Financial Data and Key Metrics Changes - Fundings for the quarter totaled $73 million, with exits and prepayments at $82 million, resulting in net originations of negative $9 million [6][7] - Interest income decreased by 2.3% to $20.9 million, while the weighted average portfolio yield increased by 20 basis points to 12.8% [12][7] - Net investment income remained flat at $11.3 million, with net realized losses of $3.6 million primarily related to a specific investment [7][13] Business Line Data and Key Metrics Changes - The portfolio turnover did not materially impact the investment mix, with 70% of new originations being first lien debt [9] - The company maintained a conservative leverage position with debt at 64% of NAV, which increased to 81% of NAV post-quarter [11][15] Market Data and Key Metrics Changes - The company continues to see a healthy flow of attractive lower middle market deal opportunities, with 88% of recent deals being first lien investments [10] - The average closing leverage for new deals was three times EBITDA, with an average margin over SOFR exceeding 7% [10] Company Strategy and Development Direction - The company remains focused on growth-oriented lower middle market investments backed by private equity sponsors [19] - The strategy includes recycling investment exits to support portfolio growth and shareholder distributions [11][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the portfolio, citing well-articulated growth strategies among investments [24] - Concerns about economic headwinds were acknowledged, but the company believes its investments can withstand these challenges due to conservative leverage and cash flow generation [26][27] Other Important Information - Total assets rose to $780 million, with liabilities primarily consisting of senior notes and a line of credit [13][14] - Monthly distributions for August and September will be $0.0165 per common share, translating to an annual run rate of $1.98 per share [15] Q&A Session Summary Question: Impact of private credit growth on spreads - Management noted that while there is some pressure from sponsors, they have successfully resisted significant reductions in spreads, maintaining an average above 7% over SOFR [21][22] Question: Overall health of the portfolio amid economic uncertainty - Management indicated that most investments have solid growth strategies and can withstand economic headwinds, with a focus on long-term growth rather than short-term economic fluctuations [24][26] Question: Changes in portfolio structure to boost yields - Management clarified that there is no fundamental strategy change, but they are exploring opportunities to manage yield targets through selective second lien and asset-backed facilities [30][32] Question: Leverage ratio and prepayment patterns - Management confirmed the leverage ratio increase to 81% of NAV and noted that prepayments have been unpredictable, typically occurring when companies are up for sale [37][39] Question: Financing options for upcoming debt maturity - Management is evaluating various options for addressing the upcoming debt maturity, expressing some disappointment with current market spreads [41] Question: Future pipeline and backlog outlook - Management expects a healthy number of additional investments and anticipates net originations in the range of $50 million to $100 million per quarter [44][46] Question: Activity level and December quarter expectations - Management expressed cautious optimism for a strong Q4, traditionally a busy quarter, while acknowledging economic uncertainties that may affect deal closures [53][55]

KKR has hired Goldman Sachs’s Ken Murata as a managing director for its credit business in Japan, as the country becomes a key market for the private credit boom in Asia. https://t.co/k15hoTE8Gy ...

Labor Market & Economic Outlook - US labor market shows warning signs with payrolls tumbling and unemployment rate rising, indicating a deceleration in job gains [1][2] - Concerns mount over a complicated mix for the Federal Reserve to deal with, leading to expectations of potential rate cuts in September and December [2][3] - Slowing services wages suggest a potential slowdown in consumption and the overall economy, justifying lower interest rates even without a formal recession [19] - The economy is structurally sound, but current policy may be suboptimal, with rates disproportionately hurting lower-income households as housing and labor markets slow [9][10] Interest Rate & Monetary Policy - Fed rate cut bets for September have reached nearly 90%, a significant increase from 45% prior to jobs data, with two rate cuts priced in for the year [6] - The Cleveland Fed President acknowledges a tricky time for monetary policy makers due to conflicting mandates, requiring careful data analysis and business conversations [7][8] - The market anticipates bull steepening as the economy slows and the Fed cuts rates, potentially spurring inflation or growth, leading to a V-shaped recovery [12] - Neutral rate is difficult to determine, potentially higher than expected due to shifts in household and business debt structures, allowing for higher interest rates with a robust economy [17][18] Bond Market & Credit Issuance - US high-grade weekly volume reached $12 million, driven by foreign bank sales, while July volume was $81 billion, the lightest month for supply this year [29] - US high-yield July volumes exceeded $35 billion, marking the second busiest month since September 2021 and the busiest since at least 2006 [30] - Leveraged loan launches in July set a record, reaching over $222 billion, the fourth time in 14 months an all-time record has been broken [30] - Private sector holds $225 trillion in cash, exceeding marketable Treasury debt, with only $29 trillion in high-quality bonds, creating a transcendent influence on the market [26][27]

Ares Management (ARES) Q2 2025 Earnings Call August 01, 2025 11:00 AM ET Company ParticipantsGreg Mason - Partner & Co-Head - Public Markets IRMichael Arougheti - Co-Founder, CEO & DirectorJarrod Phillips - Partner & CFOAlex Blostein - Managing DirectorKyle Voigt - Managing DirectorBen Budish - DirectorMichael Cyprys - Managing DirectorBrian Mckenna - Director - Equity ResearchBrian Bedell - DirectorConference Call ParticipantsWilliam (Bill) katz - Senior Equity AnalystPatrick Davitt - Senior Analyst - US A ...

