Financial Data and Key Metrics Changes - The company reported total portfolio investments of nearly $18 billion, total net assets of nearly $8 billion, and total outstanding debt of approximately $10 billion [17] - The first quarter NAV per share was $15.14, down $0.12 from the last quarter, primarily due to changes in credit spreads and write-downs on a small number of high-focus investments [17] - Adjusted net investment income was $0.39 per share, down $0.08 from the prior quarter, reflecting a reduction in one-time income [17][18] - The company declared a supplemental dividend of $0.01 and a second quarter base dividend of $0.37, indicating a 106% dividend coverage [18][19] Business Line Data and Key Metrics Changes - The company recorded $1.2 billion of new investment commitments and $800 million of fundings in the first quarter, with over 90% of direct loan originations consisting of first lien investments [9][10] - The median EBITDA of portfolio borrowers grew slightly to $120 million, and weighted average EBITDA increased to $215 million [10] - The non-accrual rate was 0.8% at fair value and 1.4% at cost, compared to 0.4% and 1.9% in the prior quarter, reflecting two additions and the removal of three positions [12] Market Data and Key Metrics Changes - The company noted that portfolio company revenues and EBITDA increased in the mid to high single digits year over year, approximately double the U.S. GDP growth rate [11] - The average loan-to-value (LTV) ratio was just over 40%, providing significant support underneath the capital [11] - The company highlighted a stable interest coverage ratio of 1.8 times based on current spot rates, benefiting from lower rates [13] Company Strategy and Development Direction - The company aims to capitalize on market volatility by providing support to borrowers and sponsors facing challenges in accessing financing [23][25] - The strategy remains focused on credit quality, with an emphasis on upper middle market companies and diversified portfolios [84] - The company is exploring opportunities to increase exposure to non-traditional lending strategies, aiming to grow this segment from low double digits to around 15% of the portfolio [66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's resilience and the ability to maintain dividend levels despite macroeconomic uncertainties [26] - The company is closely monitoring investments for potential tariff impacts but remains confident in its defensive positioning [14] - Management acknowledged the uncertainty in the M&A environment due to tariffs and indicated that this may continue for a while [32] Other Important Information - The company introduced non-GAAP accounting adjustments due to the merger with OBDE, recognizing an $83 million purchase discount on the assets acquired [15] - The company ended the quarter with over $3 billion of total cash and capacity on its facilities, providing ample liquidity to meet near-term funding needs [21] Q&A Session Summary Question: Perspective on macroeconomic developments and M&A activity - Management noted that the M&A environment remains muted due to uncertainty created by tariffs, impacting deal flow and spreads [30][32] Question: Timeline for public listing of OTF post-merger - Management stated there is nothing specific to disclose regarding the public listing of OTF at this time [39][40] Question: Share repurchase strategy during volatility - Management confirmed that share repurchase programs are regularly evaluated, but recent volatility did not coincide with open windows for repurchases [46][48] Question: Opportunities to rationalize inherited liabilities - Management indicated that there are opportunities to reprice certain dropdown facilities and CLOs inherited from the merger [51][52] Question: Probability of near-term recession and its impact on underwriting - Management acknowledged the need for caution in underwriting due to potential economic changes but noted that their portfolio companies are currently stable [57][58] Question: Operational efficiencies from the merger - Management highlighted ongoing efforts to optimize capital structure and reduce funding costs, with some synergies already realized [72][75] Question: Pipeline mix of new versus incumbent borrowers - Management reported that more than half of the deal flow in the first quarter came from existing borrowers, with a consistent pipeline expected [92][93]

