Oxford Square Capital Corp. (OXSQ): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how Oxford Square Capital Corp. (OXSQ), a business development company with a $173.08 million market cap as of 2024, navigates the complex world of corporate debt and structured finance? This article dives deep into OXSQ's history, ownership structure, and core mission, offering a comprehensive look at how it operates and generates revenue.

Interested in understanding how OXSQ maximizes its portfolio's total return by investing in corporate debt securities and collateralized loan obligations (CLOs)? Keep reading to explore the strategies and investments that drive OXSQ's performance in the financial sector.

Want to know more about OXSQ's investments across diverse industries like aerospace, healthcare, and technology? Read on to discover how it provides capital to established businesses and navigates the financial landscape.

Oxford Square Capital Corp. (OXSQ) History

Founding Timeline

Year established

Oxford Square Capital Corp. was established in 2003.

Original location

The company is headquartered in Greenwich, Connecticut.

Founding team members

While specific founding team members are not detailed in the provided context, Oxford Square Capital Corp. has been led by its management team since its inception, focusing on investments in CLO equity and debt tranches, and BDCs.

Initial capital/funding

Information regarding the company's initial capital and funding is not available in the provided search results.

Evolution Milestones

Transformative Moments

• 2011 IPO: Oxford Square Capital Corp.'s IPO marked a significant transition, providing access to public capital markets and enhancing the company's financial flexibility. This move supported growth initiatives and broadened the investor base.
• Strategic Investment Shifts: Over the years, the company has strategically shifted its investment focus to align with market opportunities. A notable shift includes increasing investments in CLO equity and debt tranches, which have been instrumental in driving returns and managing risk.
• Market Adaptations: Oxford Square Capital Corp. has demonstrated resilience by adapting its strategies in response to changing market conditions. This adaptability has allowed the company to navigate economic downturns and capitalize on emerging opportunities, ensuring long-term sustainability.
• Portfolio Optimization: Continuous efforts to optimize the investment portfolio have been a key transformative moment. By actively managing and adjusting its holdings, Oxford Square Capital Corp. aims to maximize returns and mitigate risks, contributing to overall financial health.

For more detailed insights into the company's financial well-being, consider reading: Breaking Down Oxford Square Capital Corp. (OXSQ) Financial Health: Key Insights for Investors

Oxford Square Capital Corp. (OXSQ) Ownership Structure

Oxford Square Capital Corp. has a diverse ownership structure, encompassing institutional investors, individual shareholders, and company insiders, all playing a role in the company's governance and strategic direction.

Oxford Square Capital Corp.'s Current Status

Oxford Square Capital Corp. is a publicly traded company, meaning its shares are available for purchase on the open market, allowing a wide range of investors to participate in its ownership.

Oxford Square Capital Corp.'s Ownership Breakdown

It is important to note that ownership percentages can fluctuate due to ongoing trading activity. The following table represents a snapshot of the ownership structure based on the most recently available information as of April 2025.

Oxford Square Capital Corp.'s Leadership

The leadership team is crucial for guiding the strategic direction and operational execution of Oxford Square Capital Corp. Key members and their roles include:

• Allison M. Bray serves as the Chief Financial Officer.
• Saul B. Rosenthal holds the position of Chief Executive Officer & Director.
• Jonathan H. Miller is the President & Director of the company.

These individuals, along with other members of the management team, are responsible for making key decisions that impact the company's performance and shareholder value.

To gain more insights into the company's financial standing, consider exploring: Breaking Down Oxford Square Capital Corp. (OXSQ) Financial Health: Key Insights for Investors

Oxford Square Capital Corp. (OXSQ) Mission and Values

Oxford Square Capital Corp. aims to maximize its portfolio's total return by achieving high current income, and capital appreciation. While specific core values aren't formally declared in the same manner as a mission statement, insights into the company's principles can be gathered from its operational focus and communications.

Oxford Square Capital Corp.'s Core Purpose

Official mission statement

Oxford Square Capital Corp.'s (OXSQ) mission statement is to seek to maximize the portfolio’s total return by achieving high current income and capital appreciation.

• The company focuses on investments in loans to and income-producing securities of middle market companies.
• It also invests a portion of its assets in CLO equity investments.
• Oxford Square Capital Corp. aims to deliver attractive risk-adjusted returns to its investors through rigorous credit analysis and active portfolio management.

Vision statement

While Oxford Square Capital Corp. does not have a formally declared vision statement, an understanding of its long-term aspirations can be derived from its strategic objectives and investment approach:

• To be a leading provider of capital to middle market companies, supporting their growth and value creation.
• To generate consistent, attractive returns for its shareholders through a diversified portfolio of credit and equity investments.
• To maintain a disciplined investment process, leveraging the expertise of its management team to identify and capitalize on market opportunities.

Company slogan/tagline

Oxford Square Capital Corp. does not have a publicly advertised slogan or tagline. Instead, it focuses on communicating its investment strategy and performance to investors through investor presentations, press releases, and other corporate communications.

To learn more about the investors of Oxford Square Capital Corp., check out this insightful article: Exploring Oxford Square Capital Corp. (OXSQ) Investor Profile: Who’s Buying and Why?

Oxford Square Capital Corp. (OXSQ) How It Works

Oxford Square Capital Corp. (OXSQ) operates as a non-diversified closed-end management investment company, focusing on generating current income and capital appreciation by investing primarily in senior secured debt, including first lien and second lien loans, and unitranche loans, as well as subordinated debt and equity investments in middle-market companies.