Financial Data and Key Metrics Changes - Ares Management reported a quarterly AUM increase to $572 billion, representing a quarter-over-quarter organic growth of 19% on an annualized basis [7] - The company declared a quarterly dividend of $1.12 per share, a 20% increase compared to the same quarter last year [3] - Management fees reached a record $900 million, reflecting a 24% year-over-year increase [32] - Fee-related earnings (FRE) grew by 26% year-over-year, with FRE margins at 41.2% [34] Business Line Data and Key Metrics Changes - The second quarter deployment in the U.S. was $27 billion, slightly higher than the previous year despite market pauses [8] - The FPAUM increased to $350 billion, representing quarter-over-quarter organic growth of 17% [8] - The secondaries business saw a 29% increase in AUM to nearly $34 billion [15] - The real estate segment raised $2.4 billion in capital during the quarter, primarily from non-traded REITs [12] Market Data and Key Metrics Changes - Approximately 55% of fundraising was from products, with 30% into commingled funds and 25% into SMAs [10] - International demand accounted for more than one-third of year-to-date flows, with strong traction in Europe and Asia [19] - The European direct lending strategy raised over $1.1 billion from new SMAs and $800 million in the wealth channel [12] Company Strategy and Development Direction - Ares Management is focused on scaling its fundraise and expanding its global wealth distribution network, now partnering with over 80 firms globally [19] - The company anticipates significant growth in its data center asset management business and global industrial development [9] - Ares is positioned to capitalize on the growing demand for alternative investments, particularly in the wealth channel [41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the transaction market environment strengthening into the third quarter, supported by lower short-term rates and record amounts of private equity dry powder [27] - The integration of the GCP acquisition is progressing well, with expectations of enhanced fund performance and additional revenue streams [30] - The company remains confident in its ability to generate unique investment opportunities and maintain strong deployment across various market conditions [62] Other Important Information - The net accrued performance income balance increased by 8.5% to $1.1 billion, reflecting strong investment results [9] - Ares anticipates that perpetual capital will continue to represent a significant percentage of AUM growth, providing greater visibility in revenue growth and profitability [23] - The company is experiencing strong demand for its sports media and entertainment strategy, with significant commitments raised [11] Q&A Session Summary Question: Discussion on private credit and institutional demands - Management noted that private credit fundraising has not outpaced other alternative asset classes, but they continue to see institutional appetite for private credit [49] - They emphasized that fee pressure has not been significant, and they maintain a strong position in the market [50] Question: Opportunities in the alternative market - Management expressed enthusiasm for the democratization of alternatives and is prepared to offer products as the market opens [58] Question: Update on deployment pipelines - Management indicated confidence in the growing pipelines across various business segments, including direct lending and real estate [66] Question: Comparison of European and U.S. direct lending markets - Management highlighted that European markets are becoming more attractive due to different rate trajectories and increased investor appetite [70] Question: Retail distribution and international flows - Management confirmed ongoing investments in product development and distribution, with expectations for continued growth in international markets [78]

Let's now move over to our Leslie Picker who joins our joins us fresh off our exclusive sitdown with JP Morgan CEO Jamie Diamond. Leslie, hey Frank. Yeah, we covered a lot of ground with Jamie Diamond here in Charlotte.I asked him about President Trump's latest attacks on Fed Chair Powell. I think Jay Pal is a professional. I think independence is important.I think actually independence keeps interest rates lower if you actually look through the history of interest rates a little bit. uh and just lowering s ...

Blue Owl Capital (OWL) Q2 2025 Earnings Call July 31, 2025 10:00 AM ET Speaker0Good morning, and welcome to Blue Owl Capital's Second Quarter twenty twenty five Earnings Call. During the presentation, our lines will remain on listen only. I'd like to advise all parties that this conference call is being recorded. I will now turn the call over to Ann Dye, Head of Investor Relations for BlueOwl.Speaker1Thanks, operator, and good morning to everyone. Joining me today are Mark Lipschultz, our Co Chief Executive ...

S&P Global (SPGI) Q2 2025 Earnings Call July 31, 2025 08:30 AM ET Company ParticipantsMark Grant - Senior Vice President, Investor RelationsMartina Cheung - President & CEOEric Aboaf - CFOFaiza Alwy - MD - US Company ResearchScott Wurtzel - SVP - Equity ResearchOwen Lau - Executive DirectorCraig Huber - CEO & MDRussell Quelch - Managing DirectorConference Call ParticipantsToni Kaplan - Executive Director & Lead Analyst - Equity ResearchAshish Sabadra - Analyst - Information and Business ServicesAlex Kramm - ...

Sixth Street Specialty Lending (TSLX) Q2 2025 Earnings Call July 31, 2025 08:30 AM ET Speaker0Good morning, and welcome to Sixth Street Specialty Lending, Inc. Second Quarter Ended 06/30/2025 Earnings Conference Call. At this time, all participants are in a listen only mode. As a reminder, this conference is being recorded on Thursday, 07/31/2025. I will now turn the call over to Ms.Cami Senator, Head of Investor Relations.Speaker1Thank you. Before we begin today's call, I would like to remind our listeners ...

S&P Global (SPGI) Q2 2025 Earnings Call July 31, 2025 08:30 AM ET Speaker0Good morning, and welcome to S and P Global's Second Quarter twenty twenty five Earnings Conference Call. I'd like to inform you that this call is being recorded for broadcast. All participants are in a listen only mode. We will open the conference to questions and answers after the presentation and instructions will follow at that time. To access the webcast and slides, go to investor.spglobal.com.I would now like to introduce Mr. Ma ...