Investment Portfolio - As of December 31, 2025, the company held $2,949.1 million in investments at fair value, an increase from $2,847.8 million as of September 30, 2025, primarily due to purchases of investments during the quarter [331]. - Approximately 95.2% of the company's total assets represented investments at fair value as of December 31, 2025, compared to 94.8% as of September 30, 2025 [332]. - The fair value of investments is determined quarterly, with 99.8% of the portfolio valued based on market quotations or corroborated by independent valuation firms as of December 31, 2025 [329]. - The investment portfolio composition at cost as of December 31, 2025, included 83.26% in senior secured debt and 4.34% in common equity and warrants [339]. - The fair value of senior secured debt increased to 86.38% of total investments as of December 31, 2025, compared to 85.88% as of September 30, 2025 [339]. - The industry composition of the portfolio at cost included 17.10% in application software and 5.60% in health care services as of December 31, 2025 [340]. - The company’s investments primarily consist of loans, common and preferred equity, and warrants in privately-held companies [337]. Investment Strategy - The company focuses on situational lending, select sponsor lending, stressed sector and rescue lending, and public credit to achieve attractive risk-adjusted returns in the current market environment [315]. - The company aims to generate current income and capital appreciation through flexible financing solutions, including first lien loans, second lien loans, unsecured and mezzanine loans, and equity co-investments [314]. - The company continues to seek opportunities in the middle market, leveraging Oaktree's decades of credit investing experience to source and structure investments [319]. - The company’s investment strategy includes assessing portfolio companies based on financial statements, projections, and market conditions [336]. Financial Performance - Total investment income for the three months ended December 31, 2025, was $75.1 million, a decrease of $11.6 million or 13.3% compared to the same period in 2024 [357]. - Net expenses for the three months ended December 31, 2025, were $38.4 million, a decrease of $3.7 million or 8.8% compared to the same period in 2024 [358]. - The company recorded net realized gains of $1.3 million for the three months ended December 31, 2025, compared to net losses of $(17.3) million in the same period in 2024 [361]. - Net unrealized depreciation for the three months ended December 31, 2025, was $32.4 million, compared to $19.6 million in the same period in 2024 [363]. Cash and Debt Management - As of December 31, 2025, the company had $1,615.0 million in senior securities and an asset coverage ratio of 188.62% [366]. - For the three months ended December 31, 2025, net cash used by operating activities was $83.5 million, with net cash provided by financing activities of $84.8 million [367]. - As of December 31, 2025, the company had $80.8 million in cash and cash equivalents and portfolio investments valued at $2.9 billion [369]. - The company reported $665.0 million of borrowings outstanding under the Syndicated Facility as of December 31, 2025, with a fair value of $665.0 million [389]. - The company has $274.5 million of unfunded commitments as of December 31, 2025, which includes $247.3 million for debt and equity financing to portfolio companies [371]. - The company’s total debt was $1.615 billion as of December 31, 2025, with a weighted average interest rate of 5.945% for the three months ended December 31, 2025 [389]. - The company maintained a minimum shareholders' equity of $1.466 billion, exceeding the required target of $871 million as of September 30, 2025 [388]. Interest Rate Exposure - As of December 31, 2025, 91.3% of the company's debt investment portfolio bore interest at floating rates, indicating a significant exposure to interest rate fluctuations [414]. - The company regularly measures exposure to interest rate risk and assesses the need for hedging transactions [416]. - Interest rate sensitive assets and liabilities are compared to manage interest rate exposure effectively [416]. - The company has multiple interest reset periods for each loan, allowing flexibility in managing interest rates [416]. Shareholder Distributions - The company declared a quarterly distribution of $0.40 per share, payable in cash on March 31, 2026, to stockholders of record on March 16, 2026 [410]. - The company paid a quarterly distribution of $0.40 per share on January 27, 2025, totaling $31.5 million in cash [381]. - The company did not issue any shares of common stock during the three months ended December 31, 2025, as part of its dividend reinvestment plan [376]. Risk Management - The company monitors macroeconomic conditions, including inflation and geopolitical conflicts, which may impact market supply and demand dynamics [317]. - The company’s risk management procedures are designed to monitor financial market risks, including changes in interest rates that may affect both funding costs and interest income [413]. - The company anticipates timely distribution of its taxable income in accordance with tax rules, having not incurred a U.S. federal excise tax for calendar years 2024 or 2025 [403]. - The company must distribute at least 90% of its annual taxable income to maintain its RIC status, which may limit its ability to make distributions due to covenants in its credit facilities [404]. - The company’s investments are valued at fair value as determined by Oaktree, which may involve significant management judgment and could differ materially from realized values [412].

