Princeton Capital Corporation Reports Financial Results for the Quarter Ended June 30, 2026" or "Princeton Capital Corporation Files Quarterly Report with SEC for the Period Ended June 30, 2026
Princeton Capital Corporation, a non-accelerated filer, reported its financial results for the quarter ended June 30, 2026. The company’s total assets increased to $123.1 million, with cash and cash equivalents of $14.1 million and investments of $109 million. Net assets decreased to $114.1 million, with net losses of $2.3 million and $4.5 million for the three and six months ended June 30, 2026, respectively. The company’s cash flows from operations were negative $2.1 million and $4.3 million for the three and six months ended June 30, 2026, respectively. The company’s management’s discussion and analysis of financial condition and results of operations highlights the challenges faced by the company, including market volatility and the impact of the COVID-19 pandemic on its investments.
Overview
Sutter Rock Capital Corp. (the “Company”) is an externally managed, non-diversified, closed-end investment company that has elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940. The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through debt and related equity investments in private small and lower middle-market companies.
Corporate History
The Company was formed in 2015 through the acquisition of approximately $11.2 million in cash, $43.5 million in equity and debt investments, and $1.9 million in restricted cash escrow deposits from Capital Point Partners, L.P. and Capital Point Partners II, L.P. The Company issued approximately 115.5 million shares of its common stock based on a pre-valuation presumed fair value of $60.9 million and on a price of approximately $0.53 per share.
Portfolio Composition and Investment Activity
As of June 30, 2026, the Company had investments in 4 portfolio companies with a total cost of approximately $34.1 million and a total fair value of $13.8 million. The portfolio was composed of the following asset classes:
| Investments | Cost | Fair Value | Percentage of Total Portfolio |
|---|---|---|---|
| First Lien Loans | $8,738,944 | $8,151,019 | 59.05% |
| Second Lien Loans | $11,734,756 | $4,797,280 | 34.76% |
| Unsecured Loans | $1,381,586 | $0 | 0.0% |
| Equity | $12,256,166 | $854,735 | 6.19% |
| Total Portfolio Investments | $34,111,452 | $13,803,034 | 100.00% |
The Company’s weighted average yield on its portfolio investments, based on cost and excluding non-yielding assets, was approximately 10.02% as of June 30, 2026, of which approximately 10.02% was current cash interest.
Asset Quality
The Company uses an investment rating system to monitor the quality of its debt investment portfolio. As of June 30, 2026, the Company had 2 loans on non-accrual status.
Results of Operations
For the three months ended June 30, 2026, the Company reported:
- Total investment income of $345,681
- Net operating expenses of $305,995
- Net investment income (after tax) of $39,572
- Net decrease in net assets resulting from operations of $(63,802)
For the six months ended June 30, 2026, the Company reported:
- Total investment income of $419,086
- Net operating expenses of $656,718
- Net investment loss (after tax) of $(237,860)
- Net decrease in net assets resulting from operations of $(696,281)
The decrease in net assets was primarily due to net unrealized losses on the Company’s investments.
Financial Condition, Liquidity and Capital Resources
As of June 30, 2026, the Company had $431,210 in cash and cash equivalents, $5,000 in restricted cash, and net assets of $13,566,720. The Company believes its anticipated cash flows from operations will be adequate to meet its cash needs for the next twelve months.
Distributions
The Company did not declare or distribute any dividends to stockholders during the six months ended June 30, 2026 and 2025. The Company did not meet the requirements to qualify as a regulated investment company (RIC) for the 2025 tax year and will be taxed as a corporation.
Conclusion
Sutter Rock Capital Corp. continues to face challenges with its investment portfolio, reporting net decreases in net assets for both the three and six month periods ended June 30, 2026 due to unrealized losses. The Company is conserving cash and only investing in its current portfolio as it explores strategic alternatives to maximize shareholder value. Its ability to generate consistent investment income and returns remains uncertain.
