SLR Investment Corp outlines strategic shifts to boost yields as nonaccruals reach 2% in Q2 2026.
SLR Investment Corp (SLRC) announced plans to increase net investment income (NII) over the next year by expanding into specialty finance. The move follows a rise in nonaccruals to 2% in Q2 2026, reflecting a tougher direct lending environment.
Management highlighted higher yields in specialty finance compared to traditional cash flow loans, aiming to offset challenges in the broader market. The company did not provide specific NII targets but emphasized structural improvements to enhance returns.
Shares of SLRC showed limited movement following the announcement, as investors await further details on execution and yield potential.