2,922,732	$ 0.28	$ 10,076,552	$ 0.95
Total net assets (equity)	$ 161,080,475	$ 15.19	$ 162,398,423	$ 15.32

(1) December 31, 2021 figures net of approximately $0.02 per share of excise tax

(2) December 31, 2021 figures net of approximately $0.09 per share of capital gains tax

(3) Based on shares outstanding at the end of the period of 10,601,700

 

Key Highlights:

Commenting on the quarter, Christina Emery, President, stated, "During the fourth quarter, Barings continued to drive origination flow into high quality, 1^st lien senior secured middle-market investments while further continuing our efforts to realize value in select equity sales and mezzanine assets currently on non-accrual."

During the three months ended December 31, 2021, the Trust reported total investment income of $4.0 million, net investment income of $2.9 million, or $0.28 per share, and a net increase in net assets resulting from operations of $2.9 million, or $0.28 per share. Results were driven by $0.10 per share of non-recurring income related to the repayment of past due interest income from gloProfessional and Westminster Acquisitions previously on non-accrual.

Net asset value ("NAV") per share as of December 31, 2021 was $15.19, as compared to $15.32 as of September 30, 2021. The decrease in NAV per share was primarily attributable to net realized losses of approximately $0.15 per share and the payment of a $0.20 per share dividend on November 19, 2021 and the declaration of a $0.20 per share dividend which was paid on January 14, 2022, partially offset by net unrealized appreciation on the Trust's investment portfolio of approximately $0.15 per share and net investment income of $0.28 per share.

Recent Portfolio Activity

During the three months ended December 31, 2021, the Trust made 26 new investments totaling $29.8 million and 19 add-on investments in existing portfolio companies totaling $5.3 million. During the three months ended December 31, 2021, the Trust had 11 loans repaid at par totaling $15.8 million, two mezzanine debt investments repaid at par totaling $1.8 million and realized three equity investments totaling $0.8 million for a realized gain of $0.2 million, or approximately $0.02 per share.  The Trust also had one mezzanine investment partially repay debt totaling $0.3 million and the remaining debt of $1.3 million, or approximately $0.12 per share, was written off as a realized loss.

Liquidity and Capitalization

As of December 31, 2021, the Trust had cash of $11.6 million and $21.0 million of borrowings outstanding. The Trust had unfunded commitments of $10.9 million as of December 31, 2021.  

Net Capital Gains

The Trust realized net capital losses of $1,582,272 or $0.15 per share during the quarter ended December 31, 2021, which resulted in realized net capital gains for the year ended December 31, 2021 of $4,867,781 or $0.46 per share.  By comparison, for the year ended December 31, 2020, the Trust realized net capital gains of $240,048 or $0.02 per share.  During the quarter ended September 30, 2021, the Trust realized net capital gains of $5,147,354 or $0.49 per share.

The Trust retained net long-term capital gains realized by the Trust in 2021 for future growth and paid the required federal capital gains tax thereon.  IRS Form 2439, Notice to Shareholders of Undistributed Long-Term Capital Gains, were mailed to shareholders at the end of January. 

Annual Meeting

The Board of the Trust announced that the Trust's annual shareholders' meeting will be held on Thursday, May 19, 2022 at 8:00A.M. (Eastern Time) in Charlotte, North Carolina, and virtually at the following website https://www.viewproxy.com/barings/broadridgevsm/. Shareholders of record at the close of business on March 21, 2022 will be entitled to vote at the meeting.

About Barings Participation Investors

Barings Participation Investors is a closed-end management investment company advised by Barings LLC.  Its shares are traded on the New York Stock Exchange under the trading symbol ("MPV").

About Barings LLC

Barings is a $391+ billion* global investment manager sourcing differentiated opportunities and building long-term portfolios across public and private fixed income, real estate, and specialist equity markets. With investment professionals based in North America, Europe and Asia Pacific, the firm, a subsidiary of MassMutual, aims to serve its clients, communities and employees, and is committed to sustainable practices and responsible investment. Learn more at www.barings.com.

*Assets under management as of December 31, 2021

Contact

Cheryl Krauss, Media Relations, Barings, 980-417-5858, cheryl.krauss@barings.com

Per share amounts are rounded to the nearest cent.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

Cautionary Notice: Certain statements contained in this press release may be "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 to differ materially.  These statements are subject to change at any time based upon economic, market or other conditions and may not be relied upon as investment advice or an indication of the fund's trading intent.  References to specific securities are not recommendations of such securities, and may not be representative of the fund's current or future investments.  We undertake no obligation to publicly update forward looking statements, whether as a result of new information, future events, or otherwise.

22-2058036                                      

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/barings-participation-investors-reports-fourth-quarter-2021-results-301493475.html

SOURCE Barings

FAQ

What were the Q4 2021 financial results for MPV?

Barings Participation Investors reported Q4 2021 net investment income of $2.9 million ($0.28 per share) and total investment income of $4.0 million.

How much did MPV lose in realized gains during Q4 2021?

MPV experienced net realized losses of $1.58 million ($0.15 per share) during Q4 2021.

What is the net asset value per share for MPV as of December 31, 2021?

As of December 31, 2021, the net asset value (NAV) per share for MPV was $15.19.

How many new investments did MPV make in Q4 2021?

MPV made 26 new investments totaling $29.8 million during Q4 2021.

What is the cash balance of MPV as of December 31, 2021?

The cash balance of MPV as of December 31, 2021, was $11.6 million.