Core Insights - The article emphasizes the transformative impact of artificial intelligence (AI) on the global economy and highlights the potential investment opportunities in AI-driven companies over the next decade [1]. Group 1: Industry Insights - The AI sector is reshaping various industries and driving innovation, indicating a significant shift in how businesses operate and create value [1]. - The article suggests that the current phase of AI development is just the beginning, with substantial growth and investment opportunities expected in the coming years [1]. Group 2: Company Focus - The portfolio mentioned is primarily centered around leading AI-related companies, particularly NVIDIA, which is recognized as a key player in the AI technological revolution [1]. - The focus on AI-driven companies reflects a strategic investment approach aimed at achieving long-term financial independence [1].

Core Insights - The article emphasizes the transformative impact of artificial intelligence (AI) on the global economy and highlights the potential for significant investment opportunities in AI-driven companies over the next decade [1]. Group 1: Investment Focus - The retail investor's portfolio is primarily centered around leading AI-related companies, particularly NVIDIA, which are at the forefront of the technological revolution [1]. - The investor believes that the current phase represents only the early stages of AI's impact, suggesting a long-term growth trajectory for investments in this sector [1]. Group 2: Market Outlook - The coming decade is expected to present remarkable opportunities for both retail and institutional investors in the AI space, driven by ongoing innovation and industry transformation [1]. - The investor expresses a commitment to continuous learning and sharing insights, indicating a proactive approach to navigating the evolving investment landscape shaped by AI technologies [1].

Core Insights - The article analyzes Blackstone Secured Lending's (BXSL) recent performance and compares it with 11 business development company (BDC) peers, focusing on key financial metrics and investment portfolio characteristics [1][2][3]. Group 1: Financial Metrics Analysis - BXSL's net asset value (NAV) per share decreased from $27.33 at the end of Q2 2025 to $27.15 at the end of Q3 2025, reflecting a quarterly decrease of 0.66% [10]. - The economic return for BXSL in Q3 2025 was $0.59 per share or 2.16%, with trailing 12-month and 24-month economic returns of 10.85% and 25.51%, respectively [10][11]. - BXSL's adjusted net investment income (NII) was reported at $0.882 per share for Q3 2025, with a stock price to annualized NII ratio of 8.39x, slightly below the peer average of 9.87x [21][22]. Group 2: Investment Portfolio Composition - As of September 30, 2025, BXSL's investment portfolio consisted of 97% in senior secured first-lien loans and 2% in senior secured second-lien loans, indicating a conservative investment strategy [15][16]. - The fair market value (FMV) versus cost ratio for BXSL was 0.9912x, slightly below the mean of 1.0164x among peers, indicating a minor negative trend [17]. - BXSL had only 0.1% of its portfolio on non-accrual status, which is below the peer average of 2.9%, suggesting a healthier credit profile [18]. Group 3: Comparative Performance - BXSL's cumulative realized loss per share since its IPO was ($0.13), which is more favorable compared to the peer average loss of ($0.89) per share, indicating better long-term performance [19]. - The company had a low exposure of 0.75% to the oil and gas sector, which is below the peer average of 1.45%, reflecting a cautious approach to potential credit risks [20]. - BXSL's stock price as of November 28, 2025, was $27.59, trading at a premium of 1.81% to its estimated current NAV of $27.10, which is more attractive than the peer average premium of 3.65% [25].

Core Insights - The article discusses investment strategies focusing on Long/Short ideas in North America, highlighting the author's background in finance and investment [1]. Group 1 - The author has a Master's degree in Finance and a Bachelor's degree in Economics, indicating a strong academic foundation for investment analysis [1]. - Prior experience includes working at an Investment Fund in the United Kingdom, suggesting a diverse geographical investment perspective [1].

Core Insights - Oaktree Specialty Lending Corporation (OCSL) has frequently entered a discount territory that appears attractive, yet it has consistently disappointed investors who adopt a "buy the dip" strategy [1] Company Overview - Oaktree Specialty Lending Corporation is categorized as a Business Development Company (BDC) [1] Investment Sentiment - The stock has been perceived as a potential opportunity due to its discount pricing, but historical performance has led to investor disappointment [1]

