Silver Point Specialty Lending 10-Q: NAV $26.90, 1.2% Non-Accrual

What the vehicle is, and what it is not

The fund was formed on July 31, 2014, started investing on July 1, 2015, and became a Maryland statutory trust on November 15, 2021. It is an externally managed closed-end fund that elected to be a BDC, and since May 1, 2025 it has elected to be taxed as a regulated investment company (RIC), which generally passes income through to holders. Its adviser, Silver Point Specialty Credit Fund Management, LLC, is a wholly owned subsidiary of Silver Point Capital, L.P., which the 10-Q says has $52.2 billion of investable assets across its funds.

Not the same as Silver Point Private Credit Fund. EDGAR holds a second Silver Point BDC, Silver Point Private Credit Fund (CIK 2033382), which filed a Schedule TO-I tender offer on November 6, 2026 and another on August 4, 2026. It is a separate registrant with its own NAV and holders. Our lists cover it: see the non-traded BDC list and the BDC tender offer results page. If you saw a Silver Point BDC with a NAV in the high $26s, check which fund it is before comparing; this page is only about Specialty Lending. If the terms are new, read our explainer on what a BDC is first.

What the reverse split does to old numbers. On December 26, 2025 the fund did a one-for-two reverse share split: about 42,480,777 shares became about 21,240,388. Per-share figures in filings from before that date are roughly half the numbers here. Every per-share figure on this page is on the post-split basis, as the 2026 filings present it.

NAV per share, six readings

Net assets rose 7.7% in nine months (our arithmetic) while NAV per share fell 3.8%: the difference is new shares, 2,535,995 more than at December 31, 2025, or 11.9% (our arithmetic), from $45.0 million of cash subscriptions and dividend reinvestment.

The nine-month bridge in the financial highlights is $27.96 at the start, plus NII of $2.33, minus a $1.22 net realized and unrealized loss, minus $2.16 of dividends declared, equals $26.90 (the table notes that totals may not foot). Total return on NAV for the period is 4.08%, not annualized, against 5.90% a year earlier. For the third quarter alone, our arithmetic from the statement of operations: $27.17, plus earnings of $0.45 a share, minus $0.72 of dividends, equals $26.90. Earnings of $0.45 were NII of $0.78 less a net loss on investments, foreign currency and hedges of about $0.33 a share. In dollars, the quarter had $18.5 million of NII, $13.2 million of total net realized loss and a $5.2 million favorable change in unrealized value.

Credit: non-accruals fell, and a loss was booked

Read quickly, this looks like a clean improvement: non-accruals at their lowest in the four readings. The same 10-Q shows what it cost. Net realized loss on investments was $12.5 million in the third quarter against a $0.1 million gain a year earlier, which the 10-Q says was primarily driven by two portfolio companies with losses above $1.0 million each. For nine months the realized loss on investments is $16.7 million. Non-accrual cost fell $21.4 million and fair value $12.5 million between June 30 and September 30 (our arithmetic), so the realized loss is of a size consistent with loans leaving the non-accrual list at a loss. The 10-Q does not link the two or name the loans, so we do not either.

What the filing does say about value: unrealized change on investments was a gain of $3.1 million in the quarter, from company-specific developments partly offset by wider market spreads, but a loss of $15.0 million for nine months, which the fund attributes mainly to general spread widening. Gross unrealized depreciation was $37.2 million in nine months, concentrated in nine portfolio companies with markdowns above $1.0 million each, against $22.2 million of gross appreciation.

Worked example (our arithmetic, illustrative, not a forecast). The $14.3 million still on non-accrual at fair value is $0.60 a share across 23,776,383 shares. If all of it were written to zero, NAV would fall by that amount, about 2.2% of $26.90. The same arithmetic shows why a markdown of that size has been absorbed before: nine-month NII is $2.33 a share.

Payment in kind (PIK, interest added to the loan balance instead of paid in cash) was $3,997,710 for nine months on the cash flow statement, 4.2% of investment income (our arithmetic). That is small, and one point against the PIK-heavy pattern seen at some other private BDCs.

The portfolio: 104 companies, mostly first lien

In the third quarter the fund funded $91.1 million of loans, $77.2 million in 8 new companies and $13.9 million in existing ones, and received $73.7 million of repayments, paydowns and sales. The weighted average yield of the new investments was 11.6% against 10.5% a year earlier, and 24.9% of the new debt was fixed rate (5.4% a year earlier). The 10-Q does not explain why the weighted yield of the whole portfolio is 1.4 points higher than at December 31, 2025, so we report it without a reason. The average portfolio was $1,154.5 million in the quarter against $1,009.5 million a year earlier, which is why investment income rose 21.0% to $32.5 million (our arithmetic).

Capital: no new money in the third quarter, half of dividends reinvested

Shares sold in the first half went to investors at NAV, such as the $27.35 price on June 1, 2026, and the 10-Q says no unregistered securities were sold in the quarter beyond what was reported on Form 8-K. The 8-Ks for July, August and September carry dividend news only. The fund describes its raise as capital commitments that investors fund when it sends a drawdown notice, and $7.5 million was still uncalled on September 30, 2026. A reader should not assume the fund is open: nothing in the filings says it will take new money, and nothing says it will not.

Dividend reinvestment is a quiet source of capital. Over nine months it issued 913,656 shares worth $25.1 million, against $49.7 million of dividends declared, so 50.5% of the dividend was kept in the fund (our arithmetic). That helps liquidity and keeps leverage down, and it means roughly half of what an investor receives as a dividend arrives as more shares if they have not opted out.

