Apollo Investment stock gains after new fee structure, fiscal first quarter results (NASDAQ:AINV)

megaflopp/iStock via Getty Images

Apollo Investment (NASDAQ: AINV) stocks rise 5.2% Tuesday morning after the business development company revealed a new fee structure to support its top-tier secured assets.

The fee structure, which lowers the company’s cost of capital, includes “substantial ongoing fees reductions in management fees and incentive fees”, according to a Filing with the SEC.

In addition, MidCap Financial, a mid-market lender managed by Apollo (AINV), made a principal equity investment of $30 million at net asset value in BDC. This product provides BDC with dry powder to invest in more loans issued by MidCap.

Meanwhile, Apollo’s (AINV) fiscal first quarter results “reflect strong earnings given the increase in base rates,” CEO Tanner Powell said.

Net investment income of $0.37 per average share as of June 30 slipped from $0.42 as of March 31 and $0.39 in the year-ago quarter.

Total investment income of $53.4 million in the first quarter was below analysts’ average estimate of $54.04 million, but increased from $50.6 million in the first quarter of 2021.

The net asset value of $15.52 per share in the first quarter fell from $15.79 in the fourth quarter of 2022 and from $16.02 in the first quarter of 2021.

Net investment activity in Q1 was $43.4m, up from $29.1m in Q1 last year.

During the three months ended June 30, the company repurchased 128,522 shares at a weighted average price per share of $12.74, including commissions, for a total cost of $1.6 million. This represents a discount of approximately 18.60% to the average net asset value per share for the first quarter.

Previously, Apollo Investment’s gross funding for the first quarter was $227 million.

Previous Morgan Stanley Reports on Psychedelics: A Potential Long-Term Investment Portfolio for an Emerging Market
Next West Falls developer Hoffman announces new investment vehicle