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W.P. Carey’s BDC Feeder Fund Announces Third Quarter 2016 Results

Carey Credit Income Fund 2016 T (CCIF 2016 T), a feeder fund for Carey Credit Income Fund (CCIF) – a non-traded business development company managed by affiliates of W.P. Carey (NYSE: WPC) and Guggenheim, announced its portfolio and operating results for the third quarter of 2016.

Third Quarter 2016 Highlights

• CCIF 2016 T paid fully covered distributions of $0.16 per share during the third quarter of 2016.

• CCIF 2016 T’s total investment return on net asset value was 11.06 percent for the period from December 31, 2015 to September 30, 2016,

• Carey Credit Income Fund invested $107.6 million, 81.1 percent of which was in directly originated debt investments.

• Carey Credit Income Fund’s portfolio investments at fair value totaled $220.5 million as of September 30, 2016, of which 96.2 percent was in senior secured investments. The portfolio consisted of 67 debt investments and one attached equity investment across 52 portfolio companies.

• Carey Credit Income Fund’s gross portfolio yield was 7.9 percent, as of September 30, 2016

• CCIF 2016 T raised $79.6 million in gross proceeds from the sale of common shares from December 31, 2015 to September 30, 2016,

• CCIF 2016 T’s net asset value per share was $9.13 as of September 30, 2016, compared to $8.68 as of December 31, 2015.

• During the nine months ended September 30, 2016, CCIF 2016 T decreased its public offering price once from $9.55 to $9.25 per share and increased its public offering price nine times from $9.25 to $9.80 per share.

Investment Activity, Investment Performance, and Portfolio Update

CCIF’s investment focus in the third quarter shifted to directly originated transactions sourced by its advisors. By directly originating transactions, the company said that the portfolio has been able to remain in predominantly senior secured assets while increase portfolio yield quarter-over-quarter.

During the third quarter of 2016, 81.1 percent of investment activity was concentrated in 18 debt investments sourced through the company’s direct origination channel, with the remainder of investment activity in primary issuance investments (14.6 percent) and syndicated investments (4.3 percent). The prior quarter saw investment activity concentrated in debt investments sourced through primary issuance channels (72.4 percent).

As of September 30, 2016, there were 52 portfolio companies in which CCIF held 67 debt investments and one attached equity investment. The weighted average portfolio company age, based on fair value, was 32 years.

The company made $107.6 million in new commitments, including commitments to 14 new portfolio companies during the third quarter of 2016.

Portfolio weighted average EBITDA fell from $248.1 million in the second quarter of 2016 to $141.9 million in the third quarter. The company noted that the quarter-over-quarter decline was primarily due to the move to directly originated transactions.

The 12 new portfolio companies associated with direct originations had a weighted average EBITDA of $57.7 million and the 14 portfolio companies that were sold during the quarter had a weighted average EBITDA of $371.4 million.

CCIF’s gross portfolio yield was 7.9 percent as of September 30, 2016 compared to 7.3 percent as of June 30, 2016.

Carey Credit Income Fund is a non-traded business development company that invests primarily in large, privately negotiated loans to private middle market U.S. companies. CCIF is the master fund which pools investor capital raised through its feeder fund offerings, such as the current offering CCIF 2016 T.

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