Equity Analysis /
United States of America

US : Sixth Street Specialty Lending, Inc. - TSLX | A Brief Case Study on GAAP ROE vs. P/NAV

    Matthew Tjaden
    Matthew Tjaden

    Research Associate

    Follow
    CGS-CIMB
    21 January 2021
    Published byCGS-CIMB

    We offer Sixth Street Specialty Lending (TSLX) as an example of our prior note on ROE vs. P/NAV multiples. Since going public, we calculate that the TSLX GAAP ROE has outperformed the BDC industry average in every quarter. Given that 1) credit drives BDC valuations and 2) TSLX credit performance ha