Feb. 27--Investment firm Triangle Capital Corp. generated net investment income of $3 million in the fourth quarter, up 49 percent from a year ago, thanks in large part to its expanded investment portfolio.

Analyst Robert Dodd of Morgan Keegan & Co. said the Raleigh-based firm's earnings were in line with his expectations.

"Overall, in this environment -- we have to put everything in perspective -- just coming in line is a good set of numbers," Dodd said. "It was a very solid quarter." Morgan Keegan has received investment banking revenue from Triangle Capital in the past and expects to do so again.

Triangle Capital made a dozen new investments totaling $91 million during 2008. Triangle Capital makes loans to midsize, privately held businesses; it also takes a minority ownership stake in its portfolio companies.

The company's net gain in assets in the fourth quarter was $1.5 million, down from $2.2 million a year earlier. Net gain in assets includes actual gains from investments the company has closed the books on, plus paper gains based on the estimated value of investments.

Triangle Capital's net investment income for all of 2008 totaled $10.6 million, up from $6.4 million during 2007.

"2008 was a very solid year for Triangle," CEO Garland S. Tucker III said in a prepared statement. "We feel fortunate to have a high-quality portfolio that has yielded such strong results."

Dodd said that, in light of the recession, he expects Triangle Capital to be conservative with additional investments in 2009. Consequently, he expects net investment income to rise 8 percent this year.

"It looks very stable," he said. "Again, in this environment, stability is a huge plus."

Triangle Capital's shares fell 3 cents to $9.92 Thursday.

david.ranii@newsobserver.com or919-829-4877

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