RT Bloomberg Live (@BloombergLive)As private credit and equity mature, a sophisticated secondary ecosystem is challenging the traditional model. At #BloombergInvest, José E. Feliciano of @clearlake explores what this shift means for the future of private markets.Live 3/4 at 11:00 AM ET! 📺https://t.co/M67O8zQYmz ...

Financial Data and Key Metrics Changes - Adjusted Net Investment Income for Q1 2026 was $36.1 million, or $0.41 per share, up from $35.4 million or $0.40 per share in the prior quarter [4][19] - NAV per share decreased to $16.30 from $16.64 in the previous quarter due to unrealized depreciation on certain investments [19] - Adjusted total investment income decreased to $74.5 million from $76.9 million in the prior quarter, primarily due to lower interest income [19][20] Business Line Data and Key Metrics Changes - New funded investments totaled $314 million, up from $220 million in the prior quarter, reflecting a 42% sequential increase [6][16] - Non-accruals represented 3.1% of the total debt portfolio, stable sequentially and down nearly 85 basis points year-over-year [7][18] - The weighted average yield on debt investments was 9.3%, with first lien senior secured debt comprising 85% of the total portfolio [15][21] Market Data and Key Metrics Changes - Current trends in private credit show a bifurcation in the economy, with companies of scale having ample access to capital while struggling companies face limited access [9] - Spreads in private credit have bottomed out at SOFR +450-475 basis points, with expectations for stability in 2026 [10] - The median portfolio EBITDA increased from $150 million to $190 million sequentially, driven by new originations in larger companies [30] Company Strategy and Development Direction - The company remains focused on disciplined capital deployment into income-generating assets and reducing non-accruals to improve earnings power [5][6] - Oaktree is prioritizing loans to businesses with resilient models and defensible market positions, particularly in the software sector [10][12] - The company is monitoring the impact of AI on private credit and is cautious about potential disruptions in the software industry [11][38] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding middle-market M&A activity improving over the year, despite current lower volumes [9] - The company is focused on maintaining strong alignment with shareholders while navigating an evolving credit landscape [8] - Concerns were raised about the long-term refinanceability of loans in the software sector due to potential AI disruptions [38][39] Other Important Information - The company ended the quarter with over $576 million in available liquidity, including $81 million in cash [21][22] - The joint ventures held $511 million of investments, generating ROEs of 12% in aggregate [22] Q&A Session Summary Question: Can you provide insight into the portion of the portfolio that is underperforming? - Management indicated that underperforming assets include non-accruals and positions trading below par, with most below-par loans being public positions [24][25] Question: What drove the increase in median portfolio EBITDA? - The increase was primarily driven by new originations funded in the fourth quarter, which were larger companies, contributing to a mix shift [30] Question: Can you discuss the unrealized appreciation and markdowns in the quarter? - Pluralsight was the largest driver of markdowns, accounting for about 38% of the total mark, with some smaller marks in other private positions [32] Question: How is the company characterizing top-line growth and EBITDA trends in the software sector? - Management noted that it is too early to see performance degradation in software names, but concerns exist regarding long-term refinanceability due to AI risks [36][38]

