Why did M3-Brigade's net profit surge in Q4 2024?

M3-Brigade's net profit surged in Q4 2024 due to **Decrease in Interest Expense and General and Administrative Expenses**, and **Increase in Dividend Income and Fee Income**.

The fund's total investment income for Q4 2024 was $33.5 million, a decrease of $1.3 million or 3.8% from the fourth quarter of 2023 and relatively consistent with the third quarter of 2024. The fourth quarter included income considered less consistent or non-recurring in nature of $0.9 million. As we previously discussed, these non-recurring items vary quarter to quarter and can include dividend income from equity investments, interest and fee income from accelerated prepayment, repricing and other activity related to debt investments. For the fourth quarter these items were $0.5 million lower than both the average of the prior four quarters and the fourth quarter of 2023 and $0.4 million higher than the third quarter of 2024. Interest income decreased by $0.5 million from a year ago and by $0.6 million from the third quarter. The decrease from the third quarter was primarily driven by lower interest rates on floating rate debt investments, primarily due to lower market index rates, partially offset by the impact of increased net investment activity. Dividend income for the fourth quarter decreased by $0.7 million from a year ago and increased by $0.2 million from the third quarter. As we previously discussed, dividend income will fluctuate quarter-to-quarter based on the underlying performance, cash flows and capital allocation activities of the Fund's portfolio companies. Fee income for the fourth quarter decreased by $0.1 million from a year ago and increased by $0.3 million from the third quarter. The Fund's expenses for the fourth quarter net of waivers decreased by $0.5 million over the prior year and decreased by $0.1 million from the third quarter. The $0.1 million decrease from the third quarter was primarily driven by $0.8 million decrease in interest expense and a $0.3 million decrease in general and administrative expenses, partially offset by $1 increase in incentive fees.