tadamichi December last year, I began covering several BDCs and one of them was Fidus Investment (NASDAQ:FDUS). At that time considering FDUS's fundamentals and market environment, I decided to assume a more neutral stance setting a "hold" rating. Since the publication of my article, the BDC has underperformed the benchmark by roughly 230 basis points (on a total return basis). YCharts In general, early start of 2024 has brought many divergences in the BDC space, where the gap between outperformers and ...

marekuliasz In this article, we catch up on Q4 results from the Business Development Company ("BDC") Fidus Investment (NASDAQ:FDUS). FDUS trades at a total dividend yield of 13.4% and a 100% valuation. FDUS invests in the lower middle-market segment and is overweight the Technology sector. Our key takeaway is that FDUS offers one of the best opportunities in the BDC market, particularly for investors who want to diversify away from the upper middle-market popular names like ARCC, OCSL, OBDC and others. ...

Financial Data and Key Metrics Changes - Adjusted net investment income (NII) increased by 49% to $18.8 million in Q4 compared to $12.6 million last year, driven by interest income growth from higher average debt balances and yields [55][66] - The weighted average interest rate on outstanding debt was 4.3% as of December 31, 2023 [50] - Net investment income per share for Q4 was $0.58, down from $0.63 in Q3, while adjusted NII per share was $0.65, down from $0.68 in Q3 [50][55] Business Line Data and Key Metrics Changes - Total investment income for Q4 was $36.3 million, a $2.1 million increase from Q3, primarily due to higher interest and fee income [65] - The portfolio's fair value at quarter end was $957.9 million, with first lien investments accounting for 69% of the debt portfolio [59][52] - Originations totaled $132.7 million, with $123.5 million in debt and $9.2 million in equity, indicating a focus on high-quality companies [58] Market Data and Key Metrics Changes - The company noted an increase in competition in the lower middle market, with spreads tightening by approximately 50 basis points compared to 12 months ago [44] - The company experienced a year-end push in deal activity, reflecting a more active environment despite subdued M&A activity throughout the year [69] Company Strategy and Development Direction - The company is focused on building a portfolio of income-producing assets and enhancing earnings power through strategic pruning of higher-risk investments [5][4] - The company plans to apply for a fourth SBIC license to access an additional $175 million in SBA debentures, aiming to utilize this in 2024 [32][53] - The strategy emphasizes investing in high-quality companies with resilient cash flow and maintaining conservative leverage ratios [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's overall quality, with only two companies on nonaccrual, representing about 1% of the total portfolio [60] - The outlook for M&A activity remains cautiously optimistic, with expectations for continued activity at reasonable levels above last year [21] - Management highlighted the importance of maintaining rigorous underwriting standards to ensure long-term growth and capital preservation [70] Other Important Information - The company paid total cash dividends of $2.88 per share in 2023, up from $2 in 2022, reflecting a commitment to returning value to shareholders [51][56] - The company ended Q4 with total liquidity of approximately $219.1 million, including cash and available credit [53] Q&A Session Summary Question: Can you provide more details on the strategic pruning of the portfolio? - Management indicated that the pruning involved exiting a successful equity investment and some debt investments due to higher risk levels [3][4] Question: How comfortable is the company with the credit situation in the portfolio? - Management noted that the majority of portfolio companies are performing well, with only a few experiencing idiosyncratic issues, and they are optimistic about managing these situations [6][9] Question: What is the timeline for the fourth SBIC license? - Management expects the application process to take about six months, with hopes to start utilizing the license in 2024 [16][32] Question: How has the increased allocation to first lien and unitranche impacted target debt to equity? - Management stated that they are maintaining a conservative one-to-one target leverage ratio, despite the ability to leverage more [35][36] Question: What is the sensitivity of earnings to interest rate changes? - Management estimated that a 25 basis point cut in rates would reduce NII by approximately $1 million per quarter [47][48]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 814-00861 FIDUS INVESTMENT CORPORATION (Exact Name of Registrant as Specified in Its Charter) Maryland 27-5017321 (State or Other Jurisdicti ...

Exhibit 99.1 FIDUS INVESTMENT CORPORATION ANNOUNCES FOURTH QUARTER AND FULL YEAR 2023 FINANCIAL RESULTS Board of Directors Declared Total Dividends of $0.65 per Share for First Quarter 2024 Base Dividend of $0.43 and Supplemental Dividend of $0.22 Per Share EVANSTON, Ill., February 29, 2024 – Fidus Investment Corporation (NASDAQ:FDUS) ("Fidus" or the "Company"), a provider of customized debt and equity financing solutions, primarily to lower middle-market companies based in the United States, today announce ...

Fidus Investment Corporation (NASDAQ:FDUS) Q3 2023 Earnings Conference Call November 3, 2023 9:00 AM ET Company Participants Jody Burfening - Investor Relations Edward Ross - Chairman of the Board, Interested Director and CEO Shelby Sherard - CFO, Chief Compliance Officer and Secretary Conference Call Participants Bryce Rowe - B. Riley Securities Mickey Schleien - Ladenburg Thalmann Robert Dodd - Raymond James Paul Johnson - KBW Operator Good day and welcome to Fidus Third Quarter 2023 Earnings Call. [Ope ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________ FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 814-00861 Fidus Investment Corporation (Exact Name of Registrant as Specified in its Charter) Maryland 27-50173 ...

Fidus Investment Corporation (NASDAQ:FDUS) Q2 2023 Earnings Call Transcript August 4, 2023 9:00 AM ET Company Participants Jody Burfening - Investor Relations Edward Ross - Chairman of the Board, Interested Director and CEO Shelby Sherard - CFO, Chief Compliance Officer and Secretary Conference Call Participants Robert Dodd - Raymond James Mickey Schleien - Ladenburg Bryce Rowe - B. Riley Paul Johnson - KBW Eric Zwick - Hovde Group Operator Good morning, and welcome to the Fidus Second Quarter 2023 Earnings ...

FORM 10-Q (Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________ ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 814-00861 Fidus Investment Corporation (Exact Name of Registrant as Specified in its Charter) Maryland 27-5017321 (S ...

Fidus Investment Corp (NASDAQ:FDUS) Q1 2023 Earnings Conference Call May 5, 2023 9:00 AM ET Company Participants Shelby Sherard - CFO, Chief Compliance Officer & Secretary Edward Ross - Chairman & CEO Conference Call Participants Mickey Schleien - Ladenburg Thalmann & Co. Robert Dodd - Raymond James & Associates Bryce Rowe - B. Riley Securities Erik Zwick - Hovde Group Operator Good day, and welcome to the Fidus Investment Corporation First Quarter 2023 Earnings Conference Call. [Operator Instructions]. And ...