Financial Data and Key Metrics Changes - For the quarter ending March 31, 2025, the company reported net investment income before taxes of $700,000 or $0.05 per share, down from $0.06 per share in the prior quarter [4] - The net asset value per share increased by $0.02 to $5.42 compared to $5.39 as of September 30, 2024 [5] - The fair value of the portfolio was $192.4 million, up from $191.6 million on December 31 [14] - Net assets increased by $500,000 from the prior quarter to $78.1 million [14] - The weighted average yield of the debt portfolio increased to 10.8% from 10.4% in the previous quarter [14] Business Line Data and Key Metrics Changes - The company invested in one new portfolio company and two existing portfolio companies during the quarter, with total fundings for new investments amounting to $5.1 million [10] - Realized investments totaled $7.3 million with an internal rate of return (IRR) of approximately 9.6% [10] - The largest industry concentrations by fair market value included professional services at 15.5%, containers and packaging at 9.2%, and trading companies and distributors at 8.6% [13] Market Data and Key Metrics Changes - The company noted a noticeable slowdown in new deal activity, particularly in M&A volume and sponsor-less financing [6] - Less than 20% of the portfolio may experience moderate direct effects from tariffs, with proactive measures being implemented to mitigate impacts [8] Company Strategy and Development Direction - The company remains focused on maintaining net asset value stability and sustainable net investment income while selectively deploying capital in high-quality opportunities [17] - The management expressed cautious optimism about potential investment opportunities in the second half of 2025 as market volatility decreases [17] Management's Comments on Operating Environment and Future Outlook - Management highlighted that the portfolio remains stable despite reduced investment activity and prepayment trends, with a significant reduction in non-accrual investments [5][6] - The company expects more stabilized profiles for the remainder of 2025, notwithstanding any macroeconomic shocks [6] - Management is optimistic about the potential for increased net investment income in the second quarter due to spread widening in new opportunities [32] Other Important Information - The Board of Directors declared a distribution of $0.12 per share payable in cash on June 14, 2025 [16] - As of March 31, the company had approximately $13 million in cash, with $10.7 million being restricted cash [16] Q&A Session Summary Question: How can the adviser scale or provide benefits to the BDC? - Management indicated that waiving fees is always a consideration and that scaling the private credit platform is an ongoing effort that will help absorb overhead and expenses [20][22] Question: What is the timeline for capital raising? - Management confirmed that they are currently in the process of raising another pool of capital, expected to benefit shareholders in the second half of 2025 [26][27] Question: Why not consider share repurchases given the current stock price? - Management acknowledged that share repurchases are a tool they consider but have no immediate plans in place [30] Question: Should there be an increase in net investment income in the second quarter? - Management suggested that there could be an increase in net investment income due to spread widening, holding other factors constant [32]

Financial Data and Key Metrics Changes - For Q1 2025, the company generated GAAP net investment income of $0.35 per share and core net investment income of $0.37 per share, which excludes estimated excise taxes [6] - Net asset value per share decreased by $0.21 during the quarter, primarily due to company-specific write-downs in the loan portfolio and a reduction of spillover income [6] - The company has paid $295 million in dividends since its IPO, representing $17.9 per share to an investor in the IPO [6] Business Line Data and Key Metrics Changes - The investment portfolio at fair value increased to $991.1 million across 110 portfolio companies, up from $953.5 million across 105 companies as of December 31, 2024 [7] - During Q1, the company invested $46.7 million in seven new portfolio companies and had $8.7 million in other investment activity at par [7] - 90% of the loans were secured, and 91% were priced at floating rates, with an average loan per company of $9.4 million [7][8] Market Data and Key Metrics Changes - The company noted that 52% of the portfolio is rated two or on or ahead of plan, while 21% is marked at an investment category of three or below [8] - Loans to five portfolio companies are on non-accrual, comprising 6.7% of the total cost and 4% of the fair value of the total loan portfolio, representing a decrease from the prior quarter [8] Company Strategy and Development Direction - The company plans to draw new leverage under the SBIC III license to continue funding qualifying portfolio company investments [9] - The company aims to grow the portfolio to over $1 billion, with potential for more than $10 million in equity gains by year-end [11] Management's Comments on Operating Environment and Future Outlook - Management expects new loan originations to be offset by loan repayments for the remainder of Q2 2025, indicating a flat portfolio [11] - The management expressed optimism about the return of M&A activity, which was temporarily disrupted due to tariff-related uncertainties [20][50] Other Important Information - The company issued $75 million in aggregate principal amount of 7.25% notes due April 1, 2030, to repay the bank facility [9] - The company has received a green light letter from the Small Business Administration for Stellus Capital SBIC III, which is a significant step in the licensing process [10] Q&A Session Summary Question: Impact of first quarter originations on interest income - Management indicated that the average portfolio in Q1 was higher than in Q4, which should lead to a pickup in yield for Q2 [15][16] Question: Pipeline status and lending opportunities - Management noted that the pipeline is slower compared to three months ago, but they expect interesting opportunities to close in the upcoming quarters [19][20] Question: Trajectory of net investment income (NII) to cover dividends - Management acknowledged that NII is currently less than the dividend but expects to be in a good position by the end of the year due to potential equity co-investments [23][24] Question: Trade education acquisition restructuring - Management confirmed that the business was restructured and recapitalized satisfactorily, expecting it to perform well moving forward [27][28] Question: Logic behind issuing fixed-rate debt - Management explained that the issuance was necessary to retire maturing bonds and to have some unsecured debt in the capital stack [34][35] Question: Future issuance of unsecured debt - Management indicated that more unsecured debt will be needed before the maturity of existing bonds, with the magnitude still being determined [54]