Financial Data and Key Metrics Changes - The net investment income (NII) for Q1 2025 was $189 million or $0.83 per share, representing a year-over-year increase of over 14% and the highest dollar amount since inception [23] - Total investment income for the quarter reached a record $354 million, up $54 million or 18% year-over-year, driven by increased interest income [23] - The net asset value (NAV) per share remained flat at $27.39 quarter over quarter, supported by $0.06 per share of excess earnings and $1.01 from share issuance at a premium to NAV [24][25] Business Line Data and Key Metrics Changes - BXSL ended the quarter with $12.8 billion of investments at fair value, a 20% increase from $10.4 billion year-over-year [13] - The weighted average yield on performing debt investments at fair value was 10.2%, down from 10.4% in the previous quarter [14] - 98% of BXSL's investments are in first lien senior secured loans, with an average loan-to-value (LTV) of 47.4% [14][16] Market Data and Key Metrics Changes - The company issued $500 million of new debt at a coupon of 5.3%, the tightest spread compared to traded BDC peers in 2025 [11] - The total weighted average interest rate on drawn debt decreased to 5.01% in Q1, down from 5.17% in the previous quarter [27] - The repayment rate for the portfolio was 28% annualized, up from 6% in the prior quarter, indicating increased repayments during the quarter [27] Company Strategy and Development Direction - The company continues to focus on investing in sectors that are more resilient during periods of volatility, emphasizing first lien senior secured lending to larger companies [15][59] - The management highlighted the importance of maintaining high-quality assets and avoiding riskier investments during uncertain economic conditions [59] - The value creation program is utilized to support portfolio companies, helping them manage tariff impacts and enhance revenue [20][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong fundamentals despite market volatility and uncertainty surrounding tariffs [6][8] - The company is positioned well for potential future opportunities amidst market volatility, with a focus on maintaining a defensive approach [16][64] - Management noted that while there is uncertainty in the market, they are seeing a steady pipeline of deals and are prepared to capitalize on opportunities as they arise [51][54] Other Important Information - The company maintained its dividend distribution of $0.77 per share, representing an 11.2% annualized distribution yield [18] - The company realized a gain of over $7 million from an equity investment in Frontline, contributing positively to NAV [19] - The company has a diverse liability profile, with 38% of drawn debt in unsecured bonds that have a weighted average fixed coupon of less than 3% [27] Q&A Session Summary Question: Dividend coverage and spillover policy - Management discussed the potential impact of falling rates on earnings and the strategies to manage dividend coverage, including turnover in the portfolio and lowering expenses [36][39] Question: Refinance of a large asset - Management indicated that a large asset was refinanced through a securitization, limiting their ability to retain it, but they aim to hold onto good assets [43][45] Question: Leverage in the portfolio - Management acknowledged the presence of excess cash and indicated a cautious approach to deploying capital in the current environment, focusing on high-quality assets [48][50] Question: Strategy on credit evaluation - Management confirmed that their underwriting standards remain unchanged, focusing on sectors less impacted by economic weakness, such as software and healthcare [80][81] Question: Commonality among larger repayments - Management noted that repayments were from a small number of companies, with some being refinanced in the securitization markets, and they expect muted repayment volumes in the current quarter [84][86] Question: Growth outlook and ATM program - Management indicated that ATM issuance would be tied to originations and would be emphasized as market activity picks up [89][91]

Financial Data and Key Metrics Changes - Fundings totaled $46 million, with exits and repayments at $81 million, resulting in net originations of negative $35 million [6] - Interest income remained unchanged at $21.3 million, while the weighted average portfolio yield fell to 12.6% due to a decline in SOFR rates [7][12] - Net investment income was $11.2 million, with net realized gains of $7.7 million for the quarter [8][13] - Total assets decreased to $777 million, with net assets declining to $478 million [13][14] - NAV per share fell from $21.51 to $21.41, reflecting unrealized depreciation [14] Business Line Data and Key Metrics Changes - The portfolio turnover did not materially impact the investment mix, with senior debt representing 