Financial Data and Key Metrics Changes - Adjusted net investment income was $0.36 per share, flat compared to the prior quarter [7] - Annualized net investment income ROE was 15.4% and net asset value per share was $9.18, down from $9.23 in the previous quarter [8] - Net realized losses for the quarter were approximately $41 million or $0.48 per share, primarily due to the disposition of investments [24] - Net unrealized gains totaled $30 million or $0.35 per share, reflecting reversals of previous losses [24] Business Line Data and Key Metrics Changes - The portfolio had a fair market value of approximately $1.8 billion, invested across 146 companies [16] - 90% of the portfolio was invested in senior secured debt, with a weighted average annual effective yield of 12.2%, down from 12.4% in the previous quarter [17] - New investments had a weighted average yield of 11.4%, while exited investments had a yield of 11.2% [17] Market Data and Key Metrics Changes - The company estimates that only a mid-single-digit percentage of the portfolio at fair market value will be directly impacted by tariffs [30] - The middle market is identified as the fastest-growing sector of the economy, with over 200,000 companies generating more than $10 trillion in annual revenue [31] Company Strategy and Development Direction - The company is focused on investing in first lien loans and maintaining a well-diversified portfolio [20] - Plans to refinance the next major debt maturity in 2026 are underway, with a goal to access attractively priced capital [28] - The company aims to resolve remaining challenged positions within the portfolio while maintaining a disciplined approach to originating loans [33] Management's Comments on Operating Environment and Future Outlook - The current market environment is characterized by tightened access to capital and higher financing costs [29] - The company remains optimistic about the prospects for portfolio companies, particularly those in the middle market, which are seen as resilient [32] - Management is closely monitoring portfolio companies to assess potential impacts from the current environment [33] Other Important Information - The Board declared a second quarter dividend of $0.25 and a special dividend of $0.04 per share [14] - The company repurchased 3,150 shares of TCP stock during the quarter and an additional 39,500 shares after the quarter end [14] Q&A Session Summary Question: Thoughts on the trajectory of share repurchases - The company will continue to monitor trading prices and repurchase shares when they are deemed accretive [38] Question: Do most portfolio companies have sponsors? - The majority of portfolio companies have sponsors or institutional ownership, but decision-making often involves management teams [40] Question: Timeline for restructuring aggregator businesses - The company expects to complete restructurings in the next few quarters, with some positive signs of improvement [50] Question: Changes in deal types going forward - The company plans to focus on being the dominant lender in deals, avoiding situations where they cannot exercise influence [56] Question: Details on the job and talent markup - The markup was driven by improved performance and the provision of growth capital, with confidentiality around specific deal terms [62] Question: Pursuing new SBIC licenses - The company is in the process of obtaining a second SBIC license, with no significant changes to the expected timeline [67]