Core Insights - MSC Income Fund, Inc. reported a net investment income of $16.8 million, or $0.38 per share, for the first quarter of 2025, reflecting a 15% increase from the previous year [4][7][8] - The Fund's net asset value as of March 31, 2025, was $718.9 million, or $15.35 per share, showing a slight decrease from the previous quarter [8][28] - The Fund declared a total dividend of $0.36 per share for the first quarter, which includes a regular quarterly dividend of $0.35 and a supplemental dividend of $0.01 [8] Financial Performance - Total investment income for the first quarter of 2025 was $33.2 million, a decrease of 2% from $33.9 million in the same period of 2024 [4][8] - Interest income decreased by 6% to $27.4 million, while dividend income increased by 108% to $5.1 million [4][8] - Total expenses decreased by 15.3% to $16.4 million, primarily due to a reduction in incentive fees and interest expenses [5][8] Operational Highlights - The Fund achieved a return on equity of just under 10% for the quarter [3] - The net increase in net assets resulting from operations was $15.9 million, a 50% increase compared to the first quarter of 2024 [8][10] - The Fund's liquidity as of March 31, 2025, was $163.5 million, including $39.5 million in cash and cash equivalents [12] Investment Portfolio - As of March 31, 2025, the Fund's private loan portfolio had a fair value of $767.8 million, while the lower middle market (LMM) portfolio was valued at $439.7 million [15][18] - The Fund's investment portfolio consisted of approximately 61% private loans, 35% LMM, and 2% middle market investments [18] - The weighted-average annual effective yield for the private loan portfolio was 11.6%, while for the LMM portfolio, it was 13.1% [15][16] Capital Structure - The Fund completed a follow-on equity offering in January 2025, generating net proceeds of $90.5 million, enhancing its liquidity and leverage capacity [13][14] - The Fund's debt-to-equity ratio was 0.79x as of March 31, 2025, reflecting a decline from target leverage levels due to the equity offering [17][18] - The Fund's credit facilities included a Corporate Facility with total commitments of $245 million and a SPV Facility with total commitments of $300 million [17]

Company Overview - AGNC Investment is a mortgage real estate investment trust (REIT) that focuses on buying pooled mortgage securities rather than owning physical properties [2][4] - The company aims to profit from the difference between its cost of capital and the interest earned from its mortgage securities [4] Dividend and Total Return - AGNC Investment offers a high dividend yield of 16%, but its primary goal is total return rather than income generation [5][12] - The company encourages investors to reinvest dividends for better long-term outcomes, as relying solely on dividends may lead to reduced income and capital [5][7] Transparency and Valuation - AGNC Investment is transparent about its operations, stating its objective of favorable long-term stockholder returns with a substantial yield component [7] - The tangible net book value (NAV) of AGNC Investment was reported at $8.25 per share, down from $8.41, yet investors are willing to pay above this value, indicating a premium of nearly 25% [9][10] Investment Considerations - Investors should be cautious about paying more than the tangible net book value for AGNC Investment shares, as this could indicate overvaluation [10][12] - The company has historically achieved its total return goal, but potential investors should ensure they are buying for the right reasons and at a reasonable price [13]

Financial Performance - Net Investment Income (NII) was $187 million, or $0.67 per share, for the quarter ended March 31, 2025, compared to $171 million, or $0.61 per share, for the previous quarter[2] - Adjusted Net Investment Income (Adjusted NII) was $182 million, or $0.65 per share, for the quarter ended March 31, 2025, compared to $185 million, or $0.66 per share, for the previous quarter[2] - Net Asset Value (NAV) per share as of March 31, 2025, was $23.37, compared to $23.64 as of December 31, 2024[2] - The Adjusted NII / total dividend coverage ratio was 93% for the quarter ended March 31, 2025[2] Investment Activity - New investment fundings in the first quarter were approximately $2 billion[2] - Net investment activity in the first quarter was $881 million, including $290 million of sales to Credit Opportunities Partners JV, LLC (COPJV)[2] Capital Structure and Liquidity - $3.2 billion of liquidity in undrawn debt, cash, and unsettled trades[2] - 54% of drawn leverage was unsecured as of March 31, 2025, and the weighted average effective rate on borrowings was 5.5%[2] - In the first quarter, KKR FSK CLO 2 was closed, issuing $380 million of notes to third parties at a weighted average rate of S+1.58%[2] - 89% of liabilities mature in 2027 and beyond[2] Portfolio Composition - The fair value of investments was $14.1 billion with 224 portfolio companies[9] - Senior secured investments total 72.6% of the portfolio, looking through to the investments in COPJV as of March 31, 2025[14]

