Equus Total Return, Inc. reported that its net assets as of December 31 2025 were $16.6 million, a 36 % drop from the $26.5 million recorded at the end of the third quarter. The net asset value per share fell to $1.19 from $1.90, reflecting a $12.35 million write‑down of its stake in Morgan E&P, Inc. The decline is the largest single‑period loss the firm has reported in its history.
The Q3 2025 figures—$26.5 million in net assets and a $1.90 NAV per share—were driven by a $12.35 million reduction in the fair value of Morgan E&P. The write‑down was triggered by a lower oil forward price curve and the elimination of certain reserves, which forced the firm to reassess the recoverable value of the investment.
While Morgan E&P’s value fell sharply, the firm’s investment in CitroTech (formerly General Enterprise Ventures, Inc.) increased in value during the same period. The conversion of a CitroTech note into common stock earlier in 2025 added upside, partially offsetting the loss from Morgan E&P and providing a tailwind that mitigated the overall decline.
Equus’s portfolio remains highly concentrated, with a large portion of its assets tied to the energy sector. The firm has suspended its prior distribution policy and is not currently paying dividends. In 2025 it recorded a net investment loss of $3.7 million, and the full‑year loss for 2024 was $18.78 million, underscoring ongoing valuation challenges.
Management has indicated that the board is evaluating a transformation of Equus from a Business Development Company into an operating company or permanent capital vehicle. The firm voluntarily ceased qualifying as a Regulated Investment Company in late 2024, meaning future investment income will be taxed at corporate rates. These strategic moves reflect the company’s effort to stabilize cash flows and reduce the impact of its concentrated, illiquid holdings.
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