Core Insights - The recent bankruptcies of First Brands and Tricolor have raised concerns about potential underlying issues in the sub-investment grade credit market, suggesting that these events may not be isolated incidents but rather indicative of broader problems [3][5][6] Current Events - Allegations of fraud in the bankruptcies of First Brands and Tricolor have prompted speculation about the health of the private credit market, which has seen significant growth since 2011, with approximately $2 trillion flowing into the sector [5][6] - The private credit market emerged as banks reduced lending post-Global Financial Crisis, leading to high interest rates and perceived safety for investors [5][6] - The recent bankruptcies have led to a reevaluation of the private credit sector, with investors questioning the sustainability of the market [6][7] Company-Specific Issues - First Brands reportedly engaged in questionable practices by using the same receivables as collateral for multiple loans, raising red flags about its financial practices [7][24] - The company's total obligations have been reported at $11.6 billion, significantly higher than previously disclosed debt levels, indicating a lack of transparency in its financial dealings [27][28] - The complexity of First Brands' off-balance-sheet financing arrangements has drawn comparisons to past corporate frauds, highlighting the risks associated with opaque financial structures [27][30] Market Behavior and Risk - The financial markets tend to exhibit cyclical behavior, with periods of risk tolerance leading to lower lending standards and increased defaults during downturns [14][15][17] - The current environment may lead to a more cautious approach from lenders and investors, as recent fraud cases serve as a reminder of the inherent risks in sub-investment grade debt [35][40] - The need for superior credit analysis is emphasized, as early detection of credit defects can lead to better investment outcomes [40]

Core Insights - Mr. Mavroudis is a professional portfolio manager with a focus on risk management and in-depth financial market analysis [1] - He has successfully navigated major crises, including the COVID-19 pandemic and the PSI [1] - Mr. Mavroudis is the CEO of FAST FINANCE Investment Services, a registered Greek company [1] Professional Background - Holds an MSc in Financial and Banking Management, an LLM in Law, and a BSc in Economics, graduating as valedictorian [1] - Certified portfolio manager and analyst for financial instruments, with additional certifications in derivatives and securities market-making [1] - Licensed Class A accountant-tax consultant and member of the Economic Chamber of Greece [1] Contributions to the Financial Community - Writes daily articles for reputable financial media and appears as a guest commentator on television and online programs [1] - Published three books on investments, contributing to knowledge sharing in the investment community [1] - Engages with a vibrant community of investors through Seeking Alpha, aiming for mutual growth and knowledge sharing [1]

Core Viewpoint - The private credit industry is viewed with skepticism due to the perception that many of their loans carry higher risks than they appear, and investment vehicles associated with private credit are often trading significantly above their net asset value (NAV) [1]. Group 1 - The private credit industry is considered risky, with loans that may not be as secure as they seem [1]. - Investment vehicles linked to private credit are trading at prices that exceed their NAV, indicating potential overvaluation [1].

For the first time since a war of words erupted over the risks in private credit in the wake of high-profile collapses, investors are getting hard figures on the state of the $1.7 trillion debt market https://t.co/i79upCzcvl ...

The US SEC has been scrutinizing Egan-Jones Ratings, according to people familiar with the matter, delving into the business practices of a leader in the fast-growing market for private-credit ratings. https://t.co/wO8rZu6w9O ...