Investor Presentation Quarter Ended March 31, 2025 May 6, 2025 NASDAQ: GECC Forward Looking Statement Statements in this communication that are not historical facts are "forward-looking" statements within the meaning of the federal securities laws. These statements include statements regarding our future business plans and expectations. These statements are often, but not always, made through the use of words or phrases such as "expect," "anticipate," "should," "will," "estimate," "designed," "seek," "conti ...

Core Viewpoint - Great Elm Capital Corp. reported strong financial results for Q1 2025, achieving record total investment income of $12.5 million, driven by cash flows from its CLO joint venture and new investments, with net investment income (NII) exceeding the increased quarterly distribution [3][5]. Financial Highlights - Total investment income for Q1 2025 was $12.5 million, or $1.08 per share, compared to $8.9 million in Q1 2024 [8][20]. - NII for Q1 2025 was $4.6 million, or $0.40 per share, up from $2.1 million, or $0.20 per share, in Q4 2024 [5][20]. - The company increased its quarterly distribution by 5.7% to $0.37 per share for Q1 2025, with a second quarter distribution of the same amount approved, equating to a 14.7% annualized yield based on the closing price of $10.09 on May 2, 2025 [5][10]. Portfolio and Investment Activity - As of March 31, 2025, GECC held total investments of $341.9 million at fair value, with a significant portion in corporate credit [5][19]. - The weighted average current yield on the debt portfolio was 12.3%, with floating rate instruments comprising approximately 73% of the fair market value of debt investments [6][11]. - During Q1 2025, GECC deployed approximately $37.4 million into 16 investments at a weighted average current yield of 15.1% [6]. Asset and Liability Overview - Net assets were $132.3 million, or $11.46 per share, as of March 31, 2025, down from $136.1 million, or $11.79 per share, at the end of Q4 2024 [5][19]. - Total debt outstanding was $207.4 million, with various senior notes and $12.0 million outstanding on a revolving line of credit [9][19]. Management Commentary - The CEO expressed optimism about the company's ability to cover distributions throughout 2025 and emphasized a focus on capital deployment into opportunities with compelling risk-adjusted returns [3].

Core Viewpoint - Hercules Capital Inc. (HTGC) reported a first-quarter 2025 net investment income of 45 cents per share, missing the Zacks Consensus Estimate by one cent and reflecting a 10% decline year-over-year due to weak performance in interest, dividend, and fee income [1] Group 1: Financial Performance - Total investment income for the first quarter was $119.5 million, down 1.7% from the previous year, primarily due to a lower-weight average yield on the debt investment portfolio, and also lagged behind the Zacks Consensus Estimate of $121.8 million [2] - Net investment income was $77.5 million, a decrease of 2.2% year-over-year [1] - Total gross operating expenses increased slightly to $45.3 million, attributed to rising interest costs [2] Group 2: Portfolio and Commitments - The fair value of Hercules Capital's total investment portfolio stood at $3.92 billion as of March 31, 2025, with early loan repayments realized at $131.8 million [3] - The company delivered $1.02 billion in gross new debt and equity commitments and $539.1 million in gross new funding during the first quarter [3] Group 3: Balance Sheet and Liquidity - As of March 31, 2025, Hercules Capital's net asset value was $11.55 per share, down from $11.66 as of December 31, 2024 [4] - The company had $615.6 million in liquidity, which included $51.2 million in unrestricted cash and cash equivalents, and $564.5 million in credit facilities and SBA debentures [4] Group 4: Cost of Debt - The weighted average cost of debt, including interest and fees, remained stable at 4.9% compared to the prior-year quarter [5] Group 5: Strategic Outlook - The company's lack of global diversification may limit growth prospects, while efforts to enhance originations could keep expenses elevated; however, rising demand for customized financing and stable debt expenses are expected to support total investment income [6]

OFS Capital (OFS) Q1 2025 Earnings Call May 02, 2025 10:00 AM ET Company Participants Steve Altebrando - Head - IRBilal Rashid - Chairman & CEOKyle Spina - CFO Operator Good day, and welcome to the OFS Corporation q one twenty twenty five earnings conference call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Mr. Steve Altibrandeau, Head of Inve ...

OFS Capital (OFS) Q1 2025 Earnings Call May 02, 2025 10:00 AM ET Company Participants Steve Altebrando - Head - IRBilal Rashid - Chairman & CEOKyle Spina - CFO Operator Good day, and welcome to the OFS Corporation q one twenty twenty five earnings conference call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Mr. Steve Altibrandeau, Head of Inve ...