Financial Data and Key Metrics Changes - Adjusted Net Investment Income for Q1 2026 was $36.1 million, or $0.41 per share, up from $35.4 million or $0.40 per share in the prior quarter [4][21] - NAV per share decreased to $16.30 from $16.64 in the previous quarter due to unrealized depreciation on certain investments [21] - Adjusted total investment income decreased to $74.5 million from $76.9 million, primarily due to lower interest income [22][23] Business Line Data and Key Metrics Changes - New funded investments totaled $314 million, up from $220 million in the prior quarter, reflecting a 42% sequential increase [6][17] - Non-accruals represented 3.1% of the total debt portfolio, stable sequentially and down nearly 85 basis points year-over-year [7][20] - The average all-in spread and yield of new private investments was 525 basis points and 9%, respectively [6] Market Data and Key Metrics Changes - Current trends in private credit show a bifurcation in the economy, with companies of scale having ample access to capital while struggling companies face limited access [9] - After the Fed rate cut in September, spreads in private credit have stabilized at SOFR plus 450-475 basis points [10] - The median portfolio EBITDA increased from $150 million to $190 million sequentially, driven by new originations in larger companies [34] Company Strategy and Development Direction - The company is focused on deploying capital into income-generating assets and reducing non-accruals to improve earnings power [5][6] - There is a commitment to disciplined underwriting and selectivity in investment opportunities, particularly in resilient market-leading businesses [11][12] - The company is monitoring the impact of AI on private credit and the broader economy, emphasizing the importance of execution and speed of adoption [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the stability of spreads in 2026 and the potential for increased middle-market M&A activity [10][12] - Concerns were raised about the long-term impact of AI on software companies, particularly regarding their refinanceability [40][42] - The company remains constructive on the long-term outlook for private credit, emphasizing the importance of active portfolio management [13] Other Important Information - The company declared a quarterly cash dividend of $0.40 per share, payable on March 31, 2026 [5] - The weighted average interest rate on debt outstanding was 6.1%, down from 6.5% in the prior quarter [24] - The company has approximately $576 million in liquidity, including $81 million in cash and $495 million in undrawn capacity on its credit facility [24] Q&A Session Summary Question: Can you provide insight into the portion of the portfolio that is underperforming? - Management indicated that underperforming assets include non-accruals and positions trading below par, with most below-par loans being public positions [27][28] Question: What drove the increase in median portfolio EBITDA? - The increase was primarily driven by new originations funded in the fourth quarter, which were larger companies, contributing to a mix shift [34][35] Question: Can you discuss the unrealized appreciation and markdowns in the quarter? - The largest driver of unrealized depreciation was Pluralsight, accounting for about 38% of the total mark, with some smaller marks in other private positions [36][37] Question: How does the company view top-line growth and EBITDA trends in the software sector? - Management believes it is too early to see performance degradation in software names, but concerns exist regarding long-term refinanceability due to potential AI disruption [40][42]

You can find original article here WealthManagement. Subscribe to our free daily WealthManagement newsletters. (Bloomberg) -- State Street Corp.’s $100 million private credit ETF got a shot in the arm after a big buyer injected a record amount of cash this week, putting it within reach of a key threshold — half a billion in assets. The fund, which trades under the ticker “PRIV,” roughly quintupled in one day, taking in nearly $396 million Monday, the biggest single-day inflow since the fund launched las ...

Some of the stuff that's kind of resonated with what Joanna is saying has been with investors in ETFs who are trying to figure out ways to enhance that yield. Have you seen any signs of stress in in your mind with regard to maybe possibilities for concern down the line because of deteriorating credit quality. Is is the economy flashing some signs that maybe things are slowing down a little bit.How exactly does the macro picture shape up given what we are seeing in terms of a tilt towards income strategies. ...

Thank you both for being with us this uh this afternoon here. I'm going to start a little bit with you Joanna just about what the state of the market is like in your mind given the fact that we have a new Fed chair nominee. We have interest rates behaving somewhat well over the course of the last few weeks and even months at this point and a market that seems to be trying to figure out where the next step is going to be.What exactly do you make of all of this in confluence with each other, Joanna. Well, I t ...

Steven Tananbaum, GoldenTree Asset Management founding partner, discusses the fallout of the recent market sell-off in software companies driven by AI concerns, the state of the private credit market, and the appointment of Kevin Warsh as Fed chair. ...

This live blog is refreshed periodically throughout the day with the latest updates from the market.To find the latest Stock Market Today threads, click here. Happy Tuesday. This is TheStreet’s Stock Market Today for Feb. 3, 2026. You can follow the latest updates on the market here in our daily live blog Update: 4:00 p.m. ET Closing Bell Time to wrap it up. The market is now closed. Though it was a rough day for the large cap indexes, things finished out in better shape than we saw intraday. The Nasdaq ...

Asset manager Eurazeo has collected €480 million for a private credit continuation fund, partnering with secondaries investor Pantheon https://t.co/iJVsBkDFZG ...

apollo's acred fund trades at $135.6m market cap accessing private credit yielding 8-12% through $800b aum apollo global. blackrock's buidl sits at $1.8b for treasury exposure at 4.5%. same securitize infrastructure, same sec clarity, 93% valuation discount. apollo charges zero performance fees on acred versus their standard 20% carry. the dislocated credit sleeve hunts technical selloffs in leveraged loans exactly when spreads blow out ...