AINV - Apollo Investment stock advances after new fee structure fiscal Q1 results

Apollo Investment ( NASDAQ: AINV ) shares are climbing 5.2% in Tuesday morning trading after the business development company revealed a new fee structure to support its senior secured assets.

The fee structure, which lowers the company's cost of capital, includes "substantial permanent reductions to management and incentive fees," according to an SEC filing .

Furthermore, MidCap Financial, a middle market lender managed by Apollo ( AINV ), has made a $30M primary equity investment at net asset value in the BDC. Those proceeds provide the BDC with dry powder to invest in more loans originated by MidCap.

Meanwhile, Apollo's ( AINV ) fiscal Q1 results "reflect strong earnings given the increase in base rates," said CEO Tanner Powell.

Net investment income of $0.37 at June 30 per average share slid $0.42 at March 31 and from $0.39 in the year-ago quarter.

Total investment income of $53.4M in Q1 fell short of the average analyst estimate of $54.04M but gained from $50.6M in Q1 2021.

Net asset value of $15.52 per share in Q1 fell from $15.79 in Q4 2022 and $16.02 in Q1 2021.

Q1 net investment activity was $43.4M, up from $29.1M in Q1 of last year.

During the three months ended June 30, the company repurchased 128,522 shares at a weighted average price per share of $12.74, inclusive of commissions, for a total cost of $1.6M. That represents a discount of ~18.60% of the average NAV per share for Q1.

Earlier, Apollo Investment gross fundings for Q1 totaled $227M .

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