FS KKR Capital Corp. reported a 2.8% decline in Net Asset Value during its second quarter 2026 earnings call, driven by valuation marks on portfolio names including PRG, ATX, and Wittur. The company reduced its net debt-to-equity ratio to 122%, back within its 1x to 1.25x target range, supported by $1.3 billion in net sales and repayments. Management also sold $500 million in investments to third parties at prices consistent with prior valuations as part of a strategic portfolio rotation toward higher-quality assets. KKR provided a $150 million tender offer and a $150 million convertible preferred stock investment to bolster liquidity, while KKR waived its subordinated income incentive fee for four consecutive quarters, adding $11 million to net investment income this quarter. Non-accruals fell to 3.8% of the portfolio on a fair value basis, aided by the restructuring and removal of Dental Care Alliance and Affordable Care. Net investment income is projected to remain in the 8% to 9% of NAV range for the rest of 2026, and the company plans to complete its remaining $300 million stock repurchase program over 2026 and 2027.
FS KKR Capital CorpNAV declined 2.8% due to valuation marks, reducing asset value.
KKR & Co. Inc.KKR provided $150M tender offer and $150M convertible preferred investment, supporting liquidity.
NVIDIA Corporation
PROG Holdings Inc