Source Capital Declares April and May 2025 Distribution on Common Stock

In the ever-evolving landscape of private investment, source capital has once again demonstrated its commitment to delivering value to its investors. The firm recently announced distributions on common stock for April and May 2025, a move that underscores its long-term investment philosophy and strategic approach to value creation. Let's delve into the factors that influenced this decision and what it means for income-seeking investors.



Source Capital's investment strategy is built on a foundation of collaborative partnerships and a patient, long-term approach to value creation. Since its inception in 2002, the firm has closed over 150 investments, showcasing its consistent and enduring commitment to its investment philosophy. The recent fundraise of $315.5 million, which was oversubscribed and saw exceptional interest from both existing investors and new institutional partners, is a testament to the trust and confidence that investors place in Source Capital's team and strategy.

The firm's partnership with the Small Business Administration (SBA) and its licensing as a Small Business Investment Company (SBIC) in June 2024 further supports its ability to drive growth in domestic small businesses and expand new ownership opportunities. This aligns with Source Capital's core principle of forging long-lasting partnerships and its goal of driving sustainable growth through shared efforts and mutual trust.



The decision to declare distributions on common stock during April and May 2025 is influenced by several key factors. Firstly, the firm's investment strategy focuses on providing flexible equity and debt capital to lower middle market companies. This requires a collaborative approach to ensure that investments are structured to provide the strategic and financial resources necessary to accelerate growth. The firm's success in raising funds and its ability to generate returns for its investors further support this decision.

Secondly, the firm's active and successful first half of the year in 2024, during which it closed 13 investments and achieved seven successful exits on existing investments, demonstrates its ability to generate returns for its investors. The firm's success in closing two new platform investments and 11 follow-on/add-on acquisitions across various industries further supports its ability to generate returns for its investors.

In conclusion, Source Capital's decision to declare distributions on common stock during April and May 2025 is a strategic move that aligns with its long-term investment philosophy and goals. The firm's collaborative approach to investing, its strong track record of attracting investment, and its success in generating returns for its investors are all factors that support this decision. For income-seeking investors, this move by Source Capital represents an opportunity to benefit from the firm's patient, long-term approach to value creation and its commitment to delivering value to its investors.