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 unrealized depreciationfinancial
Net unrealized depreciation is the total amount by which the current market value of an investment portfolio falls short of what was originally paid, after offsetting any unrealized gains. Think of it like a garage of items bought for a set price that, if appraised today, would be worth less — the shortfall shows potential paper losses that would become real if the holdings were sold, and it matters to investors because it affects reported net asset value, future tax consequences, and how much cushion a fund has against further market drops.
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.
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.
net capital gainsfinancial
Net capital gains are the profit an investor keeps after adding up all gains from selling investments and subtracting any losses and allowable selling costs, similar to the money left after a garage sale once you subtract items that lost value and expenses. Investors care because this number determines how much tax they may owe and the true after-tax return on their investments, so it influences decisions about when to sell and how to rebalance a portfolio.
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.
CHARLOTTE, N.C.--(BUSINESS WIRE)--
The Board of Trustees of Barings Participation Investors (NYSE: MPV) (the "Trust") met on February 26, 2026, and would like to report its preliminary financial results for the fourth quarter of 2025.
Financial Highlights(1)
Three Months Ended
December 31, 2025
Three Months Ended
September 30, 2025
Total
Amount
Per
Share(5)
Total
Amount
Per
Share(4)
Net investment income(2)
$
2,866,556
$
0.27
$
3,341,282
$
0.31
Net realized (losses) / gains(3)
$
156,492
$
0.01
$
300,508
$
0.03
Net unrealized depreciation / appreciation
$
421,735
$
0.04
$
(216,372
)
$
(0.02
)
Net increase in net assets resulting from operations
$
3,600,569
$
0.33
$
3,384,597
$
0.32
Total net assets (equity)
$
163,818,383
$
15.23
$
167,852,007
$
15.63
(1)
All figures for 2025 are unaudited
(2)
December 31, 2025 figures net of approximately $0.03 per share of taxes
(3)
December 31, 2025 figures net of less than $0.01 per share of taxes
(4)
Based on shares outstanding at the end of the period of 10,755,832
(5)
Based on shares outstanding at the end of the period of 10,739,090
Key Highlights:
Commenting on the year, Christina Emery, President, stated, "The Trust earned $1.20 per share of net investment income, net of taxes, during 2025. 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."
In 2025, the Trust maintained its quarterly dividend at $0.37 per share, which is further confirmation of our credit philosophy, where we focus on leading businesses backed by strong sponsor ownership and conservative capital structures. This resulted in a total annual dividend of $1.48 per share. Based on the Trust’s December 31, 2025, share price of $15.89 per share, the most recent regular quarterly distribution of $0.37 per share represents an annualized yield of 9.3%.
During the three months ended December 31, 2025, the Trust reported total investment income of $4.3 million, net investment income of $2.9 million, or $0.27 per share, and a net increase in net assets resulting from operations of $3.6 million, or $0.33 per share.
Net asset value ("NAV") per share as of December 31, 2025, was $15.23, as compared to $15.63 as of September 30, 2025. The decrease in NAV per share was primarily attributable to the payment of a $0.37 per share dividend on November 14, 2025, and the declaration of a $0.37 per share dividend which was paid on January 16, 2026, partially offset by unrealized appreciation on investments of $0.04 per share, net investment income of $0.27 per share and net realized gain on investments of $0.01 per share.
Recent Portfolio Activity
During the three months ended December 31, 2025, the Trust made 14 new investments totaling $7.6 million and 41 add-on investments in existing portfolio companies totaling approximately $7.2 million. The Trust made 18 new public investments totaling $1.7. During the three months ended December 31, 2025, the Trust had seven senior loans and one subordinated loan repaid at par totaling $13.0 million and realized four equity investments that generated net realized gains of $0.2 million.
Liquidity and Capitalization
As of December 31, 2025, the Trust had cash and short-term investments of $13.8 million and $37.5 million of borrowings outstanding. The Trust had unfunded commitments of $26.1 million as of December 31, 2025.
Net Capital Gains
The Trust realized net capital gains of $156,492 or $0.01 per share during the quarter ended December 31, 2025, which resulted in realized net capital losses for the year ended December 31, 2025 of $722,994. By comparison, for the year ended December 31, 2024, the Trust realized net capital losses of $97,601 or $0.01 per share. During the quarter ended September 30, 2025, the Trust realized net capital gains of $300,308 or $0.03 per share.
Annual Meeting
The Trust’s annual shareholders’ meeting will be held on Thursday, May 14, 2026. Shareholders of record at the close of business on March 16, 2026, will be entitled to vote at the meeting.
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 intermediary clients, and supports leading businesses with flexible financing solutions. The firm, a subsidiary of MassMutual, seeks to deliver excess returns by leveraging its global scale and capabilities across public and private markets in fixed income, real assets and capital solutions. Learn more at www.barings.com.
*Assets under management as of December 31, 2025
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.