Repurchases. The 10-Q says that at the board’s discretion the fund intends to start a repurchase program after the second anniversary of the Liquidity Event, offering to buy up to 5% of shares outstanding per quarter at NAV on the last day of the quarter, pro rata if oversubscribed. It adds that investors are contractually prohibited from tendering during their commitment period, that the board may change or suspend the program, and that no repurchases have been made. The Liquidity Event let holders sell to new investors at NAV on April 30, 2025, which ended a 2023 commitment to either give holders that chance or wind the fund down. The filings do not give a calendar date for the second anniversary, and we do not guess one.

Debt: lower leverage, a note repaid, a bigger revolver

Asset coverage, the ratio the 1940 Act caps at a 150% floor, went 199% (December 31, 2025), 208% (March 31, 2026), 215% (June 30, 2026), 214% (September 30, 2026). A 214% ratio means about $0.87 of debt for each $1 of net assets (our arithmetic), well below the 2-to-1 the floor would allow; the fund moved its floor from 200% to 150% effective May 1, 2025, and sits well above it. Weighted average debt cost was 5.66% for nine months against 6.24% a year earlier, on $581.2 million of average debt. Interest and financing expenses of $8.0 million took 24.6% of third-quarter investment income (our arithmetic). At September 30, 2026 there was about $140.6 million of availability on third-party facilities, subject to asset coverage limits.

Two events came after quarter-end. On October 26, 2026 the fund signed Amendment No. 22 to the revolver, which raised the facility from $250 million to $375 million and allows increases up to $425 million within 90 days, subject to conditions (8-K filed October 28, 2026). On November 4, 2026 the $145 million 2026 Notes matured and were repaid. The 10-Q does not say what funded the repayment, so the debt mix after November 4, 2026 is not in the filing. The notes carried an effective cost of SOFR plus 0.13% after the swaps; the revolver’s stated margin is 1.70%. If the revolver replaced the notes, the cost of that slice would rise, but the 10-Q does not say that it did. The comparison of the two stated rates is ours.

Fees, income and distributions

The income incentive fee is computed on income before gains and losses. The 10-Q says pre-incentive net investment income excludes realized and unrealized capital gains and losses. So the adviser earned $2.6 million in a quarter in which investments produced a $13.2 million net realized loss, and the realized loss reached NAV but not the fee. This is how most such fees work, and it is the reason to compare NAV, not income, over time.

Total investment income was $32.5 million in the third quarter ($26.9 million a year earlier) and $95.8 million for nine months ($80.6 million). NII was $18.5 million in the quarter and $53.1 million for nine months, or $0.78 and $2.33 a share, against $0.75 and $2.39 a year earlier; nine-month NII per share is lower than last year even though NII in dollars rose 19.5% (our arithmetic), because the share count grew 22.6% on a weighted basis (our arithmetic: 22,821,203 against 18,610,157). Annualized NII was 11.76% of average net assets. Nine-month dividends of $2.16 compare with $2.86 in the same period of 2025, which included supplemental payments, so we do not read a trend into that gap. What the tables do show is the monthly rate: $0.25 in October to December 2025 and $0.24 from the January 2026 declaration, a 4% step down (our arithmetic). $0.24 a month is $2.88 a year, 10.7% of the $26.90 NAV (our arithmetic, not a forecast).

What a reader can do with this

• Use it as a reference for the private-BDC group. This is what a seasoned first lien lender looks like in the filings: 104 names, 94% first lien, a CLO plus a bank revolver, moderate leverage, fee waivers, and a NAV that drifts down with realized losses. Set it beside MidCap Apollo Institutional Private Lending and 5C Lending Partners Corp, which reported debt at 1.48 times net assets.
• If you hold shares or a commitment: compare the NAV on your statement with $26.90 at September 30, 2026. If you subscribed on June 1, 2026 at $27.35, NAV is 1.6% below your price before dividends (our arithmetic). Ask what remains uncalled on your commitment, whether you are in the dividend reinvestment plan, and how the fund would handle a consent request to transfer.
• Read the next 10-K for five lines: non-accruals (1.2% of fair value), the NAV trend after the third-quarter realized loss, how the revolver and its $375 million limit are used after November 4, 2026, whether dividends stay at $0.24, and whether a repurchase date is announced.
• Taxes: the fund is a RIC, so distributions are reported to holders after year-end. See our guides to estimated tax payments for REIT, BDC and K-1 income and 1099-DIV due dates.
• If you were looking for a ticker: this fund has none and is not offered to the public. Our non-traded BDC list covers other non-traded BDCs.

If a meaningful share of your savings sits in a private BDC with no scheduled way to sell, a conversation with a qualified adviser about how it fits the rest of your holdings may be worth having.

FAQ

All figures are from SEC EDGAR filings of Silver Point Specialty Lending Fund (CIK 1646614) read on November 7, 2026: the Forms 10-Q for September 30, 2026 (accession 0001193125-26-451316), June 30, 2026 (0001193125-26-337440) and March 31, 2026 (0001193125-26-218912), the Form 10-K for 2025 (0001193125-26-114381) and the Forms 8-K filed June 25 (0001193125-26-282772), July 28, August 25, September 25, October 15 (0001193125-26-422781) and October 28, 2026 (0001193125-26-436119), plus the EDGAR filing index of CIK 2033382 for Silver Point Private Credit Fund. The last filing on CIK 1646614 was the Form 10-Q of November 6, 2026. Ratios, sums, percentages, the NAV bridge, the worked example and the comparison of rates are our arithmetic. This is analysis of public documents, not investment, legal or tax advice.