Net investment income is the money an investor or fund actually keeps from its investments after subtracting the costs of running those investments (like management fees, interest, and losses). Think of it as your paycheck from owning assets: gross returns minus the bills needed to earn them. Investors watch it because it shows how profitable the investment activities are, influences dividend payouts and cash available for growth, and helps compare true performance across funds or companies.
net asset value ("NAV")financial
Net asset value (NAV) is the total value of a fund’s assets minus its liabilities, divided by the number of shares outstanding, giving a per-share price that represents the underlying value investors own. Think of it like the size of a pie (assets) minus any bills (debts), then splitting the remainder into equal slices; investors use NAV to judge whether a fund’s market price is fair and to track performance over time.
unrealized depreciationfinancial
Unrealized depreciation is a drop in the reported value of an asset that a company still owns and has not sold, so the loss exists on paper but has not been locked in by a transaction. Investors care because it lowers a company’s stated net worth and can signal potential future losses or reduced borrowing power, much like seeing your car’s market price fall even though you still own it — the cash effect only arrives if you actually sell.
realized lossesfinancial
Realized losses are the actual money a company or investor loses when an asset is sold for less than what was paid for it, as opposed to a paper loss that only exists on statements. Like selling a used car for less than you paid, realized losses reduce reported profits, can lower cash on hand or trigger tax benefits, and therefore directly affect a firm’s financial health and investor returns.
closed-end management investment companyfinancial
A closed-end management investment company is a pooled investment fund that raises a fixed amount of capital by issuing a set number of shares and then lists those shares for trading on an exchange; investors buy and sell shares on the market rather than redeeming them back to the fund. Think of it like a store with a fixed number of bottles on the shelf: the market price can be higher or lower than the underlying value of the assets, which matters to investors because it affects returns, liquidity and income characteristics independent of the fund’s actual holdings.
assets under managementfinancial
Assets under management (AUM) is the total value of all the investments that a financial company or fund is responsible for overseeing on behalf of its clients. It’s like a big bucket that shows how much money the firm is managing for people or organizations. A higher AUM often indicates a larger, more trusted company, and it can influence how much money they earn and the services they can offer.
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CHARLOTTE, N.C.--(BUSINESS WIRE)--
The Board of Trustees of Barings Participation Investors (NYSE: MPV) (the "Trust") met on May 14, 2026, and would like to report its preliminary financial results for the first quarter of 2026.
Financial Highlights(1)
Three Months Ended
March 31, 2026
Three Months Ended
December 31, 2025
Total Amount
Per
Share(5)
Total Amount
Per
Share(4)
Net investment income(2)
$ 2,912,137
$ 0.27
$ 2,866,556
$ 0.27
Net realized (losses) / gains(3)
$(1,049,769)
$(0.10)
$ 156,492
$ 0.01
Net unrealized depreciation / appreciation
$ (1,276,176)
$(0.12)
$ 421,735
$ 0.04
Net increase in net assets resulting from operations
$ 629,421
$ 0.06
$ 3,600,569
$ 0.33
Total net assets (equity)
$164,761,934
$15.29
$ 163,818,383
$ 15.23
(1) All figures for 2026 are unaudited
(2) December 31, 2025 figures net of approximately $0.03 per share of excise tax
(3) December 31, 2025 figures net of less than $0.01 per share of capital gains tax
(4) Based on shares outstanding at the end of the period of 10,739,090
(5) Based on shares outstanding at the end of the period of 10,773,235
Key Highlights:
Commenting on the quarter, Christina Emery, President, stated, "The Trust earned $0.30 per share of net investment income, net of taxes, for the first quarter of 2026, compared to $0.27 per share in the previous quarter. Both credit quality and capital structure of portfolio companies are key factors in our analysis, along with the quality of the ownership and management groups. As fundamental long-term investors, we believe it is imperative to remain disciplined and underwrite capital structures which will remain sound through economic cycles (and varying interest rate environments). We also seek to maintain a high level of portfolio diversification overall, looking at both industry and individual credit concentration. This approach has historically generated stable returns and relative stability during economic stress."
The Board of Trustees declared a quarterly dividend of $0.37 per share, payable on June 12, 2026, to shareholders of record on May 29, 2026.
During the three months ended March 31, 2026, the Trust reported total investment income of $4.2 million, net investment income of $2.9 million, or $0.27 per share, and a net increase in net assets resulting from operations of $0.6 million, or $0.06 per share.
Net asset value ("NAV") per share as of March 31, 2026, was $15.29, as compared to $15.23 as of December 31, 2025. The increase in NAV per share was primarily attributable to net investment income of $0.27 per share, partially offset by net unrealized depreciation on the Trust’s investment portfolio of $0.12 per share and realized losses on investments of $0.10 per share.
Recent Portfolio Activity
During the three months ended March 31, 2026, the Trust made 7 new investments totaling $4.6 million and 50 add-on investments in existing portfolio companies totaling $5.0 million. The Trust made twelve new public investments totaling $7.4 million.
Liquidity and Capitalization
As of March 31, 2026, the Trust had of $6.4 million and $37.5 million of borrowings outstanding, representing leverage of 0.19x. The Trust had unfunded commitments of $26.6 million as of March 31, 2026.
Net Capital Gains
The Trust realized net capital losses of $1,049,769 or $0.10 per share during the quarter ended March 31, 2026. By comparison, for the quarter ended December 31, 2025, the Trust realized net capital gains of $156,492 or $0.01 per share.
Annual Meeting
At the Annual meeting, which was held on Thursday, May 14, 2026, shareholders elected Barbara M. Ginader, Maleyne M. Syracuse and Michael H. Brown as independent trustees each for three-year terms.
About Barings Participation Investors
Barings Participation Investors is a closed-end management investment company advised by Barings LLC. Its shares are traded on the New York Stock Exchange under the trading symbol ("MPV").
About Barings LLC
Barings is a $481+ billion* global asset management firm that partners with institutional, insurance, and wealth clients, and supports leading businesses with flexible financing solutions. The firm, a subsidiary of MassMutual and MS&AD, seeks to deliver excess returns by leveraging its global scale and capabilities across credit, real assets, capital solutions and emerging markets. Learn more at www.barings.com.
*Assets under management as of March 31, 2026
Per share amounts are rounded to the nearest cent.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
Cautionary Notice: Certain statements contained in this press release may be "forward looking" statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made and which reflect management’s current estimates, projections, expectations or beliefs, and which are subject to risks and uncertainties that may cause actual results to differ materially. These statements are subject to change at any time based upon economic, market or other conditions and may not be relied upon as investment advice or an indication of the fund's trading intent. References to specific securities are not recommendations of such securities, and may not be representative of the fund's current or future investments. We undertake no obligation to publicly update forward looking statements, whether as a result of new information, future events, or otherwise.