71% of the fair value of the portfolio [8] - Non-earning asset investments remained unchanged at four companies totaling $53.7 million at cost [9] Market Data and Key Metrics Changes - The company experienced a healthy pipeline of expected fundings, with a total of $289 million in portfolio liquidity events since September [10] - The current pipeline includes 8 to 10 deals in advanced stages, potentially totaling $100 million to $150 million [39] Company Strategy and Development Direction - The company continues to focus on investing in growth-oriented lower middle market businesses with strong management [18] - The strategy includes supporting midsized private equity funds in buyouts and growth opportunities [18] - The company aims to increase leverage towards $1 billion in total assets under management while maintaining yield and leverage discipline [58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's resilience despite market volatility and widening credit spreads [22] - The company is optimistic about the performance of its investments in sectors like precision manufacturing and lab testing, expecting improvements over the year [46][51] - Management noted that domestic-focused businesses are benefiting from supply chain shifts due to tariffs [26][30] Other Important Information - Monthly distributions for May and June are set at $0.165 per common share, with an annual run rate of $1.98 per share, yielding approximately 7.8% [15] - The company has absorbed much of the anticipated surge in portfolio liquidity events, indicating a strong position for future growth [10] Q&A Session Summary Question: How do you see the portfolio and NAV performing with both broadly syndicated loan and private credit spreads widening in April? - Management indicated that they do not have syndicated loans and expect minimal degradation in value due to their portfolio's leverage profile and yield [21][22] Question: How do you see SeaLink and RPM freight performing as tariffs impact shipping volumes? - Management noted that domestically focused companies are adapting well to changes, with RPM's business actually up due to their responsiveness [25][26] Question: Is the EG's restructuring going to generate a realized loss for you? - Management anticipates a very small loss from the restructuring, with a significant equity investment going forward [34] Question: Can you provide an update on the pipeline and its size relative to three months ago? - Management reported a healthy backlog with 8 to 10 deals in advanced stages, potentially totaling $100 million to $150 million [39] Question: Do you have any exposure to government contracts given potential cuts? - Management stated they do not have significant exposure to government contracts, focusing instead on defense-oriented suppliers and healthcare [43][45] Question: Where do you see leverage going for the rest of the year? - Management aims to increase leverage towards 90% to 100% over the next few quarters, working to achieve $1 billion in total assets under management [58]

Financial Data and Key Metrics Changes - Fundings totaled $46 million, with exits and repayments at $81 million, resulting in net originations of negative $35 million [5] - Interest income remained unchanged at $21.3 million, while the weighted average portfolio yield declined to 12.6% due to a 36 basis point drop in average SOFR rates [6][10] - Net investment income was $11.2 million, unchanged from the previous quarter, with net realized gains of $7.7 million [6][11] - Total assets decreased to $777 million, with net assets declining by $2.3 million to $478 million, and NAV per share fell from $21.51 to $21.41 [11][12] Business Line Data and Key Metrics Changes - The yielding debt investments decreased by $20 million compared to the prior quarter end [5] - Non-earning asset investments remained unchanged at four companies totaling $53.7 million at cost [7] - The portfolio turnover did not materially impact the investment mix, with senior debt representing 71% of the fair value of the portfolio [6] Market Data and Key Metrics Changes - The company experienced a surge in portfolio liquidity events totaling $289 million, representing approximately 36% of the portfolio exited [8] - The current pipeline of expected fundings is healthy, expected to outpace anticipated repayments [8] Company Strategy and Development Direction - The company continues to focus on investing in growth-oriented lower middle market businesses with strong management [17] - The strategy includes supporting midsized private equity funds in buyouts and growth opportunities [17] - The company aims to increase leverage