Net investment income fell to $0.48 per share in the fourth quarter, down from $0.57 in the prior quarter. The fund also reduced the valuation of certain assets, reflecting a broader repricing across parts of the private credit market. Software-linked exposures accounted for some of the most significant markdowns. Loans tied to Medallia, acquired by Thoma Bravo for $6.4bn in 2022, were written down to below 80 cents on the dollar. Other adjustments affected debt linked to Cubic Corporation, AmeriVet, Dental Care Alliance, janitorial services businesses, and defence contractors. The recalibration comes as rising interest rates and slower exit markets place pressure on highly leveraged companies across the private equity landscape. Consultancy Bain & Co estimates private equity firms are currently managing approximately $4tn of unsold assets globally. However, despite the recent quarter's challenges, a person familiar with the matter said FSK has generated a 9.1% net internal rate of...
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