TSLX - Sixth Street Specialty Lending: Still Thriving Despite The Headwinds

2024-03-17 22:35:36 ET

Summary

• Sixth Street Specialty Lending, Inc. is one of the largest BDCs with a NAV of close to $1.5 billion.
• TSLX has consistently outperformed the broader BDC market over the past 5 years, and due to the strength of its fundamentals, it trades at a premium to NAV.
• If we reconcile the Q4 2023 earnings report, we will understand that having a premium here is fully justified.
• In this article, I outline the key reasons why TSLX continues to be a clear buy despite the headwinds at the industry level.

Sixth Street Specialty Lending, Inc. ( TSLX ) is one of the largest BDCs with a NAV of close to $1.5 billion. Over the past 5-year period, TSLX has outperformed the broader BDC market in a quite consistent manner. What is rather TSLX-specific is that the Fund trades at a relatively notable premium over NAV, which makes it the fourth most expensive BDC with P/NAV of 1.21x....

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