Key Highlights

  • Capital Southwest reported total Investment income of $67.2 million, up 17.9% from a year earlier.
  • New Mountain Finance posted net asset value of $10.67 per share, down from $11.52 at Dec 31, 2025.
  • Great Elm Capital reported a $4.2 million net decrease in net Assets from operations.
  • Pershing Square's fee-related Earnings rose 13% to $63.7 million despite a GAAP net loss of $19.9 million.
  • Greenlight Capital Re reported Net Income of $3.2 million against a $4.4 million loss a year earlier.

Which Lenders and Investment Vehicles Reported Third-Quarter 2026 Results?

Five lenders and investment vehicles reported results around Nov 2, 2026, and only one of the four with a Revenue measure grew it. Capital Southwest (NASDAQ:CSWC) reported total investment income of $67.2 million for its fiscal second quarter ended Sep 30, 2026, up 17.9%, with a $21.4 million net increase in net assets from operations. New Mountain Finance (NASDAQ:NMFC) reported total investment income of $60.4 million, down about 25% (calculated), and a $3.7 million net increase in net assets from operations.

Great Elm Capital (NASDAQ:GECC) reported total investment income of $8.7 million, down 18.3% (calculated), and a $4.2 million net decrease in net assets from operations. Pershing Square (NYSE:PS) posted GAAP revenue of $56.6 million, down about 14.5% (calculated), and a $19.9 million net loss attributable to shareholders.

Greenlight Capital Re (NASDAQ:GLRE), a reinsurer, reported net income of $3.2 million, and its materials gave no single total revenue line. The measures differ across the group, mixing investment income, GAAP revenue and net income, so they are not directly comparable.

Capital Southwest: How Did Investment Income Climb 17.9%?

Capital Southwest reported net investment income up 13.5% to $36.3 million, though interest expense climbed 31.0% to $21.0 million as average borrowings rose. Net unrealized Depreciation of $16.6 million cut the net increase in net assets from operations to $21.4 million, or $0.33 per diluted share, from $25.6 million.

The company is an internally managed Business Development Company that finances lower middle market businesses, mainly through first Lien loans. Its portfolio grew to $2,410.1 million across 153 companies, and investments on non-accrual status were about 1.4% of fair value, up from 1.1%.

Net asset value per share was $16.64, against $16.69 at Mar 31, 2026. The company issued $350.0 million of 6.750% notes due 2031 and ended the period with $599.2 million of unused Credit Facility capacity.

New Mountain Finance: Why Did Investment Income Fall 25%?

New Mountain Finance reported total investment income of $60.4 million against $80.5 million. Management attributed the lower interest income to a smaller invested asset base after it sold about $468 million of assets on Mar 10, 2026. Net investment income was $23.7 million versus $34.0 million.

Net realized and unrealized losses were $20.0 million, leaving the net increase in net assets from operations at $3.7 million, or $0.04 per share. Net asset value per share was $10.67, down from $11.52 at Dec 31, 2025, after $1.12 per share of losses and $0.82 of distributions over nine months.

The company is a closed-end business development company investing in the Debt and Equity of middle-market companies. The board declared a $0.25 fourth quarter distribution, below the $0.32 paid a year earlier.

Great Elm Capital: Can Flat Net Investment Income Offset a Smaller Balance Sheet?

Great Elm Capital reported net investment income of $2.4 million, roughly flat, as total investment income fell to $8.7 million from $10.6 million. Net assets decreased $4.2 million from operations, or $0.30 per share, against a $22.0 million decrease a year earlier.

The business development company invests in senior secured debt of middle-market companies, specialty finance equity and collateralized Loan obligation securities. Its debt portfolio shrank to about $175.4 million of principal from $224.1 million, though the average coupon rose to 11.2%.

Net asset value per share was $7.40, versus $8.07 at Dec 31, 2025. The company spent $45.5 million repurchasing and redeeming notes in nine months, and its asset coverage ratio was approximately 166.3%.

Pershing Square: Why Did Fee Earnings Rise Alongside a GAAP Loss?

Pershing Square reported a GAAP net loss attributable to shareholders of $19.9 million, or $0.05 per share, versus net income of $0.39 per share a year earlier. Employee compensation and benefits rose to $70.5 million from $5.7 million, and the file gives no explanation for the jump. Unrealized gains on a held stake were $19.2 million, versus $132.0 million.

The alternative asset manager runs pools of permanent capital. Fee-related earnings, a non-GAAP measure, rose 13% to $63.7 million on an 84.2% margin, while distributable earnings fell 12% to $49.5 million, or $0.12 per share, after $11.5 million of taxes following its corporate conversion.

Assets under management reached $32.8 billion, including $23.0 billion of fee-paying assets, and a Dividend of $0.103 per share was paid on Oct 20, 2026.

Greenlight Capital Re: How Did a Smaller Investment Loss Create a Profit?

Greenlight Capital Re reported net income of $3.2 million, or $0.10 per diluted share, versus a $4.4 million net loss. Total investment loss narrowed to $4.6 million from $17.4 million, while net Underwriting income fell to $14.6 million from $22.3 million.

The Cayman Islands-based specialty property and casualty reinsurer saw its combined ratio rise to 90.5% from 86.6% as net premiums earned fell 7.2% to $153.4 million. Open Market gross premiums written fell 10%, while Innovations rose 46%.

Fully diluted Book Value per share was $20.78, and the company repurchased 1,606,894 ordinary shares for $27.2 million in nine months. A new buyback of up to $40 million runs through May 31, 2027.

Lenders and Vehicles Compared: Net Asset Value Slips at All Three Business Development Companies

Total investment income or revenue at the four companies that reported a measure came to about $192.9 million (calculated), and the simple average change was about negative 10.0% (calculated), with Capital Southwest the only grower. Capital Southwest's income was about 7.7 times Great Elm Capital's (calculated), a reminder of how different the bases are.

Net asset value per share moved about negative 0.3% at Capital Southwest versus Mar 31, 2026, negative 7.4% at New Mountain Finance (calculated) and negative 8.3% at Great Elm Capital (calculated), both versus Dec 31, 2025, so the periods differ. Pershing Square reports fee-related earnings instead of net asset value, and Greenlight Capital Re reports book value.

Net income, net increase in net assets and net loss are not the same measure, so no combined total is given.

What to Watch Next: Dec 31 Distributions and Jan 1, 2027 Lloyd's Status

New Mountain Finance's $0.25 distribution is payable Dec 31, 2026 to holders of record on Dec 17, 2026, and Great Elm Capital's $0.25 distribution is payable the same day to holders of record on Dec 15, 2026. New Mountain Finance's repurchase program runs to the earlier of Dec 31, 2027 or $150 million of purchases.

Pershing Square scheduled an investor call for Nov 3, 2026. Greenlight Capital Re's Lloyd's syndicate becomes a full syndicate effective Jan 1, 2027, and its buyback runs through May 31, 2027.

No dated event was identified in the Capital Southwest materials beyond its next quarterly filing.