Saratoga Investment Corp 850 (SAZ) reported Q4 2024 results that underscore a bifurcated earnings dynamic: robust adjusted net investment income (NII) powered by a higher-quality, growing portfolio and elevated interest margins, counterbalanced by significant fair-value markdowns in select credits and a widening gap between GAAP NII and dividend coverage. For the full year, adjusted NII rose 52% to $52 million, or $4.10 per share, driven by higher rates and growing assets under management (AUM), while the quarterly results featured an adjusted NII of $12.8 million and $0.94 per share for Q4, including a one-time excise tax impact that reduced quarterly earnings by approximately $0.11 per share. NAV per share declined to $27.12 (down 7% YoY) though total NAV rose to $370.2 million, supported by capital actions and disciplined deployment. The balance sheet remains highly liquid with $207 million of dry powder, $41 million in cash, and $136 million available under the newly approved SBIC III facility, plus a newly executed $50 million secured revolving credit facility. Management emphasizes a disciplined investment approach, a resilient core, and opportunities to deploy capital as market conditions improve, while actively managing stressed credits (Pepper Palace, Zollege) and pursuing portfolio recovery initiatives. The company also highlighted a strong long-term track record relative to the BDC peer group, including a long-run ROE advantage and NAV growth supporting shareholder value over time. Investors should monitor: (1) the trajectory of NII and NII per share as rate and AUM dynamics evolve, (2) the performance and potential recovery of distressed credits, (3) liquidity and access to diversified funding sources, and (4) the quarterly discipline around the dividend and UTI management, given ongoing excise tax considerations and overearning dynamics.