Oxford Lane Capital raised $1B but lost over 90% of it within a year, risking future payouts.

Oxford Lane Capital raised $1 billion in new equity driven by high-yield demand in 2024, doubling its size. However, over 90% of this capital was lost within a year, with the net asset value (NAV) dropping by $925 million due to unrealized and realized losses. The company’s payout of $2.40 annually exceeds its sustainable yield of $1.19, risking further NAV erosion. Management’s fee structure incentivizes asset growth over capital preservation, collecting $120 million in fees despite the rapid capital losses, raising concerns about long-term sustainability.