Monroe Capital reported Q2/15 net investment income of $5.1 million, up 21.4% from $4.2 million in Q1/15. Investment income per share of $0.43 exceeded analysts’ expectations of $0.37 per share.

The company said it had debt and equity investments in 50 portfolio companies, with a total fair value of $282.5 million, as of June 30, 2015 as compared to debt and equity investments in 42 portfolio companies, with a total fair value of $252.7 million, as of March 31, 2015.

The company’s portfolio consists primarily of first lien loans, representing 81.0% of the portfolio as of June 30, 2015 and 94.1% of the portfolio as of March 31, 2015. This shift from March 31, 2015 reflects the Company’s investment of a portion of the capital from its public offering into more liquid junior secured loan investments. The Company expects to optimize these investments into directly originated investments in the upcoming quarters, which should result in an increase in the percentage of the portfolio comprised of first lien loan assets.

As of June 30, 2015, the weighted average contractual yield on the Company’s investments was 10.8% and the effective yield was 11.1% as compared to the weighted average contractual yield of 11.1% and effective yield of 11.6% as of March 31, 2015.

Chief executive officer Theodore L. Koenig commented, “We are pleased to report another strong quarter of performance for the second quarter of 2015, with net investment income of $0.43 per share comfortably covering our dividend of $0.35 per share. We are also particularly gratified that we were able to generate sufficient net investment income to cover our most recent dividend despite completing a public offering of approximately 2.9 million shares, generating net proceeds of $39.9 million, during the quarter. In a difficult market environment for BDCs, when many are trading below book value and not generating enough income to cover their dividends, we are pleased to be able to raise this capital at an accretive price to our per share NAV and generate value for our shareholders. We began to put this new capital to work during the second quarter, increasing our investments at fair value by $29.9 million. Additionally, on July 31, 2015, we completed a $25.0 million upsize of our revolving credit facility and we expect to use the remainder of the capital from the secondary offering and the availability under our revolving credit facility in the near term to support the continued growth of the portfolio.”

Access the Monroe Capital news release here.