Bain Capital Specialty Finance, Inc.
- Open
- 11.93
- Day high
- 12.13
- Day low
- 11.89
- Prev close
- 11.93
- Volume
- 506K
- Mkt cap
- $780M
- P/E (TTM)
- 12.1
- EPS (TTM)
- $0.99
- P/B
- 0.7
- P/S
- 4.0
- Yield
- 15.72%
- Per share
- $1.89
Bain Capital Specialty Finance, Inc. (BCSF) is a Financial Services company listed on NYSE. The stock is down 23% over the past year. Drillr has 1 published research article covering BCSF.
Bain Capital Specialty Finance, Inc. (BCSF) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
BCSF earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 11, 2026 | $0.42 | $0.44 | +4.3% | $62M | -3.2% |
| May 12, 2026 | $0.44 | $0.42 | -4.5% | $66M | +0.9% |
| Feb 27, 2025 | $0.49 | $0.52 | +6.1% | $27M | -59.8% |
| Feb 27, 2024 | $0.53 | $0.54 | +1.9% | $36M | -45.2% |
| Feb 28, 2023 | $0.42 | $0.31 | -26.2% | $62M | +7.2% |
| Nov 9, 2022 | $0.35 | $0.53 | +51.4% | $49M | -0.4% |
| Aug 3, 2022 | $0.34 | $0.41 | +20.6% | $40M | -12.4% |
| May 5, 2022 | $0.34 | $0.34 | +0.3% | $36M | -26.1% |
| Feb 23, 2022 | $0.34 | $0.34 | +0.3% | $52M | +5.9% |
| Nov 3, 2021 | $0.34 | $0.34 | +0.3% | $40M | -12.9% |
| Aug 4, 2021 | $0.34 | $0.34 | +0.3% | $37M | -20.7% |
| May 5, 2021 | $0.34 | $0.34 | -0.3% | $50M | +3.2% |
BCSF insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Mar 3, 2026 | Rusnak-Carlson Sabrinaofficer: General Counsel | Buy | 2,300 | $12.55 |
| Mar 17, 2025 | Richer Clare Stackdirector | Buy | 1,530 | $16.43 |
| Aug 10, 2022 | Richer Clare Stackdirector: | Buy | 3,400 | $14.59 |
| Mar 25, 2022 | Hough Thomas A.director: | Buy | 6,272 | $15.94 |
| Mar 4, 2022 | Richer Clare Stackdirector: | Buy | 3,090 | $16.18 |
| Feb 25, 2022 | Butte Amydirector | Buy | 1,300 | $15.86 |
| May 11, 2021 | Richer Clare Stackdirector | Buy | 1,563 | $15.90 |
| Dec 3, 2020 | Hawkins Jeffrey B.director | Buy | 18,204 | $12.50 |
| Dec 3, 2020 | Ewald Michael Adirector, officer: President and CEO | Buy | 4,000 | $12.52 |
| Aug 19, 2020 | Dornaus Sally Fofficer: Chief Financial Officer | Buy | 2,500 | $10.43 |
| Jun 8, 2020 | Hawkins Jeffrey B.director | Option | 65,437 | $10.22 |
| Jun 8, 2020 | Hough Thomas A.director | Option | 3,924 | $10.22 |
| Jun 8, 2020 | Hough Thomas A.director | Option | 15,699 | $10.22 |
| Jun 8, 2020 | MARGOLIS JAYdirector | Option | 5,771 | $10.22 |
| Jun 8, 2020 | MARGOLIS JAYdirector | Option | 23,085 | $10.22 |
Source: BCSF SEC Form 4 filings, latest Mar 3, 2026. For informational purposes only — not investment advice.
