On November 20, 2024, Carlyle Credit Income Fund (CCIF, Financial) released its 8-K filing detailing its financial results for the fourth quarter and full year ending September 30, 2024. As a non-diversified, closed-end management investment company, CCIF primarily invests in equity and junior debt tranches of collateralized loan obligations (CLOs), aiming to generate current income and capital appreciation.
Performance Overview and Strategic Execution
CCIF reported net investment income of $0.30 per common share and core net investment income of $0.45 per common share for the fourth quarter of 2024. The net asset value per common share was $7.64 as of September 30, 2024. The total fair value of investments stood at $173.5 million. These results underscore the Fund's strategic focus on enhancing shareholder value through disciplined investment in CLOs.
Lauren Basmadjian, CCIF’s Chief Executive Officer, expressed satisfaction with the results, stating,
“We’re pleased with our 4Q and FY results and continue to execute the strategy we laid out when we first became investment advisor to CCIF in July 2023. Since becoming investment advisor, we have grown the dividend rate from 7.8% to 15.2%, an increase of 7.4%.”
Financial Achievements and Dividend Strategy
CCIF maintained a monthly dividend of $0.1050 per share for December 2024, January, and February 2025, translating to a 15.16% annualized dividend based on the share price as of November 19, 2024. The Fund also declared dividends on its 8.75% Series A Term Preferred Shares. These dividend strategies are crucial for attracting and retaining investors seeking income-generating investments.
Investment Activities and Capital Raising
During the quarter, CCIF funded $39.6 million in new CLO investments with a weighted average GAAP yield of 16.5%, contributing to an aggregate portfolio weighted average GAAP yield of 18.6% as of September 30, 2024. The Fund also completed a private placement of 5-year, 7.125% convertible preferred shares, raising net proceeds of $10.7 million, and a registered direct placement of common shares, generating $11.5 million in net proceeds.
Key Financial Metrics
| Metric | Value |
|---|---|
| Net Investment Income per Share | $0.30 |
| Core Net Investment Income per Share | $0.45 |
| Net Asset Value per Share | $7.64 |
| Total Fair Value of Investments | $173.5 million |
Analysis and Outlook
CCIF's financial performance reflects its strategic focus on high-yield CLO investments, which are pivotal in the asset management industry for generating income and capital appreciation. The Fund's ability to maintain and grow its dividend rate is a testament to its robust investment strategy and effective capital management. However, the reliance on CLOs, which are inherently complex and sensitive to market fluctuations, poses potential challenges that require vigilant risk management.
Overall, Carlyle Credit Income Fund's results for the fourth quarter and full year 2024 demonstrate a strong alignment with its strategic objectives, positioning it well for future growth and value creation for its shareholders.
Explore the complete 8-K earnings release (here) from Carlyle Credit Income Fund for further details.
