Harvest’s portfolio consisted of 21 different companies, up from 15 in the prior quarter. Second lien senior secured made up 53% of the portfolio and 44% was first lien senior secured. Equity and royalty securities accounted for the remaining 3%. The first lien senior secured mix is up from 39% in the prior quarter, mostly at the expense of the equity representation, as management has put an increased focus on growth of the senior secured investments in light of heightened competition.
Management indicated that its pipeline going into the second quarter stood at $150 million across 29 transactions, which compares favorably with the pipeline going into the first quarter of 19 transactions totaling $100 million. Harvest had $9 million of cash on the balance sheet and no debt at the end of December and indicated it had $9 million of cash and no debt at the end of the first quarter.
Originations of $23 million across five new investments, two investments in related portfolio companies, and two follow-on investments were partly offset by the prepayment of its $2 million loan to Blackboard, which generated about $0.22 million of prepayment fees and accelerated fee amortization. One of the nine fourth-quarter originations was a temporary investment in a low yield, senior secured, highly liquid loan to help reduce the cash drag from the May 2013 IPO.