Remora Capital Corp Annual Report - How They Did This Year

I’ve put together this guide to help you understand how Remora Capital Corp performed. My goal is to cut through the jargon and give you the straight talk on whether this company is heading in the right direction.

1. What does this company do?

Think of Remora Capital Corp as a middleman for corporate loans. Instead of finding companies to lend to themselves, they partner with experts—like Crescent Capital and Kayne Anderson—to do the heavy lifting. They focus on mid-sized companies earning between $7.5 million and $75 million in annual profit.

Their strategy is to be the safe and steady option. As of December 31, 2025, their entire $165.5 million loan portfolio consisted of "first lien senior secured" debt. This provides a critical layer of protection. If a borrower fails to pay, Remora has the first claim on the company’s assets. This makes it much more likely they will get their money back compared to other types of lenders.

2. Recent Major Changes

Remora officially became a "Business Development Company" (BDC) on September 5, 2025. This followed the merger of three older private credit funds. This created a single public company with 82 borrowers and a total value of $165.5 million. By becoming a BDC, the company must pay out at least 90% of its taxable income to shareholders as dividends. This creates a clear path for income-focused investors.

3. How they pick their investments

Remora uses a three-step safety net to manage risk:

1. Sponsors: They only lend to companies backed by private equity firms. These firms usually keep a 30% to 50% stake in the borrower, ensuring they have "skin in the game."
2. Originators: They use the expertise of partners like Crescent and Kayne, who manage over $40 billion in assets. This gives Remora access to high-quality deals that smaller lenders usually cannot reach.
3. Independent Review: Remora’s internal committee performs a final check. They focus on keeping debt levels reasonable and ensuring the borrower can easily cover their interest payments.

4. How the Management Gets Paid

It is important to know how the managers are paid. Remora charges two main fees:

• Management Fee: An annual fee of 1.0% of total assets, paid quarterly.
• Performance Bonus: A 20% fee on profit, but only after the company earns at least a 6% return for shareholders. This aligns management with your interests.

The "New Investor" Perk: To help the transition to a public company, Remora is waiving 25% of their management fees and 100% of their performance bonuses until September 5, 2026. This helps boost your dividend yield while the company matures.

5. Key Risks

• The "Middleman" Cost: Remora pays extra fees to firms like Crescent and Kayne. These costs sit on top of Remora’s own fees, which can reduce the cash available for your dividends.
• Legal Protection: The management contract includes broad legal protections for the managers. You bear the risk of legal costs unless a court finds the managers guilty of extreme misconduct.
• Borrower Default & Interest Rates: Most of their loans have floating interest rates. If rates fall, the company earns less. If rates stay high, borrowers may struggle to pay their debt, which could lead to missed payments.

6. Future Outlook

Remora plans to pay out most of its profit as quarterly dividends. Because they lack a long public track record, watch the Q1 2026 earnings report for two things: profit per share and the rate of missed payments. If profit per share covers the dividend and missed payments stay below 1%, the company is likely on stable ground.