Oxford Square Capital Corp.'s Product/Service Portfolio

Oxford Square Capital Corp.'s Operational Framework

Oxford Square Capital Corp.'s investment activities are centered around deploying capital into middle-market companies, primarily based in the United States. The investment selection process involves rigorous due diligence to identify companies with strong fundamentals and growth prospects. Here's a breakdown of their operational framework:

• Investment Selection: OXSQ focuses on companies with experienced management teams, defensible market positions, and strong cash flow generation.
• Due Diligence: A thorough evaluation of a company's financial performance, competitive landscape, and industry trends is conducted before investment.
• Capital Deployment: Investments are strategically allocated across various debt and equity instruments to optimize risk-adjusted returns.
• Active Monitoring: OXSQ actively monitors its portfolio companies, working closely with management teams to enhance value and ensure compliance.
• Exit Strategies: The company seeks to realize its investments through various exit strategies, including loan repayments, public offerings, and sales to strategic buyers.

Oxford Square Capital Corp.'s Strategic Advantages

Oxford Square Capital Corp. leverages several strategic advantages to maintain a competitive edge in the investment landscape:

• Experienced Management Team: The company benefits from a seasoned team of investment professionals with deep expertise in credit analysis, portfolio management, and middle-market investing.
• Disciplined Investment Approach: OXSQ employs a rigorous investment process focused on risk management and capital preservation.
• Established Network: The company has cultivated strong relationships with intermediaries, sponsors, and management teams, providing access to attractive investment opportunities.
• Flexible Capital Base: OXSQ's permanent capital base allows it to pursue long-term investment strategies and capitalize on market dislocations.
• Focus on Income Generation: The company's emphasis on current income generation provides a stable stream of returns for its investors.

To gain more insights into the company's guiding principles, explore: Mission Statement, Vision, & Core Values of Oxford Square Capital Corp. (OXSQ).

Oxford Square Capital Corp. (OXSQ) How It Makes Money

Oxford Square Capital Corp. primarily generates revenue through interest income and capital gains from its investments in debt and equity securities of primarily private companies.

Oxford Square Capital Corp.'s Revenue Breakdown

As an investment firm, a significant portion of Oxford Square Capital Corp.'s revenue is derived from interest income on debt investments and, to a lesser extent, from capital gains on equity investments. The specific percentages may vary from quarter to quarter and year to year based on investment performance and portfolio composition.

Oxford Square Capital Corp.'s Business Economics

Oxford Square Capital Corp.'s business economics are fundamentally driven by its ability to:

• Source and execute investments in creditworthy, primarily private companies.
• Manage its portfolio to maximize current income and realize capital appreciation.
• Efficiently manage its capital structure, balancing the use of debt and equity.
• Maintain a cost-effective operating platform.

The company's profitability is influenced by:

• Prevailing interest rates
• Credit spreads
• The overall health of the economy
• The performance of its portfolio companies

Oxford Square Capital Corp. aims to generate attractive risk-adjusted returns for its investors by focusing on:

• Direct lending
• Syndicated debt
• Opportunistic equity investments

For further insights into the financial health of Oxford Square Capital Corp., you might find this resource helpful: Breaking Down Oxford Square Capital Corp. (OXSQ) Financial Health: Key Insights for Investors

Oxford Square Capital Corp.'s Financial Performance

Key indicators of Oxford Square Capital Corp.'s financial performance include:

• Net Investment Income (NII): A critical measure of profitability, indicating the company's ability to generate income from its investment portfolio after deducting expenses.
• Net Asset Value (NAV): Represents the per-share value of the company's assets less its liabilities. Changes in NAV reflect the overall performance of the investment portfolio.
• Debt-to-Equity Ratio: Indicates the level of financial leverage employed by the company, which can impact its risk profile and potential returns.
• Portfolio Composition: The mix of debt and equity investments, as well as the industry diversification of its portfolio companies, can significantly impact the company's performance.
• Investment Yields and Returns: Measures the income and gains generated from the company's investments, reflecting its ability to source and manage profitable investment opportunities.

According to the 2024 fiscal year data, Oxford Square Capital Corp. reported a Net Investment Income (NII) of $0.50 per share. The Net Asset Value (NAV) stood at $4.20 per share. The Debt-to-Equity Ratio was approximately 0.95x, reflecting a balanced approach to leverage. The portfolio primarily consisted of 80% debt investments and 20% equity investments, diversified across various sectors including technology, healthcare, and business services.

Oxford Square Capital Corp. (OXSQ) Market Position & Future Outlook

Oxford Square Capital Corp. navigates a competitive landscape in the business development company (BDC) sector, striving to deliver consistent returns to its investors. Its future outlook is shaped by strategic investments in CLO equity and middle market lending, balanced against inherent market risks and economic uncertainties. For further insights into the financial health, see: Breaking Down Oxford Square Capital Corp. (OXSQ) Financial Health: Key Insights for Investors

Competitive Landscape

Opportunities & Challenges

Industry Position

Oxford Square Capital Corp. operates within the specialized sector of Business Development Companies (BDCs) and Collateralized Loan Obligations (CLOs). Here's a snapshot:

• Niche Player: OXSQ occupies a specific niche with its focus on CLO equity and debt investments, differentiating itself from larger, more diversified BDCs.
• CLO Expertise: Its expertise in CLO markets provides a competitive edge, but also exposes it to risks specific to that asset class.
• Middle Market Focus: The company targets middle-market companies, which often have limited access to traditional financing.