towards $1 billion in total assets under management while maintaining yield and leverage discipline [56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's resilience despite market volatility and widening credit spreads [21] - The company is optimistic about the performance of domestically focused businesses amid tariff impacts, noting advantages for responsive domestic service providers [24][30] - Management highlighted a healthy backlog of deals and a focus on domestic manufacturing to mitigate tariff risks [52] Other Important Information - Monthly distributions for May and June will be $0.165 per common share, with an annual run rate yield of about 7.8% [12][13] - The company completed the restructuring of its investment in EG's, restoring most exposure to earning asset status [7] Q&A Session Summary Question: How do you see the portfolio and NAV performing with both broadly syndicated loan and private credit spreads widening in April? - Management noted that they do not have syndicated loans and that their portfolio spreads remain favorable compared to the market [20][21] Question: How do you see SeaLink and RPM freight performing as tariffs impact shipping volumes? - Management indicated that domestically focused companies are adapting well to changes, with some businesses experiencing growth [23][24] Question: Is the EG's restructuring going to generate a realized loss for you? - Management anticipates a very small loss from the restructuring, with significant equity investment going forward [31] Question: Can you provide an update on the pipeline and its size relative to three months ago? - Management reported a healthy backlog with 8 to 10 deals in advanced stages, totaling approximately $100 million to $150 million [37] Question: Where do you see leverage going for the rest of the year? - Management aims to increase leverage towards 90% to 100% over the next few quarters, targeting $1 billion in total assets under management [56][60]

Core Viewpoint - Concerns about further economic deterioration have led U.S. private credit investors to sell assets at significant discounts, with some transactions occurring at half the asset's face value [1] Group 1: Discount Trading and Investor Behavior - Private credit market investors are selling fund shares at notable discounts, starting from 10% and dropping to as low as 50% [2] - The current sell-off is characterized as a proactive risk-hedging behavior by investors rather than a result of forced liquidations or severe liquidity crises [2] - There has been no significant deterioration in credit quality observed so far, but concerns about expanding discounts may arise as economic conditions worsen [2] Group 2: Credit Quality Concerns - The U.S. private credit market has rapidly expanded to a size of $1.6 trillion, raising concerns about asset quality during economic downturns due to a relatively lax regulatory environment [2] - Issues with "loose underwriting" in private credit loans could lead to high single-digit default rates for high-yield debt and potentially double-digit default rates for private credit [2] Group 3: Market Conditions and Strategic Positioning - The current situation is viewed as more severe than during the COVID-19 pandemic, primarily due to higher inflation pressures that could amplify economic shocks [4] - The potential economic downturn is compared to the bursting of the internet bubble, with expectations of a similarly severe impact [4] - Oak Tree Capital is cautiously positioning itself in the credit market, maintaining liquidity to capitalize on larger investment opportunities as they arise [4]

近日，全球独立投资研究机构晨星公司（NASDAQ：MORN）宣布完成两项战略性收购，进 一步增强其在私募信贷和结构性金融领域的业务实力。 其中，Lumonic Inc. 是一家专注于私募信贷投资组合监测与管理的平台，收购已于美国当地时 间3月3日完成。而Dealview Technologies Limited（DealX），则提供标准化的美国商业抵押 贷款支持证券（CMBS）及全球抵押贷款凭证（CLO）数据服务，该交易已于2025年3月1日顺 利收官。 此次收购将助力晨星提升私募信贷与结构性金融业务，为机构投资者和资产管理人提供更高 效、更透明的解决方案，以优化投资决策。 01 晨星构建覆盖公募与私募的综合服务生态 晨星在公募及私募投资领域的综合能力布局独具优势，通过PitchBook提供海量私募数据与深 度洞察，借助Morningstar Indexes的私募市场指数编制能力，以及旗下全球第四大信用评级机 构Morningstar DBRS，构建起全方位的综合服务生态。 晨星全球CEO Kunal Kapoor表示， "晨星希望为投资者打造贯通私募与公募市场的投资分析 工具。通过整合Lumonic与Dea ...

近日，全球独立投资研究机构晨星公司（NASDAQ：MORN）宣布完成两项战略性收购，进 一步增强其在私募信贷和结构性金融领域的业务实力。 其中，Lumonic Inc. 是一家专注于私募信贷投资组合监测与管理的平台，收购已于美国当地时 间3月3日完成。而Dealview Technologies Limited（DealX），则提供标准化的美国商业抵押 贷款支持证券（CMBS）及全球抵押贷款凭证（CLO）数据服务，该交易已于2025年3月1日顺 利收官。 此次收购将助力晨星提升私募信贷与结构性金融业务，为机构投资者和资产管理人提供更高 效、更透明的解决方案，以优化投资决策。 01 晨星构建覆盖公募与私募的综合服务生态 晨星在公募及私募投资领域的综合能力布局独具优势，通过PitchBook提供海量私募数据与深 度洞察，借助Morningstar Indexes的私募市场指数编制能力，以及旗下全球第四大信用评级机 构Morningstar DBRS，构建起全方位的综合服务生态。 晨星全球CEO Kunal Kapoor表示， "晨星希望为投资者打造贯通私募与公募市场的投资分析 工具。通过整合Lumonic与Dea ...