See the full BCSF insider & 13F page →BCSF research & analysis
Bain Capital Specialty Finance, Inc. company profile
Overview
Bain Capital Specialty Finance, Inc. (NYSE:BCSF) is a business development company that went public in November 2018. The company operates as a direct lender specializing in providing debt financing to middle-market companies, typically those with earnings before interest, taxes, depreciation, and amortization (EBITDA) between $10 million and $150 million. As part of the broader Bain Capital ecosystem, BCSF leverages the investment platform's extensive deal sourcing capabilities and credit expertise to originate and manage a diversified portfolio of corporate loans. The company has grown its investment portfolio to approximately $2.5 billion across 175 portfolio companies as of the first quarter of 2025.
Business
Bain Capital Specialty Finance operates in the business development company sector, which is a specialized segment of the asset management industry. Business development companies, or BDCs, are publicly traded investment vehicles that provide capital to small and medium-sized businesses that may have difficulty accessing traditional bank financing or public capital markets. The company's core business involves direct lending to middle-market companies, which are typically businesses with annual revenues between $50 million and $1 billion. BCSF focuses on providing various types of debt financing including first lien loans (which have the highest priority in case of default), second lien loans, unitranche loans (a hybrid structure combining senior and subordinated debt), and mezzanine financing (a form of hybrid debt-equity financing). The company also makes equity investments and participates in joint ventures. BCSF's investment portfolio is diversified across multiple segments: 1. First lien debt represents approximately 64% of the portfolio and consists of senior secured loans that have first priority claim on company assets. 2. Joint ventures comprise about 16% of the portfolio, including participation in the Senior Loan Program and International Senior Loan Program. 3. Equity and other interests make up roughly 9% of the portfolio, providing potential upside participation in portfolio company growth. 4. Preferred equity, second lien, and subordinated debt collectively represent the remaining 11% of the portfolio, offering higher potential returns in exchange for increased risk. The company targets defensive industries such as healthcare, technology, and business services, with a median portfolio company EBITDA of approximately $36 million. Most of BCSF's debt investments (approximately 93%) carry floating interest rates, which means the company benefits when interest rates rise as loan yields increase accordingly.
Revenue model
Bain Capital Specialty Finance generates revenue primarily through interest income from its loan portfolio and dividend income from its equity investments. The company earns interest on its debt investments at floating rates, typically priced at a spread over benchmark rates like SOFR (Secured Overnight Financing Rate). As of recent quarters, the weighted average portfolio yield has ranged from 11.5% to 13.1%, with new originations carrying spreads of approximately 525-575 basis points over base rates. The company's customers are middle-market businesses seeking financing for various purposes including leveraged buyouts, growth capital, acquisition financing, and refinancing existing debt. These borrowers typically work with private equity sponsors or are privately-held companies that require more flexible financing solutions than traditional banks can provide. BCSF benefits from its association with Bain Capital's broader platform, which originated $6 billion in loans in 2024, providing BCSF with access to a substantial deal pipeline. Several factors influence BCSF's profitability margins. Interest rate environment is a primary driver since most of the portfolio consists of floating-rate loans - rising rates increase income while falling rates reduce yields. Credit quality significantly impacts returns, as loan losses and non-performing assets directly affect net income. The company maintains strong credit discipline with 95-97% of its portfolio rated as performing at or above expectations. Competition in the direct lending market affects pricing, with spread compression occurring during periods of abundant capital and wider spreads during market stress. Deal flow and origination volumes influence the company's ability to deploy capital and grow earnings, which is closely tied to broader M&A activity and private equity transaction volumes. Funding costs also impact margins, as BCSF uses a combination of equity capital and debt financing to fund its investments, with current leverage ratios around 1.17x.