Core Insights - Oaktree Specialty Lending Corporation (OCSL) has frequently entered a discount territory that appears attractive, yet it has consistently disappointed investors who adopt a "buy the dip" strategy [1] Company Analysis - Oaktree Specialty Lending Corporation is categorized as a Business Development Company (BDC) [1] Market Context - The company has a history of falling into discount territory, indicating potential undervaluation, but this has not translated into positive returns for investors [1]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Financial Data and Key Metrics Changes - Adjusted net investment income for Q4 2025 was $35.4 million or $0.40 per share, up from $32.5 million or $0.37 per share in the prior quarter, reflecting a return to normalized prepayment fees and lower interest expenses [4][16] - NAV per share decreased to $16.64 from $16.76 in the previous quarter due to unrealized depreciation on certain investments [16] - Adjusted total investment income increased to $76.9 million compared to $74.3 million in Q3, driven by higher prepayment fees and dividend income [16] Business Line Data and Key Metrics Changes - New-funded investment commitments amounted to $220 million, up 54% from the prior quarter, with prepayments totaling $177 million [10] - First-lien loans represented 88% of new originations, indicating a focus on senior-secured loans [10] - Over 40% of portfolio companies were marked up by about 70 basis points, reflecting improving fundamentals [12] Market Data and Key Metrics Changes - Private credit deal flows showed modest improvement, but the quality of deals was mixed, with a steady supply of high-quality opportunities alongside lower-quality deals [7] - The weighted average spread on deployments during the quarter was approximately SOFR plus 570, indicating competitive pricing in the market [10] - The company noted a cautious optimism regarding private credit spreads, suggesting they may have bottomed out at SOFR plus 450 [8] Company Strategy and Development Direction - The company aims to prudently increase balance sheet leverage to enhance earnings power and deploy capital into interesting investment opportunities [6] - Focus on optimizing joint ventures and reducing non-accruals in equity positions to improve earnings power [6] - The long-term outlook on private credit remains bullish, with expectations for continued premium spreads relative to other floating-rate asset classes [8] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the current market environment, noting mixed themes and ongoing political and economic uncertainty in Europe [7] - The company does not expect outsized repayments for the December quarter and anticipates deployment levels to remain consistent with past quarters [22] - Management highlighted ongoing operational workouts for long-standing non-accruals, focusing on driving performance and maximizing value [31] Other Important Information - The company has ample liquidity of approximately $695 million, including $80 million in cash and $615 million in undrawn capacity on its credit facility [18] - The leverage ratio at quarter end was 0.97 times, slightly up from 0.93 times in the previous quarter, indicating a conservative leverage approach [17] Q&A Session Summary Question: Expectations around investment activity in the December quarter - Management does not expect any outsized repayments and anticipates deployment levels to remain consistent with past quarters [22] Question: Insights on the yield increase related to the Walgreens deal - The yield on new investments was higher due to the complexity of the Walgreens deal, but management does not foresee similar high-spread opportunities in the near term [23][25] Question: Status of non-accruals in healthcare and pharma - Management acknowledged a few larger positions in life sciences that are undergoing workouts, with stable to slightly improving conditions [29][30] Question: Workout strategies for long-standing non-accruals - Operational improvements are being made, with management working closely with teams to drive performance and maximize value [31]

Financial Data and Key Metrics Changes - Adjusted net investment income for the fourth quarter was $35.4 million or $0.40 per share, up from $32.5 million or $0.37 per share in the prior quarter, reflecting a return to normalized prepayment fees and lower interest expenses [4][16] - NAV per share decreased to $16.64 from $16.76 in the third quarter due to unrealized depreciation on certain investments [16] - Adjusted total investment income increased to $76.9 million compared to $74.3 million in the third quarter, driven by higher prepayment fees and dividend income [16] Business Line Data and Key Metrics Changes - New-funded investment commitments amounted to $220 million, up 54% from the prior quarter, with first-lien loans representing 88% of new originations [10][12] - Weighted average yield on debt investments was 9.8%, with the median EBITDA of portfolio companies at approximately $150 million, a decrease of $11 million from the prior quarter [12] Market Data and Key Metrics Changes - Private credit deal flows showed modest improvement, although the quality of deals was mixed, with a steady supply of high-quality opportunities alongside lower-quality deals [7][8] - The weighted average spread on deployments during the quarter was approximately SOFR plus 570, with a tightening of the illiquidity premium observed [10][8] Company Strategy and Development Direction - The company aims to prudently increase balance sheet leverage to enhance earnings power and deploy capital into interesting investment opportunities, maintaining a conservative leverage ratio of 0.97 times [6][16] - Focus on optimizing joint ventures and reducing non-accruals in equity positions to improve earnings power [6] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding private credit spreads, indicating that they may have bottomed out at SOFR plus 450 [8] - The long-term outlook on private credit remains bullish, with expectations that private debt will continue to deliver a premium spread relative to other floating-rate asset classes [8][9] Other Important Information - The company has ample liquidity of approximately $695 million, including $80 million in cash and $615 million in undrawn capacity on its credit facility [18] - The company received a $525,000 dividend from its joint venture during the quarter [18] Q&A Session Summary Question: Expectations around investment activity in the December quarter - Management does not expect any outsized repayments for the December quarter and does not foresee significant deviations in deployment or leverage levels compared to past quarters [21][22] Question: Insights on the yield increase related to the Walgreens deal - The yield on new investments was higher due to the complexity of the Walgreens deal, but management does not anticipate similar high-spread opportunities in the upcoming quarter [23][24][25] Question: Status of non-accruals in healthcare and pharma segments - Management noted that there are a few larger positions in life sciences that continue to be subject to workouts, with operational improvements being made [29][31] Question: Workout strategies for long-standing non-accruals - The company is focusing on operational workouts and working closely with management teams to drive performance, with no significant changes expected in the near term [31][32]