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Financial Data and Key Metrics Changes - Total fee-paying assets under management (AUM) reached $29.1 billion, a 17% increase year-over-year [6][13] - Fee-related revenue (FRR) for the third quarter was $75.9 million, a 4% increase compared to the same quarter in 2024 [15] - Adjusted net income (ANI) was $28.6 million, a decrease of 7% from the third quarter of 2024 [17] - Fully diluted ANI per share was $0.24 compared to $0.26 in the prior year [17] - Operating expenses remained flat at $65.2 million compared to the third quarter of last year [16] Business Line Data and Key Metrics Changes - Private equity strategies raised and deployed $711 million, while venture capital solutions raised and deployed $12 million [16] - Private credit strategies added $192 million to fee-paying AUM [16] - The company raised and deployed $915 million in organic gross new fee-paying AUM during the third quarter [5][13] Market Data and Key Metrics Changes - The company raised and deployed $4.3 billion of organic fee-paying AUM in the first three quarters of 2025, a 48% increase compared to the same period in 2024 [6][8] - The fundraising environment remains resilient, with strong demand for secondary products and multi-strategy offerings [16] Company Strategy and Development Direction - The company aims to expand its private credit franchise, which currently represents less than 20% of fee-paying AUM [4][5] - The focus is on the middle and lower middle markets, which are seen as having significant growth opportunities [6][10] - The company plans to continue engaging with larger pools of global capital and expanding its product offerings [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the underlying business and the quality of credit portfolios [5][12] - The company anticipates a return to historical averages for step-downs and expirations in 2026 [14] - Management is optimistic about the macroeconomic environment improving, which could enhance deployment opportunities and returns across the platform [48][49] Other Important Information - The company repurchased approximately 110,000 shares at a weighted average price of $11.34, totaling $1.25 million [12] - A quarterly cash dividend of $0.033 per share was approved, payable on December 19, 2025 [18] - The company has $26 million remaining on its buyback authorization [52] Q&A Session Summary Question: Clarification on estimate-driven step-down and client commitment - Management confirmed that the new client commitment is included in fee-paying AUM and was part of a structured relationship [22] Question: Details on Qualitas US fund and insurance company contributions - The Qualitas US fund will primarily invest in the US and be marketed to European investors, showcasing platform synergies [24][26] - Management noted a focus on expanding relationships with large capital allocators, including insurance companies [27][28] Question: Steps to support accelerated growth in the credit platform - Management emphasized disciplined underwriting and identified growth opportunities in NAV lending and impact credit strategies [33][35] Question: Challenges faced by mid and lower mid-market-focused managers - Management highlighted structural advantages in the lower middle market and the importance of strategic insights provided to GPs [40][42] Question: Impact of M&A environment on the company - Management indicated that a more accommodative macro environment would benefit all players, including P10, by enhancing deployment opportunities [48][49] Question: Current buyback capacity and authorization - Management stated there is $26 million remaining on the buyback authorization and reiterated the importance of share repurchases as a capital return tool [52]

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In today's bonus edition of Going Private, we explore the outlook for Japan's capital markets and its cautious embrace of private credit https://t.co/cxXUZsWhDX ...

Core Insights - Trinity Capital demonstrates consistent growth across its five business verticals, maintaining a differentiated investment portfolio and disciplined underwriting practices [1][4][11] - The company reported a strong Q3 with $471 million funded, bringing year-to-date investments to $1.1 billion, and a robust investment pipeline of $1.2 billion in total unfunded commitments [2][12] - The net asset value (NAV) increased by 32% year-over-year, with a record NAV of $998 million, reflecting strong performance metrics [3][13] Financial Performance - Trinity Capital generated $75.6 million in total investment income, a 22% year-over-year increase, and $37 million in net investment income, representing a 12% coverage of quarterly distributions [12][4] - The company distributed a cash dividend of 51¢ per share, marking the twenty-third consecutive quarter of consistent dividends [3][4] - The effective yield remained strong at 15% for the quarter, despite a declining rate environment [12] Investment Strategy - The company focuses on a diversified portfolio across five verticals: sponsor finance, equipment finance, tech lending, asset-based lending, and life sciences, supported by dedicated teams [8][9] - Trinity Capital has a unique structure as an internally managed BDC, aligning the interests of employees and management with those of shareholders [9][10] - The majority of loans include interest rate floors, mitigating the impact of rate cuts on income [5][6] Growth Initiatives - The asset management business is expanding, with new income generation and a growing number of positions in portfolio companies [2][6] - The company raised $83 million of equity through its ATM program at a 19% average premium to NAV, enhancing its capital base [6][13] - Trinity Capital is actively raising outside capital for its third SBIC fund, expected to add over $260 million of capacity to the platform [6][11] Portfolio Quality - The portfolio remains strong with nonaccruals at 1% of the total debt portfolio, and 99% of investments performing at fair value [15][12] - The average internal credit rating of the portfolio is 2.9 on a scale of 1 to 5, indicating consistent credit quality [15] - Portfolio companies collectively raised $2.3 billion in equity capital, highlighting their strength and access to capital [17] Market Position - Trinity Capital operates in a niche market with limited overlap with other BDCs, allowing it to avoid spread compression seen in the broader market [29][30] - The company is focused on maintaining a shareholder-first mindset, aiming for consistent dividends and long-term value creation [18][48] - The management team emphasizes the importance of maintaining a strong balance sheet and liquidity to capitalize on market opportunities [53][54]