Competitive moat
Bain Capital Specialty Finance possesses a moderate competitive moat primarily derived from its association with the broader Bain Capital platform and its established market position in middle-market lending. The company's strongest competitive advantage lies in its deal sourcing capabilities through Bain Capital's extensive network of relationships with private equity sponsors, investment banks, and borrowers. This platform generated $6 billion in total originations in 2024, providing BCSF with preferential access to attractive investment opportunities that may not be widely marketed. The company's credit underwriting expertise and risk management capabilities, developed over years of investing across market cycles, provide another layer of competitive protection. BCSF's track record of maintaining low non-accrual rates (typically 1-2% of portfolio) and strong credit performance demonstrates this expertise. Additionally, the company's focus on obtaining financial covenants in nearly all of its debt investments (95-100% of recent originations) and securing majority control positions in most debt tranches provides enhanced downside protection and workout flexibility. However, the direct lending industry faces significant competitive pressures that limit the durability of these advantages. Capital abundance from insurance companies, pension funds, and other institutional investors has led to spread compression and increased competition for deals. Regulatory changes affecting banks have created opportunities but also attracted new entrants to the market. Technology-enabled lending platforms and alternative credit providers pose potential disruption risks, particularly for smaller, more standardized transactions. The company's moat is further constrained by the commoditized nature of much of the lending business, where differentiation often comes down to pricing and terms rather than unique capabilities. While BCSF's platform advantages are meaningful, they are not insurmountable, and the company must continuously compete on execution, pricing, and service quality to maintain its market position.
Risks & safety
BCSF demonstrates a strong margin of safety with solid financial positioning and conservative leverage metrics, though typical BDC valuation metrics present mixed signals. • Liquidity and Solvency: Strong cash position of $66 million plus $96 million in current assets provides adequate liquidity buffer. Net leverage ratio of 1.17x is conservative relative to regulatory limits, with access to $855 million revolving credit facility extended through 2029. • Credit Quality: Excellent portfolio performance with only 1.4% non-accrual investments and 95% of portfolio rated performing or better. Median interest coverage of portfolio companies exceeds 2x, providing cushion against earnings volatility. • Valuation Metrics: Trading at 0.94x book value (price-to-book ratio), representing a discount to net asset value of $17.64 per share. Price-to-earnings ratio of 8.4x appears reasonable for a yield-focused investment vehicle. • Dividend Coverage: Net investment income of $0.50 per share in Q1 2025 provides solid coverage of $0.42 regular quarterly dividend, with additional special dividends demonstrating earnings capacity above base distribution. • Interest Rate Sensitivity: 93% floating-rate portfolio provides natural hedge against rising rate environment, though creates vulnerability to rate cuts. Current portfolio yield of 11.5% provides substantial spread over funding costs.
Recent development
Over the past several years, BCSF has executed several strategic initiatives to strengthen its market position and diversify its funding sources. The company significantly expanded its origination capacity, with gross originations growing from modest levels in 2022 to $1.7 billion in 2024, more than doubling year-over-year volumes. This growth was facilitated by increased transaction activity in the middle market and BCSF's enhanced access to deal flow through the Bain Capital platform. The company has also diversified its investment approach through joint venture partnerships, particularly the Senior Loan Program (SLP) and International Senior Loan Program (ISLP). These joint ventures now represent approximately 16% of the portfolio and have generated attractive returns of 12-18% since inception while providing additional diversification and risk management benefits. Capital structure optimization has been another key focus area. BCSF increased its revolving credit facility to $855 million with an extended maturity through May 2029, and issued $350 million in unsecured notes maturing in March 2030. These moves enhanced the company's funding flexibility and reduced refinancing risk. The company also established an at-the-market equity offering program to opportunistically raise capital when trading above book value. BCSF has maintained a disciplined credit approach throughout this growth phase, consistently requiring financial covenants in 95-100% of new originations and securing majority control positions in approximately 80% of debt tranches. The company has also focused on defensive industries and maintained conservative underwriting standards, resulting in consistently low non-accrual rates and strong portfolio performance metrics. Recent quarters have shown the company optimizing asset allocation between its balance sheet and joint venture investments to maximize overall portfolio yield and risk-adjusted returns, demonstrating increasingly sophisticated portfolio management capabilities.
BCSF company profile · for informational purposes only — not investment advice.
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